April 4 in Blog by admin No Comments
From the desk of Vivian Boggie, Executive Vice President & COO:
I am excited to announce today that Title Security Agency has agreed to form a joint venture with First American Title Company, with the transaction expecting to close by May 1, 2014. Title Security Agency’s wholly owned subsidiary, Landmark Title Assurance Agency – Tucson Division, will also become part of the joint venture.
The new company will be called Title Security Agency, LLC, and we will now be part of one locally owned and managed company that will serve customers participating in all types of residential and commercial real estate transactions in Tucson, Green Valley and Casa Grande. The new company will offer you a stronger leadership team, 170 talented employees, 20 office locations, greater financial strength, and more advanced tools and technologies.
I will serve as President and CEO of Title Security Agency. You can expect business to continue as usual, with even more benefits that we can now offer you, our valued customer. Our team and I look forward to working with you for many years to come.
Bruce Jacobs will serve as Executive Vice President & Chief Operating Officer of Title Security Agency, LLC
If you have any questions about our new company, please let me know.
Executive Vice President & COO
Office: (520) 885-1600
Direct: (520) 618-7412
Fax: (520) 258-7640
April 2 in Blog by admin No Comments
When dealing with an international customer, they should consult with their Title Security Agency escrow officer as to the acceptance of funds via personal check or outgoing wire procedures due to our NEW company policy.
Incoming wires are always accepted, this NEW Title Security Agency policy is only involving outgoing wires, and incoming personal checks, cashier’s checks & money orders – that are subject to clearing by the international bank and can take up to 8 weeks for clearing
March 4 in Blog by admin No Comments
Why does my refinance need Title Insurance?
When you refinance, you still keep your Owner’s Policy from your purchase, but Lenders will require a new title search and Loan Policy to protect their lien holder position in the property.
Even if your home was recently purchased, there are still issues that could arise with the title due to mechanics liens, unpaid judgments, or tax liens. Perhaps easements have recently been created. All of these items may affect the use of the property, or otherwise “encumber” the title.
Whether you are purchasing a new or existing home, or refinancing, title insurance provides an underwriting service to mortgage lenders to ensure the borrower has clear ownership rights to the property, free and clear of any other claims to ownership. Strong underwriting protects consumers, and title insurance fulfills a key part of this due diligence.
Title Security Agency of Arizona is here to assist you and your lender whenever title insurance is needed.
February 25 in Blog by admin No Comments
What information is found in the Title Commitment?
Upon opening escrow and the completion of the title search, you will receive a Commitment for Title Insurance, and copies of those matters as disclosed in Schedule B Section 2-Exceptions
(NOTE: If you do not receive these documents with the Commitment for Title Insurance, request them from your Escrow Officer).
The Commitment for Title Insurance has three schedules: Schedule A and Schedule B Section 1-Requirements and Schedule B Section 2-Exceptions. Below is a brief description of some of the matters reflected in the referenced schedules.
- Effective Date of Commitment. (The date through which the records of the County Recorder have been searched.)
- Proposed Owners Policy to be issued, the amount of coverage (sales price) and the proposed insured (Buyer).
- Proposed Loan Policy (if applicable) to be issued, the amount of coverage (loan amount) and the proposed insured (Lender).
- Type of Interest to be insured in subject property (In most cases this will be Fee).
- Legal Description of the property to be insured.
Schedule B Section 1-Requirements
- Payment of delinquent real and personal property taxes, if any.
- Payment of Homeowners Association transfer fees and charges.
- Payoff and recordation of a release of any loans, judgments and/or liens affecting title to the subject property.
- Recordation of a release of any previously paid liens that have not yet been released of record.
- Recordation of corrective documents as may be determined through the examination of the title.
- Request for authority documents of a legal entity that may be involved in the transaction (i.e corporate resolution, LLC operating agreement, trust agreement).
- Recordation of document(s) transferring title to buyer. (Deed)
- Recordation of lenders security document. (Deed of Trust)
Schedule B Section 2-Exceptions
The matters reflected in this section affect the title to the real property. You will take title “Subject To” these matters of record (i.e. easements, right of ways, covenants, conditions and restrictions, homeowners association, taxing districts, well agreements, road maintenance agreements).
You should review these documents with your real estate agent and/or legal advisor.
February 24 in Blog by admin No Comments
THE PLAT MAP
Viewing the Subdivision Plat Map for the subject purchase property is essential due diligence for every buyer and their agent. Information found on a plat map cover sheet and final plat can include:
· Lot Dimensions
· Private and public utility easements
· “No access” easements
· Designated water provider
· Private and public streets
· Recorder’s sequence #’s for additional research documents like CC&Rs and permits
Many of the Title Commitment “Schedule B” items (the items the buyer is taking “Subject to”) may be found in the Dedication, the General Notes, and the Keynotes/Legend) sections of the subdivision Plat Map.
The plat map is included with the Title Commitment, and copies can also be obtained from our Property Research Department.
February 5 in Blog by admin No Comments
All Contracts ratified on or after 11/17/2013 will be subject to the “Buyer Select” closing agent program. The Buyer will now get to choose their own Title Company. HUD will no longer pay for the escrow fee, which now will be a Buyer expense. This is stated from BLB Resources “Buyer Select Closing Agent Addendum”. Item #5 of the HUD 9548/ Sales Contract form, has HUD either providing seller credits for financing and closing costs, or in some cases they do not pay anything, except recordation of the Deed.
As part of the contract process, HUD will have your Escrow Officer sign a “HUD-Closing Instructions and Certification” and sign and initial their “Attention Escrow” documents. These forms require a State License number and HUD ID # (or Title ID #). Contact your Title Security Agency Escrow Officer and they can provide you with both. A complete list of our Escrow Officers can be found here.
January 24 in Blog by admin No Comments
Please make sure lines 258-264 of the Purchase Contract are filled out as specifically as possible.
Example: Suppose the contract is silent on Line 262, and Line 263 just has a dollar amount of $600.00 to be paid by the seller. Does this mean the buyer’s agent can tack on as many extras as it would take to reach $600.00?
The words “at a cost not to exceed” mean that the seller has agreed to pay for the stated coverage only. If there is no optional coverage on the contract, then the seller has agreed to pay for a standard warranty policy and nothing more.
Do note – your Escrow Officer cannot order the home warranty for the transaction.
January 2 in Blog by Title Security No Comments
Are your buyers new to Arizona? Best to let them know early in the process, that Arizona is an Escrow state.
In some states, possession of the property is turned over after funds are transferred. In an escrow state, the additional step of recordation is required, before legal transfer has been completed. If your buyers are from an abstract state like, say New York State, they may wonder why they cannot get their keys at the signing table, and may be disappointed and upset.
November 18 in Blog by admin No Comments
Remember that Seller’s loan is not paid off the same day as their signing. As a rule of thumb your Escrow Officer will collect 5 extra days of interest, to account for the time between signing and the payoff, which occurs after the buyer’s lender funds. After the buyer’s lender funds, we can record. It is after recordation that we can send the seller’s payoff. If extra interest has been collected that is not needed for the payoff, it will be refunded by the seller’s lender thru the refund of their impound account.
Seller signs on Monday November 4th and interest is collected thru Friday the 8th. Buyer’s loan funds on afternoon of Thursday 7th and the transaction records on Thursday at 4pm, which is past the wire cutoff time of 2pm. Seller’s payoff wire would go Friday Nov 8th.
For FHA loans the interest is collected for each month up front and is not calculated in days.
Keep that in mind, if the calendar month advances between seller’s signing and recordation.
September 17 in Blog by admin No Comments
The Consumer Financial Protection Bureau (CFPB) continues to put policies in place that follow their ongoing efforts for consumer protection. In response to these efforts, ALTA (American Land Title Association) has implemented some Best Practices for all title and escrow companies. One of these Best Practices is around how title and escrow companies handle Non Public Information (NPI).
NPI includes any information we hold in our systems and/or files that is non-public – specifically in our industry, that would be a social security number or personal tax ID numbers. ALTA now recommended that all companies that handle NPI information in files take every precaution to protect this information against security risks.
In response Title Security Agency has implemented a procedure and now all emails that contain NPI information will be encrypted. We are utilizing an encryption program by McAfee to secure these emails.
If we send you an email that may contain NPI, you will receive an email in your regular inbox. The subject line will state “secure web mail: outbound email encryption”. And it will show the email address of the Title Security employee who sent you the email. You will then be asked to click on a link to “access your secure web mail account”. Click on that link, and it will step you through how to set up your McAfee account. Once you have completed this set up process, you will be able to access the email by entering a password you have set up and can also respond to the email, if necessary.
I know that this may take a bit of time to get used to, but it is a system that is being put into place for an important reason – to protect you and your client’s personal information. With the increased cyber-fraud and identity theft in today’s world, we need to take every precaution to protect our consumers.
Please contact us with any questions you have about our new email encryption.
August 7 in Blog by admin No Comments
When is a 1099-S issued in the sale of Real Property?
For sales or 1031 exchanges of certain real estate, the Escrow Officer is legally required to report the proceeds to the IRS using form 1099-S.
Some sales of principal residences are exempt from 1099-S reporting; in these cases an “IRS Form 1099-S Certification Exemption Form” is signed by the seller under penalty of perjury. Not all principal residences are exempt.
Some sellers exempt from 1099-S reporting are Corporations, Governmental Units and builders.