The Central Valley’s Water Problem is not a Drought but Politically Created Disaster

A number of California's largest reservoirs are full, but this allows water agencies to release the overflow into the ocean. This could easily be avoiding if it was not for Environmental politics. The I-5 San Joaquin Valley corridor is marked with signs begging Nancy Pelosi to turn the water back on. But instead of flowing it to farmers they send it down the drain. The Environmentalists say that pumping water via the Sacramento and San Joaquin River Delta to farmers is damaging to salmon and Delta smelt. It is estimated that 2/3rds of the state’s population and farmland relies on this water. California is essentially dumping a trillion gallons of fresh water in the ocean every year. Liberals say it is a drought, while farmers and Republican politicians claim the shortage is all about saving a non-endangered bait fish (a minnow). The San Joaquin Valley is being transformed into a dust bowl because of the politics of water. Hundreds of thousands of acres are fallow, because water is restricted. This affects many many farmers and even more so the farm workers. It appears environmental and endangered species laws are being used to force a political agenda, and in the process, doing severe damage to our country. California’s Central Valley from Sacramento to Kern County is having an Erin Brockovich moment. There is a film/video about the subject. Here is a link to Facebook https://www.facebook.com/nowaternofarmernofood/ or you can type No water, no farmer, no food into Youtube, Bing, or Google search. President elect Trump indicated while campaigning that he will do something about it. Let us see

Title Insurance and Why a Property Needs it When Buying Land or Real Estate

Title insurance is indemnity insurance. It essentially is a backup plan in the event there is an issue the ownership of the real property you are buying. It protects the buyer against financial loss from defects in title to real property and from the invalidity or unenforceable mortgage liens. Most home purchases have had debts on them. A buyer needs to ensure those debts to a bank or mortgage lien holder has been released. It is also meant to protect the current property owner's and or the lenders on the property their financial interest in the real property. This protects both the buyer, seller and lender against loss due to title defects, liens or other matters. Notwithstanding it will also defend against a lawsuit. Virtually everyone gets title insurance on a home when the sale is between strangers. Not everyone gets title insurance when the quit claim on real property between family members, joint tenants, and married couples. What we have found is many land parcels transactions and even home sales is where one spouse quit claims on a property to the other spouse. Years in the future that spouse retaining title sells the property. The title shows that a prior spouse quit claimed on the property without title insurance. In many cases there is an unrecorded quit claim deed. This recorded or unrecorded quit claim will create a cloud on title. A new title insurance company will require that the prior spouse sign a new quit claim deed. In many cases that prior spouse can’t be found is deceased, or is out of the country. The seller may have great difficulty in selling the home. Another major issue are deeds of trust. This is where one party buys land with a debt on the property. The buyer paid off the debt, but there was not a re-conveyance deed recorded showing the debt was cured. We have seen this a lot in many cases where the deed was paid off even decades ago. In this case the seller of the property must find the prior owner and get them to sign a re-conveyance, or if a seller is lucky the new title company will approve the sale, but will be held harmless if the old property owner shows up asking for the old debt to be paid off if it hasn’t. This clearly demonstrates that selling property with past debt can tangle up the sale of that property in the future. Occasionally, a seller may have to bond around an old deed of trust. This is where a seller pays a bonding company to protect the new buyer against an old debtor coming forward and requesting the old debt to be paid. This bonding process protects the title insurance company against such an occurrence, and places the responsibility on the seller with that prior debt to pay off that debt. The bonding process will not work for a foreign seller though. If a foreign seller has a deed of trust (debt) on a parcel that doesn’t show a re-conveyance then a bonding company will not allow a bond unless the foreign seller has other US real estate that the bonding company can attach the bond to. The bonding company needs some protection in the event the debtor wants a debt paid, but the prior seller is foreign. In such a case a foreign seller can’t sell the real estate until they can show a re-conveyance or demonstrate to a title insurance company that the debt was fully paid. In 98% of cases the title company will want the re-conveyance recorded. Buyer and seller beware of deeds of trust and quit claims.

LA County San Andreas Fault Earthquake Imminent?

200 small earthquakes hit Bombay Bay in the Salton Sea this week. This area is at the southern tip of the San Andreas Fault. There has not been a large earthquake here since 1680, or 330 years ago according to scientists who spoke to the LA Times. According to the LA Times and U.S. Geological Survey, as of Tuesday, the chances of a magnitude 7 or greater earthquake being triggered on the southern San Andreas Fault over the next seven days were as high as 1 in 100 and as low as 1 in 3,000. Without the swarm, the average chance for such an earthquake striking on any given week is 1 in 6,000. The earthquakes hit in a sparsely populated area, less than four miles from Bombay Beach in the Sonoran Desert. Historically just 12 hours after a 6.3 earthquake hit south of the Salton Sea in 1987, an even larger temblor, a 6.6, ruptured six miles away. Seismologists say the could be the first domino off on the San Andreas fault, unzipping the fault from Imperial County through Los Angeles County, spreading devastating shaking waves throughout the southern half of California in a monster 7.8 earthquake. Their ShakeOut simulation says it’s possible that hundreds of brick and concrete buildings could fall, and even a few fairly new high-rise steel buildings. The death toll could climb to 1,800 people, and such an earthquake could cause 50,000 injuries and $200 billion in damage. Let’s hope this doesn’t occur, but the next several days will tell the tale or no tale at all.

AV Sees Double-digit Home Price Gains

This is a reprint of an AV Press Article By: Jim Skeen AV Press PALMDALE - Lancaster and Palmdale neighborhoods saw double-digit home price gains in August, according to a report from CoreLogic. Lancaster's 93534 ZIP code had a median home price of $185,000 in August (57 sales), up 13.3% over the year. Lancaster's 93535 ZIP code had a median home price of $200,000 (98 sales), up 17.6%. Lancaster's 93536 ZIP code had a median price of $300,000 (122 sales), up 10.5%. Palmdale's 93550 ZIP code had a median home price of $220,000 (75 sales) in August, up 13.4% over the year. Palmdale's 93551 ZIP code had a median price of $336,000 (111 sales), up 10.2%. Palmdale's 93552 ZIP code had a median price of $259,000 (65 sales), up 19.4% over the year. Earlier this month, the Greater Antelope Valley Association of Realtors reported there were 517 homes sold in August in the region, a 4% increase over August 2015. Through August, 3,523 homes were sold in the Antelope Valley, down slightly from the 3,535 recorded at this point in 2015. The average selling price of an Antelope Valley home in August was $263,505, up 15% over August 2015. The average selling price of an Antelope Valley home so far this year is $244,038, up 10% from this point in 2015. Of the August transactions, 3% were foreclosures and 2% were short sales. In a separate report, CoreLogic reported there were 23,278 new and existing homes sold in Southern California in August, the highest tally for that month in a decade. The region's sales were up 9.5% over the year. In Los Angeles County, 7,725 new and existing homes were sold, a 5.4% year-over-year increase. The median price of a Southern California home was $465,000 in August, a 6.2% increase over the year. In the county, the median price was $530,000, a 6% increase. "Job growth, low interest rates, household formation and other factors helped drive up activity," said Andrew LePage, an analyst with CoreLogic. "The big picture is that the housing market continues to edge back toward normalcy in the wake of the worst housing bust in modern history." Existing homes in California sold at a seasonally adjusted annualized rate of 420,360 units in August, down 2.2% from a year earlier, according to a report from the California Association of Realtors. August was the sixth straight month of year-over-year sales declines. The median price of an existing, single-family California home in August was $526,580, up 5.8% from August 2015. The association's Unsold Inventory Index, which indicates the number of months needed to sell the supply of homes on the market at the current sales rate dipped from 3.6 months in both July and August 2015 to 3.4 months this August. Nationally, existing homes sold at an annualized pace of 5.33 million in August, down 0.9% from July, but up 0.8% from August 2015, according to a report from the National Association of Realtors. "Healthy labor markets in most the country should be creating a sustained demand for home purchases," said Lawrence Yun, the national association's chief economist. "However, there's no question that after peaking in June, sales in a majority of the country have inched backwards because inventory isn't picking up to tame price growth and replace what's being quickly sold." Nationally, the unsold inventory is at a 4.6-month supply. A six- to seven-month supply is considered normal. The median existing-home price for all housing types in August was $240,200, up 5.1% from August 2015 ($228,500). August's price increase marks the 54th consecutive month of year-over-year gains, the association reported. Distressed sales - foreclosures and short sales - accounted for 5% of August transactions, the lowest percentage since the association began tracking that data in October 2008.

Several New Applicant Proposals were recently submitted for Single Family Homes in Lancaster Recently Reviewed.

A Tentative Tract Map has been proposed on 73 acres at the southwest corner of 52nd Street West and Avenue K-8 Request: It is a proposed subdivision of 238 single family lots on R-7000 zoned land. There will be 128 lots within the R-7,000 Zone, 89 lots within the R-10,000 Zone, and 21 lots within the R-15,000 Zone. There is another Tentative Parcel Map for a property west of 55th Street West. The property owners are requesting the subdivision for the property east of 55th Street West into two parcels. The parcel owners wish to create a tract map and then sell the parcels to a developer. Further there is a proposal for 30 gross acres located on the northeast corner of Lancaster Blvd and 37th Street East. The request is for a subdivision of 129 single-family lots in the R-7,000 and R-10,000 Zones Also another 15 acres located on the southeast corner of Avenue K and future 57th Street West by the same firm. The request is for a subdivision of 58 single-family lots in the R-7,000 Zone. Additionally, another 28 acres located on the northwest corner of future 35th Street East and Avenue J into a subdivision of 114 single-family lots of R-7,000 Zoned lots.

BYD’s Electric Bus Expansion in Lancaster and Globally

BYD the electric bus manufacturing company in Lancaster will soon have on the road 60 foot long buses that can travel up to 300 miles on a single charge. This doubles the distance from the prior bus. BYD “Build Your Dreams” has launched into Chicago and New York, as well as, Los Angeles. They have been operating in Lancaster since 2013, and they are on track to deliver 300 news buses this year. Their first year they only produced 50 buses. They will build and deliver a variety of all-electric bus models, including 14 60-foot-long articulated buses that can carry 120 people with a range of up to 200 miles on one charge, 30 commuter coaches and 41 40-foot standard buses. The 40-foot buses cost $660,000, compared with $500,000 for a diesel hybrid according to reports. The company employs about 300 workers currently and may increase to 1000 by 2018. The company has expanded beyond is Long Beach initial bus footprint to Gardena, Greater LA, Denver, Canada, Chicago and New York. Additionally, Silicon Valley has requested commuter buses with coffee bars, video games and more luxury interiors. This is one of a number of areas in Antelope Valley where job growth in growing and showing a long term future foot print.

Land Conservation and Federal Tax Credits for Donating Land for the Benefit of the Community.

If you own land or look to buy certain land than a land conservation land trust maybe a great option. The type of land that may fit this scenario is land for open space, or historically important property. Ideally land in the Antelope Valley in a wildlife habitat area or a water critical area. There are many areas in Antelope Valley where endangered plant and animal species live. If a person owns land that fits these scenarios than a land conservation easement could be done. A land conservation easement is a permanent, legally enforceable agreement between a property owner and a land trust or government entity. The agreement is recorded with the county, so it will ensure the parcel can further serve its conservation purposes in the future. The way it works is that is a person or entity owns conservation land then they contract with one of a thousand local land trusts. If the land trust deems your parcel fits the conservation need and IRS guidelines than the property maybe eligible for future tax breaks. It can also be a portion of your land that fits the conservation such as a river or creek that runs through the parcel. So for example, say you own farmland with an income is $200,000. Part of your land has a river or some conservation value to it. So you donate that easement worth $500,000 (If that is what the appraiser indicates. Then you the farmer, rancher or forester can now deduct the full $200,000 in the year they donated the easement, and their full income in each subsequent year, until the entire $500,000 deduction is reached. Or you can deduct a portion of it over sixteen years until the $500k amount is reached. There also maybe property taxes deducted. But once you donate this land or easement then it is permanent. You can’t undo the land trust and conservation of the land. It is also possible that if your land parcel has endangered species on it like the burrowing owl, kangaroo squirrel, desert tortoise, California poppy’s or other endangered species than a conservation group may wish to buy you land parcel. In many cases developers are forced to buy conservation land in exchange for developing somewhere else. So it you sell or donate your appraised land then you get the tax deduction of the donation value. It is not a bad deal for land owners who find out that their land is only worth the value of the preservation of the land and plant and animal itself. In some cases a tax break is better than selling the land itself.