TITLE, ESCROW, & REO SERVICES
A home is usually the largest single investment any of us will ever make. When you purchase a home, you will purchase several types of insurance coverage to protect your home and personal property. Homeowner’s insurance protects against loss from fire, theft, or wind damage. Flood insurance protects against rising water, and a unique coverage known as title insurance protects against hidden title hazards that may threaten your financial investment in your home.
Protecting your largest single investment
Title insurance is not as well understood as other types of home insurance, but it is just as important. You see, when purchasing a home, instead of purchasing the actual building or land, you are really purchasing the title to the property – the right to occupy and use the space. That title may be limited by rights and claims asserted by others, which may limit your use and enjoyment of the property and even bring financial loss. Title insurance protects against these types of title hazards.
Other types of insurance that protect your home focus on possible future events and charge an annual premium. On the other hand, title insurance protects against loss from hazards and defects that already exist in the title and is purchased with a one-time premium.
Two kinds of title insurance benefit you in two ways
- Owner’s coverage.
- Lender or mortgagee protection,
Owner’s title insurance lasts as long as you, the policyholder – or your heirs – has an interest in the insured property. This may even be after you have sold the property.
Depending on local practices and state law where the property is located, you may pay an additional premium for an owner’s policy or you may pay a simultaneous issue charge – usually a smaller amount – for the separate lender coverage. You may even split settlement costs with the seller for the lender or owner’s policy.
What does your premium really pay for?
An important part of title insurance is its emphasis on risk elimination before insuring. This gives you, the policyholder, the best possible chance for avoiding title claims and loss.
Title insuring begins with a search of public land records affecting the real estate concerned. An examination is conducted by a title agent or attorney on behalf of its underwriter to determine whether the property is insurable. The examination of evidence from a search is intended to fully report all “material objections” to the title. Frequently, documents that don’t clearly transfer title are found in the “title chain,” or history, that is assembled from the records in a search. Here are some examples of documents that can present concerns:
- Deeds, wills and trusts that contain improper wording or incorrect names;
- Outstanding mortgages and judgments, or a lien against the property because the seller has not paid his taxes;
- Easements that allow construction of a road or utility line;
- Pending legal action against the property that could affect a purchaser; or
- Incorrect notary acknowledgements.
Through the search and the examination, title problems are disclosed so they can be corrected whenever possible. However, even the most careful preventive work cannot locate all hidden title hazards.
- A forged signature on the deed, which would mean no transfer of ownership to you;
- An unknown heir of a previous owner who is claiming ownership of the property;
- Instruments executed under an expired or a fabricated power of attorney; or
- Mistakes in the public records.
Title insurance offers financial protection against these and other covered title hazards. The title insurer will pay for defending against an attack on title as insured, and will either perfect the title or pay valid claims. All for a one-time charge at closing.
Your home is your most important investment. Before you go to closing, ask about your title insurance protection, and be sure to protect your home with an owner’s title insurance policy.
The duties of the agent may include the following: order title orders; obtaining information to provide clear title to property; act as a depository for funds and documents for the given closing to complete the closing.
Escrow closing services provided by Evergreen Land Title Co. involve property located in Lane County or elsewhere. We have experienced personnel to handle a wide range of transactions such as residential or commercial sales, personal property, refinances, sale by owners, and IRC Section 1031 exchanges. For rendering these services, the rate fees are based on a published schedule, which are extremely competitive. The fees vary according to the size of the transaction.
An escrow officer acts as a neutral third party between the buyer and seller of the property and is limited in its agency powers to the specific written escrow instructions received.
What are the fees for closing and who pays them?
The escrow fee is generally divided between the buyer and seller in the transaction, although the parties can agree to other arrangements and instruct the escrow agent to the terms of the agreement. The escrow fee is based upon the sale price of the property or the amount of a new loan. Discounted fees are provided for approved builders.
1031 Tax Deferred Exchange
Evergreen Land Title Co. has the personnel to handle the closing relating to an IRC Section 1031 exchange. Evergreen Land Title Co. handles 1031 exchanges with the help of Asset Preservation, Inc. A Stewart Title Associated company
Please contact our escrow department for clarification on the fees for the given transaction.
What can I expect to pay?
Buying or selling real estate can sometimes be confusing. The following information is designed to help you better understand what costs apply to you.
- Escrow fee – ½ of fee based on Escrow Company’s fee schedule.
- Recording fee – to clear title.
- Owner’s Title Insurance Premium – Insures new owner.
- Real estate commissions – Based on agreement with broker
- Tax pro rate – If the seller has not paid the taxes when due.
- Payoffs – All loans, taxes, assessments and encumbrances.
- Overnight delivery fees – For payoff check / out of town.
- Government service fee – Lien search paid to the city.
- Escrow fee – ½ of fee based on Escrow Company’s fee schedule.
- Recording fee – To show interest and / or obligations in title.
- Mortgagee’s Title insurance Premium – Insures new lender
- Fire insurance premium – Mandatory when any lender is involved.
- Tax pro rate – If the sellers have paid the taxes when due.
- Overnight delivery fees – Returning loan documents / out of town.
- Wire fee – If incoming money is wired.
- Lender fees – All fees charged by the new lender.
Exceptions To The Above
- FHA LOANS – Seller must pay buyers overnight delivery fees and certain lender fees.
- VA LOANS – Seller must pay buyers Escrow fee and overnight delivery fees and certain lender fees.