Dear Michael: My neighbor has agreed to sell to me his undeveloped lot adjacent to my home. We will handle this transaction ourselves. Which is more appropriate to file with the Recorder’s Office: a Grant Deed or Quitclaim Deed? We are unsure of the pros/cons between these two options for recording the change in title.
Answer: In most cases, when you own real property, it is because you hold the deed to it. A deed is a legal document that owners of properties use to transfer their ownership of the property to a new owner. In California, the vast majority of property gets transferred through one of two types of deed: The grant deed and the quitclaim deed. A Grant Deed transfers the seller’s interest and implies that the seller has a real ownership interest in the property and that title has not already been transferred to someone else. The Grant Deed is the most commonly used type of deed. A Quit Claim Deed transfers whatever a seller’s interest is in the property. It makes no guarantees about the extent of interest. On a Quit Claim Deed’s, ownership interest is implied. This could mean 100 percent to none. Grant Deed is the more commonly used type of deed transfer when there is consideration (money exchanged).
Dear Michael: Do family pictures help or hinder when trying to sell your home? We have one wall (in a hallway) full of family pictures and of our grandchildren. Should we remove them?
Answer: You’re family pictures are a great conversation piece but it will detract buyers from viewing the rest of your home. While buyers are busy having a conversation about your grandchildren they are not focused on the other areas of your home. Remove all personal pictures; put away all cluttered items in your home in order to show off the open space. Keep everything as neutral as possible. It’s a big leap for a buyer to view a home as if they would be placing their personal items in it. Let the buyer’s imagination have room to do so. Buyers have difficulty “seeing the potential”. So unclutter as much as you can and complete whatever repairs needed to be made. Remember that kitchen, baths, paint and flooring are the biggest contributors to the highest sale price.
Dear Michael: I need to get a roommate in order to help me pay part of my mortgage payment, which I can no longer afford. Am I allowed to rent out part of my house?
Answer: Some neighborhoods and homeowners’ associations place restrictions on homeowners when it comes to renting out rooms in their house, limiting the home to a place for family members only. Check your local zoning laws first. According to the “National Shared Housing Resource Center” your homeowner’s insurance may be voided as well, so check your policy. You can make extra money by renting out part of your house as long as your zoning laws allow it. If you live in a condo verify your homeowner CC&R’s. Check with your insurance for coverage due to damage caused by the tenant. Bottom line after making sure you can rent out a room in your house, make a list of house rules for the tenant, such as who pays utilities, off-limit areas of the house, parking, pets, overnight guests and the thermostat setting. If all checks out, you can make a success out of renting rooms in your home and avoid trouble. Some sacrifices on your part will need to be made but in return your home can be an excellent source of cash for you.
Michael Kayem is a Realtor with Re/max Estate Properties serving Culver City and the Westside since 2001. You can contact Michael with your questions at 310-390-3337 or e-mail them to him at: homes@agentmichael.com