Buying A Home Financing Offer & Escrow Process Title Information...

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2 Buying A Home...2 The Home Buying Process...2 Advantages to Using a Real Estate Agent...3 How to Become a Homeowner...4 Checklist for Moving...6 Buyers /Sellers Market?...7 Buyers Property Checklist...8 Financing...10 The Loan Process...10 Types of Loans...11 Offer & Escrow Process...12 Understanding the Offer Process...12 Understanding the Escrow Process...13 The Different Ways to Take Title in Arizona...15 Title Information...16 Title Insurance...16 Closing Costs...18 Your Escrow Closing Appointment...20 Tax Information...21 Important Property Tax Information...21 Moving Expenses and Understanding the Arizona Tax Calendar...22 FIRPTA...23 Common Questions...24 Community Outreach Program...26 Glossary of Terms...27 Notes...31 Personal Contacts

3 A professional, experienced and well-qualifi ed real estate agent or broker can guide you through the rather complex and often confusing maze that collectively makes up the home-buying process. What Are The Benefits of Using A Real Estate Agent? 1. SELECT A LICENSED, QUALIFIED, REAL ESTATE AGENT 2. PRE-QUALIFICATION BY A LENDING INSTITUTION 3. PROPERTY SELECTION: Resale New construction Compare houses 4. OFFER TO PURCHASE 5. PRESENT OFFER TO SELLER: Possible counter offer from Seller Possible rejection from Seller 6. CONTRACT ACCEPTANCE BY SELLER: Earnest Money deposit Inspection of property Possible contingency after inspection 7. MORTGAGE APPLICATION: Credit Report Appraisal of property by Lender Verifi cation of employment and fi nancial background 8. UNDERWRITING: Approval of mortgage application Possible rejection of mortgage application 9. TITLE COMPANY: Conducts Title Search on property Reviews and prepares documents for close of escrow 10. WALK-Through 11. CLOSE OF ESCROW: Signing of mortgage papers Recording of documents Keys - it s fi nally yours! CONGRATULATIONS! Because you may be new to the home-buying process, the following list will give you some idea as to the responsibilities that your real estate professional should take on your behalf. 1. Educate you through the entire home-buying process 2. Help you understand all of the paperwork 3. Handle any problems which might arise during the entire transaction 4. Properly prepare any forms, contracts and disclosures that are required and see that those items are legally correct 5. Provide comparable sales data to help assure that you are paying the proper price for the home 6. Help you fi nd the right home in the right neighborhood 7. Screen homes before your showing to make sure the property meets your needs 8. Guide you with regard to repairs that should be made 9. Show homes to you in an effective and professional manner 10. Negotiate all facets of the transaction in your best interest 11. Guide you in your selection of competent escrow/closing and title people 12. Oversee the entire closing process 13. See that the completion of the transaction is smooth right through to things such as obtaining the keys and possession of the property 14. See that all required disclosures are made 15. Help you to spot Sellers who are attempting to take advantage of you 16. Help you to understand the use and limitations of escrow deposits 17. Advise you as to when you should seek the advice of an attorney 18. Make sure that the appraisal process is handled properly 19. Help you to understand the complete loan, escrow/closing and title process 20. Advise you on any books or publications that you should read before, during and after the transaction has closed 21. Help you to negotiate the best price available for all costs and fees related to the transaction 22. Advise you as to how homes should be prepared to show and sell 23. Advise you as to any inspections such as septic, well or soil, which might be applicable to the specifi c property in which you are interested 24. Help you recover any overages which are paid during the closing process 25. Properly handle the walk-through process with you prior to closing 26. See that any repairs or requirements are met prior to closing 27. Advise you as to any contractual changes which might be necessary prior to closing 28. Advise you as to what course of action should be taken if the seller refuses to close the transaction 29. Negotiate and deal effectively in your behalf with the seller, other agents, escrow/closing, title people and attorneys 30. See that each and every facet of the buying process is effectively and professionally handled in your best interest

4 You are about to embark on one of the most important and exciting decisions in your lifetime, the selection and purchase of a home. It is a decision that will bring you years of comfort and joy. Yet, the idea of spending your free time evaluating homes and neighborhoods, fi guring your down payment and monthly costs, applying for a loan, and fi nalizing the purchase can be an overwhelming process. For some Buyers, the process is tedious and confusing. This is why consulting a professional REALTOR is a smart decision. A licensed real estate agent can help you fi nd a house, effi ciently and quickly. Discuss with your agent the type of home you believe will be right for your needs. Is your family growing? Do you entertain frequently? Garden? Barbecue? Work at home? Are you a chef? A wardrobe buff? Are you a fi xer-upper or a total couch potato? Your REALTOR s expertise and experience will be crucial in helping you fi nd the right home of your dreams. He/she has access to the Multiple Listing Services (MLS), which provides information on virtually every home for sale in the market. This is a useful tool because it provides the most current comparative information available for more informed shopping. In addition, your agent will show you homes within your price range. He/she will have the resources to help you understand how much a lender will let you borrow and on what basis it is calculated. Once you have calculated a price range, your REALTOR will work with you to establish criteria that will lead you to the right home. When you are ready to make an offer, your REALTOR can assist you. He/she cannot suggest a lower price than what is listed, but he/she can tell you what comparable homes are selling for in the same neighborhood. Your REALTOR will act as the intermediary between you and the seller who is likely to also be represented by an agent. If there are negotiations over price, closing dates, contingencies, and items - such as appliances - to be left or taken, your REALTOR will be your representative. Once your offer is accepted, you will have a lot to do in a short period of time. Your REALTOR will suggest lenders, inspectors, insurance professionals, and Great American Title for your escrow and title needs. He/she will keep you on track and organized. Shop Smarter...Not Harder Fine tune those dreams of your next home by working on the answers to two questions: How much house can you afford? What are your needs and preferences in a home? How Much House Can You Afford? Though you may be willing to spend until it hurts, the name of the game is how much a lender calculates you can afford. Your REALTOR can put you in touch with a lender that he/she trusts to help you through the fi nancial process of pre-qualifying (targeting the amount that a fi nancial institution will lend you.) In general, lenders allow your total monthly housing costs to go as high as but not more than 30 percent of your gross monthly income. The second requirement is that not more than 36 percent of your gross monthly income can be tied up in total monthly house payment and payments on outstanding long term debt. Lenders use slightly different formulas for arriving at total monthly house payment. These costs generally include your mortgage principal and interest payment, property taxes as a monthly fi gure and hazard insurance as a monthly fi gure. These four items are referred to as PITI (principal, interest, taxes & insurance). If you re required to pay private mortgage insurance (PMI) because your down payment is less than a specifi ed minimum those premium payments will also be included. If you decide to buy a condominium or townhouse, the monthly homeowner s association fees will be included. Keep in mind, these formulas aren t cut and dry and things change from lender to lender, so your best bet is to consult. What Type of House Do You Want? Perhaps you know exactly what you want...2,200 square foot ranch style home on a wooded lot. If so, your REALTOR can look immediately for only that type of house. On the other hand, if you don t know what you want, but you ll know it when you see it, you need to take a moment and make a list with needs and wants. Consider what specifi c features you are looking for, like the distance to work, school and overall location. Consider what you want the exterior to look like and what you would like for the interior. Decide on a type of home and don t overlook the systems such as security, heating, electrical and energy saving options. As for the extras, consider whether you want a pool, den, offi ce or spa. It will help you defi ne what you really have to have and really want to have in a house and neighborhood. This will help your REALTOR considerably when searching for the right homes to show you. When you look at homes, bring your list with you and pick up fl yers at each home, so you ll remember which home offered what. Get Your Financing in Order You can get together with a lender to get your loan application completed and the fi nancing process started. Be prepared to provide the lender with copies of any important and necessary information. Making Your Purchase Once you have found the perfect house, your REALTOR will take you through the purchasing process: Submit your offer to buy the house. The Seller may accept your fi rst offer, or you may go through one or several counter-offers before you and the Seller agree on the terms of the sale. Once you both agree, you have a contract of sale which spells out the details and responsibilities of all parties involved in the transaction

5 Address Change Give forwarding address to post offi ce 2 to 3 weeks before moving Charge accounts, credit cards Subscriptions: Notice requires 6 to 8 weeks Friends and relatives Bank Transfer funds, arrange check-cashing in new city Arrange credit references Insurance Notify company of new location for coverage: life, health, fi re and auto Make sure homeowners coverage for your new house is in place. Utility Companies Gas, light, water, telephone, garbage Get refunds on any deposits made Return cable boxes Delivery Services Laundry, newspaper, change over of service Medical, Dental, Prescription Histories Ask Doctors and Dentists for referrals, transfer needed for prescriptions, eyeglasses and X-rays. Obtain birth records, medical records, etc. Arrange for medical services: Doctor, Dental, Veterinarian, etc. Pets Ask about regulations for licenses, vaccinations, tags, etc. At Your New Address Schools Obtain certifi ed checks or cashier s checks necessary for Get school transcripts (some districts require that they be sent directly from closing real estate transactions the prior school) (check with escrow offi cer at Don t Forget To Great American Title Agency for Empty freezer, plan use of foods details) Defrost freezer and clean refrigerator. Place charcoal inside to dispel odors Check on service of telephone, Have appliances serviced before moving gas, electricity, water and Clean rugs or clothing before moving. Have them wrapped garbage Check with your moving counselor, insurance coverage, packing and Check pilot light on stove, water unpacking labor, arrival day, various shipping papers, method and time of heater and furnace expected payment Ask mail person for mail he/she Plan for special care needs of infants and pets may be holding for your arrival Check with the Department of Agriculture of new area to see if they have Have new address recorded restrictions on plants on driver s license and car registration On Moving Day Visit city offi ces and register to Carry enough cash or traveler s checks to cover cost of moving services vote and expenses until you make banking connections in your new city Register car and get new license Carry jewelry and documents yourself or use registered mail plates Plan for transporting of pets; they are poor traveling companions if Obtain inspection sticker and unhappy transfer motor club membership Let close friends and relatives know route and schedule you will be Apply for state driver s license traveling including overnight stops. Use them as message headquarters Register family in your place of Double check closets, drawers and shelves to be sure they are empty worship Leave old keys, garage door openers, broiler pans, landscape/house plans Register children in school and instruction manuals needed by new owner with real estate agent Almost everyone has heard the terms Buyers Market and Sellers Market. Basically, these terms mean exactly what they say. In a Buyers Market, it is a good time to buy and in a Sellers Market, it is a good time to sell. But what are the factors that help make either of these markets exist? The chart below helps defi ne and compare some of the important aspects of Buyers and Sellers Markets. Buyers Market High inventory of homes for sale Lower interest rates Unstable or weak local economy Less population infl ux into the areas Lower home prices Narrow area economic base Decreasing area employment base Some of the factors which help to predict Buyers and Sellers Markets include: Weather, special interest areas by specifi c groups of people such as retirees, expanding employment, spiritual affi liations, special recreation availability, artistic activities or simply a heightened interest in the area. One very important statistic that buyers need to be aware of is that nationwide, more homes are sold during the fi ve months, May through September, than are sold in the other seven months of the year. The reasons for this statistic are: Here s an example: Sellers Market Lower inventory of homes for sale Lower or reasonable interest rates Strong local economy High population infl ux into an area Increasing home prices Diverse area economic base Increasing area employment base 1. Weather is generally better in the higher selling months because it is easier for potential Buyers to be out looking for homes and ultimately moving. 2. Families prefer to move when the children are out of school. 3. Many Sellers have been led to believe that homes sell faster and at a higher price in the summer months. Suppose you will be attempting to purchase a home in Phoenix, Arizona. Knowing that there will probably be substantial heat in July and August, those months might be a good time to: 1. Look at homes that are on the market, but are not selling quickly (the Sellers may be anxious or even desperate because few people are viewing their homes). 2. Your REALTOR will be in contact with Sellers and other agents who may know potential Sellers who are willing to sell but have not yet put their home on the market

6 Here is a checklist for buyers, to help avoid some of the pitfalls of purchasing a new or used home, or undeveloped land. IN A SUBDIVISION 1. You should read the Arizona Department of Real Estate Public Report provided to you. By law, this document must be given to you before you sign a purchase contract and you must sign a receipt for it. 2. Read your purchase contract carefully. Note that if the builder or developer is not placing your earnest money deposit in escrow or a trust account, the funds may be placed in the builder s or developer s general funds account, and may be used for any purpose. You could lose the money if the builder or developer declares bankruptcy or otherwise goes out of business. If the funds are not going to be placed in escrow or into a trust account, that fact must be stated in a separate paragraph. Make sure you understand where your earnest money is going to be deposited. The Public Report will tell you such things as: Flooding and drainage disclosure A description of adjacent land and uses Who provides electricity, telephone, gas, water and sewage disposal Common community and recreation facilities Assurances for completion of improvements Local services and facilities, including schools, shopping facilities, public transportation, medical facilities, fi re protection, ambulance service, police protection and garbage services Taxes and assessments Property owners association details If you have any questions about the Public Report, you should call the Arizona Department of Real Estate at , extension 400. A Subdivision Representative will assist you with your questions. The cover sheet of the Public Report contains a disclaimer by the Department of Real Estate. Read it carefully: Not all of the information in this report has been verified by the Department; certain information has been accepted by the Department as true and accurate based on attestation of the subdivider and/or the subdivider s agents. You should verify all facts before signing any documents. 3. Before you sign a purchase contract, drive around the property for at least a mile or more in every direction to see how the surrounding area appears to you and what nuisances and hazards might exist in the area. Is there a storm drain or canal nearby that might pose a hazard to your children? Visit the area at different times of the day, on weekends and in the evening. Disturbing noise and odors can travel farther at night. In areas where there are expanses of vacant land nearby, check city or county zoning maps to see if nearby property is zoned for apartments, industrial or commercial use. To obtain this information, call the city or county planning and zoning department. Check Arizona Department of Transportation maps to fi nd the nearest future freeway routes, and whether roads in the area are slated for widening. For information about reviewing the maps, call Call the school district serving the subdivision to determine whether nearby schools are accepting new students. Some school districts, especially in the northwest part of the greater Phoenix area, have placed a cap on enrollment. You may fi nd that your children cannot attend the school nearest to you and may even be transported to another community. Previously Owned Homes 1. Be aware that the Seller s broker does not represent you; the Seller s broker represents the Seller. The Seller s broker has certain responsibilities to the Seller that are not afforded to you. You might wish to retain the services of a Buyer s broker to represent you in the transaction. Usually, the Buyer s broker receives a portion of the commission paid by the Seller, and the services may cost you nothing, but you will receive representation equal to that provided to the Seller by the Seller s broker. 2. Read the Seller s property disclosure report, and check every item on it. Ask to see receipts for repairs to the home. Look behind large pictures on the wall and behind anything on the fl oor which conceals large areas of the wall. Look for stains on the ceilings or carpets that might indicate water damage. Read the purchase contract carefully to determine if there are any deadlines for challenging the Seller s disclosure report or for having your own inspections conducted. 3. Order your own termite inspection. Don t rely on a termite inspection obtained by the Seller. Some Sellers have been known to cover up termite infestation by having several inspections done until they obtain a report that shows no infestation. 4. Consider having the home inspection by a professional home inspector. It will cost perhaps $200 or $300, but it is money well spent. For instance, the owner may not know that the roof is rotten and must be replaced. If any alterations have been made to the home the addition of an Arizona room, for instance ask to see the building permit. Make sure the alterations are legal. Your broker may be able to recommend a reliable home inspector. 5. Check all appliances to confi rm that they work, including the stove burners, oven, garbage disposal, dishwasher, washer and dryer and the water heater. 6. Run water in all sinks and tubs and fl ush the toilets to make sure they drain properly. If the landscaping includes an irrigation system, check to see that it works. 7. Drive around the neighborhood and observe the condition of the homes. Are lawns mowed? Are there old cars rusting in driveways? Ask neighbors how they like living in the area. Is this really where you want to live? 8. Read steps 3, 4, 5 and 6 on page Read the deed restrictions, also called CC&Rs (covenants, conditions and restrictions). Some of the CC&Rs can be very strict, especially those addressing landscaping, RV parking, play equipment, satellite antennas, and other common amenities particularly if the subdivision is governed by a homeowner s association. 6. Check out the home builder with the Arizona Registrar of Contractors. You can determine the number of complaints customers have fi led against the contractor, whether any are unresolved and whether the builder s license has ever been suspended or revoked. You may reach the Registrar of Contractors at

7 Pre-qualification The pre-qualifi cation process determines how much you qualify for, based on your income and expenses. Application This is the actual qualifi cation process by the Lender, which includes obtaining a credit report, employment and salary verifi cation, rental and/or mortgage history and verifi cation of funds. Order of Documents The Lender orders a Title Commitment and property appraisal. Loan Submission The entire loan package is assembled and submitted to the loan underwriter for fi nal approval. Documentation All supporting documents are gathered. The Lender will correct any problems and make needed requests for additional information or items. Loan Approval All parties are notifi ed that the loan has been approved. Drawing of Documents The loan documents are completed and sent to Title. An appointment is set for the borrowers to come in for fi nal signatures. Funding The Lender reviews the loan package and funds are transferred by wire. Recording Title company records the Note and Deed of Trust at the Maricopa County Recorder s Offi ce. The recording process officially closes the escrow. Adjustable Rate Mortgage Balloon Payment Loan Buy-Down Loan Community Homebuyer s Program Conventional Loan FHA Loan Fixed Rate Loan Graduated Payment Mortgage Non-Qualifying Loan VA Loan Adjustable Rate Mortgages have interest rates, adjusted at predetermined intervals throughout the life of the loan. A Fixed Rate Loan that is amortized over a 30-year period, but the balance becomes due and payable on a specifi c date. The loan may be extended, or may roll over into another type of loan. Buy-Down Loans are Fixed Rate Loans where the interest rate and the payment are reduced for a specifi c period of time, by paying the interest up front to subsidize the lower payment. A Fixed Rate Loan for the fi rst time buyer, with a low down payment, usually 3-5%, no cash reserve requirement and easier qualifying ratios. Subject to the borrower meeting income limits and attendance of a training course on homeownership. Conventional Loans are sometimes more lenient with the appraisal and condition of the property. Homes purchased above the FHA loan limit are usually fi nanced with conventional loans. FHA Loans are insured by the Federal Housing Administration under Housing and Urban Development. They offer a low down payment and are easier to qualify for than conventional loans. A Fixed Rate Loan has one interest rate that remains constant throughout the life of the loan. A Fixed Rate Loan that has payments starting lower than a standard Fixed Rate Loan, which increases annually by a predetermined amount and is, set for a number of years. Also known as an Assumable Loan. Pre-existing loans that are assumed by a buyer, from a seller of a property without going through the qualifying process. The buyer pays the seller for their equity and then begins making the monthly payments. VA Loans have more lenient underwriting rules than Conventional Loans, and no down payment is required unless specifi ed by the Lender. The applicant must have VA Entitlement to be eligible

8 The Escrow Process According to Webster, the word ESCROW means: A contract, deed, bond, or other written agreement deposited with a third person by whom it is to be delivered to the grantee or promisee on the fulfillment of some condition. The Offer Process In all states in the United States, as well as every province in Canada, all real estate contracts must be in writing. This includes the offer to purchase and receipt for deposit, which will be used in making an offer on a property. Even if you have given your agent permission to bargain for a property on your behalf, that agent must have a signed Purchase Contract before they can actually present your offer (only if an agent has a signed Power of Attorney to act for you can they make written offers in your name). 1. Your agent may prepare an Estimated Closing Cost form that will give you an estimate of what it will cost you to purchase the home. This will include all closing costs and your down payment (based on the amount which you have decided to offer for the home). 2. You and your agent will prepare the actual Purchase Contract which is your offer to purchase and will be presented to the seller. The Arizona standard form is nine pages and there are other forms, such as the Agency Disclosure, which you will also need to sign. 3. Your agent will then contact the Seller s agent and set an appointment to present the offer. In Arizona, it is permissible for the Buyer s agent to present the offer to the Seller (in the presence of the seller s agent, of course). 4. The Seller will then usually take a short period of time to evaluate the offer, discuss the information and decide if they wish to accept what the buyers have offered. 5. The Seller will then either reject the offer and/or provide a counter offer or accept the offer. 6. If the Seller accepts your offer, you begin the closing process. If the Seller gives you a counter offer, the ball is back in your court and you must decide if you will accept, reject, or counter the counter offer. 7. Since you want to gain the right to buy the home before other offers are presented, this process often moves along quickly. It is important to be available to your agent! Immediately after both the buyer and seller, assisted by a qualifi ed Real Estate Agent, have agreed to the provisions of a contract and have signed that contract, the Real Estate Agent then takes the contract to Great American Title Agency to OPEN ESCROW. - As an escrow holder, Great American Title Agency s duty is to act as the neutral third party and the liaison between all parties involved. We hold all documents and all funds, pursuant to the purchase contract, until all terms have been met and the property is in insurable condition; then, we make the fi nal exchange. Note: We do not work for the Seller or for the Buyer; however, we are employed by all parties and act only upon written instruction. The escrow process begins and progresses as follows: 1. A copy of the existing deed is ordered by the escrow offi cer, to obtain the legal description of the property and the names of the recorded or owners of record. 2. The escrow offi cer or her/his assistant then orders a commitment for title insurance from the company s title department, in order to determine what will be required to close the transaction and to inform the buyer and the buyer s lender what will remain of record against the property after closing. 3. Statements from the seller s existing lender and the homeowners association are ordered in order to determine the amounts needed for payoff and/or transfer at the close of escrow. 4. Copies of the commitment for title insurance, covenants, conditions and restrictions and termite inspection reports are forwarded to Buyer, Seller, Lender and/or agents for their approval as received. 5. Upon receipt of the Buyer s loan documents from the Buyer s Lender, the escrow offi cer prepares the settlement statement (or HUD), based on the information provided by the Buyer s Lender, the statements from homeowners association and payoff Lenders and the purchase contract. The Buyer and Seller are contacted separately to schedule signing appointments for each. Buyer and Seller are signed separately. The Buyer will deposit their closing funds at the scheduled signing time unless other arrangements are previously made. 6. After signing, the loan documents are returned to the buyer s lender for approval and funding. Upon receipt of the loan proceeds from the Lender, the escrow offi cer will release the documents in the transaction for recording with the County Recorder on the agreed upon recording date. After recording, the funds are disbursed and copies of all documents are provided to the REALTORS, Buyers and Sellers and the title insurance policies are issued to the Buyer and the Buyer s Lender

9 Buyer Selects a REALTOR Seller Selects a REALTOR Note: Arizona is a community property state. Property acquired by a husband and wife is presumed to be community property unless legally specifi ed otherwise. Title may be held as Sole and Separate. If a married person acquires title as Sole and Separate, his or her spouse must execute a disclaimer deed to avoid the presumption of community property. Parties may choose to hold title in the name of an entity, e.g., a corporation; a limited liability company; a partnership (general or limited); or a trust. Each method of taking title has certain signifi cant legal and tax consequences. Therefore, you are encouraged to obtain advice from an attorney or other qualifi ed professional. Buyer Pre-Approved by Lender Key: (Red = Buyer) (Blue = Seller) (Grey = Other) Seller Prepares House for Showing and Selling Community Property Joint Tenancy w/ Rights of Survivorship Community Property w/ the Right of Survivorship Tenancy in Common Sole and Separate Buyer Views Homes with REALTOR Buyer Selects Home and Submits Contract with Loan Status Report (LSR) and Earnest Deposit Seller Reviews and Accepts Contract from Buyer Requires a valid marriage between two persons. Parties need not be married: may be more than two joint tenants Requires a valid marriage between two persons. Parties need not be married; may be more than two tenants in common. See Note at top of page Inspection Reports Sent to Applicable Parties and Reviewed. Inspection Notice Sent to Seller Various Inspections Ordered Buyer Advises GAT of Home Insurance Company Each spouse holds an undivided one-half interest in the estate. Each joint tenant holds an equal and undivided interest in the estate, unity of interest. Each spouse holds an undivided one-half interest in the estate. Each tenant in common holds an undivided fractional interest in the estate. Can be disproportionate. e.g. 20%-80% or 60%-40% See Note at top of page Title Commitment Prepared, Received and Approved by Buyer Appraisal Ordered by Lender and Completed Buyer Receives Final Loan Approval from Lender One spouse cannot partition the property by selling his or her interest. One joint tenant can partition the property by selling his or her joint interest. One joint tenant can partition the property by selling his or her joint interest. Each tenant s share can be conveyed, mortgaged or devised to a third party. See Note at top of page Closing Documents Compiled Separate Appointments Set: Buyer and Seller Documents Recorded and Escrow Closed After Recording Confirmation, Great American Title Disburses Funds Loan Documents Prepared by Lender and Sent to Escrow Officer Buyer Deposits Funds Necessary to Close Lender Funds Loan (Sends Funds to Escrow Officer) Buyer Receives Keys From REALTOR Closing Documents Compiled Loan Documents Returned to Lender for review Contract Conditions Verified Final Documents Sent to Appropriate Parties Requires signatures of both spouses to convey or encumber. Each spouse can devise (will) one-half of the community property. Upon death, the estate of the decedent must be cleared through probate, affi davit or adjudication. Both halves of the community property are entitled to a stepped up tax basis as of the date of death. Requires signatures of all joint tenants to convey or encumber the whole. Estate passes to surviving joint tenants outside of probate. No court action required to clear title upon the death of joint tenant(s). Deceased tenant s share is entitled to a stepped up tax basis as of the date of death. Requires signatures of both spouses to convey or encumber. Estate passes to surviving joint tenants outside of probate. No court action required to clear title upon the fi rst death. Both halves of the community property are entitled to a stepped up tax basis as of the date of death. Requires signatures of all tenants to convey or encumber the whole. Upon death the tenant s proportionate share passes to his or her heirs by will or intestacy Upon death the estate of the decedent must be cleared through probate, affi davit or adjudication. Each share has its own tax basis. See Note at top of page See Note at top of page See Note at top of page See Note at top of page

10 Title Insurance In every real estate transaction, the matter of title insurance arises. It is a contract of indemnity, which guarantees that the title is as reported and, if not reported the owner is damaged, the title policy covers the insured for their loss up to the amount to the policy. It assures owners that they are acquiring marketable title and is designed to eliminate risk or loss caused by defects in title from the past. A policy of title insurance is issued to a Buyer and/or a lender to guarantee to the insured party or parties, Free and Clear title to the property being insured, from the beginning of time until the date and time the buyer acquires title to the property. In the case of a lender s policy until the date and time the lender s loan document is recorded against the property. Free and Clear is defined as there being no loans, liens, encumbrances, back taxes, easements or covenants, conditions or restrictions against the property that were not disclosed on Schedule B of the commitment for title insurance issued by the insuring company. What Title Insurance Protects Against. Here are just a few of the most common hidden risks that can cause a loss of title or create an encumbrance on title: False impersonation of the true owner of the property Forged deeds, releases of wills Undisclosed or missing heirs Mistakes in recording legal documents Deeds by persons of unsound mind Deeds by minors Deeds by persons supposedly single, but in fact married Liens for unpaid inheritance, income of gift taxes Fraud What Protection Does Title Insurance Provide Against Defects and Hidden Risks? Title insurance will pay for defending against lawsuits attacking your title as insured, and will clear up title problems or pay the losses. By combining expertise in risk elimination at the time of issuing a policy and protection against hidden risks as long as the policy remains in effect, your title insurance protects against title loss. The Title Search Great American Title Agency works to eliminate risks by performing a search of the public records or through our own title plant. The search consists of public records, laws and court decisions pertaining to the property to determine the current recorded ownership, any recorded liens or encumbrances or any other matters of record, which could affect the title to the property. When a title search is complete, we will issue a Title Commitment detailing the current status of title. The Title Commitment A Title Commitment contains vital information which can affect the close of escrow: Ownership of the subject property; where the current owners hold title; matters of record that specifi cally affect the subject property or the owners of the property; a legal description of the property and an informational plat map. Two Kinds of Title Policies It is important for the buyer to know that there are two kinds of title insurance: Lender s title insurance protects only the interest of the Lender. Lenders, knowing the many things that can snarl title to real property usually and rightly insist upon Lenders title insurance to protect their stockholders and/or investors. Owner s title insurance protects the interests of the Buyer. Both kinds of title insurance are available in most areas in a single, low cost package that protects both Lender and Buyer for as long as they or their heirs have any interest in the property. Great American Title Agency, Inc. without expense to you, will defend you against insured claims upon the title to your property. The one-time premium is small. The protection is great. The American Land Title Association (ALTA) is the standard policy of title insurance in Arizona

11 In your contract, you and the Seller agree who will pay what closing costs. Here s a general rundown on what some of those costs include: Charges Related To The Loan The loan origination fee covers the lender s administrative costs. The loan discount or commitment fee, referred to as points (each point equals 1 percent of the loan amount), is extra interest paid to the lender to make up the difference between market interest and the interest of the loan. Why Do Lenders Charge Points? Whenever regulations, laws and/or competitive practices prohibit the lender from charging a rate of interest which would make the loan competitive with other investments, the lender must seek some other method of increasing the yield for the investors. Who Must Pay The Points? FHA: The Buyer is usually charged with the Loan Origination Fee. The Discount Fee can be paid by the Buyer or Seller. VA: The Buyer is usually charged with the Loan Origination Fee and the Funding Fee. Discount Fee may be paid by Seller, Buyer or split. Conventional: Points can be paid by the Buyer, the Seller, or split between the two. State on Contract of Sale! Do The Number of Points Charged Fluctuate? Yes. If rates on mortgage loans are lower than other investments (such as stocks, bonds, etc.) then funds will be drawn away from the mortgage market. Also, when there is a heavy demand upon the money market because of business needs, military requirements or other government borrowing, the result is that money for home mortgages becomes scarce and more expensive. When this occurs, more points can be charged. Points balance the market. Points are not set by government regulation but by each lender individually. Are Points Deductible for Income Tax Purposes? Points on a home are usually deductible if they are generally charged in the geographical area where the loan is made. If you are in doubt about points being deductible you should contact your tax return preparer. Items Paid In Advance To The Lender Items paid in advance generally include mortgage interest (from the closing date and the date your fi rst payment is due), the fi rst year s hazard insurance and, if required, the fi rst year s Private Mortgage Insurance (PMI) premium. Deposits Or Reserves With The Lender Extra amounts (usually 2 months) for hazard insurance, property taxes (this depends on the time of year you close the transaction) and PMI (if required). If you are buying a condominium or townhouse, you may also have to pay some portion of the homeowner s association fees. Title Charges Title charges include fees for the title search and fees for preparing the documents for closing and transfer of title. There will be a one time fee/premium for the owner s title insurance and a one time fee/ premium for the lenders title insurance. Recording and Transfer Charges These fees are for recording the Deed of Trust (mortgage) and the grant deed. There may also be transfer taxes which are fees for transferring property and notary fees. Closing Before closing, any issues (such as problems you found during the walk through) should be resolved. The closing becomes a formality in which your Great American Title escrow offi cer will explain the documents and will ask you to review and sign them. Listed below are some typical closing costs you may incur as part of your loan transaction. When you apply for a loan, you will receive a Good Faith Estimate of closing costs and settlement charges, and a booklet that will explain these costs. Appraisal This is a one-time fee that pays for an appraiser to render an opinion of value as of a specifi c date. The appraisal is made by an independent fee appraiser. Credit Report A fee required by the Lender to obtain a fi nancial background (Credit Report) of the Buyer. Document Preparation There may be a separate fee that covers the preparation of the fi nal legal papers. Loan Discount A fee charged by the lender to make a loan at a given interest rate. One point equals one percent of the total loan amount and fl uctuates depending on the interest rate and availability of money for loans. It is often called points. Loan Origination The Lender s administrative costs in processing the loan. This fee covers the loan. Title Charges Great American Title charges fees for a title search, title examination, recording fees, endorsement fees, a settlement or closing fee and notary fees. Prepaid Interest Depending on the time of the month your loan closes this per diem charge may vary from a full month s interest to that of a few days. If your loan closes at the end of the month, you will have to pay interest only for a few days or so. Taxes & Hazard Insurance You may be required to reimburse the Seller for property taxes, depending on the month in which you close. You will also need to pay a year s hazard insurance premium up front. The recording process officially closes the escrow. As a Buyer fi nancing your purchase, you ll sign a note in which you agree to pay back the mortgage loan and pledge the house as security until it is paid off. You ll also sign a number of other documents that are required by the government and acknowledgments that you have received all the information you should have about the loan and the transaction. Don t be surprised if some of the documents seem repetitive

12 FOR A SMOOTH CLOSING, REMEMBER TO MAINTAIN YOUR CURRENT FINANCIAL STATUS - NO MAJOR PURCHASES, NO JOB CHANGES Your escrow offi cer will call you to make an appointment for you to sign your Lender s package and all other required documents. You should allow a minimum of 30 minutes to an hour for the signing process. If you would like, ask your REALTOR and/or your Loan Offi cer to be present in case you should have questions. Below is a list of items that you will need before your appointment to sign the escrow papers. Good Funds Please plan ahead so that the necessary funds will be available at the time of closing. Your escrow offi cer will prepare a pre-audit settlement statement (HUD-1) for you to review and sign at closing, which will indicate the amount of funds required by you to close. You should have a cashier s check or money order, made payable to Great American Title Agency, Inc., drawn on an Arizona banking or savings institution or a wire transfer. A personal check could delay the closing since AZ law requires Great American Title Agency, Inc. to have good funds before disbursing funds from escrow. Identification There are several acceptable forms of identifi cation which may be used during the escrow process. In addition, the following forms of identifi cation may need to be presented in order for your signature to be notarized. A state issued driver s license A state issued identifi cation card Passport (a valid unexpired passport that is issued by a national government other than the United States and that is accompanied by a valid unexpired visa or other documentation that is necessary to established an individuals legal presence in the United States.) Please Note: If the Lender requires, you may be asked to present your Social Security Card. Alien Identification Requirements If you are not a U. S. citizen, it is preferable to have an Alien Resident Card and a state issued identifi cation card. Please check with your escrow offi cer to confi rm the specifi c requirements. Lender s Requirements Make sure you have satisfi ed your Lender s requirements before coming to Great American Title Agency to sign your mortgage and escrow documents. Fire and Hazard Insurance A reminder to order your insurance before the loan is approved, and be certain that the policy complies with your Lender s requirements. Annual Tax Statement - Annual statements are billed for the calendar year, although they are not issued until the fall of the current year. (September or October). - Taxes may be paid in two halves: 1. The fi rst installment is due October 1st and delinquent November 1st. 2. The second installment is due March 1st of the following year and delinquent May 1st. - Always check the property description on the tax statement to avoid paying on the wrong property. The Treasurer CANNOT be held responsible for payments made on the wrong property. To assure proper posting of payments and information to your address, please furnish your parcel number when making any payments or inquiries at the Assessor s or Treasurer s offi ce. The parcel number can be found on paperwork supplied to you by Great American Title Agency and is usually in the following format: Sometimes this number is followed by a capital letter. Or visit the Maricopa County Treasurer on the web to view a statement - The law does not recognize failure to receive a tax statement as reason for waiving interest. The Treasurer MUST assess interest on all delinquent payments at the rate of 16% per year (simple), prorated monthly on the fi rst day of each month. New Ownership - The transfer of ownership information may take six (6) months or more to process. As a result, new owners may not receive a tax bill for property purchased after November 1st of the previous year. - If a tax statement has not been received by October 15th, the new owner MUST contact the Treasure for the statement so that payment can be made before the fi rst half becomes delinquent. The phone number to reach the Maricopa County Treasurer is Value Notification - On or before January 31st of each year, an Assessment Notice is sent from the Assessor to each property owner, at the last known address. The Notice includes information for the new tax year, such as property full cash value, assessed value, classifi cation and assessment ratio. - During a 45-day period after receipt of the Assessment Notice, valuations can be protested through the County Assessor. For information call the Maricopa County Assessor s offi ce at Taking Title Arizona is a community property state. Each method of taking title has certain signifi cant legal and tax consequences. Therefore, if you have any questions, you are encouraged to obtain advice from an attorney or other qualifi ed professional

13 When you meet the IRS s definition of a qualifying move, the following items are tax deductible: The cost of trips to the area of a new job to look for a home. Your home shopping expedition does not have to be successful for the cost to be deductible. FIRPTA The Foreign Investment in Real Property Tax Act of 1980 The cost of having your furniture and other household items shipped, including the cost of packing, insurance, and storage for up to 30 days. The cost of getting your family to the new hometown, including food and lodging expenses on the trip. The cost of lodging and 80% of food expenses for up to 30 days in the new hometown, if these temporary living expenses are necessary because you have not yet found your ideal home or it is not ready when you arrive. Please note: This material is provided for general information purposes and is not intended to provide tax or accounting advice. You should consult with your accountant or tax attorney as to the application of this information, or any other applicable tax provisions, to your situation. UNDERSTANDING THE ARIZONA TAX CALENDAR JANUARY 1st Current Taxes become a lien not yet payable. First day to fi le exemption with the Assessor s Offi ce. SUMMARY & PURPOSE: Non-U.S. persons who sell real property in the United States, or U.S. persons who buy U.S. based real property from non-u.s. persons, are subject to the Foreign Investment in Real Property Tax Act (FIRPTA). Additionally, there are special reporting requirements if a foreign person buys U.S. real estate to rent it out. WHAT IS FIRPTA? FIRPTA stands for Foreign Investment in Real Property Tax Act. It was enacted in 1980 and has two (2) primary components: 1. Anyone buying a U.S. located property interest from a foreign seller must deduct and withhold a tax equal to 10% of the sales price. 2. The foreign seller is taxed as if they are engaged in a trade or business in the U.S. FEBRUARY 1st On or before this date, Assessor is required to notify property owners of any increase in taxes or of delinquent taxes for previous years sold at auction. (Three year redemption period). FEBRUARY 15th FEBRUARY 28TH MARCH 1st MAY 1st AUGUST SEPTEMBER 15th OCTOBER 1st NOVEMBER 1st Last day to fi le an appeal with the Assessor s Offi ce if the property owner feels that the values are excessive or that they violate the limitations of increases. Last day to fi le exemptions. Second half taxes for the previous year are due and payable. Second half taxes for previous year are now delinquent. Tax Roll is certifi ed. Taxes for the 1st half of the current year January 1 through June 30 Due on: October 1 of current year Delinquent on: November 1 of current year Tax statements are mailed from mid-september to October 1st. First half current year taxes are now due and payable. You may pay for the full year at this time. First half of current year are now delinquent. Taxes for the 2nd half of the current year July 1 through December 31 Due on: March 1 of the following year Delinquent on: May 1 of the following year WHO AND WHAT DOES FIRPTA APPLY TO: FIRPTA applies to a foreign person (individual or business) selling or disposing of a U.S. interest in real property. If the property is jointly owned, both owners are subject to FIRPTA. WHEN DOES IT APPLY? WHAT FORMS ARE USED? The withheld tax must be reported and remitted to the Internal Revenue Service (IRS) by the 20th day after the date of the transfer (typically the closing date). Form 8288, U.S. Withholding Tax Return for Dispositions by Foreign Persons of Real Property Interest, and Form 8288-A, Statement of Withholding on Dispositions by Foreign Persons of U.S. Real Property Interests. are used for this purpose

14 How Much Should You Offer To Pay? Should you offer to pay the seller s asking price or a lower one? Consider such factors as: How long has the house been on the market? Is the price reasonable? Your REALTOR can show you comparable home sales (comps) for similar properties in the neighborhood to help you. How competitive is the area s home buying market? If the seller is offering an assumable mortgage or fi nancing, how much is it worth to you? What Happens To The Earnest Money? A deposit is made, in part, to show the Seller you re serious about buying. Your REALTOR will inform you of the amount that is usually given in your area. The Seller doesn t actually receive the earnest money. A third party, Great American Title Agency- holds the amount in a special trust or escrow account until the sale is closed or the contract is broken. If you go through with the sale, the money is applied to your down payment or other closing costs depending on what is agreed to in the contract. If you fail to buy the house, the seller may have the right to keep the earnest money. However, you can get your money back until the point at which you are notifi ed that the Seller has accepted your offer. And if the Seller fails to fulfi ll his/her obligations, the money may be refundable to you. How Does the Seller Prove The Title Is Clear? A title spells out who has the right to ownership of a property. It is said to be clear if there are no substantial claims or liens (such as a mortgage) against it. A standard contract asks you, in essence, how you want the seller to show you that he or she owns the property and that the title has no claims against it that would prevent transfer to you. A title search is done by Great American Title and an Owner s Policy of Title Insurance is issued. In order to issue this insurance policy, which protects you against losses that come from claims against the title, Great American Title fi rst searches the title. Because you are insured (usually for the sales price), the owner s insurance provides the most protection. An Abstract of Title (Title Report) is prepared showing a brief history of the ownership and any legal documents that affect its title. What Conditions Do You Want To Place On Your Buying The House? When you commit to buy the house through your offer, you may make that commitment contingent upon certain things happening, such as securing fi nancing for the home. In a similar vein, you may make the purchase contingent upon the sale of your present home by a certain time and under certain terms. You will also want to make sure the house is in good shape. You may make the contract subject to your being satisfi ed with a building inspector s report and/or an inspection for termites. The purchase should also be subject to your being satisfi ed with your own inspection of the house just prior to closing. What Are You Buying? The contract should spell out everything that is part of the purchase that may not be clearly part of the real estate. Common items that could cause questions include appliances, light fi xtures (such as the chandelier in the dining room), shades, blinds, curtains and rods, screens and storm windows, shelving or cabinets, potted fl owers, shrubs and trees, or perhaps a swing set that is cemented down. What Special Provisions Should Be Included? Most contracts for sale include some standard provisions, such as one for property taxes, insurance costs, utility bills, and special assessments to be prorated at closing between Buyer and Seller. Others outline particulars about what happens if the property is damaged before closing or if the Seller or Buyer fails to go through with the sale. You may want to add your own special provisions. For example, you may want a new home builder to provide you with home warranty insurance at no cost to you. When Should Closing Occur and When Do You Take Possession? The contract will have a place for you to write in the time when you would like to take physical possession of the house. If you can t go through with the purchase because the closing doesn t take place by a certain time, the contract should say time is of the essence. This statement binds you too, so be sure you can fulfi ll your part of the contract by the stated date. The Settlement Process All the pieces are starting to come together. Your Lender has approved your loan. Except for the Seller s paying off the existing mortgage, the title is clear. The property inspector you hired has submitted a report and fi nds no major structural or mechanical fl aws in the house. You, your REALTOR, and the Seller s agent have completed a walk-through, a fi nal inspection of the property. (The walk-through inspection assures you that no damage has occurred since the property inspector looked over your house or that work you specifi ed in the contract was completed. With new homes, you ll often fi nd details that aren t completed when you made the offer, so they were listed in the contract to be completed before closing.) What Are All Those Closing Costs? Either the day you applied for your loan or within three days afterward, you should have received from your Lender a good faith estimate of the fees charged for closing. This good faith estimate includes fees charged not only by the lender, but all parties involved. The uniform settlement sheet you receive at closing will be divided into categories so that it s easier to see what the charges are related to. For example, some of the categories are: payments connected with loan, the title, money that must be placed in escrow, money that must be paid in advance to the lender, the broker s commission, recording fees, and document preparation fees

15 COMMUNITY OUTREACH PROGRAM Great American Title Agency, Inc is a locally owned and operated escrow and title company committed to excellence and customer service. Great American has grown successfully because customers appreciate the superior service they provide. Great American believes they have an obligation to share their good fortune with those who may be in need. Although Great American would like to provide support around the world, their belief is that they must first start with those locally that have special needs. It is for that reason that they are willing to give back to this wonderful community in which we all live. Agency A legal relationship in which someone (principal) hires someone else (agent) to represent them to a third party. Amendment An alteration, addition, or correction to an agreement that does not change the principal idea or essence of the original agreement. Amortized Loan A loan that is completely paid off, interest and principal, by a series of regular payments that are equal or nearly equal. Also called a Level Payments Loan. Appraisal Opinion as to value of property; a conclusion resulting from an analysis of facts affecting fair market value. Appreciation An increase in value of real estate. Assessed Value Value placed on property by the Central Appraisal District as a basis for taxation. Assessments Special impositions on property to pay the cost of a local work of improvement, e.g. sidewalks, curbs, sewers, street lighting. Assessor County offi cial who determines the assessed value of property for tax purposes. C.C. & R. s The Covenants, Codes, and Restrictions of a subdivision or master planned community. These regulations grant the association the right to enforce certain aspects of the community. (Example: Exterior colors or plantings). Great American has developed a unique program that permits a portion of qualifying escrow fees collected to be donated to non-profit or not for profit organizations of the Buyer s or Seller s choosing from a comprehensive list. Chain of Title A summary or digest of the conveyances, transfers, and any other facts relied on as evidence of title, together with any other elements of record that may affect the marketability of the title. Closing The fi nal settlement of a real estate transaction between the Buyer and Seller. Help Great American in their quest to help others that are in need

16 Cloud on Title Semblance of title, or a claim appearing on some legal form, that is in fact invalid. Condominium A system of individual fee ownership of units combined with joint ownership of common area of the structure and the land. Conventional Mortgage A mortgage securing a loan made by investors without governmental underwriting. Counter-Offer A rejection of an offer by a seller along with an agreement to sell the property to the potential buyer on terms differing from the original offer. Deed Written instrument which, when properly executed and delivered, conveys title of real property. Deed of Trust A written instrument used in Arizona in place of a mortgage to secure the lender s rights. Disclosure To make known or public. When dealing with real property, all disclosures should be in writing. Discount Points Additional charges made by a lender at the time a loan is made. Points are measured as a percent of the loan, with each point equal to one percent. These additional interest charges are paid at the time a loan is closed to increase the rate of return to the lender so as to approximate the market level. Earnest Money Deposit Down payment made by a purchaser of real estate as evidence of good faith. Easement Created by grant or agreement for a specifi c purpose, an easement is the right, privilege or interest which one party has in the land of another. (Example: rights of way, pipelines, roads, driveways, and utility companies). Encumbrance Anything that affects or limits the ownership of real property, such as mortgages, liens, easements or restrictions of any kind. Equity The interest or value that an owner has in real estate over and above the liens against, real property. Escrow The deposit of instruments and funds with instructions (the Contract) to a third neutral party (Escrow Agent) to carry out the provisions of an agreement or contract; when everything is deposited to enable carrying out the instructions, it is called a complete or perfect escrow. Fair Market Value The price at which a willing Seller would sell, and a willing Buyer would buy, neither being under abnormal pressure. FHA Loan A loan guaranteed by the Federal Housing Administration. Impound Account Account held by the lender for payment of taxes and/or insurance against the real property. Legal Description A description of land that complies with government surveys to thoroughly identify a specifi c parcel so that it, and its boundaries, cannot be mistaken for any other. Lien A form of encumbrance that usually makes property security for the payment of a debt or discharge of an obligation. (Example: Judgments, taxes, mortgages, deeds of trusts, etc.). Mortgage An instrument recognized by law by which property is hypothecated to secure the payment of a debt or obligation; procedure for foreclosure in the event of default is established by statute. Mortgagee s Title Policy A policy required by the Lender to ensure that the Lender has a valid lien. It does not protect the Buyer. It can also be required for 2nd mortgages. Origination Fee A fee charged the borrower by the lending institution. Owner s Title Policy A policy that insures the Buyer against loss due to any defect of the title, not accepted to or excluded from the policy. Personal Property Any property which is not real property, e.g. money, appliances, cars, boats, furniture, etc. In real estate, anything not permanently attached to the building is considered personal property. PITI A payment that included Principal, Interest, Taxes, and Insurance

17 Power of Attorney A legal instrument whereby a principal gives authority to another to act for them. A specifi c form must be used in Arizona to create a Power of Attorney. Promissory Note Following a loan commitment from the lender, the borrower signs a note promising to repay the loan under stipulated terms. The promissory note establishes personal liability for its repayment. Quit Claim Deed Deed that conveys whatever present right, title, or interest the grantor may have. A deed operating as a release. Real Property Lands, buildings and appurtenances (immovable property). Recordation Filing for record in the offi ce of the County Recorder for the purpose of giving constructive notice of a title, claim, or interest in real property. Special Assessment Legal charge against real estate by a public authority to pay cost of public improvements such as: Streetlights, curbing, sidewalks, street improvements, etc. S.P.D.S. Also referred to as SPUDS, is the Seller s Property Disclosure Statement. Sellers are required to fi ll out a form to disclose any problems that they are aware of that affect the property regardless if they occupied the property or not. SubDivision A parcel of land that has been divided into smaller parts. Termite Inspection An inspection required by the Lender to show that the property is free and clear of active termites. Time is of the Essence A term that demands punctual performance in a binding agreement. Trust Fiduciary relationship in which one party (trustee) holds title to property for the benefi t of another party (benefi ciary). VA Loan A loan guaranteed by the Veteran s Administration. Warranty Deed A deed used to convey real property that contains warranties of title and quiet possession and the grantor agrees to defend the premises against the lawful claims of third persons Exchange A method enabling property owners to trade an investment property for another investment property (or properties) without paying capital gains taxes on the transaction

18 Use this page to keep important numbers accessible. Real Estate Agent Company Phone Fax Address Loan Officer Company Phone Fax Address Other Company Phone Fax Address Cell: Cell: Cell: Title Company Great American Title Agency, Inc. Company Phone Cell: Fax Address (602) All contents copyright 2012 by Great American Title Agency, Inc. All rights reserved. No part of this document or the related fi les may be reproduced or transmitted in any form, by any means (electronic, photocopying, recording, or otherwise) without the prior written permission of the publisher. The information contained in this document is provided for educational purposes only. Although it is deemed to be accurate at the time of printing, Great American Title Agency, Inc. does not guarantee its accuracy or reliability, and assumes no responsibility for its use for any purpose. Great American Title Agency, Inc. does not give legal, fi nancial or tax advice

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