Top Real Estate Articles

Changing Assessor Property Records

Jun 4, 2009 Real Estate Properties

Frequently the Assessors home records are not accurate since the Assessor is a massive processing government organization and possibly the work was done very fast, or the information varied without their knowledge or there was documentation that slipped through the cracks. The reasons are endless, however the great thing is that the answer to this problem is simple. Every property there is a property record with the Assessors which includes a drawing of the shell of the building and details about the home.

Some Assessors Offices keep much more detailed records depending on their tools, work load and staff. However, all records for your house are for valuation purposes even though other real estate professionals use these records to verify property records. From the diagram the square footage of the building is calculated and the description will include the type of property, the use type, and any other information that may be relevant to the property and its value.

These are the records that most real estate transactions are based on even though the Assessor makes no representation of having complete information for valuation purposes. The records are meant for assessment purposes only, however in reality it is generally the practice of real estate professionals to use as official for purchases, sales, re-finances and other transactions. Which means having your records accurate will more than likely affect the value of your home since the banks, buyers, sellers, etc. all use these records to verify what is on your property.

If the records for your house are wrong, it easy to adjust and/or bring them up to date. Contact your county Assessor and your request will generate a public service request and ask to have the data updated. The public service request will be forwarded to an appraiser who will talk with you and/or make an appointment to possibly visit your property for measurements or find out from you over the phone what the differences are and then make the adjustments accordingly. Frequently, the Assessor will use the information you give them over the phone for something simple such as a bedroom or bathroom count adjustment. Generally, this is very easy for the Assessor to process. If there is some type of new contruction to your house that you constructed and has not been assessed yet, it may result in more propety taxes however, if the error is the Assessor’s fault there is a statute of limitations so ask about this when you speak to them and make sure you document their response. Remember, there are many facets to assessments and you want to be covered should you be misinformed.

Note that if changes were done prior to your purchase of the property it possibly is construction before transfer and if you acquire the home with the structure differences already there, often thre will be no rise in your property taxes that would result from the record update. The logic behind this is, is that you paid for those improvements at the time you purchased the home and so there is no adjustment in worth. But, if you enhanced your home then there could be a change in the value. The Assessor’s Office may ask for information and documentation from when you purchased the home such as the listing data. Often, the Assessor will go based on your word and will update the records through a phone call especially for simple adjustments.

One key factor to remember when looking into this is that the Assessor’s Office is separate from your city. The Assessor simply wants accurate data so that any valuation of your home they do is accurate. They normally don’t care if what you have on your property is legal or not because even when illegal it can add value. The Assessor is not normally in the habit of reporting what is on your property to your city so this can be much easier than you think. Often when taxpayers think of the Assessor or the City they mistake all of these different government entities as being in communication with one another, normally they aren’t and they are just doing their jobs.

About the Author: Valerie Faltas, Property Tax Expert worked in assessments for over four years and assessed over 6,000 properties. Valerie is also a licensed appraiser, real estate investor and consultant. She left the Assessor to make information public she could not disclose while she worked there.

Tags: assessed value, California Property, California Property Tax, lower property taxes, p, property assessor, Property Tax Assessment, Property Tax Reduction, Property Taxes, proposition 13, Real Estate Properties, real;estate, reduce property taxes, tax assessment

What’s the Difference Between a House, Condo, PUD, Townhouse and a Co-Op?

Jun 4, 2009 Real Estate Properties

Before I get into this topic let me define PUD: PUD stands for Planned Unit Development. A PUD is essentially a single family residence and the legal ownership of the home is legally defined that way. The biggest difference is that a PUD is part of a community, part of a larger development similar to a condo complex. You will own your residence and still pay an association fee per month to maintain community areas such as parks, pools and sometimes recreation rooms. The association regulates neighborhood improvements so if you want to make major changes to your home or want to paint your house you will need the homeowners’ association’s approval. Since a PUD is basically a single family home that is also part of a larger community you are liable for your own repairs and maintaining your own homeowners insurance since you own the land and the structure.

A townhouse and condominium (condo) are for legal purposes the same thing in terms of ownership, there is no distinction in ownership. The distinction between these two words refer to the building style. Usually, a condo is more of an apartment style structure as opposed to a townhouse that usually looks like an independent home that may or may not have attached walls to the rest of the townhouses in the same community. When you acquire a condo or townhouse what you are acquiring is cubic airspace of a specific unit with an interest in the common elements of the property. The common elements including the lobby, swimming pool, recreation area, land, etc. Legally you own airspace, you dont own land or a building.

Each townhouse and condo community has a homeowners’ association and the association maintains the grounds, structures and systems of the community. The association fees are pretty high because they maintain the entire complex. You wont need homeowners insurance though because its part of the association fees. Unlike owning a house where you may have a huge repair cost every five years, you pay monthly and the money accumulates and is used when needed to maintain the complex. When purchasing a condo or townhouse it is critical to find out about the association. If the association is bankrupt you will have major issues in the future with the value of your home and with any repairs that the complex may need.

Co-Op is short for Cooperative and is called an Own-Your-Own also. Structurally similar to a condo, like an apartment you own. A co-op is when the structrure itself is a corporation that holds title to real estate. As an owner, you own stock in that corporation and you are granted the right to occupy as a shareholder in that corporation. Co-ops like condos have a homeowners’ association that handles the community structure and grounds. The association has a monthly association fee to maintain the community. As a shareholder (owner) of a co-op you wont need homeowners’ insurances since the association covers it. Cooperatives are common on the east coast and sometimes getting a loan for this type of real estate can be challenging in an area like Los Angeles where cooperatives are rare.

A home also called a single family home or single family residence is the simplest type of ownership. Legally called fee simple or fee simple estate. As the owner of a home you own the building and land beneath it and have all legal rights to the property. You are responsible for all repairs since you own it all! You need to have homeowners insurance and pay for repairs the house may need. There is no larger community you are a part of and consequently no homeowners’ association to handle problems or cause problems.

When you are buying a house, condo, co-op or PUD understand that there are FOUR costs you need to factor into your monthly overhead: mortgage payment, property taxes, homeowners’ insurance and association fee. Your mortgage payment is only the beginning!

Tags: assessed value, c, California Property, California Property Tax, l, lower property taxes, p, property assessor, Property Tax Assessment, Property Tax Reduction, Property Taxes, proposition 13, r, Real Estate Properties, real;estate, reduce property taxes, t, tax assessment

Understanding Prop 13 Assessment

May 31, 2009 Real Estate Properties

California only allows two things that initiate a re-assessment: transfer in ownership (also called a transfer) and new construction. A transfer in ownership is when any part of the ownership interest in the home has changed whether money changed hands or not. The Assessorss Office will review the transfer to see if its re-assessable. If it’s an assessable change in ownership, the data is sent to the appraisal staff to give or review the value and modify the base value appropriately. A change in ownership that isn’t assessable must have fallen within the parameters of an approved exemption. A transfer into a revocable trust or an inter-spousal transfer that are both examples of exemptions allowed in California articulated in our Inherited Property and Exemptions Guide detailed in the California Little Black Book.

When a transfer is exempt, the ONLY way the Assessorss Office knows this is through forms and/or applications which are recorded along with the deed or later requested by the Office of the Assessor to confirm an exempt transfer. So when there is no exemption, the transfer in ownership is considered assessable per Prop 13. Which means if you do not apply for the exemption, submit a form or offer accepted documentation for an exemption, the transfer is considered assessable automatically. The Office of the Assessor is a mass assessment organization and unless you tell them what you need preferably through forms and documents they wont know what may or may not apply to your change in ownership.

The other trigger for re-assessment based on Prop 13 is new construction. The Assessors’s Office is told by the city or county building and safety offices. The city or building and safety give the information about issued permits to the Office of the Assessor for property tax purposes. Keep in mind, your city receives some of your property tax dollars so though its primarily a state tax your local municipality benefits from it. The permits are given to the real property appraisers to update the building record and change the base value if warranted based on Prop 13. Normally, it takes the Assessors’s Office a fair amount of time to get to since field work is necessary to find out what was done to your house and then a valuation process. If there is a demo, your property taxes will likely be reduced, if there is an addition there is likely going to be an go up. So, if you demolish a pool your property taxes will decrease and if you add a pool, your property taxes will increase. Construction varies from home to home and it will be reviewed based on the value that was added or taken away. This is clearly explained in the California Little Black Book with examples and scenarios. When was employed by the Assessor I assessed countless homes where various types of construction was done and would be happy to answer any questions you may have pertaining to this!

Like new construction there will be a re-assessment of a property if the use of it changes. For example if a complex of co-ops is converted into condominiums the Assessor will reassess the value of each unit because the change affects the market value of each unit. However, generally in California there are two events that trigger re-assessment based on Prop 13: change in ownership or new construction.

About the Author: Valerie Faltas, Property Tax Expert has been involved in all facets of real estate for over ten years including assessments, appraisals, estates and trusts, investing and much more. She is a Certified Property Tax Appraiser, Licensed Residential Appraiser and a member of the International Association of Assessment Officers. As a real estate investor and advisor she is well versed in all aspects of real estate. To contact Valerie Faltas go to her website: www.propertytaxlittleblackbook.com.

Tags: assessment, c, California Property Tax, change in ownership, contruction, e, f, finance, h, Home Construction, home;improvement, l, lower property tax, o, p, prop 13, Property Assessment, Property Tax, r, Real Estate, Real Estate Properties, real;estate, reduce property tax