In California if a person wants to sell an investment property and wishes to buy another one, he/she should be aware of the 1031 tax-deferred exchange. This procedure allows the owner of investment property to sell the property and purchase like-kind property while deferring capital gains tax
The name of 1031 exchange gets from the U.S. Internal Revenue Code Section 1031 according to which a person can avoid paying capital gains taxes when selling an investment property and reinvest the proceeds from the sale in a property or properties of like kind and equal or higher value. According to the Internal Revenue Code Section 1.1031, no loss or gain is recognized in case the property held for productive use in a business or trade for investment is exchanged exclusively for the property of a like-kind to be held either for productive use in a business or a trade or for investment.
There are several types of real estate exchange when you wish to participate in a 1031 exchange
One type is a simultaneous exchange when a 1031 exchange happens on the same day. This type of exchange can take place in two separate ways:
The most common type of 1031 exchange is called a delayed exchange. 1031 Exchange occurs when a person sells a property, receives the money, and buys the property after a delay, which could be from one day to several months before getting the replacement property. A person has 45 days to identify a new property and 180 days to close the transaction In the event, a property investor fails to buy a replacement property within the time limits, the property investor will have to pay capital gains on the proceeds from the property sale.
This is a type of exchange that allows the person to make improvements to the property before the actual exchange happens. In this case, the property is placed with a capable intermediary for 180 days and within this period a person can use the exchange equity to make the required improvements. However, there are three separate requirements that you must meet But in case a person wants all gains to be free from taxes he must follow these rules:
This type of exchange allows the person to find and purchase an investment property before selling his own investment property. This helps the person to wait to sell his property until the market value of the property increases. In this case, the transaction mainly occurs with 100 percent cash. A person has 45 days to determine which one of his investment properties will be relinquished and after that he 135 days to complete the sale. For more information regarding 1031 exchange or investment proeprties we invite you to contact our real estate attorney at (310) 943-1171 today.
Tenancy in common is established when two or more individuals place their names on the deed to the property and therefore own the property together. A tenant can own unequal shares and can have different ownership interests. Owning property via a tenancy in common has grown in popularity due to property price increases.
Tenancy in common can apply to office buildings, undeveloped land, office space, or a house.
Property can be held as a space assignment co-ownership tenancy in common. Essentially, these are similar to condominiums in that an individual assigns houses, apartments, rooms, officers, stores, or storage spaces to each owner. Additionally, particular tenants in this configuration have rights created in a contract that are signed by all co-owners. A space assignment co-ownership tenancy in common can be more popular because local condominium conversion restrictions do not apply to tenancy in common conversions.
In California, individuals may form a space assignment co-ownership tenancy in common for any commercial or residential building. Furthermore, the location of the building, its zoning, size, layout, age, unit mix, or construction do not matter for regulatory purposes.
In California, when a spouse dies, the surviving spouse generally has the right to transfer assets and property in their name but there are exceptions. First, the surviving spouse would need a certified copy of your spouse's death certificate and certificates of marriage to show that you married the deceased.
California is a community property state, as such upon the death of a spouse, the surviving spouse is entitled to one-half of the community property. Pursuant to California Family Code section 760, community property is defined as “all property, real or personal, wherever situated, acquired by a married person during the marriage while domiciled in the state.” At the end of a divorce, community property is generally split 50/50.
In California, if a spouse dies intestate, meaning there is no will or trust, then surviving spouses may inherit half of the community property, as well as, one-half of the deceased spouse's separate property.
In California you generally cannot disinherit a spouse unless, your spouse waived such rights to inherit from you in a valid, signed agreement, known as a "pre-marital agreement".
Creditor creates a judgment liens on real property by registering an abstract of a money judgment with the county registrar. It can apply to real or personal property, including jewels, art, antiques, and other valuables.
California law regulates the lien judgment. A title search revealing a judgment lien means the judgment creditor has registered a Judgment Abstract in the debtor's district.
To get the debtor's judgment on California property, a creditor must mail or take the Abstract of Judgment to the county registrar's office in any California county where the debtor currently owns property or plans to own property in the future. An abstract of judgment is a written summary of a judgment, showing the amount the losing party pays to the winner, the interest rate, court costs, and any special orders to follow. If the lien will attach to personal property, the creditor must file the Abstract of Judgment notice with the California Secretary of State. The lender may also notify the debtor of an examination.
In today's mobile world, people might live and work in many countries during their careers. The citizen first acquires property in one state as a single person. Later, they marry and acquire property in other states, building a community of assets.
California Probate Code Section 100 states that half of the community property belongs to the surviving spouse. The other half belongs to the decedent.[1] Division 2 of the Section allows spouses to agree in writing on dividing community property. They can divide based on the aggregate value or individual assets. The subdivision does not authorize or recognize a non-pro-rata division of property without a written agreement.
If spouses die leaving or quasi-community property and no clear and compelling proof shows which spouse survived the other, California law may divide the property equally: [2]
The manufactured home once known as a mobile home is a popular dwelling place for many. Builders construct modern manufactured homes according to strict building standards that have evolved nationally since 1976. Unlike conventional "site-built" houses, fabricated models often come with their own warranty forms. Furthermore, 38 states, including California, have rules and regulations regulating manufactured home-building and guarantee systems. In 1958, California itself led the way in the oversight of manufactured home construction.
California does a remarkable job of ensuring the protection by multiple laws and codes of manufactured homeowners. The existence of the Senate Select Committee on Manufactured Home Communities is one unusual feature of manufactured home ownership in California. This is a standing committee which studies the need for legislation and makes recommendations to the Legislature as necessary. The Department of Housing and Community Development is in charge of the California Manufactured Housing Protection and Assistance Program. Which is in charge of enforcing rules and regulations in order to put California's manufactured housing laws and codes into effect. The Department, in particular, had also adopt building standards that are compatible with known and approved standards. As published in the most recent editions of industry codes that are uniform or international.
The following is a list of the rights and liabilities that tenants in common have:
Each tenant in common has the right to transfer their ownership interest to a third party. Essentially, the tenant in common can sell, gift, or mortgage their share. Should the other tenants in common be negatively affected by this transfer, the owners must all agree to the transfer.
Each tenant in common has a right to share the income produced from the property. Thus, each tenant in common may receive the income that is proportional to their share of ownership interest they have on the property.
Each tenant in common shares responsibility of the property expenses. This responsibility is based on the percentage of ownership interest each tenant in common owns. To use an example to demonstrate, if a tenant in common has 60% ownership, they will pay 60% of the expenses.
If a creditor gains an interest in the property, all tenancy in common owners may need to sell the property. However, the other tenants in common can be compensated for the sale of the property based on the percentage of their ownership interest.
A co-owner can terminate the tenancy in common by selling, conveying, or transferring their interest in the property to a third party.
In addition to the rights and responsibilities of co-owners, it is important to consider the tax implications of tenancy in common. Each co-owner must declare their share of the property’s income and expenses, if the property is rented out, each co-owner reports his or her share of the rental income on the tax return. Similarly, co-owners share expenses in proportion to their ownership. This means that co-owners must keep clear financial records of all income and expenses.
Yes, a co-owner can file a partition action - a lawsuit to divide the property. If the other co-owners do not agree to the terms of ownership, one of them can go to court. This forces the sale of the property or allocates their share. Often, the court will order the sale of the entire property, followed by a distribution of the proceeds to the co-owners. Thus, even if most unit owners oppose the sale, the court can still order it.
As an alternative to court partition, co-owners may enter into a tenancy in common agreement. Such a document governs:
This is especially important if the owners are not related or do not live together. The contract will help prevent conflicts and avoid lengthy litigation in the future.
If you thinking of creating a tenancy in common, please contact KAASS LAW. (310) 943-1171 for a consultation. Our attorneys will provide the legal assistance you need to help create a tenancy in common for you.
For more information regarding the rights of a surviving spouse or probate in California, we invite you to contact a California probate attorney at KAASS LAW today at (310) 943-1171.
A property lien in California can remain in the possession of property or personal property for up to 10 years, even when the property is not the property of the debtor. In addition, before it expires, a creditor should renew the lien. When the lien expires, it is no longer compulsory and the lender can not get the cash. You cannot renew the lien for 5 years after renewing it. Make sure to renew the lien in California every 10 years before the estate decision ends. A creditor must remember that several variables affect the ability to collect under a judgment lien. This involves a fixed amount that the creditor can not touch if the attached property is the debtor's primary residence, other replaceable liabilities, and bankruptcy or foreclosure proceedings.
If the Judgment is still in effect, there is usually only one way to release the lien of decision, and that is through Judgment Satisfaction. The lender of the judgment must record a Judgment Satisfaction or alternative type of lien discharge. In California, there is no statutory right to introduce a motion to terminate the Judgment Abstract. KAASS LAW helps you create, renew, and satisfy judgment liens in California.
Judgment liens in California place restrictions on foreclosures. However, they do not always guarantee collection of the debt. For example, if a mortgage already encumbers the property, a judgment lien holds lower priority. It cannot be discharged until senior creditors are satisfied. In addition, if the debtor files for bankruptcy, the court may stay the lien. Or cancel it as part of a debt relief proceeding. If the property is owned by more than one person, the judgment lien may only attach to the debtor's interest. This limits your ability to collect. Especially if the other owners oppose a foreclosure sale.
The presence of a judgment lien significantly reduces the likelihood of a successful sale of a property. Buyers typically avoid purchasing a foreclosed property because of the legal risks involved. When a sale is completed, the lien must:
If the debtor decides to sell the property, the proceeds of the sale must be used to pay off the judgment lien. The provisions of the California Code of Civil Procedure govern this.
The debtor can remove a judgment lien only after fully paying the amount specified in the writ of execution or obtaining a court order. After receiving the full amount owed, the creditor must file an acknowledgment of satisfaction of the judgment. Without this record, even if the debt is actually paid, the lien will remain in the system. And while it is in the system, it will restrict the disposition of the property. If the creditor fails to file a notice of discharge, the debtor has the right to go to court. With a motion to compulsorily remove the lien.
If you are a creditor seeking to:
Or a debtor who wants to get rid of a wrongful or overdue encumbrance, the specialists at KAASS LAW are ready to help. We provide qualified legal assistance at every stage of the process. Call us at (310) 943-1171 or visit our Glendale office for a free consultation and evaluation of your situation.
The transfer of community and quasi-community assets to a revocable trust assumes those assets maintain their overall character for any division established by the trust, according to Sections 100 and 101. This section applies to all transactions made before, on, or after January 1, 2000. [1] California Probate Code Section 100 [2] California Probate Code Section 103 KAASS LAW helps navigate California's Probate Code, guide community property division, draft agreements, manage revocable trusts, and ensure legal compliance.
In California, attorneys often place special emphasis on addressing the unique legal and financial considerations that arise in mixed marriages. That is, where one of the spouses is a foreign national or resides outside the state. In such cases, a conflict of jurisdiction may arise in the division of property upon the death of one spouse. California law treats property acquired in other states as community property. If the spouses subsequently resided in California. This provision is important in the case of inheritance, especially if the heirs have a dispute over ownership.
Another critical issue is the debt obligations of the deceased. Under California law, debts incurred during the marriage can be collected from the surviving spouse's share of the community property. However, creditors must go through the process of notice and filing claims with the probate court. To protect their assets, spouses are encouraged to enter into a prenuptial agreement or property settlement agreement in advance.
It is not uncommon for relatives of a deceased person to dispute the surviving spouse's right to a piece of property. Especially when there is no will. In such cases, California courts consider both the language of the will and the intent of the spouses to divide or not divide the property. The law allows for the consideration of:
If they can be corroborated by witnesses.
The death of a spouse may have tax implications. For example, the capital gains tax on the sale of an inherited property may be reduced. This is due to the increased value. This becomes especially important when clients need to make decisions about real estate or investments they acquired jointly, as clear guidance can help avoid future disputes and ensure a fair distribution. It should be noted, however, that the tax rules vary depending on the type and nature of the property.
Properly drafting a joint property and will can greatly simplify the process of dividing assets upon the death of a spouse. KAASS LAW can:
In addition, our team advises clients on the most effective strategies for distributing their assets while minimizing tax burdens.
The saying "as is the case with California, so is the nation" applies to manufactured homes and to their warranties. Early September 1, 1958, no manufactured home could be marketed or built in California unless it met with state building regulations. In 1976, United States Department of Housing and Urban Development adopted federal regulations for manufactured homes, partly based on the standards of California.
The Golden State has always been regarded as customer friendly and for manufactured home guarantees this is no different. The California Civil Code's Sections 1797 through 1797.7 regulate manufactured home builders and the warranty coverage they must provide. For one, homebuilders, contractors and dealers imported by California have to respect warranties they offer on such homes. At a minimum, home warranties made in California cover "substantial material and workmanship defects" in a variety of home systems.
The home warranties provided by Golden State include plumbing, electrical, fire safety, ventilation, heating and structural systems. In addition, all appliances built in or produced by a manufactured home builder, or their contractors or suppliers have protection by the California guarantee rules. Manufactured home warranties in California extend to their customer for one year from the day a home is shipped. You have one year and 10 days from the date of delivery of your manufactured home to inform your manufacturer, in writing, of any defects.
If your home made in California has a flaw protected by the State's warranty provisions, report to your dealer or supplier first. The Golden State needs manufactured home builders and their dealers to take appropriate action to fix any defects associated with the warranties. The Mobile home Ombudsman's office in California also helps manufactured homeowners cope with warranty and other issues.
In addition to the mandatory one-year warranty, some manufacturers offer voluntary or extended warranties on modular homes. These warranties may cover individual components, including:
Terms range from two to ten years. However, the terms of such warranties usually depend on the specific manufacturer. Buyers should study them carefully before signing a contract. For example, failure to comply with the maintenance requirements specified in the manufacturer's instructions may void the warranty. It is important to note that extended warranties are often arranged through third-party insurance companies rather than directly with the builder.
Once the modular home has been delivered to the site, a technical inspection is recommended. Although not required by law, such a measure allows for the timely identification of hidden defects. This information can be critical when seeking warranty repairs. More information about inspections can be found on the U.S. Department of Housing and Urban Development (HUD) The buyer must also keep all documents related to the purchase and installation, such as:
This will facilitate the claims process. Our attorneys are available to advise you at any stage. In addition, we recommend that you read the Federal Trade Commission's recommendations for understanding warranty rights.
If you or a loved one has been harmed as the result of another's negligence, then you may be entitled to compensation. If that is the case, contact our Glendale personal injury lawyer today for a consultation and case review. A warranty lawsuit is an extremely complex legal process. Please feel free to give our office a call at 310.943.1171. KAASS LAW helps homeowners address warranty issues, fix defective manufactured homes, and navigate California's complex building regulations.