How To Get A Title In The United States

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Shauna Walton
5 years ago
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1 Top 10 Closing Pitfalls

2 Top Ten Closing Pitfalls 1. LLC s & Corps 2. Bankruptcy 3. Death 4. Trusts 5. Power of Atty Exchange 7. Construction 8. Divorce 9. Short Sales 10. Good Funds

3 LLC s, Partnerships and Corps Is the license active with the Department of Commerce? Are Articles of Organization/Incorporation filed? Are all signers mandated by the articles going to be present at closing or precluded by operating agreement? Does the selling entity have a bank account and a federal TIN?

Are all signers mandated by the articles going to be present at closing or

4 Bankruptcy Cases must be discharged and closed, or property must be released or trustee must approve sale Bankruptcy does not release liens or 2 nd mortgages from the property- trustee must give final accounting and close case

Bankruptcy does not release liens or 2 nd mortgages from

5 Death of a tenant owner Joint Tenancy- Certified Copy of Death Certificate need at closing Tenant-in-Common? Probate and Personal Rep Trusts and successor trustees agreements and ammendments must be reviewed. Wills do not transfer title Deeds signed before death and recorded after- The Basis Problem

Probate and Personal Rep Trusts and successor trustees agreements and

6 Trusts Trust Agreement/Certification of Trust: are all signers present for closing Have other trustees or successor trustees died or become incapacitated? Is the property in the trust? Does the Trust have a bank account and a Tax ID number (Federal TIN) Do trustees have the power to bind the trust?

incapacitated? Is the property in the trust?

7 Power of Attorney Must go through an underwriter approval process unless: Property Specific Prepared by the title company Durable Recent (preferably less than 1 year old) Conflicts of Interest (Agents, etc. cannot act) Names must match exactly how on title or loan docs

Recent (preferably less than 1 year old) Conflicts of Interest

8 1031 Exchanges Proceeds must come from/gogo to QI QI cannot be the agent, attorney, or CPA who has represented taxpayer in last 2 yrs Title Company must receive instructions Exchange Agreement and Contract Assignments must exist before close Must close within 180 days to affect

Title Company must receive instructions Exchange Agreement and

9 New Construction Any Contractors and Subs who have filed on the new State Construction Registry must sign lien waivers before recording. Where are they and will they sign fast? Occupancy Permit must be issued (No Temporary or limited permit) Builder and Owner must sign affidavits of indemnity to the title company that all subs have been paid

10 Divorce Decree Sometimes award possession to Petitioner or Respondent but this does not transfer title Changes in Circumstance- Refinance requires new deed Alimony? -ORS Child Support?- ORS

11 ALTA Homeowner Policy vs Standard Policy Homeowner Policy can only issued on 1-4 Family Dwellings, townhomes, condos, SFD s No apartment buildings, raw land, or commercial developments Not available in areas with known boundary and POB shifts (provo, spanish fork)

apartment buildings, raw land, or commercial developments Not

12 Short Sale Deed Restrictions No 30 day flip, no 90/120-day resale for more than 120% of Short Sale Purchase Price Changes to Settlement Statement require re-approval, even for increased HOA, utilities payoffs or judgments HUDS must be re-approved with most short sale lenders within 24 hours of closing.

require re-approval, even for increased HOA, utilities payoffs or judgments

13 Good Funds Cashier s Checks cannot be accepted over 10, Funds sent by Wire Transfer must be a fed funds wire, not ACH or internal bank transfer- this will often cause funding delay Wires must be domestic, or extra approvals may be required

ACH or internal bank transfer- this will often cause funding

14 Cash Purchases Buyer must close at title company where policy is issued Money will need to be wired Buyer must decide how to take title

15 What Title Agents Can Do: Explain Process Explain, Prepare, Notarize, Record, and maintain custody of documents Act as Fiduciary and Third Party Explain Concepts of Survivorship Protect all parties from fraud, title issues, and money shortages or returns

Fiduciary and Third Party Explain Concepts of Survivorship

16 What Title Agents Cannot Do: Give Legal Advice Am I getting a good deal?! Divulge personal or privileged information Provide Leads, mailing labels, or information (other than a farm list) to agents or brokers Record or disburse without having all executed docs and all good funds

mailing labels, or information (other than a farm list) to agents or

17 Eagle Gate Title Insurance Agency Started in 2011, All Title and Escrow Officer have at least 8 years licensed experience Offices in Ogden, Salt Lake, Orem We service all 29 counties in person We can be your national solution, able to do transactions in all 50 states Foreclosure Services 1031 Exchanges Seller Carry-backs and All-Inclusives Wraps 24/7/365 service anywhere in Utah

person We can be your national solution, able to do transactions in all 50 states Foreclosure

18 Eagle Gate Title Insurance Agency Link: Questions? Matt Pettey and Darin Taylor Tel

Seller s Closing Checklist

Seller s Closing Checklist Your real estate closing is an important financial and legal transaction. Early and adequate preparation will help to ensure a carefree closing day. Please use the following