Title & Settlement Terms

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Action to Quiet Title: An action to quiet title is a lawsuit to establish a plaintiff’s title to land by compelling the adverse claimant to either establish a claim or to be quiet about his/her challenges or claims to the title. An action to quiet title is generally brought in a court having jurisdiction over land disputes. It establishes a party’s title to real property against everyone.

Certified Copy (Death Certificate): Issued by the local Vital Records office will have a raised seal, will show the signature of the local registrar, and will be printed on security paper.

Cloud on Title: An apparent claim or encumbrance, such as a lien, that, if true, impairs the right of the owner to transfer his or her property free and clear of the interests of any other party.

Financing Statement: A legal form that a creditor files to give notice that it has or may have an interest in the personal property of a debtor.

Landlocked Parcel: A parcel of land surrounded entirely by private owned land, with no access to a public right of way (road).

Lis Pendens: A legal notice recorded to show pending litigation relating toreal property, and giving notice that anyone acquiring an interest in said property subsequent to the date of the notice may be bound by the outcome of the litigation.

Mechanic’s Lien: A lien created by statute for the purpose of securing priority of payment for the price or value of work performed and materials furnished in construction or repair of improvements to land, and which attaches to the land as well as the improvements.

Notice of Completion: Written notice issued by the owner of a project (or his or her agent) to notify concerned parties that all work on the project has been completed. This notice also sets the period within which concerned parties may exercise their lien rights against one another.

Power of Attorney: An authority by which one person (principal) enables another (attorney in fact) to act for him/her. (1) General Power – authorizes sale, mortgaging, etc. of all property of the principal. (2) Special Power – Specifies property, buyers, price and terms, etc.

Torrens System: Land registration system in which the government is the keeper of all land and title records, and a land title serves as a certificate of full, indefeasible, and valid ownership.

July Webinars

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Tips To Improve Your Closing Experience
Tuesday, July 18, 2017 – 10:00am PST/1pm EST
Closing transactions efficiently and accurately is our first priority. You’ll get peace of mind and security with our smooth and easy process. Join us for a webinar to see how you and your borrower can help improve the closing experience.
Click here to register

Introduction to Powers Of Attorney
Thursday, July 20, 2017 – 10am PST/1pm EST
Please join us for our upcoming webinar entitled: Introduction to Powers of Attorney (POA). Reverse mortgages are complex and being prepared is key to a successful closing. Powers of Attorney are very common in the Reverse Mortgage industry. We are happy to share our experience and knowledge with you and together we can make the borrower’s experience a pleasant one.
Click here to register.

ARS Calculator Update: North Carolina

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The ARS Calculator has been updated to reflect a new fee in North Carolina. A $15 commitment fee will apply to all mortgage transactions, effective June 9 2017.

We stand behind our rate calculator, which is why we advise you to pull a new quote for each application, to ensure you are receiving a current fee. If you do not have access to our calculator, please inquire with us for a login.

June Webinars

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Reverse mortgages are complex and being prepared is key to a successful closing. We are happy to share our experience and knowledge with you and together we can make the borrower’s experience a pleasant one.

Title Review 101
June 14, 2017 – 10:00am PST/1:00pm EST
Please join us for our upcoming webinar on Title Review 101. We will discuss the basics of title insurance, title commitments and how to review the reports for important and relevant information that will need to be addressed during the transaction.
Click here to register.

Introduction to Allegiant Reverse Services
June 21, 2017 10:00am PST/1:00pm EST
Our team of respected and seasoned industry professionals brings a stellar reputation along with added services to fulfill the needs of our industry partners. Please join our webinar to learn about our company and the services that we offer.
Click here to register.

Life Estates

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Life estates are often encountered by reverse mortgage professionals during the origination process. Reverse professionals should have a good understanding of what a life estate is in order to guide their clients and transaction to a successful closing.

A life estate is a type of ownership interest in real estate. In a life estate one person is given an ownership interest in real estate for their lifetime. This person is called a life tenant. At the death of the life tenant, the real estate passes automatically to one or more other individuals or organizations. The people or organizations that receive the property at the death of the life tenant are called remainderman.

It is important to understand that a life estate is a form of co-ownership. Both the life tenant and remainderman each have an ownership interest in the real estate, but at different periods in time. Unlike other forms of co-ownership, the co-owners do not have rights to the property at the same time. Rather, the life tenant possesses the property during their life. The other co-owner, the remainderman, holds a current ownership interest in the property but cannot take possession of the property until the death of the life tenant.

Read more about life estates by accessing our educational flyer below:
Title Tidbits Life Estates

New Educational Flyers Available

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We are pleased to inform you that two new flyers have been added to our list of educational documents. Our library currently includes:

-Rate Calculator Guide
-Spotting Elder Abuse and Fraud
-Signing by Mark
-Power of Attorney Fraud
-Trusts
-Checklist for a Smooth Closing
-Power of Attorney
-New! Manufactured Homes
-New! Conservatorships

To request a copy of any of the available documents please click here.

 

Anniversary Kickball Game

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What a fantastic year it has been! We invite you to view the photos from our first annual anniversary kickball grudge match.

GOLD TEAM FOR THE WIN!

Click here:

Title & Escrow Terms

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Affidavit: A written statement or declaration, sworn to before an officer who has authority to administer an oath.

CC&R’s (Covenants, Conditions, and Restrictions): A term used in some areas to describe the restrictive limitations which may be placed on the property. In other areas, only called restrictions.

Conveyance: Transfer of title to land. Includes most instruments by which an interest in real estate is created, assigned, or mortgaged.

Easement: A right created by grant, reservation, agreement, prescription, or necessary implication, which one has in the land of another.

Encroachment: Generally, construction onto the property of another, as of a wall, fence, building, etc.

Encumbrance: A claim, lien, charge or liability attached to and binding real property. Any right to, or interest in, land which may exist in one other than the owner, but which will not prevent the transfer of fee title.

Hypothecate: To pledge or mortgage without delivery of the security to the lender.

Ingress and Egress: A right to enter upon and pass through land.

Intestate: Without leaving a will, or leaving an invalid will, so that the property of the estate passes by the laws of succession rather than the direction of the deceased.

Probate: The court process by which a will is proved valid or invalid. The legal process wherein the estate of a decedent is administered.

Testate: Having written a last will and testament.

Trustee: An individual given control or powers of administration of property in trust with a legal obligation to administer it solely for the purposes specified.

Disclaimer: The above is for informational purposes only. The Company assumes no legal liability or responsibility for the accuracy.

Ohio Good Funds Law

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For Ohio real estate transactions, effective April 6, 2017, the following are the only form of funds a settlement agent may collect and disburse on in connection with a residential real estate transaction:

1. Wire Transfers
2. Checks: Personal, Business, Certified, Cashier’s, Official Check or Money Order. The combined dollar amount of these items cannot exceed $1,000.00
3. Automated Clearing House (ACH) Transfers and checks from the United States, the State of Ohio, or Ohio municipalities
4. Checks from a real estate broker’s escrow/trust account

The practical effect of this new requirement means that if any Ohio borrower is required to bring more than $1,000.00 to the closing table then those funds must be a wire transfer.

Certified or cashier’s checks for more than $1,000.00 will not be accepted.

Please refer to the OhioGoodFundsLawFAQ about this new requirement.

Conservatorships

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Conservatorship is a court-approved and court supervised legal relationship between a competent adult (known as a conservator or guardian) and an adult who needs assistance in decision-making. The person who needs assistance is referred to as a Ward in legal documents.

 An individual with intellectual or developmental disabilities may need a conservator if:

 He/She does not understand how to manage finances.

 He/She needs medical care or other services that will not be provided unless there is a clear understanding about the person’s legal capacity to consent.

 He/She is making decisions which greatly endanger him/herself or others.

 He/She has not executed a Durable Power of Attorney that allows others to act on His/Her behalf.

Conservatorship is sometimes described as conservator of the person or conservator of the estate.

In conservatorship of the person, the individual needs a conservator to decide personal issues. These decisions may include where to live, consent for medical treatment, work, travel and other areas.

A conservator of the estate usually has power over the individual’s finances, including income or assets, not the individual’s personal matters. The conservatorship is based on the person’s inability to manage assets or property.

Each state has its own legal procedures or processes in determining the need for a conservatorship. There is no uniform national conservatorship law. The process will generally include filing a petition with the appropriate court, review of the petition by the court, notice to applicable parties, a court hearing, and entry by the court of an order of conservatorship. The conservator will be required to provide an inventory of the ward’s assets and report the assets to the court. When the ward has assets that must be maintained, the conservator may obtain authority from the court to manage and control the ward’s assets.

A conservator may file a petition to mortgage the ward’s real estate and provide the court with the reasons for the mortgage. After appropriate notice and hearings, the court may enter an order authorizing the conservator to mortgage the real estate owned by the ward and described in the petition. If granted, the order will provide that the conservator has the authority to execute any necessary mortgage documents on the Wards behalf.

 If a conservator is appointed, a copy of the court order must be provided to the title company. Careful attention should be paid to the contents of the order as the title company will rely on the terms of the order to approve the real estate transaction. The title company will generally require a certified copy of the court order and will record the certified copy as an exhibit to any mortgage(s).

Disclaimer: The above is for informational purposes only. The Company assumes no legal liability or responsibility for the accuracy.