Curt
Epperson,
Attorney at Law
P.O.
Box 627 Manson,
WA.
509
687 6236
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Attorney at Law P.O.
Box 627 Manson,
WA.
|
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Introduction
Information herein is for general purposes only and cannot be used or applied to any specific legal situation or relationship. The information contained in these Web pages is designed to provide accurate and authoritative information in regard to the subject matter covered. The information is provided with the understanding that this Web presentation is not a legal, financial or accounting service, nor legal, financial or accounting advice. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. |
TITLE INSURANCE. Title insurance is necessary or advisable for nearly every transfer of real estate. The title insurance company searches the public records to find defects in the title or encumbrances or restrictions against the property. (Things like easements, unpaid taxes, liens, protective covenants, etc). After the seller and buyer have signed a purchase and sale agreement the Title Insurance Company is contacted and an order placed. (This is usually handled by the escrow agent.) The title insurance company prepares a document called a preliminary commitment (also called a title report). It discloses matters of record affecting the property. The Buyer receives a copy to review. (The assistance of an attorney may be necessary at this point. However, the title officer at the Title Ins. Co. can be very helpful. If you have questions give him or her a call.) If there are unacceptable problems listed in the preliminary commitment the Seller is required to fix them, or the Buyer can cancel the transaction, or accept the property with the problems. If the condition of the title to the property is acceptable the transaction will proceed. If there are other contingencies (such as financing, inspection, etc.) those must now be satisfied prior to the closing. But the first hurdle prior to closing is the examination of the preliminary commitment. Often, it is a good practice for a seller to order a preliminary commitment when the property is first placed on the market. That means a Buyer can be given a copy of the title report when he or she first sees the property. It also gives plenty of time for a Seller to solve unknown problems or address questions before they become an issue. The cost of title insurance does not vary much from one company to the next. However, different companies offer varying levels of service so the choice is important. Call and ask about the services that are provided. ESCROW SERVICES. After the Buyer and Seller sign a Purchase and Sale Agreement someone must handle the closing of your transaction. The closing is the legal means by which the property ownership changes. The closing occurs when the legal documents are recorded. These documents may include a deed from the Seller or a Real Estate Contract between the parties under which the Buyer agrees to pay for the property over time. The exact documents which you need for your transaction will be determined by the language in your Purchase and Sale Agreement. After the buyer and seller sign it, a copy of the Purchase and Sale Agreement is delivered to the Escrow Agent along with the earnest money check. (Your John L. Scott agent will take care of this for you.) The Escrow Agent is usually chosen by the Buyer named in the Agreement. Sometimes it is easier to use the Title Company as the escrow agent but you may find it more convenient to use an independent escrow agent who has an office right in your town. The escrow agent orders the title report and deposits the earnest money into her trust account. (It will be credited toward the purchase price paid at the closing.) The Escrow agent will open a file for your closing and wait to hear from the Buyer or the Seller regarding the satisfaction or waiver of contingencies. When all contingencies are satisfied or waived, the escrow agent will prepare the closing documents. When the documents are ready the Escrow agent will set a date for the Buyer and Seller to come to her office to sign. She will ask the Buyer to bring a cashiers check for the correct amount of money. The Escrow agent will figure out how to allocate the money to pay the expenses of the closing and each party will sign a closing statement which shows where the money is going. Some of the expenses will be the title insurance (usually paid by the Seller), tax pro-rations, the excise tax (usually paid by the Seller), recording fees, attorney fees, loan fees, etc. You choice of an escrow agent is very important. It will determine how easy or difficult it is to finish your transaction. Your John L. Scott agent will provide you with recommendations for a good escrow agent.
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