Frequently
Asked Questions

In my experience, I have noticed a lot of common issues arise. I thought this would be a good place to address some of these common questions, to help people get started on the road to solving these problems. Even if you do have not run into this issue yet, some things can be done to prevent problems in the first place. 
Feel free to browse through these FAQs. Of course, if you need any help,
drop me a note and I can speak to you in person, or update the FAQs; whichever you prefer. - Laura

Which way to go?

Which to I need, a Trust or a Will?
The short answer is, “You definitely need a will, but depending on your circumstances, you may benefit more from a Trust.”

Most people who want to create a trust are referring to a Living (or Inter Vivos) Trust. The value of your estate and the type of assets you own usually determine whether or not a living trust is best for you. Most people agree that if your estate is worth one million dollars or more, then a living trust can (currently) save you money.

Even if you have a trust, you still need a will. A will determines what happens to your belongings when you die. Without a will the state decides who gets your possessions.

I own property with someone and want to sell my share, how do I go about that?
The answer seems simple: sell the property and split the proceeds. But in many cases, this is harder than it seems. What if one person doesn't want to sell their share? What if the other owner wants to buy my share, but we can't agree on a price? California law gives a property owner the right to sell their share. This is called a partition action. If the current owners can't agree on a price, then a court appointed referee will make that decision.

I want to sell my property on my own. What disclosures do I need to make?
It depends on the type of property you are selling and the type of sale (i.e. foreclosure, probate, REO, etc.). If you are selling your primary residence, not only do you have to disclose all material facts, but the following:
1. Is the home in an area of potential flooding?
2. Has your home ever been used as a "Drug Lab"?
3. Is the home in an earthquake fault zone?
4. Both Federal and State tax withholding information.
5. Does the home require Flood Disaster Insurance?
6. Are there any industrial zones located near your home?
7. Is your home located in a special tax assessment area (e.g. Mello-Roos and 1915 Bond Act)?
8. Is there or was there a military ordnance nearby?
9. Is your home located within any natural hazard areas? If so, which ones?
10. Is your home located within a Seismic Hazard Zone, a Special Flood Hazard Area, a Special Flood Hazard Area, a Fire Hazard Area, and/or a Very High Fire Hazard Severity Area?
   
In addition, you must also give the buyer a statement that your home complies with smoke detector and water heater bracing requirements, the Homeowner's Guide to Earthquake Safety, and a Transfer Disclosure Statement. 

You are also required to tell the buyer that there is a registered sex offender database available.

Depending on the age of your home, you must also disclose whether or not you are aware of any lead-based paint and provide a Lead-Based Paint Pamphlet.

Depending on your specific circumstances, there may be additional disclosures required, and both state and federal legislatures may add additional requirements..

I'm in contract to buy or sell a home and the other party is not performing. What are my options?
The law and the purchase contract offers remedies for nonperformance. Basically, you have the right to cancel the contract. However, certain procedures must be followed. You must give the other side a chance to perform before cancelling. You also may have the option of Specific Performance, but this option will require going to court. 

You may also be entitled to keeping the initial deposit. However, if the deposit is held in escrow, the escrow company will not give it to you without either the other party agreeing or a court order. 

Whichever course of action you decide to take, you should take the practical considerations into account as well as the legal possiblities.

My tenant hasn’t paid rent. What do I do?
You must be careful! There are many laws and serious consequences that prohibit landlords from using "self help" remedies to "convince" a tenant to either pay rent or vacate. 

The first thing to do is to give the tenant a "3 day notice to pay rent or quit". You must give them the option to remedy the situation or leave. The notice must be dated and signed by you or your agent. 

If 3 days have passed since you gave them this notice and they still haven't paid the rent or left, then you can file an Unlawful Detainer Action in the California Superior Court. Then, the tenant must be served with a copy of the summons and complaint. 

The tenant has 5 days from receiving notice to respond. If they do not respond, then you may ask the court for a default judgment. If a default judgment is granted, then the tenant must be served with a copy of the judgment.  If the tenant answers the complaint, then you may request a trial date. 

In order to enforce the judgment, it may be necessary to hire the local sheriffs department to physically remove them. Do not try to remove them by yourself!

As for the rent owed, the case is then reclassified as a breach of contract action, which takes longer and requires another trial.

How long does it take to evict a tenant?
An unlawful detainer action is given priority over other complaints. However, the time it takes to actually remove the tenant depends mainly upon the tenant. The quickest way to recover possession of the property is for the tenant not to respond. A default judgment in most cases can be obtained the same day it is filed. If the tenant does answer and you must set a trial date, then it could be an additional 20 days before your court appearance. At trial, the tenant may present his defenses. 

If you get a judgment against the tenant (either by decision or default), the tenant has 10 days to appeal that decision. If the tenant still doesn't leave, then you must hire the local deputy sheriff to physically remove them.

I'm looking for a new office space to rent. What should I look for in the lease?
It is important to understand what you are paying for and what you will be required to maintain or replace. There is no "standard" lease. The landlord can ask you to pay for anything. It is important that you know when and how often you are required to pay. You also need to know what your remedies are if the landlord fails to perform under the lease. Are you able to cancel it? What constitutes a non-curable breach on your part?

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