Offers Academy for Commercial Real Estate
Jack Butala: Offers Academy for Commercial Real Estate. Leave us your feedback for this podcast on iTunes and get the free ebook at landacademy.com, you don't even have to read it. Thanks for listening.
Jack Butala: Jack Butala with Jill DeWit.
Jill DeWit: It's Thursday.
Jack Butala: Welcome to our show today, Jill. In this episode, Jill and I talk about Offers Academy and how to use it for commercial real estate.
Jill DeWit: What?
Jack Butala: I love this.
Jill DeWit: What?
Jack Butala: I got started in commercial real estate.
Jill DeWit: What?
Jack Butala: I feel qualified to have this podcast. Before we get into the detail of it, let's take a question posted by one of our members on LandAcademy.com, our online community. It's free.
Jill DeWit: I feel qualified to wear these boots today. Just so you know. I have to say that. Michael asked, "Just wondering how I should handle this. I chose to have the buyers do the recording because in California, they need to sign the PCOR anyway. For two of my properties, from several months back, I just received new tax bills. Should I contact the buyer and remind them or should I just let it go?"
Let me clarify this a little bit here. What this is is a ... Michael clearly sold a couple properties to an individual. He sent them the completed deeds with recording instructions for them to turn around, mail it into the county, have it all recorded and get everything updated with the assessor, as in new ownership information and all of that. Correct. What goes along with, depending on the state, there are additional forms that talk about the transaction, maybe what the sales price was, what the sales terms were, were there any improvements on the property, did it come with anything else, how was the ... what kind of a title was used? All of that kind of information to help the assessor for their information. That's comes on an additional form, which traditionally, it is a PCOR in California. It's an Affidavit of Property Value in Arizona.
Jack Butala: It's a TD-1000 in Colorado. Just about every state's got one. New Mexico does not have one.
Jill DeWit: Exactly. New Mexico does not.
Jack Butala: What it's really for is to give ... it goes straight to the assessor.
Jill DeWit: They need to have that information to say ... They're going to adjust their tax bases depending on, "Okay, we just got in a flood of these Affidavit of Property Values for this county in Arizona. Wow. These are all selling for $5,000. We might want to look at the assessed tax base and adjust, make some adjustments." That's what they use that for.
Back to your question Michael, so they didn't send it in. The county still thinks you own it. I would tell them that you want to get it updated. One easy way to alert the buyer is forward them the tax bill. You just got it in the mail from the assessor. You could forward to them and say, "Hey guy, I'm getting your tax bills. You own this property. I don't. If anyone's going to fall behind on the taxes, it's not me. It's you. You are now responsible. Here's your tax bill. You might want to send that in." That's it.
Jack Butala: His question is, "Should I let it go?" No. No, not at all. You should notify them.
Jill DeWit: You don't want them to get in trouble because you know why? You're doing the right thing. You know what? This person, they may not know the ramifications of not updating the information because let's just say five years pass. Here's an example. You do nothing. Let's just say you do nothing, Michael, and you shred them for five years. It eventually after eight years, the stuff's going to happen where the county might start looking at taking the property back. They only have you as the owner on file and you really aren't the owner. You don't want this poor person to go, "Oh-oh," and lose the property because they didn't do that.