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WHY TITLE INSURANCE?
· Documents executed under false, revoked
or expired powers of attorney.
· False impersonation of the true land owner.
· Undisclosed heirs.
· Improperly recorded legal documents.
· Prescriptive rights in another not appearing of record and not
disclosed by survey.
· Failure to include necessary parties to certain judicial proceedings.
· Defective acknowledgments due to improper or expired notarization.
· Corporate franchise taxes as liens on corporate real estate assets.
· Gaps in the chain of title.
· Mistakes and omissions resulting in improper abstracting.
· Forged deeds, mortgages, wills, releases of mortgages and other
instruments.
· Deeds by minors.
· Deeds which appear absolute, but which are held to be equitable
mortgages.
· Conveyances by an heir, devisee or survivor of a joint estate
who attempts to attain title by illgotten means.
· Inadequate legal descriptions.
· Conveyances by undisclosed divorced spouses.
· Duress in execution of wills, deeds, and instruments conveying
or establishing title.
· Issues involving delivery of conveyancing instruments.
· Deeds and wills by persons lacking legal capacity.
· State inheritance and gift tax liens.
· Errors in tax records.
· Demolition and substandard building liens.
· Administration of estates and probate of wills of missing persons
who are presumed deceased.
· Issues of rightful possession of the land.
· Issues concerning the rightful conveyances by corporate entities.
· Deeds and mortgages by foreigners who may lack legal capacity
to hold title.
· Legal capacity of foreign personal representatives and trustees.
· Issues involving improper marital status.
· Improper modification of documents.
· Rights of divorced parties.
· Conveyances in violation of public policy.
· Misinterpretation of wills and ancillary instruments.
· Deeds by persons falsely representing their marital status.
· Claims by creditors of decedent against property improperly conveyed
by heirs and devises.
· Issues concerning unlawful takings by eminent domain or condemnation.
· Special tax assessments.
· Real estate homestead exceptions.
· Forfeitures of real property due to criminal acts.
· Issues concerning adoption of children.
· Conveyances and proceedings affecting rights of military personnel
protected by the Soldiers’ and Sailors’ Civil Relief Act.
· Issues concerning interests noted in financial statements filed
under Uniform Commercial Code.
· Interests arising by deeds of fictitious parties.
· Adverse possession.
· Lack of jurisdiction or competency of persons in judicial proceedings.
· Community property issues.
· Utility easements.
· False affidavits of death or heirship.
· Intestate estates.
· Probate matters.
· Federal estate and gift tax liens.
Owner’s title insurance lasts as long as you, the policyholder-or your heirs-has an interest in the insured property. This may even be after you have sold the property.
WHAT DOES YOUR PREMIUM REALLY PAY FOR?
Title insuring begins with a search of public land records affecting
the real estate concerned. An examination is conducted by the title agent
or attorney on behalf of its underwriter to determine whether the property
is insurable. The examination of evidence from a search is intended to
fully report “material objections” to the title. Frequently,
documents that don’t clearly transfer title are found in the “chain”,
or history that is assembled from the records in a search. Here are some
examples of documents that can present concerns:
· Deeds, wills and trusts that contain improper wording or incorrect
names;
· Outst5anding mortgages and judgments, or a lien against the property
because the seller has not paid his taxes;
· Easements that allow construction of a road or utility line;
· Pending legal action against the property that could affect a
purchaser; or
· Incorrect notary acknowledgements.
Through the search and the examination, title problems are disclosed so
they can be corrected whenever possible. However, even the most careful
preventati8ve work cannot locate hidden title hazards.
HIDDEN TITLE HAZARDS-YOUR LAST DEFENSE
In spite of all the expertise and dedication that go into a title search
and examination, hidden hazards can emerge after closing, resulting in
unpleasant and costly surprises. Some examples of hazards include:
May short value
· A forged signature on the deed, which would mean no transfer
of ownership to you;
· An unknown heir of a previous owner who is claiming ownership
of the property;
· Instruments executed under an expired or a fabricated power of
attorney; or
· Mistakes in the public records.
Title insurance offers financial protection against these and other covered
title hazards. The title insurer will pay for defending against an attack
on title as insured, and will either perfect the title or pay valid claims.
All for a one-time charge at closing.
Your home is your most important investment. Before you go to closing, ask about your title insurance protection, and be sure to protect your home with an owner’s title insurance policy.
The real estate or broker you choose should be enthusiastic about selling your home. It should be listed in the local Multiple Listing Service (MLS) and a “For Sale” sign should be placed in the front yard if local restrictions allow.
After selecting an agent or broker, pricing your home is the next step. One of the most serious mistakes sellers make is either over or underpricing their home. Overpricing a home scares off the buyers by placing the home out of their reach. Underpricing a home may short the valuable dollars for which the house could have sold. Your real estate professional should prepare a Comparative Market Analysis (CMA) to help give you an idea for a home price. The analysis shows recent prices received by sellers in nearby areas with homes similar to yours. Since a home listing sees the most buyer activity within the first two to four weeks, it is imperative that you price correctly from day one.
Your home will have to be attractive to prospective buyers from the moment they drive up.
· Start on the outside. Buyers begin to develop opinions about
a home based on “curb appeal,” or the impression made when
looking at a home from the street.
· A clutter-free home gives a buyer the opportunity to visualize
the possibilities the home offers. Clutter makes rooms appear smaller
and less appealing.
· Cleanliness is an absolute must.
· Smells are a tremendous source of good or bad impressions. Unpleasant
odors such as smoke, pet smells or musty scents will send buyers running!
· Finally, when you show the home, make sure it is well lit and
tidy. If you’d like, play pleasant music at a low volume.
· Choose a moving company.
· Get price estimates from at least three companies-most movers
won’t charge for this service.
· Confirm local Better Business Bureau ratings, as well.
· Review your homeowner’s policy to see if belongings are
covered during the move. If not, look into buying extended coverage or
insuring through the mover.
· Take inventory of all the items you plan to move.
· Submit a request to change your address at least 30 days before
the move. The required forms are available at your local post office or
online at new.usps.com.
· Change your address with the IRS. To find out if your moving
expenses may be deductible, contact the IRS at 800-829-3676 or www. Irs.ustreas.gov,
and ask for Tax Publication 521, moving Expenses.
· Cancel local monthly services including newspaper delivery, gym
memberships, trash service and bank accounts. Remember to clear out your
safety deposit box.
· Make hotel reservations and book airline tickets if necessary.
· Begin packing items that you do not use daily.
· Transfer all prescriptions.
· Set up services for your new address including electricity,
gas, phone, long distance, insurance, cable, wireless services and Internet
service providers. Notify current service providers of the move to cancel
or transfer your account.
· Set aside valuables such as stocks, legal documents, photos and
other irreplaceable items-it’s best to transport them personally.
· Do not pack any flammable materials such as paint, acids or aerosol
cans.
· Take plants separately or arrange to donate them.
· Pack strategically-load item like the vacuum cleaner and bedding
last so they can be the first items to unload.
· Do not leave until you have done a final walk-through to make
sure everything is packed.
· Give movers a phone number where you can be reached at all times.
· Be patient! Prepare to unpack and enjoy your new home.
Before looking for a home, decide how much you can afford to spend. One general rule of thumb is that a family should not spend more than 28 percent of gross monthly income on housing.
CHOOSING A REAL ESTATE AGENT OR BROKER
A real estate professional can help navigate the home buying process. An agent or broker will obtain information on properties listed for sale in the area, usually by consulting the local Multiple Listing Service (MLS).
FINDING A HOME THAT’S RIGHT FOR YOU
Location is a vital factor in selecting a home. Think About work commuting times, how close schools are for your children, and if conveniences such as grocery stores and dry cleaners are nearby. Also consider crime statistics, whether there is heavy traffic in the area and if the area is susceptible to flooding.
Try to buy in the best area that your family can afford.
Once settled on a price, you will have to put the offer in writing.
One you reach your agreement, you will likely require a lender.
Unless paying the full purchase price of a home in cash, you will to borrow funds from a mortgage lender.
After signing the purchase agreement, several steps occur before you obtain ownership, including inspections, title search and examination. When all parties are satisfied, the closing date is set.
It is at the closing that the actual ownership of the house is passed from seller to buyer.
Now take a deep breath and enjoy your new home.
