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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Figuring out part of LOCATE... Posted by Ward-CA- on December 11, 2003 at 0:26 AM In Reply to: LOCATE... posted by Elsa-CA on December 10, 2003 at 2:09 PM : Ward, : Can you briefly clarify, with an example, what the T & E mean in your LOCATE mnemonic. Thanks. ======================== Elsa, Here you go, the T and the E in the acronym LOCATE: T = Transfer tax computation. Here in CA the old federal transfer tax that was due upon the sale of real property is still in place. In some CA counties there are cities who have added their own additional tax (i.e. Los Angeles, Riverside, Berkeley, etc.). The tax that was paid appears on the face of the transferring deed (in the upper right quadrant). Ask your county recorder’s office what the transfer tax rate is for your county and the main cities within the county. Divide the tax that’s shown, by the county’s tax rate, and you’ll know what was paid for the property at the time the deed was recorded. E = Extrapolation. Go back to the most recent, institutional loan made on the property. Add its original balance with the balances of any existing senior mortgages/trust deeds and divide that sum by 75%. That’ll be a pretty close estimate of the fair market value of the property at the time the most recent institutional loan was made. Sure, there will be exceptions to the general rule, but not often enough to fret about. Hope this helps. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : Ward, : : Can you briefly clarify, with an example, what the T & E mean in your LOCATE mnemonic. Thanks. : ======================== : Elsa, : Here you go, the T and the E in the acronym LOCATE: : T = Transfer tax computation. Here in CA the old federal transfer tax that was due upon the sale of real property is still in place. In some CA counties there are cities who have added their own additional tax (i.e. Los Angeles, Riverside, Berkeley, etc.). : The tax that was paid appears on the face of the transferring deed (in the upper right quadrant). Ask your county recorder’s office what the transfer tax rate is for your county and the main cities within the county. Divide the tax that’s shown, by the county’s tax rate, and you’ll know what was paid for the property at the time the deed was recorded. : E = Extrapolation. Go back to the most recent, institutional loan made on the property. Add its original balance with the balances of any existing senior mortgages/trust deeds and divide that sum by 75%. That’ll be a pretty close estimate of the fair market value of the property at the time the most recent institutional loan was made. : Sure, there will be exceptions to the general rule, but not often enough to fret about. : Hope this helps. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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