Call to ACTION!!!

Jarvis Legislative Alert: Real Estate Document Tax is Back…Again!

“It’s clearly a tax, not a fee,” said Jon Coupal, president of the Howard Jarvis Taxpayers Association. (This is deja vu all over again.)

Our industry was critical in stopping this tax for the last two years and your help is needed again!

Click on this link to find your state legislator!!

California Democratic lawmakers unveiled a plan Feb. 25th to increase affordable housing by creating a new real estate fee and increasing tax credits to spur new building. “Specifics are still under discussion” according to these same legislators!

Here is what we know:

Californians would pay an ADDITIONAL $75 fee (to Sacramento) whenever they record a real estate document “associated” with a refinance, notice of default and notice of a trustee sale.

What the sponsors are obscuring is: Just how many documents (in real life) are involved and what’s the typical cost per transaction.

It will add $300-$800 per transaction and cause agents, escrow and title a lot more hours of disclosure and accounting according to 29 year title veteran Dennis Wilson”. “It will also create another state run bureaucracy to dole out the funds- assuming the funds are disbursed vs. they just might disappear into the state budget”.

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Homes for sale in Scripps Ranch
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Lets talk about refinancing your mortgage and how much that will cost you….

Based on this legislation here are the (minimum) fees:
$75 fee for the trust deed and $75 for the grant deed, $75 fee for “reconveyance” of the previous trust deed. There could be a $75 fee for deeding the property into a trust and another $75 for deeding out of the old trust. And there are often inter-spousal and quit claims deeds associated with many mortgage transactions.

NOD or Trust Deed Sale Notice:
$75 fee for recording the “N.O.D. and $75 Trust Deed Sale.
There would ALSO be a $75 fee (“per document” every time the sale or the NOD IS rescinded. Typically this will happen at least twice as the homeowner struggles to save their home. In addition with foreclosure transactions there are release of liens (i.e. mortgage-prop. tax, mechanics liens and federal/ state tax liens; all at $75 a piece).

So the state is going to collect HUNDREDS OF DOLLARS in fees from people losing their homes? Really? Or are they just planning on passing the fees on to tax payers.

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Homes for sale in La Mesa
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According to the Bill Sponsors:

“Home sales would be exempt” says Assembly Speaker Toni Atkins, D-San Diego.

Ever since the voters passed Prop. 13 we’ve all been thru this dance with Sacramento time and time again; and their solution is always the same “Tax the homeowner”! Call me a cynic but very soon it will apply to home sales as these same lawmakers will “in the wee hours of the morning” insert new language into an unrelated obscure bill to tax home sales and then point fingers at everyone else.

“The new fees would generate $300 million to $720 million a year for the state depending on the number of document transactions”. The money would be spent on “fulfilling housing needs of homeless people and people who make just above an area’s median income”.

“The state’s low-income housing tax credit would jump from $70 million to $370 million, with the money going to private investors who build affordable housing”. Which then begs the question: Who are these private investors and do they contribute campaign monies?

Let’s join together with the Jarvis Association to stop this tax on our industry by emailing or a short call to your legislator.

And the sooner the better, before this bullet train leaves the station!