When a property is listed for sale, the seller and their agent work together to create a strategy that positions the property to its best advantage when it goes to market. The considerations are many and include but are not limited to marketing campaigns/strategies, preparing the property to show in its best light through repairs, refreshes, or staging, thorough evaluation of comparable listings and sales, and so much more.

Another consideration the seller may wish to weigh carefully is whether or not they would consider an offer of compensation to the buyer's broker or a concession to the buyer.  

This is an essential evaluation because some buyers are simply not flush with cash. In the new real estate landscape, Realtors® and MLS participants must enter into a written agreement with buyers before touring the property. 
 
Based on the written agreement, the buyer would be responsible for paying their broker for professional representation.  It would benefit buyers who cannot fulfill that obligation to receive financial assistance from the seller. Buyers must be prepared to pay lender, appraisal, escrow, and title fees, as well as inspections, potential repairs to the property, home warranty protection, and the list goes on.
 
Suppose a seller is willing to consider offering either a contribution to the buyer’s obligation to pay their broker or a concession crediting the buyer directly at closing toward costs and fees. In that case, it may appeal to a buyer who might otherwise not have the liquidity to move forward with the home purchase. 
 
Another reason a seller may wish to consider paying the buyer broker would be to forestall the risk of a “self-represented” buyer.  Buyers who do not work with brokers may not fully understand the transaction process, which may lead to delays and misunderstandings during the negotiations and throughout the escrow process.  In addition, some sellers have indicated concerns about a buyer not being able to fulfill their obligation to pay their broker at the last minute, which could derail the closing.
 
These are just a few factors that a seller may consider, Consumer Choice is the order of the day.

The Realtor’s fiduciary duty to their client is to provide options, discuss the pros and cons, and let the client decide. 

Pete Sabine
Real Estate Consultant
Call or text 925.787.2548
[email protected]
​
Compass
DRE #00889760

Down payment assistance for first-time California home buyers relaunches with new lottery.

California is set to allocate an additional $250 million in down payment assistance to first-time homebuyers this spring. This move comes as the state makes adjustments to its program, which is designed to reach a more diverse group of borrowers across California.

Last year, the California Dream for All loan program, which offered homebuyers financial support, quickly exhausted its $300 million budget in just 11 days. While the program was highly popular, there were concerns from some Realtors and lenders. They observed that some recipients of the funds were already well into the process of buying a home, raising questions about whether the loans were going to those who could already afford homes.

In the upcoming round of the program the state will continue with its "shared appreciation" lending model. This means that first-time homebuyers will receive assistance towards their down payment, up to 20% of the purchase price or $150,000, whichever is lower. In return, the state will be repaid the loan amount along with a portion of the home's appreciation when it is sold in the future.

To prevent a rush for the loans, the California Housing Finance Agency, which oversees the Dream for All program, is replacing the original first-come, first-served approach with a lottery system. Homebuyers will have until April to find an approved lender and begin their application process. The lottery will open in early April, giving buyers a month to submit their applications. Around 1,700 to 2,000 fortunate lottery winners will receive vouchers that they can use within 60 days to purchase a home.

The extended timeline aims to assist Californians who are uncertain about their ability to buy a home without state assistance. 

Eric Johnson, a spokesperson for CalHFA, mentioned that the program targets individuals with stable incomes, decent credit scores above 660, and the aspiration of homeownership. This extra time allows them to become motivated, seek out a loan officer, and work on improving their credit score or managing their debt-to-income ratio with the help of loan officers or brokers.

Californians interested in applying for the program can visit the California Dream for All website​ for updates or join CalHFA’s homebuyer email list​. 
​
Pete Sabine​
Real Estate Consultant
Call or Text 925.787.2548
[email protected]
Compass - DRE #00889760

The new AB 1033 law passed in California allows property owners to sell their Accessory Dwelling Units (ADUs) separately from the primary residence, following the same rules that apply to condominiums. Homeowners may also choose to move into their ADUs and sell their main home. This new legislation marks a significant change to the traditionally stringent zoning laws and aims to address the state’s pressing housing needs.
 
The primary intent of the ADU Assembly Bill 1033 is to address California’s housing crisis by providing more affordable and accessible housing options. The legalization of ADUs not only increases the property value but also opens up opportunities for rental income.

AB 1033 introduces two main provisions. First, it allows ADUs to be sold separately from the main residence, creating greater housing density and more affordable homeownership options. Second, it supports a simple partition in-kind of single-family homes, which reduces the need for lengthy and costly legal proceedings.
 
The new law will only take effect in cities that “opt-in” to the law governing ADUs under the same rules as condos. ADUs will have different property taxes from the homes they’re built beside, and each property will be required to form a homeowners association to assess costs for maintenance of shared spaces between the home and ADUs.

Another requirement is having separate utility meters for gas, electricity and water services. 
 
This new legislation enables homeowners to capitalize on their existing equity by selling ADUs built on their properties. It is expected to help people looking to buy starter homes amid California’s housing shortage and high prices while lightening the burden of homeowners, especially elderly ones who may have paid off their homes but have relatively little income.
 
The new law is set to take effect on January 1, 2024. If you have any questions, feel free to reach out! We can provide resources for contractors that specialize in ADU construction. 

Pete Sabine & Leslie Whitney
​Visit OurFiveStarTeam.com
​Compass
​DRE #00889760

​When the last Trustee has deceased, the designated Successor Trustee is burdened with the disposition of the assets within the Trust and there are specific requirements of the Successor Trustee(s) under the California Probate Code 16061.7

Minimum Required Successor Trustee Tasks: 

• Trustee should get multiple copies of death certificate(s) 
• Trustee must remove the prior Trustee’s name from all assets held in the Trust
  • Affidavit of Change of Trustee for each property which is recorded
  • Removal of Trustee’s name from bank and investment accounts 

 
Minimum Required Successor Trustee Tasks: Probate Code 16061.7 

• Notification under California Probate Code §16061.7 requires a Trustee to send a notice to all beneficiaries of a trust when the trust becomes irrevocable within 60 days of the trust becoming irrevocable (from the Date of Death of the deceased Trustee(s).
• Sent to everyone who would inherit in the absence of the Trust 
• Sent to everyone named in the Trust and all amendments

 
The “16061.7 Notice” must include the following information: 

• Identity of the settlor(s) (aka grantor, trustor or trust maker) of the trust 
• Date the Trust was signed 
• Trustee(s) name, address, and telephone number 
• Address of the physical location where the “principal place of administration of the trust” is located 
• Any additional information that may be expressly required by the terms of the trust instrument 
• Statement recipient is entitled, upon reasonable request to the trustee, to receive from the trustee a true and complete copy of the terms of the trust

 
Minimum Required Successor Trustee Tasks: TIN and Assessor
 

• Trustee should stop using Decedent’s SSN #
  • Trustee can complete Form SS4 and get a TIN # for the Trust 
• If Decedent was a property owner, Trustee must notify County Assessor’s Office within 150 days of death which is a Change In Ownership (CIO)
• Change in Ownership Statement Death of Real Property Owner
  Form (BOE-502-D/ASSR-176)
• Failure to timely file can result in penalties
• The penalty is 10% of the taxes, applicable to the new assessed value or $100, whichever is greater
• If not willful, $5K cap if homeowners’ exemption is claimed, $20K if no homeowners exemption claimed on the subject property

 
Successor Trustee Duties

• Keep the trust property separate from other property 
• Designate property as property of the trust 
• Enforce trust claims & defend actions against the trust 
• Not to delegate to others the performance of acts that the trustee can reasonably be required personally to perform 
• (When 2 or more Trustees) participate in the administration of the trust: keep a co-trustee from breaching the trust 
• Duty to apply the full extent of the trustee’s skills 
• The trustee must act in the best interests of the beneficiaries and must not use their position for personal gain 
• The trustee must file any necessary tax returns and pay any taxes that are due to be paid from the trust or K1 the beneficiaries 
• The trustee must make distributions to the beneficiaries according to the terms of the trust and in a timely manner 
• The trustee is responsible for managing the assets in the trust according to the terms laid out in the trust document 
• The trustee must keep accurate records (in a way that your CPA will think is ludicrous) of the trust assets and transactions and make these records available to the beneficiaries upon request 
• The trustee must provide the beneficiaries with regular accountings of the trust assets and transactions or have such accounting waived
  
  

Record Keeping and Accounting 

• Trustees must account to the beneficiaries 
• An accounting is like a big bank statement. There is a starting balance, receipts, expenses, and an ending balance. 
• All these numbers have to add up correctly…If they don’t the Trustee is 100% personally liable
  
  

Some Record Keeping Tips
 
1.Don’t withdraw cash from the trust checking account!

1. Consider an interest-bearing checking account
2. Consider a separate checkbook register for the account where you record the date, amount, and source of each deposit as well as expenses
3. Balance the checking account monthly
4. Maintain careful records of all transactions

Successor Trustee Requirements For Real Property

• Obtain multiple copies of Death Certificate(s)
• Obtain Trust TIN identification - Complete IRS Form SS4
• Remove prior Trustees names from all assets held in the Trust
  • Title company will record Affidavit of Change of Trustee
  • Include bank and investment accounts name change
• Send Notification to all beneficiaries - due no later than 60 days from date of death
• Notify Assessor’s Office - Change of Ownership Statement - due no later than 150 days from date of death
  • Form BOE-502D/ASSR-176

Realtor tasks:

• Open Presale Escrow
  • Send Death Certificate(s) and Trust to Title company for approval
  • Obtain Preliminary Title Report 
  • Title change amendment recorded by title company

 
WE RECOMMEND CONSULTING WITH LEGAL COUNSEL TO CONFIRM & VERIFY THE ABOVE INFO
 
Subscribe to the Cunningham Legal YouTube Channel
www.YouTube.com/@CunninghamLegal
 
Cunningham Legal - Office Locations
 
Northern California

• Auburn
• Oakland (Montclair Village)
• Sacramento
• San Francisco
• San Rafael
• Walnut Creek

 
Southern California

• Pasadena
• Westlake Village

Pete Sabine & Leslie Whitney
Call or text 925.787.2548
Compass
DRE #00889760

The solar industry is booming. As of 2019, there were more than 2 million residential solar installations in the U.S., and that number is projected to double by 2023. 

One way builders and homeowners are looking to install solar systems is through a lease or power purchase agreement (PPA) (i.e., a “solar agreement”) with a third-party solar provider. But solar agreements are known to create unique challenges when selling a home.

If you own a home with a solar agreement, your Realtor may be able to help you navigate potential complications with the sale.

SOME ISSUES THAT SELLERS MAY EXPERIENCE INCLUDE:

• Buyers shying away from a house because of the solar agreement (due to things like term, payment, maintenance considerations, technology obsolescence and more)
• Buyers who may not meet the solar company’s qualifications
• Potential issues involving the proper transfer of the solar agreement

5 TIPS FOR A SMOOTH CLOSING
START EARLY
Contact the solar contractor company early in the selling process whether the property is tied to a solar agreement. The terms for transferring a solar agreement may impact the marketability of a property, and disclosure to potential buyers is important.
REQUEST A COPY OF THE SOLAR AGREEMENT
Provide a copy of the current solar agreement to your Realtor. If you don’t have a copy, you should request it from the solar company.
SEEK ADVICE
Unfortunately, misconceptions about solar agreements are common. It’s important that buyers and sellers fully understand the terms of their solar agreement, including its transfer rights and requirements at the time of the sale of the home. Many solar companies have dedicated representatives to assist with the lease transfer process, but you may wish to consult with an attorney first.
COVER ALL YOUR BASES
When selling a home subject to a solar agreement, it helps to work with a trusted title company that can alert you to potential title problems that need to be addressed prior to closing.
KEEP LINES OF COMMUNICATION OPEN
Early in the process, provide your Realtor should provide the closing team with as much information as possible about the transaction. What they don’t know could cause delays to the closing process.

Pete Sabine & Leslie Whitney
Call or text 925.787.2548
Compass
​#00889760

Many older adults need some type of senior care, whether it’s a few hours per week of in-home help or full-time nursing home care. Even if you can find a high-quality senior living community in your area, the cost of care is a major concern, especially for seniors living on Social Security or limited pension benefits.
 
Due to high rates of inflation, senior care is getting even more expensive. According to the 2021 Genworth Cost of Care Survey, seniors in the United States pay an average of $4,500 per month for assisted living and $7,908 per month for a semiprivate room in a nursing home.
 
As a result, many seniors are selling their homes to finance the cost of the care they need to maintain their quality of life. The process of selling a home is complex, especially for older adults who need government benefits to cover some of their expenses.
 
In light of this, AssistedLiving.org developed a thorough, easy-to-navigate guide to assist seniors and their families to sell a house to pay for long-term senior care.
 
If you’re getting ready to help a parent sell their home, this guide can help you get organized and make wise decisions about everything from timing the sale to choosing an experienced attorney.
 
This guide addresses crucial topics such as…

• Finding Assisted Living in Your Area
• When Is the Right Time to Sell Your Parent's Home to Pay for Senior Care?
• A Home Seller's Checklist
• Important Documents You Need to Sell a Home
• Taxes, Medicaid Eligibility and Other Financial Implications of Selling a Home to Pay for Long-Term Care
• Special Considerations When Selling the Home of Someone Who Has Dementia
• Managing Difficult Emotions When Selling a Parent's Home
• Other Ways to Finance Long-Term Care
• How to Find a Real Estate Agent and Elder Law Attorney

Click on this link to access this guide.

This guide is a valuable asset to seniors and their families within your community to navigate this important life stage.

Pete Sabine & Leslie Whitney
OurFiveStarTeam.com

​AARP has stated that 77% of individuals over 50 prefer to age in their own homes. Yet, the inevitable challenges of aging, including diminished sensory faculties and mobility restrictions, can complicate their desire to stay in their current residences. As a result, finding a home better suited to their changing needs becomes an urgent concern.
 
In light of this, Caring.com developed a thorough, easy-to-navigate guide to assist seniors in their home-buying journey. This resource addresses crucial topics such as identifying the ideal location, essential home features, professional assistance, home-buying options, and effective financing strategies.
 
Click on this link to access the Guide to Buying at Home to Age-in-Place.
 
This guide is a valuable asset to seniors and their families within your community to navigate this important life stage. 

Caring.com is a leading senior care resource for family caregivers seeking information and support as they care for aging parents, spouses, and other loved ones.
Featured by AARP, The Administration for Community Living, The National Legal Resource Center, and Forbes, as well as referenced by many governmental agencies and organizations across the Internet.

There is a lot of chaos with home buyers finding homeowner insurance options in California now… here is a general outline of what has been provided to insurance agents looking for guidance... 

• Homes with a replacement cost of two million dollars and above are going to be the hardest to place. There are only two carriers actively writing in California (CHUBB AND PURE) and they will require full packages. (Home, auto & umbrella)
  
  
• Homes with a replacement cost of two million dollars and above that are DECLINED by CHUBB/PURE due to location, claims history or lack of updates  will have to be placed with non-admitted carriers such as Lloyd’s of London, Scottsdale, Azguard, Vault etc.
  
  
• Homes with a replacement cost under two million dollars still have more options. We have had success with Safeco, Mercury, Hartford, CIG, American Modern etc.
  
  
• Occupancy status is going to make a huge difference. Carriers are leaving space for primary homes. Secondary homes and investment properties will also likely have to be placed with non-admitted insurance carriers.
  
  
• Homes with lack of updates in hard locations can be placed with the California Fair Plan. California Fair Plan is the insurer of last resort but it IS an option if all other carriers decline.

 
As a proactive measure, we strongly encourage buyers check for insurability before making an offer.

We also encourage seeking insurance coverage indication quotes to include in disclosures on behalf of the sellers. 

Pete Sabine & Leslie Whitney
OurFiveStarTeam.com
​

Let's talk about the ins and outs of pre-qualification, pre-approval, and TBD approval.
They may sound similar, but each one is a different stage in the mortgage approval journey.

Pre-Qualification: Just Testing the Waters
Picture pre-qualification as a friendly chat with a loan officer. You'll share your income, assets, debts, and credit score, and they'll give you a ballpark figure of what you might qualify for. Plus, they'll suggest the kind of loan that suits your needs.
But here's the catch: pre-qualification is based on your word, not on verified documents. It's a great way to gauge your purchasing power, but it's far from a mortgage approval guarantee.

Pre-Approval: Things Are Getting Serious
Pre-approval is a step up in the mortgage approval process. Now we're talking about a deep dive into your financial qualifications, including income, employment history, assets, debts, and credit score. You'll need to supply some paperwork like pay stubs, tax returns, and bank statements to back up your claims.
Once the loan officer verifies everything, you'll get a pre-approval letter stating your mortgage loan eligibility up to a certain amount. It's a solid indication you're on the right track to secure that mortgage.

TBD Approval: The Ace up Your Sleeve
TBD (to be determined) approval is pre-approval's mysterious cousin. It's underwritten without a specific property address but requires the same thorough financial review as a regular pre-approval. When you finally find your dream home, your lender will need an appraisal to confirm the property's value and finalize the loan terms.
Why bother with TBD approval?
​It's perfect for home shoppers who want a head start on the mortgage process or who want to compete with cash buyers by showing sellers they're serious contenders with an underwritten loan approval.

Comparing the loan Pre-Qualification, Pre-Approval, and TBD Approval
What sets these three apart is the level of verification and lender commitment. Pre-qualification is a casual chat based on your word, pre-approval is a deep dive into your finances backed by documentation, and TBD approval is an underwritten loan pre-approval without a property address.

If you're on the hunt for a mortgage, choose a lender who offers the right approval type for your needs. We recommend an underwritten TBD loan approval to successfully prevail in the competitive home buying process.

Need more info on mortgages and financing? Reach out to us via call or text! We're here to guide you through the mortgage approval maze and find the perfect loan for you.

Pete Sabine & Leslie Whitney
Call or text 925.787.2548.
Visit OurFiveStarTeam.com
Compass

 
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DRE #01527235