You are currently browsing the category archive for the ‘Real Estate 101’ category.

Oregon Legislative Update

There were a couple of controversial proposals that hit the media and Facebook discussion groups.  I thought you might like to know the outcome of some of the legislation that was proposed.

First Time Home Buyer Savings Accounts, died in committee

 

Oregon is facing an affordable housing crisis. The housing market is suffering because homes are becoming increasingly expensive and it takes too long for many young people and renters to save enough money for a down payment on a home. High rents, student loan payments and wages that don’t keep up with the cost of living are tough obstacles to overcome.

That’s why OAR pursued the Oregon First-Time Homebuyers Savings Program (HB2996 and SB849) – a new idea to help prospective home buyers start saving for their first home.

Unfortunately, despite being well received by a bipartisan group of legislators, neither bill made it to the Governor’s desk for signature. The politics of housing policies caused considerable collateral damage. We will re-introduce the concept in the 2018 short session.

SB 849 – Passed Senate Business and Transportation, died in Senate Revenue
HB 2996 – Passed House Human Services and Housing, died in House Revenue.

HB 3357 – Doc Recording Fee, died in Ways and Means

 

FAs introduced, the bill would have doubled the fee charged and collected by county clerks for real estate document recordings. With housing affordability issues on the forefront of everyone’s mind, this session wasn’t the right time to advance this policy and the bill died in committee. Existing statute directs this fee to be credited to the County Assessment and Taxation Fund which is then distributed as follows: 76% to the General Housing Account, 10% to the Emergency Housing Account, and 14% to the Home Ownership Assistance.

Sent to Ways and Means on April 20, died in committee.

HB 2004-B – Rent Control, died on Senate President’s Desk

 

In the midst of a housing crisis in many parts of the state, HB 2004-B, was intended to address increasing rents and limited supply of rental units. Although well intentioned, the bill presented numerous unintended consequences that would have made the situation worse. Rather than focusing on increasing supply of housing, the bill would have made it more difficult for existing landlords and would have significantly stifled the development of new multifamily units.

While the bill’s allowance for San Francisco style rent control provisions were removed in the Senate, the bill lacked the votes for passage from the Senate.

HB 5037 – Oregon Real Estate Agency Budget & SB 68 – Broker Licensing Fee Increase, both bills passed and were signed by the Governor; HB 5037 on May 15, 2017, Effective July 1, 2017; SB 68 on 5-21, effective Jan. 1, 2018.

 

The Oregon Real Estate Agency is funded entirely with fees paid for professional licenses by brokers, principal brokers and property managers and from publication fees. The Real Estate Agency last instituted a comprehensive fee increase in 1997. The user- specific fees were increased to cover inflationary costs and staff time associated with the provision of services. The Real Estate Agency collaborated with stakeholders over the course of the 2015-17 biennium to gather input, develop the new fee schedule and to inform licensees about the timing and reasons behind the fee proposal.

Senate Bill 68 (2017) increases fees imposed by the Oregon Real Estate Agency and established new fees. The approved fee increases in Senate Bill 68 (2017) are for:

  • License Applications from $230 to $300
  • Active License Renewal from $230 to $300
  • Inactive License Renewal from $110 to $150
  • Late Renewal Fee from $30 to $150
  • Reactivation Fee from $75 to $150
  • Business Name Registration Fee from $230 to $300
  • Branch Office Registration Fee from $10 to $50
  • Escrow Renewal Fee from $300 to $450
  • Escrow Branch Office Renewal from $150 to $225
  • Temporary License Fee from $40 to $150
  • Temporary License Extension Fee from $40 to $150
  • Registered Business Name Renewal Fee established at $50
  • Registered Business Name Change Fee established at $300
  • Continuing Education Provider Application established at $300
  • Escrow Application Fee from $300 to $450
  • Continuing Education Provider Renewal established at $50
  • Escrow Branch Office Application from $150 to $225
SB 67 – Agency ORS Chapter 696 Rewrite, passed, signed by Governor on June 6, 2017, effective Jan. 1, 2018

 

SB 67 made technical fixes to Chapter 696, including updates to language and references and reorganization of some material for readability.

The measure also removed the requirement that a principal real estate broker or real estate broker create a client trust account when they act as a courier by taking a check made out to the seller or lessor from a purchaser or lessee for the purpose of conveying same to the seller or lessor.

This measure also provided that a licensed real estate property manager may not solicit a potential tenant unless they have a written property management agreement with the lessor.

The technical fixes in this concept are the result of a comprehensive review of ORS chapter 696 made to ensure alignment of the language, references and processes described in the chapter.

Put simply, the bill synchronizes terminology and references within Chapter 696, improves readability, and makes technical fixes to issues discovered in the course of applying existing law and through communication with the regulated community.

HB 3099 – Principal Broker Continuing Education, died in committee

 

Introduced late in session, HB 3099 was the product of the “Raise-the-bar” Presidential Workgroup at OAR. Designed to provide principal brokers with specific continuing education to increase professionalism by providing greater guidance to brokers they supervise, the bill was introduced too late in the process to advance.

The concept will be re-introduced in the 2018 short session.

HB 2006 – Mortgage Interest Deduction (HB 3298, HB 2060), died in committee

 

Since its inception over a century ago, the U.S. income tax system has recognized the positive effects of homeownership for families, communities, and society by rewarding home buyers with tax benefits. The result has been a home-owning society that is, in many respects, the envy of the world.

Since the State of Oregon has such a reliance on income tax1 the mortgage interest deduction is tied to the federal code. The code allows an individual to deduct the interest payments on no more than $500,000 of total mortgage debt or $1,000,000 of indebtedness for joint filers.

House Bill 2006 would have eliminated the MID for individuals making $100,000 or more ($200,000 for joint filers). HB 2006 would have also capped the amount of interest that could be deducted for those individuals making under $100,000 ($200,000 for joint filers) at $15,000 on their primary residence. In addition, the bill would have eliminated the MID for second homes.

A deduction of interest helps middle class families when they need it most – at the beginning of their home ownership experience when payments of interest on a loan is greatest. The proposed tax credit was an arbitrary value with no relation to a home’s cost and interest rates on a home loan.

While married couples make up the majority of first-time homebuyers, singe females make the second largest percentage of first-time buyers. They would have been hit particularly hard by the arbitrary income limitations imposed by the bill.

The bill would have also exacerbated the current affordable housing challenges facing our state by making it even more difficult for many families to qualify to purchase homes in places like Portland and close-in suburbs.

While HB 2006 died in committee, the context of the bill was threatened in additional legislation. HB 3298 and HB 2060 were scheduled for work sessions in House Revenue at later dates, after HB 2006 had died in committee. Both bills would have impacted homeownership in negative ways. And, most disturbingly, all of the bills would have been able to advance with simple majority votes, rather than the 3/5 majority needed for bills that increase taxes.

186.9% of the state general fund budget is sourced from personal income taxes (2016-17 Oregon Bluebook).

HB 2771 – Eliminating the Deductibility of Property Taxes, died in committee

 

House Bill 2771 would have phased out the itemized deduction for real property taxes for incomes between $50,000 and $125,000 for single taxpayers and between $100,000 and $250,000 for joint taxpayers. In addition, the bill would have eliminated the ability to deduct property taxes for single tax payers making $125,000 or joint tax payers making $250,000 or more in a year.

When itemized deductions exceed the standard deduction, Oregon taxpayers have the option to itemize deductions. Despite the inequities in Oregon’s property tax system, it provides predictability for Oregon homeowners. We understand that property tax reform is a difficult task, but we need property tax reform that still provides predictability. A bill like HB 2771 distracts from the larger issues that need attention.

There is little connection between property taxes paid, a home’s real market value and a taxpayer’s ability to pay. HB 2771 would have exacerbated the inequities in the system.

HJM 3 – Appraisers: Passed, signed by presiding officers May 18, 2017 & May 22, 2017 and was filed with the Secretary of State on May 22, 2017.

 

Under this House Joint Memorial, the Oregon Legislature highlighted the issue surrounding appraisals in the State of Oregon. The memorial urges Congress to instruct the Appraiser Qualifications Board to develop a temporary standard or accreditation to provide immediate relief from the shortage of real estate appraisal professionals by highlighting the following

HJM 3 supports changes to the minimum appraiser qualifications criteria proposed by the Appraiser Qualifications Board of the Appraisal Foundation, including development of an alternative track for progressing from one State Licensed Appraiser to another.

  • In 2016, more than 62 percent of appraisers were 51 years of age or older, 24 percent were between 36 and 50 years of age and only 13 percent were 35 years of age or younger
  • The present criteria result in an infeasible financial burden, as wages earned by appraisers are not high enough to induce an individual to enter the profession after incurring the costs of a four-year college degree, especially when the degree must be accompanied by a multiple year, and often unpaid, internship.
  • The shortage of appraisers affects rural Oregonians in greater numbers than those in urban areas.
HB 2189-A – Appraisers Record Retention (Statute of Repose), signed by Governor on May 25, 2017

 

Real estate appraisers are subject to a recordkeeping rule through our federal regulatory document, the Uniform Standards of Professional Appraisal Practice. By that rule, appraisers must retain work files for five years after the completion of an appraisal project in most circumstances.

HB 2189 implemented a common-sense solution in marrying liability on that activity to the federal Record Keeping Rule. The bill was changed in the Senate by a friendly amendment to match real estate agents’ limit of liability at six years so the limit is seamless for the public.

The limitation in liability for appraisers would not apply to cases of fraud and misrepresentation, for which the 2-year discovery rule in ORS 12.110 would continue to apply. Most appraisers are small businesses and a lawsuit, or the threat of a lawsuit, can be devastating. We believe that the provisions of HB 2189 will bring certainty to appraisers regarding how long after performing an appraisal they may be sued, and will allow appraisers to adequately manage the risks associated with providing those services.

HB 2501 – Appraiser Shortage, died in committee

 

House Bill 2501 directed the Appraiser Certification and Licensure Board to establish rates of pay for independent contractor appraisers. As a benefit to appraisers, it would have required appraisal management companies to compensate independent contractor appraisers at rates set by the Board. In addition, it would have required appraiser management company to pay appraiser within 31 days, as opposed to 45 days, or according to an agreed upon schedule.

The bill was introduced after several legislators were contacted by constituents telling stories of highly inflated costs for standard appraisals, particularly in the more rural parts of the state.

HB 2748 – Wood Smoke Policy & Funding, signed by Governor on May 23, 2017, effective date July 1, 2017 (DEQ budget not yet signed by Governor)

 

Following a lengthy interim work group on the topic of wood burning smoke, House Bill 2748 was introduced during the 2017 session and contained many recommendations as a result of that work. After considerable public discussion, the bill was eventually amended to allow for funding from both private and public sources, expands the allowable use of funding to replace or remove uncertified stoves, and requires the Oregon Department of Environmental Quality (DEQ) to prioritize grants to areas that are currently in non-attainment or areas that are in substantial risk of being designated as a non-attainment area due to particulate matter. The bill passed with broad bi-partisan support through the legislative process before being signed by Governor Brown on June 21st and became effective July 1, 2017.

In an effort to provide funding for the program, the state has invested $250,000 through the DEQ budget to kick-start the grant program. In a budget year such as this, an initial investment of that magnitude is a success for the program. In the end, the DEQ budget passed through both chambers on a close margin before heading to the Governor’s desk for signature.

SB 812 – Septic Repair/Replacement Policy & Funding, signed by Governor June 6, 2017, effective June 6, 2017 (DEQ budget not yet signed by Governor)

 

Septic system repair and replacement has been a priority of the association for multiple years now. Having previously worked directly with DEQ to provide education for our membership, supporting this low interest loan septic program policy has been a priority over the past few sessions. Following the successful passage of the original septic system repair and replacement program and funding during the 2016 session, it was discovered that technical fixes were necessary in 2017. SB 812 provided those technical fixes, which include: clarifying that an applicant for a low interest loan need not borrow the full amount of the project, clarifies the requirement that the homeowner or business connect to a sewer system if available, and allows for funds to be used for a regional evaluation of a community septic system. The bill passed through the legislature unanimously with the members present and was signed by the Governor on June 16, 2017.

In addition to the policy fixes to the program, there was an additional funding request to help sustain and expand this incredibly successful program. The request was $1.5 million of state investment in the program after receiving $250,000 during the previous session. While we faced a $1.8 billion budget hole to begin the session, we felt this was a critical program and advocated for the full request. In the end, the full $1.5 million ($200,000 of which is for DEQ administration) was allocated through the DEQ budget for the septic program and marks a substantial investment in a successful and important program. In the end, the DEQ budget passed through both chambers on a close margin before heading to the Governor’s desk for signature.

Searching for Real Estate

My phone app http://app.summarealty.com/SMAFZ, has recently been updated.  If you are looking to purchase, this is a great way to search.  Or, if you want instant notifications from RMLS™, please let me know and I can arrange for you to receive alerts for listings as soon as they come on the market for sale.

Or go to my website http://bettyjung.com for additional information.

Thinking of Selling Your Lake Oswego Home?

Interest rates are still low and there is still a huge pool of buyer demand. Buyers are ready and willing to purchase your home. Call me at 503-804-9685 if you are thinking of making a move.

Moving to Lake Oswego?

Want to know more about Lake Oswego? I’d love to be your buyer’s agent, please give me a call at 503-804-9685.

Having worked in Lake Oswego as a Real Estate Broker since 1978 and lived in Lake Oswego since 1988, I know all the neighborhoods. I am ready to assist you with all your real estate needs! “There is no substitute for experience.”

ALL ABOUT…..Lake Oswego Real Estate. Copyright 2008-2017. Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of Federal copyright laws.

 

Advertisements

It is that time of year where homeowners and/or potential sellers, think about remodeling their home, or at the very least do some cosmetics updates.  Lately I’ve been on several listing appointments where homeowners have constructed additions to their homes without permits.https://lakeoswegorealestateblog.wordpress.com/

Lake Oswego Real Estate Here Comes Spring Remodeling Season

In each case I recommended to the potential Lake Oswego home seller they have the necessary inspections, complete the required repairs, if any, and obtain permits for the additions either they or their friends built before they place their home on the market for sale. Permits, and a city building inspection, can be obtained after completion of any work done by homeowners to the home if they are planning to sell.

Buyers Should Request Permits When Making Offers 

Most buyers will want permits pulled on those additions prior to closing the purchase of the home. When I am a buyer’s agent, I always inquire about permits and advise my clients to write into an offer that the seller provide those permits for the buyer’s review and approval/disapproval within a certain time frame or recommend to the buyers they do their own due diligence and search for those permits at the appropriate government agency or on-line.

Lake Oswego Real Estate Property Disclosures 

When you list your Lake Oswego home for sale, homeowners are obligated to place the correct information on the Property Disclosure Statement as to permits, etc. Sellers may be liable if they knew the work was done without a permit should the shoddy workmanship cause a fire, etc. after the buyer closes on their home.

An insurance company may not want to cover damages if the buyer purchases the home with the knowledge that permits, inspections and the closing didn’t include those permits for the additions during that buyer’s purchase.

Further, when that buyer goes to sell the property ever again, they too will be obligated to forward the information that no permits were obtained in their Seller Property Disclosure Statement at the time of their listing the property for sale.

Oregon Property Disclosure

Oregon is a disclosure state and information regarding permits, additions, etc. must always be disclosed.  If the owner chooses not to disclose those issues then the buyer may have remedy against the owner/home seller.

As a home seller, you don’t want to open yourself up to a lawsuit.  It saves you time, effort and money by doing the right thing and obtaining permits when doing any work on the home you plan to sell.  As a buyer, you want to make sure you made a sound investment that has no problems.

Searching for Real Estate

My phone app http://app.summarealty.com/SMAFZ, has recently been updated.  If you are looking to purchase, this is a great way to search.  Or, if you want instant notifications from RMLS™, please let me know and I can arrange for you to receive alerts for listings as soon as they come on the market for sale.

Thinking of Selling Your Lake Oswego Home?

Interest rates are still low and there is still a huge pool of buyer demand. Buyers are ready and willing to purchase your home. Call me at 503-804-9685 if you are thinking of making a move.

Moving to Lake Oswego?

Want to know more about Lake Oswego? I’d love to be your buyer’s agent, please give me a call at 503-804-9685.

Having worked in Lake Oswego as a Real Estate Broker since 1978 and lived in Lake Oswego since 1988, I know all the neighborhoods. I am ready to assist you with all your real estate needs! “There is no substitute for experience.”

ALL ABOUT…..Lake Oswego Real Estate. Copyright 2008-2017. Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of Federal copyright laws.

Once you purchase a Lake Oswego home, you most likely file away the closing papers and may not look at them again, at least not for a while.  However, last year while selling a second home to a past client, I came across the title to their existing home, which I had previously sold them, and saw the names were incorrect on their deed. They were keeping that first home but I felt the deed should be corrected. The county had incorrectly typed their names when the deed was recorded and at the time title was transferred.

Lake Oswego Real Estate Is Your Name Correct On Your Deed

Thankfully, it was an easy fix to make sure the legal documents were in the correct name of the homeowners. Recently, I saw where another local real estate agent had encountered the same thing on one of the properties owned by one of their sellers.

Lake Oswego Title Discrepancies

In addition, I’ve been updating my database and I see where counties have no names of the owners on some of the properties I have been checking on.  In fact, I’ve had to order a title search to determine who in fact owned the property I was inquiring about.

Does The Title/Deed To Your Home Have Your Correct Name?

Have you checked the legal title to your property lately? When was the last time you checked your deed at the county? Does the county have the correct names, forwarding address if any, and how you want to retain ownership?

Life Changes

There always seem to be short sales, foreclosures, marriages, divorces, loans paid off, etc.  The legal documents to your home are important and should be correct.  Need help with finding out if the title to your Lake Oswego home is correct?  I can help you get it straightened out easily, just give me a call 503-804-9685.

Searching for Real Estate

My phone app http://app.summarealty.com/SMAFZ, has recently been updated.  If you are looking to purchase, this is a great way to search.  Or, if you want instant notifications from RMLS™, please let me know and I can arrange for you to receive alerts for listings as soon as they come on the market for sale.

Thinking of Selling Your Lake Oswego Home?

Interest rates are still low and there is still a huge pool of buyer demand. Buyers are ready and willing to purchase your home. Call me at 503-804-9685 if you are thinking of making a move.

Moving to Lake Oswego?

Want to know more about Lake Oswego? I’d love to be your buyer’s agent, please give me a call at 503-804-9685.

Having worked in Lake Oswego as a Real Estate Broker since 1978 and lived in Lake Oswego since 1988, I know all the neighborhoods. I am ready to assist you with all your real estate needs! “There is no substitute for experience.”

ALL ABOUT…..Lake Oswego Real Estate. Copyright 2008-2017. Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of Federal copyright laws.

La

Lake Oswego Real Estate How To Take Title To Property In Oregonhttps://lakeoswegorealestateblog.wordpress.com/

When purchasing property in Oregon, it is important to take title in the manner in which you intend.  There are different ways to do so as outlined below:

THE FOLLOWING INFORMATION IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND IS NOT INTENDED TO REPLACE LEGAL ADVICE FROM YOUR ATTORNEY OR TAX CONSULTANT.

As an individual Man/Woman –

An individual may hold title in his or her name alone whether they are married or unmarried. If the individual is married their spouse has no rights in the property (i.e. Jane Doe, an individual) during the lifetime of the owner.

Tenants by the entirety/Married Couple –

Oregon Revised Statutes (“ORS”) 93.180 provides that a conveyance to a married couple is presumed to create a tenancy by the entirety which is a survivorship estate as between the two parties, i.e. the title passes automatically from a deceased party to the survivor, unless they express a specific intent to hold it in a different manner. (i.e. John Doe and Jane Does husband and wife or John Doe and Jane Doe tenants by the entirety).

Registered Domestic Partners –

House Bill 2007 provides that persons of the same sex who comply with the registration provisions are afforded the same privileges, immunities, rights and benefits afforded to married persons. Individuals may take title as tenants in common (see below) or they can take title in a survivorship estate similar to a tenancy by the entirety. (i.e. John Doe and Fred Buck as Oregon registered domestic partners with the right of survivorship)

Survivorship Estate –

ORS 93.180 provides that two or more individuals may take title in a survivorship estate; i.e. title automatically passes to the surviving person(s), if they state the intent to do so (i.e. John Doe, Fred Buck, Mary Shelley with rights of survivorship).

Tenants in Common –

ORS 93.180 provides that a conveyance to two or more persons who are not married are presumed to be tenants in common, that is each has an equal, or as otherwise stated, undivided interest in the property (i.e. John Doe, Fred Buck and Mary Shelley tenants in common).

Entity –

A recognized legal entity may hold title to real property, examples are Partnership (general or limited), Limited Liability Company, or Corporation. The grantees name should be exactly as registered with the State of Oregon or other state where the entity was created.

Representative Capacity –

Title to real property may also be held by an individual or entity in their capacity acting on behalf of others, e.g. John Doe, Personal Representative of the Estate of Mary Shelley, deceased, John Doe, Trustee of the Mary Shelley Trust, etc.

Source:  First American Title Insurance Company

Thinking of Selling Your Lake Oswego Home?

Interest rates are still low and there is still a huge pool of buyer demand. I have ready, willing and able buyers ready to purchase your condo or townhouse. Call me at 503-804-9685 if you are thinking of making a move.

Moving to Lake Oswego?

Want to know more about Lake Oswego? I’d love to be your buyer’s agent, please give me a call at 503-804-9685.

Having worked in Lake Oswego as a Real Estate Broker since 1978 and lived in Lake Oswego since 1988, I know all the neighborhoods. I am ready to assist you with all your real estate needs! “There is no substitute for experience.”

ALL ABOUT…..Lake Oswego Real Estate. Copyright 2008-2017. Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of Federal copyright laws.

Lake Oswego Real Estate Oregon Property Tax Schedule

There are few things in life that are as certain as taxes, especially when it comes to buying, selling, and owning real estate. Oregon’s Property Taxes are somewhat difficult to understand as you are paying back 6 months and forward 6 months of your total property tax bill.

Below are important dates for property taxes, including when they are due, when they may be paid, and how they’re calculated.

Oregon Property Tax Schedule And Timeline

Property taxes have a timeline that is different than most other taxes or bills that we pay. Here are a few important dates:

  • Taxes become payable in October
  • Taxes are due November 15 and may be paid in thirds
  • If paying in installments, the final installment is due May 15
  • July 1 is the beginning of the new fiscal year

Property Assessment

The appraisal process identifies taxable property and assigns a value to it. County assessors appraise most Oregon property and the property value is determined as of January 1 each year.

Property subject to taxation includes all privately owned real property (land, buildings, and fixed machinery and equipment), manufactured homes, and personal property used in a business. There is no property tax on:

  • Personal belongings and automobiles.
  • Crops & orchards.
  • Business inventories.
  • Household furnishings.
  • Certain intangible property.

Tax Rates

Taxes are certified by the taxing districts and the county assessor places them on the tax roll each year in the Fall. Taxes are placed on the tax roll in the form of a rate per $1,000 of assessed value.

When a district certifies a dollar amount tax levy, such as a local option tax or bond tax, the assessor must calculate a tax rate. To compute a tax rate, the tax levy amount is divided by the taxable assessed value of the property in the district. This tax rate is placed on the individual property tax accounts in the district.

The total amount of tax placed on a property is computed by multiplying the property’s assessed value by the combined tax rates of all the districts in which the property is located and then adding any assessments.

Property Tax Annual Cycle in Oregon

https://lakeoswegorealestateblog.wordpress.com

Whether you are buying or selling, it is important to know if you have a reserve account with your lender to have funds in an account to pay for any upcoming taxes.

Source:  Ticor Title

Search For Real Estate

I have a new search site available to find Portland metro and all outlying properties for sale.  You can view RMLS™ information here. My website is also available.

Thinking of Selling Your Lake Oswego Home?

Prices have slowed since July in Lake Oswego and you may want to know the value of your home in today’s Lake Oswego real estate market. Interest rates are still low and there is still a huge pool of buyer demand. I have ready, willing and able buyers ready to purchase your home. Call me at 503-804-9685 if you are thinking of making a move.

Moving to Lake Oswego?

Want to know more about Lake Oswego? I’d love to be your buyer’s agent, please give me a call at 503-804-9685.

I have worked in Lake Oswego as a Real Estate Broker since 1975 and have lived in Lake Oswego since 1988 and know all the neighborhoods. I am ready to assist you with all your real estate needs! “There is no substitute for experience.”

ALL ABOUT…..Lake Oswego Real Estate. Copyright 2008-2016. Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of Federal copyright laws.

Lake Oswego Real Estate Riperian Rights And Oswego Lake Rights

It is going to be a very HOT next several days and through the weekend, hitting temperatures at or close to 100 degrees. You might be wishing you lived on a body of water, or close to water.https://lakeoswegorealestateblog.wordpress.com

Riperian Rights

Every real estate agent will tell you that all the questions on the real estate exam when they obtained their license have nothing to do with actually selling real estate. Most agents remember that 43,560 sq. ft. = an acre and not much else from their exam.

One of those topics I remember from licensing 40 years ago is riperian rights. In fact, riperian, or water rights, have been an issue I’ve had to deal with in many sales I’ve made along bodies of water or when houses sit next to water.

Just because you own property that abuts to water, is on water or close to water, you may not own the rights to actually ever use the water.

Do You Have Water Rights?

On one of our hot days recently, I visited with some clients to whom I sold a house along a creek a while back. We got to talking about their “riperian” rights. I’ve sold houses with riperian rights to other clients as well but this one was a little different.

During the course of the sale, my buyers went to the appropriate county and state offices to find out if they had riperian rights. They obtained their proper paperwork showing they indeed not only had water rights but they were allowed to fish and pump water from the creek and they owned to the middle of the creek. The property at one time had an older home and sat on a large tract of land. That large tract of land had water rights. However, that piece of property was subdivided into several other pieces and those other parcels did not receive any water rights. The water rights stayed with the original parcel and with the original owner.

Obtaining Necessary Permits

The State of Oregon Water Resources Board is the agency that enforces, permits and restricts water rights. Landowners with water flowing past, through, or under their property do not automatically have the right to use that water without a permit. And in fact, the owners of those smaller parcels are not only using water but are pumping water and fishing the creek illegally if they don’t have the required permits.

Oswego Lake

Oswego Lake in Lake Oswego is managed by the Lake Corporation.

The Lake Oswego Corporation (LOC) is an organization of lake residents that manages the 415-acre Oswego Lake and its lakefront properties. The LOC is responsible for safety, water quality, maintenance, boat and operator licensing, lakefront building permits, and special events. Oswego Lake is a private lake and just because you live in Lake Oswego, does not mean you have access to the Lake or the right to use it.

The Lake Corporation owns 20 lakeside properties, dedicated easements, that supply deeded lake access privileges to over 3,000 homeowners in the surrounding area. Each easement is governed by its own individual set of by-laws and has its own volunteer board of directors. Facilities and rate structures vary from easement to easement. Before purchasing a property in Lake Oswego, you should confirm whether your property is eligible and to find out which easement(s) you are entitled to join.

Also, when you purchase a Oswego lake front property, there is a one-time $5,000 Lake Corp transfer fee plus yearly Lake Corp fees.

Do You Have A Lake Easement?

Your property, even if not directly on Oswego Lake, may have a lake easement or in some cases, several easements.  Each easement is different and may include only a picnic site, access, swim, etc. easement.

I have recently heard that there have been several buyers who recently purchased Lake Oswego real estate thinking they had the right to use Oswego Lake when in fact they didn’t.  The main reason they purchased the property was to be able to put their boat on the lake. When purchasing Oswego Lake property, make sure you check to determine not only if you have the right to use the lake or if you have an easement, and the type of easement you can enjoy.

Current Easement Association Information

ALDER POINT CLUB
BLUE HERON EASEMENT
BRYANT PARK
FOREST HILLS EASEMENT
GOODIN EASEMENT
LAKEVIEW RECREATION
LAKEWOOD BAY COMMUNITY CLUB
LAKEWOOD YACHT CLUB
MAPLE CIRCLE EASEMENT
NORTH LAKE CLUB EASEMENT
OSWEGO LAKE VILLAS
OSWEGO SHORE ESTATES
PALISADES PARK
SOUTH SHORE GLEN
SOUTHVIEW CLUB
SPRINGBROOK EASEMENT
SUMMIT COURT EASEMENT
UPLANDS EASEMENT
VILLAGE ON THE LAKE
WOODSIDE CIRCLE

Oswego Lake Swim Parks

Lake Grove Swim Park

City of Lake Oswego Swim Park

Oswego Lake Properties For Sale

Looking to enjoy Oswego Lake?  Here are Lake Oswego properties that are on Oswego Lake (limited # of views).

Search For Real Estate

I have a new search site available to find Portland metro and all outlying properties for sale.  You can view RMLS™ information here. My website is also available.

Thinking of Selling Your Lake Oswego Home?

Prices are increasing at a fast pace in Lake Oswego. Interest rates are still low and there is a huge pool of buyer demand. I have ready, willing and able buyers ready to purchase your home. If you want to know the value of your home in today’s real estate market, please call me at 503-804-9685.

Moving to Lake Oswego?

Want to know more about Lake Oswego? I’d love to be your buyer’s agent, please give me a call at 503-804-9685.

I have worked in Lake Oswego as a Real Estate Broker since 1975 and have lived in Lake Oswego since 1988 and know all the neighborhoods! The real estate market is “hot” here in the Portland metro area and Lake Oswego. I am ready to assist you with all your real estate needs! “There is no substitute for experience.”

ALL ABOUT…..Lake Oswego Real Estate. Copyright 2008-2016. Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of Federal copyright laws.

Lake Oswego Real Estate Due Diligence

In the mid-70s when I first started selling real estate, the only inspection available for a buyer was a termite/dry rot inspection. In all the years after that and since, I have only sold two houses that have actually had termites, although many homes have had and still have dry rot.

PortlandRadonZIPCodeMap

Unfortunately, many of the cities and counties also did not keep records at that time. There were no well reports or Well Master, water potability samples weren’t taken, radon hot spots weren’t even on our radar, there were no landslide reports, FEMA flood zone maps weren’t available, no floor plans were on file, zoning and zoning maps were not available, cities didn’t keep permit records, there was no DEQ to decommission oil tanks or records kept, lead base paint wasn’t an issue at that time, and there were no soil samples taken etc. not to mention all the other issues that come with buying a home. There was really no where to go and get any information about anything.

What Is Due Diligence?

One of the many ways to protect yourself against purchasing a home with any major defects, is the opportunity for you to perform your due diligence within the inspection time period.

What is due diligence? After your offer has been accepted by a seller, you may order inspections, research permits and zoning, obtain hazard insurance and investigate environmental or any other factors that may affect the property.  Licensed contractors perform a home inspection, alerting you to any potential problems, but you may also need further inspections by licensed and bonded specialists for specific inspections.

Types of Home Inspections During Your Due Diligence Time Period

In addition to a full home inspection, a buyer has the opportunity to have other specialty contractors perform some of these specific inspections:

  • asbestos
  • electrical
  • exterior siding
  • fireplace/chimney
  • Heating/Cooling
  • Land Survey
  • Mold/Mildew
  • Pest/Dry Rot
  • Plumbing
  • Radon
  • Roof
  • Structural
  • Toxic/Hazardous Substances
  • Underground sprinklers
  • Underground storage tank
  • Sewer Scope
  • Well test
  • Septic/Sewage System
  • Water Potability

At the end of the due-diligence period, a homebuyer has several options.  A buyer can negotiate with the seller for necessary repairs or credits for work to be done, accept the property in its present condition or cancel the sale.

In A Hot Housing Market

Many buyers are certainly educated about the specific inspections that can be performed.  However, the reason I am writing this post to begin with is because of my concern that in this “hot” housing market we are experiencing in the Portland metro real estate areas, some buyers in their efforts to “get that house”, are waiving their right to have home inspections.  I never suggest to my buyers they do that.  In fact, some of my buyers have lost out on houses because they did not waive their right to have any/all home inspections available and miss out on their chance to perform their due diligence.

I am concerned about those buyers who have waived that right in this real estate market, who may down the road find major issues that far outweigh the price or rush to get their offers accepted.

Exercise your right to conduct home inspections. It is extremely important you perform your due diligence.

Search For Real Estate

I have a new search site available to find Portland metro and all outlying properties for sale.  You can view RMLS™ information here. My website is also available.

Thinking of Selling Your Lake Oswego Home?

Prices are increasing at a fast pace in Lake Oswego. Interest rates are still low and there is a huge pool of buyer demand. I have ready, willing and able buyers ready to purchase your home. If you want to know the value of your home in today’s real estate market, please call me at 503-804-9685.

Moving to Lake Oswego?

Want to know more about Lake Oswego? I’d love to be your buyer’s agent, please give me a call at 503-804-9685.

I have worked in Lake Oswego as a Real Estate Broker since 1975 and have lived in Lake Oswego since 1988 and know all the neighborhoods! The real estate market is “hot” here in the Portland metro area and Lake Oswego. I am ready to assist you with all your real estate needs! “There is no substitute for experience.”

ALL ABOUT…..Lake Oswego Real Estate. Copyright 2008-2016. Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of Federal copyright laws.

Lake Oswego Real Estate Appraisals

We have been experiencing a fast-moving, “hot” Lake Oswego and Portland-metro real estate market where many buyers have been waiving appraisals or indicating on their earnest money agreements (sale contracts), that they would pay the difference in cash should the home they are purchasing come in at a low value based on an appraisal vs. the accepted sale price.

Unfortunately, not many buyers have the cash to make up the difference.  In addition, buyers may feel buyer’s remorse once they make an inflated offer on a home, especially when the lender’s value is not there to support the sales price.  Cash buyers, in many cases are also not requesting appraisals, although they have the right to do so.Summa_REG_Logo

Appraisal Value

When you are buying a home, there is so much to worry about that probably the last thing you are thinking about is the home appraisal. And, as a seller, the most important question you are thinking about is what can you sell your home for.

But whether you are a Lake Oswego or Portland metro real estate home buyer or home seller, you probably aren’t thinking much about the home appraisal process. If there were no home appraisals, the real estate market could crash.

Therefore, it is important you become familiar with home appraisals and the process.

What are they?

A home appraisal is a “guess” as to how much your property is worth. I guarantee you that if you sent out three different people to give you an estimate of value of your home, you would get three different opinions.

Why are home appraisals important?

No bank or financial institution will lend you money for a house without an appraisal. The appraisal lets a bank or lender know what the loan collateral will sell for in a worst-case scenario.

In other words, the bank doesn’t want to be stuck with a home they lent the borrower a million dollars for but can only sell for $100,000 because that’s all it is worth. The home buyer shouldn’t want that either.  During my 40 years selling real estate, I remember a case where a bank loaned money for a house that didn’t even exist.  It had burned down many years earlier and no one bothered to check if the house was even still standing.

Appraisals exist for many good reasons, but what can make them a tense time for all parties is that they’re conducted after you’ve negotiated a price, agreed to buy or sell the house and signed the contract. So it’s in everyone’s best interest that the appraisal is close to the price that both seller and buyer have agreed on.

However, if it turns out you’re about to buy a house for an inflated price, that doesn’t necessarily mean you’re obligated to buy the house. But if you aren’t careful, it could mean just that.

Our Oregon earnest money agreements (purchase contracts) address the possibility that if your appraisal comes in below the purchase price, it allows you to terminate the contract or renegotiate the price. If not, you could be obligated to cover the difference in cash for a low ball appraisal.

How long does the appraisal process take?

It used to take a couple of days, but in recent years, ever since the recession – when federal guidelines changed the appraisal process now takes a lot longer. Those buyers in our Lake Oswego and Portland metro real estate market who have been lucky to get their offers accepted may be surprised to learn there is a back-log of appraisal requests. Any offers with quick (30 days or less) closings will have to extend their time to 45 days, or more than likely, to 60 days to get their transaction closed.

It also costs more to have an appraisal and in some cases, you can pay extra (a lot extra sometimes) to expedite the timing of the appraisal. We currently have a shortage of appraisers as many appraisers left the business during the recession period and many others are now in their 60s and 70s ready to retire.  The qualifications have also increased and you must be an assistant following the shadows of an appraiser before you can go out on your own.  If the appraiser doesn’t want a “shadow”, the assistant will have to wait to get licensed.

Here are the Oregon requirements to become an appraiser http://oregonaclb.org/educational-requirements/

What factors go into deciding the worth of a house?

The appraiser is looking at the most important elements of the property such assquare footage, number of bedrooms and bathrooms, condition of the home, current recently sold comparables that are close in proximity, and health and safety issues.

The recently sold comparables, houses that are similar to yours, are the main factors in appraising a home to determine the market value of your home.

If you’re a homeowner, what can you do to improve the process?

Check all the major elements of your home to see if they are up to date and in good condition such as the siding, the fireplace, and that carbon monoxide detectors have been installed and strapping your water heater are up to current codes.  Clean out the gutters and the roof.  If at all possible, obtain a roof certification showing the life of your roof still has 3-5 years. Have your furnace cleaned and serviced.  Also, make sure your A/C has been serviced and in good working order and that you can provide proof that both have been serviced. If there are any dry rot issues, repair them before you place your home for sale.  Have you had any standing water or pooling?

Make sure you take corrective measures so there is not a problem come time for the appraisal. Removing any obstacles or issues will assure your appraisal is expedited.  You don’t want to have an appraiser do a re-check and come back to see if any or all repairs called out on the appraisal have been completed. A re-check will only cost extra time and money and delay your closing even further.

Search For Real Estate

I have a new search site available to find Portland metro and all outlying properties for sale.  You can view RMLS™ information here. My website is also available.

Thinking of Selling Your Lake Oswego Home?

Prices are increasing at a fast pace in Lake Oswego. Interest rates are still low and there is a huge pool of buyer demand. I have ready, willing and able buyers ready to purchase your home. If you want to know the value of your home in today’s real estate market, please call me at 503-804-9685.

Moving to Lake Oswego?

Want to know more about Lake Oswego? I’d love to be your buyer’s agent, please give me a call at 503-804-9685.

I have worked in Lake Oswego as a Real Estate Broker since 1975 and have lived in Lake Oswego since 1988 and know all the neighborhoods! The real estate market is “hot” here in the Portland metro area and Lake Oswego. I am ready to assist you with all your real estate needs! “There is no substitute for experience.”

ALL ABOUT…..Lake Oswego Real Estate. Copyright 2008-2016. Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of Federal copyright laws.

Lake Oswego Real Estate New Oregon Laws

Recently, Governor Kate Brown signed several bills into law that may affect you and real estate you may own.

The summaries below are provided for information only. If you have questions, a real estate attorney should be consulted.http://bettyjung.com

House Bill 4079

Directs Land Conservation and Development Commission to establish pilot program in which local governments may site and develop affordable housing. Appropriates moneys to Department of Land Conservation and Development to establish pilot program.

House Bill 4143

Prohibits rent increases during first year of month-to-month tenancies. Lengthens required notice periods for rent increases of certain periodic tenancies. Limits fee charged to tenants for second or subsequent noncompliance with written nonsmoking rules and policies to $250. Modifies provisions requiring landlord to provide emergency exits from bedrooms.

Senate Bill 1529

Prohibits enforcement of residential irrigation requirements by homeowners association while finding or declaration of existing or likely drought conditions is in effect.

Senate Bill 1533

Permits certain cities and counties to adopt land use regulations or functional plan provisions,
or impose conditions for approval of permits, that effectively establish sales or rental price, or require designation for sale or rent as affordable housing, for up to 20 percent of multifamily structure in exchange for one or more developer incentives.

Senate Bill 1563

Requires Department of Environmental Quality to award grants for purpose of developing and administering loan programs to provide low-interest loans for purposes related to on-site septic system repairs, replacements, upgrades and evaluations.

Senate Bill 1573

Requires city whose laws require petition proposing annexation of territory to be submitted to electors to annex territory without vote upon receipt of petition for annexation submitted by all owners of land in territory provided territory is included within urban growth boundary of city or Metro and is, or will be, subject to acknowledged comprehensive plan of city, at least one parcel in territory is contiguous to city limits and proposal conforms to all other requirements of city’s ordinances.

Search For Real Estate

I have a new search site available to find Portland metro and all outlying properties for sale.  You can view RMLS™ information here. My website is also available.

Thinking of Selling Your Lake Oswego Home?

Prices are increasing at a fast pace in Lake Oswego. Interest rates are still low and there is a huge pool of buyer demand. I have ready, willing and able buyers ready to purchase your home. If you want to know the value of your home in today’s real estate market, please call me at 503-804-9685.

Moving to Lake Oswego?

Want to know more about Lake Oswego? I’d love to be your buyer’s agent, please give me a call at 503-804-9685.

I have worked in Lake Oswego as a Real Estate Broker since 1975 and have lived in Lake Oswego since 1988 and know all the neighborhoods! The real estate market is “hot” here in the Portland metro area and Lake Oswego. I am ready to assist you with all your real estate needs! “There is no substitute for experience.”

ALL ABOUT…..Lake Oswego Real Estate. Copyright 2008-2016. Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of Federal copyright laws.

Lake Oswego Real Estate Property Tax Value ResetsPooh

Real Estate Property Tax Values In Oregon

Property tax real market values are assigned by using market activity in a certain geographic area. Measure 50, voted in by the voters in 1997 put a 3% limitation on assessed value increases every year and would have theoretically capped the tax increases at the same rate. Many homeowners, and future buyers, believe that property taxes can only increase by 3% every year.

Problem is, voters have been very generous in voting in bonds and levies over and above the Measure 50 limitation. The library levy and school bond issue voted in by Multnomah County in 2012 are some examples. Those 2 levies increased the average tax bill by over 10% when they were implemented in the 2013 tax bills sent to property owners. Basically, the 3% limitation has “gone away”.

The County Tax Assessor can assign a new or updated value to your home at any time. Further, the County Tax Assessor has the right to levy property taxes for the current tax year plus the prior 5 years! You, as the taxpayer, must prove any errors and/or your innocence

Home Values Increasing

With the Portland metro area and Lake Oswego real estate market values increasing, the County assessor has hired additional workers to “watch” what is currently on the market for sale and what has sold so they can levy additional property taxes.

One of the many things those new hired workers are looking at is what is being posted into the remarks section of our RMLS™ such as any square footage differences from what is recorded in tax records, and any major improvements and remodeling of “significant difference”, etc.  In addition, as real estate agents we post pictures on line of the interior of homes, and the County is looking at those as well.

Gross Error Statute

ORS 305.288 states that if the real market value assigned to you property (from 1 to 4 units only) by the assessor is 20% or more above the actual market value, you have the right to appeal for that year plus the prior 2 (Note: the County can go back 5 years, but you as a homeowner can only go back 2 years).

As an example, if during the recent recession or recently, you sold your house for less than what the county showed as the real market value, you have the right to appeal your taxes.  The court filing fee is $252 to start that process.  You will have to allow the assessor access to your property.  Should the court find in your favor, the statute requires the County Assessor to pay you 12% interest on the over payment of taxes from when you paid them.

Representing Square Footage

There have been several cases lately where there was a huge discrepancy regarding the square footage of a property.  Perhaps you purchased a home that originally had an unfinished daylight basement/basement, and years later you decide to finish that basement.  You have now added living space and additional square footage to your property that has not been assessed. Or there was an area that was deemed storage or other unfinished area such as an attic that you have remodeled, and now you also have more living space.

This is referred to as “omitted property” and the County Assessors are watching closely so they can levy back taxes on your home. When the County Assessors find omitted property, they notify the owner and add the property to the tax rolls.  The law allows them to re-assess the property for the current year and previous years – as indicated above – going back 5 years.  Once omitted property has been added to the tax rolls, the assessment for the omitted property becomes a lien on the property and the owner must pay or risk foreclosure.  Because more new buyers are not willing to purchase property with liens for prior years (and because mortgage lenders will not allow it) property owners must pay those back taxes that are due when they sell the property.

TRC – Tax Roll Correction

In some Clackamas County homes, I am aware the Assessor included unfinished garages as total living square footage.  If you know this to be true, you can file a TRC and request a tax roll correction where you can challenge those property taxes.

If you have any questions about a property, contact the appropriate County Tax Assessor.  Real Estate agents are not permitted to give advice on omitted property assessments.

Search For Real Estate

My new website is also available and you can search for Lake Oswego real estate or any homes for sale in the metro PDX area or surrounding communities –http://bettyjung.com

Thinking of Selling Your Lake Oswego Home?

Prices are increasing at a fast pace in Lake Oswego. Interest rates are still low and there is a huge pool of buyer demand. I have ready, willing and able buyers ready to purchase your home. If you want to know the value of your home in today’s real estate market, please call me at 503-804-9685.

Moving to Lake Oswego?

Want to know more about Lake Oswego? I’d love to be your buyer’s agent, please give me a call at 503-804-9685.

I have worked in Lake Oswego as a Real Estate Broker since 1975 and have lived in Lake Oswego since 1988 and know all the neighborhoods! The real estate market is “hot” here in the Portland metro area and Lake Oswego. I am ready to assist you with all your real estate needs! “There is no substitute for experience.”

ALL ABOUT…..Lake Oswego Real Estate Copyright 2008-2016. Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is in violation of federal copyright laws

Contact Betty Jung

Betty Jung, Broker
REALTOR®
CRS, GRI, ABR, SRES, CNHSS

Summa Pacific Cascade
4949 Meadows Rd. #100
Lake Oswego, Oregon 97035

Licensed in the State of Oregon

503-804-9685 Cell

or email:betty@bettyjung.com

"Selling Real Estate Since 1978. There Is No Substitute For Experience!"

Follow ALL ABOUT…..Lake Oswego Real Estate on WordPress.com

Recent Comments

Archives

Visitors

  • 6,791 hits

Betty’s Copyright

(c) Betty Jung 2008-2017.

All photos and content are copyright protected and may not be reproduced in any form.

DMCA Copyright Logo

© ALL ABOUT.....Lake Oswego Real Estate.

All Rights Reserved.