Category: Title Insurance

Title Insurance and Liens

Home buyers

When putting in an offer on a home for sale and then applying for a loan, the best thing to do is to let a title company do a property title search to make sure there aren’t any bad liens on or against the property.

A lien is a notice attached to a property that lets people know that a creditor claims money is owed.  A lien is typically a public record. It is generally filed with a county records office or with a state agency, such as the secretary of state. Liens on real estate are a common way for creditors to collect what they are owed. More importantly, a lien means that the home could be foreclosed on and taken by the lien holder.   Again, a title search can say whether or not there is a lien levied against the property.

Examples of bad liens on a property:

  • Mortgage – the current homeowner’s lender can foreclose on the property if payments are not made every month.
  • Property Tax – placed on a home loan when property taxes are not paid and take priority over a mortgage lien.
  • Judgment – a judge has placed a lien on the property after a creditor has successfully sued the current homeowner.
  • Child Support – if child support has not been paid by the current owner the lien is placed.
  • IRS -secures the government’s interest in the property when the tax debt is not paid.

A lien on a home is a legal claim against the property. It gives creditors a stake in the home and a way to collect debts owed to them.  When getting a mortgage on a property, the lender will require a  purchase of a lender’s title insurance policy, which protects their interests in the property should there ever be a dispute in the title.   A policy of title insurance insures against defects in or liens or encumbrances on a party’s title to the property.

As a title company, much of our work can be done behind the scenes. The buyer may not even be aware that there may have been any title defects existing at all. They were simply taken care of before the closing.

 

 

 

 

 

 

 

 

 

 

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Cyber Threats in Real Estate

Buying, selling & refinancing a home requires submission of personal information to the lender which includes social security numbers, bank account numbers and credit/loan account numbers.  Sadly, there are hackers out there looking for this personal information to steal.

Never trust wiring instructions sent by email, especially if there is a claim made that submitting a payment has changed and a new account is provided.  The hackers are sending out sophisticated and convincing emails that look like they are coming from your Realtor. They often contain signatures, fonts, and logos that are an exact match to the original. Always confirm in person or by telephone to a verified and trusted phone number. Never wire money without double checking that the wiring instructions are correct.

How to avoid getting into this situation:

  • Never send wire transfer information, or any type of sensitive information, via email. This includes all types of financial information, not just wire instructions.
  • Never conduct business over unsecured WiFi
  • Make sure you learn your Realtor/Lenders email and communication practices. For instance, do they expect to be sending you sensitive information through email?
  • If wiring funds, first contact the recipient using a verified phone number to confirm that the wiring information is accurate. The phone number should be obtained from a reliable source.
  • If email is the only method available for sending information about a transaction, make sure it is encrypted.
  • Delete old emails regularly, as they may reveal information that hackers can use.
  • Change usernames and passwords on a regular basis, and make sure that they’re difficult to guess.
  • Make sure anti-virus technology is up to date, and that firewalls are installed and working.
  • Never open suspicious emails. If the email has already been opened, never click on any links in the email, open any attachments or reply to the email.

Cyber threats in real estate are too incredibly common. We all need to be vigilant and have security practices in place.  One mistake acted on by a fraudulent request, could result in the loss of hundreds of thousands of dollars or personal data loss.

 

 

 

 

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Pricing Your Home to Sell

When it’s time to sell your home in Ohio, having the best Realtor is key to making it happen fast. You need an agent that will price your home properly – the most important thing a skilled Realtor can do. Too many Realtors tell sellers what they want to hear instead of what they need to hear to sell their home.

Pricing a home is a skill that takes training, understanding of the market and the comparable sales (comps). When a home is listed too high, buyers pass on even looking at it. It will end up being on the market for a long period of time and the price will eventually be forced to be lowered to be competitive. But, by that time buyers assume there must be something wrong with the home and it will gain a bad reputation and continue to be bypassed. Even the buyers who do look at it will lowball the new price and the home will end up being sold for less than what it would have had you priced it correctly to being with. Homes sell for the most money when they are on the market for less than 30 days in almost all markets.

You don’t want your home priced lower than it is worth, but you want it low enough to create excitement among buyers and possibly even multiple offers coming in. This is an excellent option if you want to sell a home fast.

A good Realtor will make sure that the seller’s home shows up in online searches. To make sure this happens, a proper price is paramount. If the neighborhood comps are lower, the house may not show up if it’s even slightly higher! For instance, if the comps top out at $300,000, and the buyer wants a 4 bedroom home in that neighborhood under $300,000, the house listed at $325,000 won’t even show up in the search.

Pricing a home to sell properly is a skill that the best Realtors have. It is the most critical piece to selling your home. The right price is 75% of the marketing for any home on the market. It’s what will attract buyers. So, when you are interviewing Realtors to sell your home, ask the question “what’s my home worth” and know they can’t tell you what it will sell for but expect comparable sales, pending sales, and active sales. Finally, ask to see a track record of their previous listings – the original price and the final sale number. And, don’t be afraid to ask for a personal guarantee from them.

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The Importance of Title Insurance

No one gives much thought to the importance of title insurance. Something that can protect owners of real property events and matters that can be brought up form the past. But what happens when an old title issue surfaces and a claim is made on a policy? Many homeowners decline title insurance but once they know how it is created to protect them from unknown claims against their property that can pop up years down the road.

Title insurance is much more than a lender requirement. It’s knowing that what you are buying is free of any third party claims to ownership or use of any part of it. It assures the homeowner that they are clear of anything that would affect the ability to sell or borrow against their new property.  After thousands of real estate closings here at Title First, we can give you a rundown of the most common issues we can save you from:

  • Mistakes on titles, especially lately, that are transferred through a sale of foreclosure without certain rulings met, thus making the transfer of the title invalid.
  • Mistakes within all the paperwork brought to a closing, somewhere along the line there may be a forged signature or recorded documents signed by people without legal authority.
  • Mistakes made during the probate process for the previous owner that overlooked someone else’s rightful claim (undisclosed heirs) to the property or someone else’s interest in the property. Misinterpretation of wills and deeds.
  • Mistakes made in the description of the property.
  • Mistakes missed where claims, tax information or easements have not been recorded properly in the public record.
  • Mistakes missed of liens on the property or judgments against the previous owner.
  • Mistakes in unpaid taxes or mortgages and unpaid debts.

Investors need to be alert when protecting their investments. Title insurance assures the homeowner that the title to the property purchased is free of any defects and is “clear to close”. It is a guarantee that all matters of record that could harm the title of the new property have been disclosed and resolved. Title insurance protects the homeowner against any potential claims should an undisclosed event threaten the ownership of the property. Give us a call today at Title First Agency: 1-866-320-8400

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