First American PACE Monitoring FAQ’s web page:
Or See below:
What is P.A.C.E.?
Property Assessed Clean Energy. A low-cost loan/financing option for energy efficiency products, renewable energy upgrades, and fire-resistance improvements. 100% financing available, for up to 20 years, with low-cost terms and repayment through the property tax bill. The loan/lien remains with the property and is transferred to new property owners upon sale unless it was paid off prior to closing.
Why should they be “monitored”?
OVER 30,000 NEW LOANS/LIENS PER YEAR – WHICH IS ON THE RISE!
County Treasurer-Tax Collector’s offices throughout the state update their records on an annual basis. Meanwhile, these loans are being issued on an ongoing basis. Relying exclusively on static County tax roll information creates a crack for which new P.A.C.E. liens could slip through.
Without ongoing monitoring, over 30,000 P.A.C.E. liens could have gone undisclosed in 2018.
Can’t I get this same information from any NHD provider?
NO! This monitoring ability is exclusive to First American NHD/JCP-LGS Disclosures and is a direct result of owning and maintaining our own tax data. Having our own tax department prevents us from having to rely on third-party tax data providers and keeps all matters of accuracy and liability in-house, and to our high standards.
Doesn’t this information show up on the preliminary title report from my title company?
Yes, some (not all) details of P.A.C.E. liens are referenced in the exceptions of a preliminary title report. However, preliminary report formats can vary from one title company to the next, as can the method the liens are recorded by the various counties throughout the state. These liens can be hard to pinpoint, easily mislabeled, and potentially missed.
Are you in the habit of pulling all exceptions referenced on a prelim to review them in their entirety?
We don’t have any P.A.C.E. liens in my market…
All major metropolitan areas in California have existing P.A.C.E. liens to varying degrees. Also, consider there was a 300% increase in properties carrying this type of financing from 2015 to 2017. It’s not a matter of “if” you’ll do a transaction involving a P.A.C.E. lien, rather “when.”
Why is this important to my buyers?
Some lenders require P.A.C.E. liens be paid off before a buyer can secure a new loan. Alternatively, getting a P.A.C.E. lien to subordinate to a new loan could take time. These issues are best dealt with sooner rather than later. Get the disclosure information upfront to prevent any delays to close escrow.
How soon would a new P.A.C.E. lien show up in the First American NHD/JCP-LGS Disclosure report?
Generally, a lien recorded with a county takes a few weeks before it’s posted and picked up by our monitoring system.
Where would I find P.A.C.E. information in the First American/JCP-LGS Disclosure report?
We categorize P.A.C.E. liens as Direct Assessments in our tax report and provide a “yes” or “no” determination in the Disclosure Summary pages. You will find more details on P.A.C.E. liens in Part 2 of the Property Tax portion of the report, section D, as well as Part 3 section A. They are also considered in the Property Tax Estimator in Part 4 section A of the Property Tax segment of the report.
Your NHD Tax Report reflects a P.A.C.E. lien on my property/transaction. Can I get any additional information on the terms of the P.A.C.E. lien?
YES! Copies of any recorded documents pertaining to a P.A.C.E. contact may be available upon request. Please contact your local Sales Representative for further investigation.
| Melody Maddox Area Manager “Central Coast” 805.226.6494 MMaddox@FirstAm.com |