AgdaPkt 2010-05-24 special, clsd and jnt

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6.1 F Order Number: NCS-121351-B Page 40 Page Number: l6 NOTIGEI Section 12413.1 of the Calffomia Insurance Code, effective January 1, 1990, requires that any tide insurance company, underwritten title company, or controlled escrow company handling funds in an escrow or sub-escrow capadty, wait a spedfied number of days after depositing funds, before recording any documents in connection with the transaction or disbursing funds. This statute allows for funds deposited by wire transfer to be disbursed the same day as deposit. In the case of cashier's checks or oertltied checks, funds may be disbursed the next day after deposR. In order to avoid unnecessary delays of three to seven days, or more, please use wire transfer, cashier's checks, or certified checks whenever possible. If you have any questions about the effect of this new law, please contact your kx~l First American Office for more details. NDTICEII As of January i, 1991, ff the transaction which is the subject of this report will be a sale, you as a party to the transaction, may have certain tax reporting and withholding obligations pursuant to the state law referred bo below: In accordance with Sections 18662 and 18668 of the Revenue and Taxation Code, a buyer may be required to withheld an amount equal m three and one-third percent of the sales price in the case of the disposition of Calffomia real property interest by either: 1. A seller who is an individual with a last known street address outside of California or when the disbursement instructions authorize tdtie proceeds be sent to a financal intermediary of the seller, OR 2. A corporate seller which has no pemmanent place of business in Catifomia. The buyer may become subject to penalty for failure to withhold an amount equal to the greater of 10 percent of the amount required to be withheld or five hundred dollars ($500). However, notwithstanding any other provision inducted in the Colifomia statutes referenced above, no buyer will be required to withhold any amount or be subject to penalty for failure to withhold ff: 1. The sales pike of the Caiffomia real property rnmeyed does not exceed one hundred thousand dollars ($100,000), OR 2. The seller executes a written certificate, under the penalty of perjury, certifying that the seller Ls a resident of Calffomia, or ff a corporation, has a permanent place of business in California, OR 3. The seller, who is an individual, exewtes a written oertifrcate, under the penalty of perjury, that the California real property being conveyed is the seller's prindpal residence (as defined in Section 1034 of the Intemai Revenue Code). The seller is subject to penalty for knowingly Kling a fraudulent certificate for the purpose of avoiding the withholding requirement. The Caiffomia statutes referenced above inducts provisions which authorize the Franchise Tax Board to grant reduced withholding and waivers from withholding on a case-by~case basis. The parries to this transaction should seek an attorney's, accountant's, or other tax specialist's opinion oonceming the effect of this law on this transaction and shook! not act on any statements made or omitted by the escrow or closing officer. The Seller May Request a Waiver by Contacting: Franchise Tax Board Withhold at Source Unit P.O. Box 651 Sacramento, CA 95812-0651 (916) 845-4900 FirstAmerican Title Insurance Company