Homes And People

Title insurance is actually a process, with the insurance policy being the end product. This process starts with a comprehensive search of public records to determine if any liens or other encumbrances are attached to the title. During the search, detailed information from potentially hundreds of sources is gathered and reviewed, including tax records, federal, state and local records, court judgments, deeds and an evaluation of whether the property characteristics are accurately reflected by the information on the title. Not surprisingly, one in four title searches uncovers some problem that must be rectified prior to the close. What kind of problems? There are four primary categories that can cloud a title and result in significant risk for a prospective homebuyer. The title search meticulously seeks out and evaluates any known indication of any of these issues; however, even the most comprehensive search may not uncover every hidden area of title risk: • Liens can be placed against

A GUIDE TO UNDERSTANDING THE NEED AND THE VALUE It is vitally important for prospective homebuyers to thoroughly understand the process of purchasing a home and the potential risks associated with the property’s title. Most people don’t realize that the current owners of their prospective home - and their family and heirs — have extremely strong rights associated with the property. In addition, third parties may have liens against the title for anything from unpaid child support to outstanding parking tickets! In fact, it takes very little effort to place a lien on a property, but it can take a great deal of time and money to have it removed. What does title insurance cover? Once the title search has been concluded and curative work to resolve any issues has been completed, title insurance can then be issued. The title insurance policy protects policy owners against covered financial losses associated with claims against the title that were not discovered during the title search pro

You’ve decided to purchase a home and hope to take possession as soon as possible. The terms have been agreed upon and all the financial arrangements have been made. But there’s one important detail remaining. Before the transaction can close, a title search must be made. The most accurate description of title is a bundle of rights in real property A title search is the process of determining from the public record just what these rights are and who owns them. A title search is a means of determining that the person who is selling the property really has the right to sell it and that the buyer is getting all the rights to the property (title) that he or she is paying for. The search process can be undertaken by the title company in those jurisdictions where the company maintains offices. In some areas however searches are made only by practicing attorneys. However the search is performed in most real estate transactions today a title insurance policy is purchased to assure the buyer th

Tips For a successful closing 1 Colorado law requires that all funds paid at closing by the parties must be in the form of a wire transfer, cashiers check or teller check. 2 If possible, avoid peak times when scheduling closings (Friday afternoons, end of the month). 3 The title company will need a loan number and contact information on existing loans, HOA contact, seller's forwarding address and social security numbers for all parties. 4 If a Power of Attorney is to be used for closing, contact the title company as early as possible. 5 When scheduling moving vans or other closings be sure to allow time for the resolution of problems which may delay the completion of your transaction. This information is provided to assist you in your real estate transaction. Should you need additional information, please feel free to contact us.

BUYER’S CHARGES (buyer getting a VA loan) 1. Purchase Price 2. Mortgage Title Policy 3. Miscellaneous Title Endorsements as Required by the New Lender (see title commitment) 4. Recording Fees 5.. Tax Certificate 6. Doc Fee (.01 cent per $100 of sales price) 7. Insurance Reserve Account* 8. Tax Reserve Account 9. VA Funding Fee* 10. Loan Origination Fee* 11. Discount Points* 12. Premium for Hazard Insurance 13. Survey* 14. Credit Report* 15. Appraisal Fee* 16. Interest on New Loan* 17. Miscellaneous Loan Fees per New Lender* 18. Express Mail Fees (if applicable) * *Amounts Determined by the New Lender Note: Seller can pay all closing costs and pre-paids for the buyer if agreed to all parties in the sales contract.

VA LOAN SELLER’S CHARGES (Buyer getting a VA loan) 1. Loan Payoff (per existing lender’s payoff letter) 2. Commissions (per contract) 3. Title Insurance 4. Prior Year Taxes Due 5. Prorated Taxes for the Current Year 6. Water & Sewer Bill 7. Discount Points* 8. Tax Service Fee* 9. Real Estate Closing Fee 10. Document Preparation* (if applicable) 11. Miscellaneous Loan Fees per New Lender* 12. Express Mail Fees (if applicable) 13. Homeowners Dues, Fees, etc. *Amounts Determined by the New Lender Note: Seller can pay all closing costs and pre-paids for the buyer if agreed to all parties in the sales contract.

BUYER’S CHARGES (buyer getting an FHA loan) 1. Purchase Price 2. Mortgage Title Policy 3. Miscellaneous Title Endorsements as Required by the New Lender (see title commitment) 4. Recording Fees 5. Loan Discount Fee 6. Doc Fee (.01 cent per $100 of sales price) 7. Hazard Insurance Premium (1st year) and reserves 8. FHA Mortgage Insurance *premium and. Reserves 9. Loan Discount Fee- as per contract 10. Tax Reserve Account 11. Survey* 12. Credit Report* 13. Appraisal* 14. Interest on New Loan* 15. Express Mail Fees (if applicable) 16. Real Estate and Loan Closing Fees 17. Homeowners Dues, Fees, etc. *Amounts Determined by the New Lender Note: Buyer must pay all prepaid expenses. All other charges are negotiable if agreed to by all parties in the sales contract.

FHA LOAN SELLER’S CHARGES (buyers getting an FHA loan) 1. Loan Payoff (per existing lender’s payoff letter) 2. Commissions (per contract) 3. Title Insurance-Owner’s Title Policy 4. Tax Certificate 5. Prior Year Taxes Due 6. Prorated Taxes for the Current Year 7. Water & Sewer Bill 8. Record Release of Existing Loan 9. Inspection Fee* 10. Loan Discount Fee* -as per contract 11. Assignment of Deed of Trust* (if applicable) 12. Document Preparation* (if applicable) 13. Tax Service Fee* 14. Real Estate Closing Fee 15. Express Mail Fees (if applicable) 16. Homeowners Dues, Fees, etc. *Amounts Determined by the New Lender Note: Buyer must pay all prepaid expenses. All other charges are negotiable if agreed to by all parties in the sales contract.

CONVENTIONAL LOAN BUYER’S CHARGES 1. Purchase Price 2. Mortgage Title Policy 3. Miscellaneous Title Endorsements as Required by the New Lender (see title commitment) 4. Recording Fees 5. Tax Certificate 6. Doc Fee (.01 cent per $100 of sales price) 7. Insurance Reserve Account* 8. Tax Reserve Account 9. Premium for Hazard Insurance 10. Loan Origination Fee* 11. Survey* 12. Credit Report* 13. Appraisal Fee* 14. Interest on New Loan* . 15. Miscellaneous Loan Fees per New Lender* 16. Tax Service Fee* 17. Real Estate and Loan Closing Fees 18. Homeowners Dues, Fees, etc. *Amounts Determined by the New Lender. Note: All closing costs are negotiable but must be agreed to by all parties in the sales contract.

CONVENTIONAL LOAN SELLER’S CHARGES 1. Loan Payoff (per existing lender’s payoff letter) 2. Realtors commissions (per contract) 3. Title Insurance 4. Prior Year Taxes Due 5. Prorated Taxes for the Current Year 6. Water & Sewer Bill 7. Record Release of Existing Loan 8. Real Estate Closing Fee 9. Express Mail Fees (if applicable) 10. Homeowners Dues, Fees, etc. As always we are happy to help you if you have any questions.

Most home sellers and buyers have been informed that obtaining title insurance will provide them necessary protection over possible title defects; but many remain uncertain about why this is so—or even about what title insurance is. The more you know about title insurance and its pricing, the more confident you’ll be about getting the right policy. A SELLER’S CONCERN: HOW MUCH DOES IT COST? Title Insurance policy is much more cost effective than the other kinds of insurance you have had to purchase. For a single, one-time-only fee, a title policy remains effective until the property is sold to a new owner—even if that doesn’t occur for decades. The price structure is available on most title companies websites. Some title companies also offer a substantial discount if the policy was issues less than four years earlier. WHY THE BUYER NEEDS TO PROVIDE TITLE INSURANCE? Any prospective buyer will need evidence that his/her investment in your property is free of title defects. In fact, you