Are you a title rep who is working for The Man here in Arizona?
And yes, we all know what I said once about title reps.
Title Reps: Winners and Losers
March 8, 2010 1 Comment
Ok, so I have already given you 7 reasons that I hate title reps.
But the truth is that being a title rep is probably not much different than many other sales jobs out there — which can logically mean that many of the same general sales rules apply.
Although I am involved in more than one thing at the moment, I find myself sitting in a branch office of Academy Mortgage more than just a couple of days a week.
And there is a Security Title office just across the hall from the Academy Mortgage office.
Which makes me somewhat of an ongoing-educated-casual-observer of the title rep game.
In my opinion, what is the single biggest indicator of who is a “winner” and who is a “loser” when it comes to being a title rep?
How much time they spend inside their branch and how much time they spend outside of their branch.
Spend too much time inside of your title company branch and chances are that your boss is wondering why your production isn’t higher.
Spend too much time outside of your title company branch meeting with loan officers, Realtors, home inspectors, whoever — well, I just don’t see how that is possible.
What brought this up?
I couldn’t help but notice what separates the winners from the losers when it comes to title reps this morning — as I pulled in the parking lot next to the title company I work by and see the reps car in the parking lot “camping” at the rep’s home office.
Then I walked into my office to find another title rep meeting with loan officers drumming up business while the other title rep might have been sleeping at their desk.
Winners and losers.
Hustle often makes the difference between the two.
Title Insurance Simply Explained
March 4, 2010 1 Comment
A very simple explanation of title insurance and why it is important for every homeowner courtesy of www.ctic.com:
Title policies insure owners and lenders against possible losses from claims against real property ownership. The preliminary report or commitment provides advance information on matters which will be excepted from coverage. Lenders and owners are thereby given an opportunity to correct title flaws before purchasing or lending.
Title insurance originated in the 1870′s to stem a series of land ownership problems that developed from inaccurate record searches, forgeries, and related problems. Today, it offers protection from certain items that cannot be determined from public records, such as forgeries of all types, undisclosed heirs, hidden marriages and divorces, clerical errors, and invalid legal procedures and interpretations.
Policies are written on the basis of a search of public records and other records which impart constructive notice. Remember, a deed does not prove that the seller is the owner of the property. Only title insurance can protect your interest in the property from unknown encumbrances, legal conflicts and unforeseen claims.
A policy of title insurance is like a pre-paid legal agreement. Your insurer will provide legal defense against challenges to your insured title (dependent, of course, upon the type of policy coverage ) and will reimburse you financially for losses due to the covered defects in your ownership rights.
What Is A Preliminary Title Report?
January 28, 2010 1 Comment
What is the Preliminary Title Report?
It can also be called a PTR, Prelim, Title Commitment and just plain Commitment. All of these terms describe one of the least read (or understood) documents in a typical real estate transaction.
The official definition is “an offer to issue a policy of title insurance covering a particular estate or interest in land subject to stated exceptions.” Translation: If certain criteria are met, then a title insurance policy will be issued.
Since the definition refers to “stated exceptions” that will not be covered, this is an important document for buyers to read and understand about that new home they have under contract. Lines 94-99 of the AAR Residential Real Estate Purchase Contract direct the escrow company to order and deliver the title report.
The items shown in a Preliminary Title report are:
- The estate of interest covered
- The owner of the estate of interest
- The parcel of land involved (legal description)
- The exceptions, liens, encumbrances and other risks which will not be insured against if a title policy is issued.
A common lien which will not be insured against (this is one of those stated exceptions) is an existing Deed of Trust (loan) securing the property for the current owner’s lender. The Escrow Officer will obtain a payoff demand statement from the lien holder and payoff the lien in escrow. The lien holder will then record with the county recorder a release of that lien, clearing the title of the stated exception. This process is repeated for all liens and encumbrances that require payoff demand statements. These could be 2nd mortgages, tax liens, child support liens, etc.
The title report is basically a road map for the Escrow Officer as she works to clear requirements for the buyer and seller so that a title insurance policy can be issued upon close of escrow.
Hopefully this helps next time you purchase a home…
Remember to read the title report, and if you need help, call your Escrow Officer.
21 Reasons You Need Title Insurance
January 23, 2010 1 Comment
It’s a common question…
Why do I need title insurance?
I am asked that question a couple times a month, usually during a loan closing. The question is asked right after I cover the title insurance fees on the HUD-1 Settlement Statement. The short reply is to protect you as the rightful owner of the property.
A much more complete list is included below (I have to admit, I am not able to recite the entire list from memory).
- A fire destroys only the house and improvements. The ground is left. A defective title may take away not the only the house but also the land on which it stands. Title insurance protects you (as specified in the policy) against such loss.
- A deed or mortgage in the chain of title may be a forgery.
- A deed or a mortgage may have been signed by a person under age.
- A deed or a mortgage may have been made by an insane person or one otherwise incompetent.
- A deed or a mortgage may have been made under a power of attorney after its termination and would, therefore, be void.
- A deed or a mortgage may have been made by a person other than the owner, but with the same name as the owner.
- The testator of a will might have had a child born after the execution of the will, a fact that would entitle the child to claim his or her share of the property.
- A deed or mortgage may have been procured by fraud or duress.
- An heir or other person presumed dead may appear and recover the property or an interest therein.
- Title transferred by an heir may be subject to a federal estate tax lien.
- A judgment or levy upon which the title is dependent may be void or voidable on account of some defect in the proceeding.
- Title insurance covers attorneys’ fees and court costs.
- Title insurance helps speed negotiations when you’re ready to sell or obtain a loan.
- By insuring the title, you can eliminate delays and technicalities when passing your title on to someone else.
- Title insurance reimburses you for the amount of your covered losses.
- A deed or mortgage may be voidable because it was signed while the grantor was in bankruptcy.
- Each title insurance policy we write is paid up, in full, by the first premium for as long as you or your heirs own the property.
- There may be a defect in the recording of a document upon which your title is dependent.
- Claims constantly arise due to marital status and validity of divorces. Only title insurance protects against claims made by non-existent or divorced “wives” or “husbands.”
- Many lawyers, in giving an opinion on a title, protect their clients as well as themselves, by procuring title insurance.
- Over the last 24 years, claims have risen dramatically.
(List courtesy of ctic.com)
As you can see, title insurance protects the policy holder against many different challenges to rightful ownership of real property. Also important to note is the fact that all of this coverage is provided to the owner for a one time premium. As item 17 states, the policy is in effect “for as long as you or your heirs own the property.”
If you have any specific questions on title insurance, please leave a comment below.
Is it a Quickclaim Deed or a Quitclaim Deed?
January 17, 2010 1 Comment
Is it a Quickclaim Deed or a Quitclaim Deed?
Do you know?
I’ll wager when asked about this document, it is a 50/50 proposition as to which name will be used. It does “quickly” convey title to real property. It also “quits” any claim the grantor has to the title …
Give up?
The correct answer is Quitclaim Deed.
Here’s the definition from Chicago Title:
Quitclaim Deed — A deed operating as a release; intended to pass any title, interest, or claim, which the grantor may have in the property, but not containing any warranty of a valid interest or title in the grantor.
As you can see by the definition, this is not the deed used to take title for a standard purchase transaction in Arizona. Warranty deeds are most commonly used. With a warranty deed, the seller is guaranteeing that he or she has clear title and has the right to sell the property. This is not the case for a quitclaim deed.
Quitclaim deeds are commonly used in transactions between family members, to put property into Trusts, and for divorce decrees where one spouse quitclaims all interest in the property to the other spouse.
Chicago Title’s deed library is online for your convenience.
So remember, next time you’re having trouble with that crossword puzzle, it’s “quitclaim deed”, not “quickclaim deed”
And, of course, the always present disclaimer:
Please be cautioned that by completing and executing any deed, legal rights, duties and obligations are created. Parties should seek and obtain independent legal counsel as to all matters contained within the document being signed. This article is in no way advice as to which document is appropriate.
