Most California real estate Purchase Agreements (CAR or PRDS contracts) are also escrow instructions, that give authority to the escrow company to transfer title when all terms of the Purchase Agreement are met i.e. loan documents are properly signed; all funds are in; Federal or state statutory disclosures such as FIRPTA and Environmental disclosures are properly signed and delivered; the grant deed is properly signed, notarized and recorded; etc.

In northern California, by custom, escrow and title companies are generally the same company, while they are generally different entities in southern California.

Homesellers in California are already familiar with escrow, but homebuyers may not be, particularly if they are relocating from out of state, where closings are sometimes handled by attorneys and all parties “sit down together at the closing table” – this does not happen in California because of escrow procedures.

The California Department of Real Estate has published a Consumers Guide about the escrow process.

Escrow helps protect the parties agains fraud and guides homebuyers and home sellers through the process of transferring clear title to real estate.

The California Department of Corporations scrupulously regulates licensed escrow companies.  Each licensee is required by law to be a member of the Escrow Agents’ Fidelity Corporation, which provides fidelity coverage for member trust accounts in the amount of $5 million.  This fidelity bond guarantees that, in the event of theft of trust accounts, consumer funds are protected.

Escrow processing times are not always exactly the same as stated in the Purchase Agreement if there are complicating conditions that need to be resolved first.

Selection of the Escrow Company is often, but not always made by the home seller or their agent that orders the Preliminary Title Report. Call me if you need a referral to a Realtor or other real estate professional to help you through the process.

Rick Bonetti | APR Referral Network | 408-857-8800 | DRE #01237009

Alain Pinel has been adding new offices during these difficult times, because now more than ever, consumers realize they need the most professional, competent and experienced Realtor they can find. Real estate transactions today are not easy and there are legal land-mines to be avoided, whether you are a home buyer or a home seller. This is not just the situation caused by short sales or foreclosures, but also for normal sales, because the financing landscape is constantly changing.

In recent years, prior to the economic downturn, many inexperienced people got a real estate license, although most completed only a few transactions each year. Like many fields 10-20% of real estate agents account for 80-90% of the business. Everyone knows a real estate agent, and many are either friends or family. The temptation to use a part time agent with the expectation of receiving a rebate of a portion of their commission has often backfired when the inexperienced agent is unsuccessfully in securing the property or closing the transaction.

Larger real estate companies have a brand to maintain and are seen by the unscrupulous as having deeper pockets, so training of their agents and setting high standards of best practice are of utmost importance. Alain Pinel Realtors has a reputation of being a boutique brokerage, often dealing will more expensive properties. We have weekly sales meeting to review legal matters, financing, changing technology, etc. to keep us top in our field. Setting standards and levels of expected performance are key.

A couple of times very recently I have retold this story of my experience when I decided to join Alain Pinel Realtors 10 years ago: After an enjoyable interview with the President of APR and the mutual decision that it would be a good fit for us to join forces, I was asked by the President if there were anything they could do for me. I responded that I was going on a listing presentation that evening and needing a package of forms that APR used. Upon going to the cupboard where the listing packages were normally stored and finding none there, the President said “we will get one for you right away.” We shook hands and 10 minutes later I received a call on my cell phone with the President saying “Mr. Bonetti, where may I have that listing package delivered to you?” The bar was set as to what my expected level of service was to be; I have never forgotten that eloquent lesson!

Don’t get me wrong. I do think the individual agent is very important to the consumer too. This is why I blog – primarily for the benefit of those who have been referred to me so they will know me even better and feel comfortable that they have made the right choice of whom to represent their interests in a real estate transaction. Having to regularly express my views in this very public way makes me careful to think things through and to be as accurate and fair as I can be.

Occasionally I come into contact with a really exceptional agent not affiliated with a top brokerage and occasionally I see agents within our own brokerage who do not make me proud to be associated with them, but in my experience both are exceptions rather than the rule. Incidentally, my definition of top brokerage is more akin to their reputation for having professional, competent agents and the productivity per agent rather than size of the brokerage in terms of number of agents. We agents know when we are working with pros or not; when we are not, we end up doing their job as well as ours to get it done right.

This topic of whether the agent or the brokerage is more important to the consumer has recently been debated in the March 24, 2010 blog post of Phoenix, Arizona Realtor friend Jay Thompson, who has so far received 244 comments on his post! My conclusion out of all that was written is that unfortunately many brokerages throughout the country are not great brands deserving of good reputations, but those that are will attract the best agents – for those brokerages who pursue excellence, both the company brand and the agent matter to the consumer.

Rick Bonetti | Alain Pinel Realtors | 408-857-8800 | DRE #01237009

Two situations are prompting homebuyers to want to make simultaneous offers on multiple properties: 1) a hot market with multiple offers, and 2) a short sale where it may take a bank a long time to respond to an offer.

Buyers need to be aware that if they persuade some real estate agent to write simultaneous offers on multiple properties with the intent to cancel one of them during a contingency period, they may be subject to damages in favor of the seller, because of implied covenant of good faith and fair dealing. That’s why I will not engage in such practice as a Realtor on behalf of my home buyer clients and I will try to screen out such buyers when I represent home sellers.

If an offer to purchase real estate has a time limit for seller to respond and that time has expired, then a buyer may* have an out. If a buyer’s offer has expired, in order for a signed and delivered purchase contract to be valid, it should also have a counter signed by seller and buyer, acknowledging an extension of date of acceptance.

* A good real estate resource for legal matters is the California Association of Realtors legal website. This blog post is not intended to give specific legal advice, just general information to alert you to issues of importance; if you have an accepted contract and you find yourself as a buyer or seller in such a situation, you should contact an attorney.
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Rick Bonetti | Alain Pinel Realtors | 408-857-8800 | DRE #01237009

All but one of the sales was priced less than $2 million.  Included in the group were homes on Sobey Road, Oak Place, Viewoak Drive, Wolcot Way, Titus Ave., Sea Gull Way, Radoyka Rd., Martha Ave., McFarland Ave. and Via Roncole.

Included in them are two homes that have been on the market over 300 days plus two more that have been on the market over 100 days.  This underscores the strength of demand with a current low of 79 detached homes on the market .

Rick Bonetti | Alain Pinel Realtors | 408-857-8800 | DRE #01237009

Private Mortgage Advisors, an affiliate of Wells Fargo Home Mortgage and Alain Pinel Realtors has a temporary rate buydown option that can lower home buyer’s initial mortgage payments. That means turning lookers into home buyers.

This eases them into their mortgage. With the buydown program, qualified borrowers purchase a temporary rate discount as much as 3% below the established note rate. This discount can be offered by the home seller up to maximum allowable contributions.

Homebuyers like the temporary buydown option because it may give them an opportunity to purchase a Saratoga home right now—and the time to ease into their full payment schedule during the first few years of ownership.  Homebuyers also like knowing that while their initial payments are lower, they are still reducing their mortgage balance because they’re paying both principal and interest each month.

Buydowns work with a variety of mortgage products, including FHA, VA, and other conventional loans offered by Wells Fargo Home Mortgage.

Including this option in your Realtor’s listings, internet presence and other real estate marketing will give a home seller one more way to differentiate themself in today’s competitive market. Since most Saratoga homes start over $1 million and most mortgages are non-conforming jumbo loans, financing is very important in making the sale.