What Are Closing Costs?

Closing costs are fees that are separate from the selling price of a property. They need to be paid at the time of closing and can involve escrow fees, title insurance premiums, tax prorations, loan fees, deed recording fees, real estate commission and more.

The buyer usually pays for:

  • Lender’s title policy premiums
  • 50% of escrow fee
  • Recording charges for all documents in buyer’s name
  • Tax proration (from date of acquisition)
  • Homeowners’ Association fees
  • All new loan charges (except those required by the lender for seller to pay or otherwise negotiated between buyer and seller)
  • Fire insurance premium for the first year

The seller usually pays:

  • Owner’s title insurance premiums
  • 50% of escrow fee
  • Real estate commission
  • Document recording and release fee for deed of reconveyance
  • Any loan fees required by buyer’s lender
  • Payoff of all loans in seller’s name or against the property
  • Interest accrued by lender being paid off, statement fees, reconveyance/release tracking fees and any prepayment penalties
  • Any judgments, tax liens, etc. against the seller — including the cost of recording the release document
  • Any and all delinquent taxes

Take a look at the Buyer/Seller Guide we’ve put together for more information on what happens during the purchase or sale of a property.

#alliancetitle #guides #buyers #sellers #closing #title #escrow

Where Home & Heart Meet

Buying a home is one of the largest investments a customer makes in their lifetime. You’re who they’ll count on to help them make the best choices in protecting that investment.

With years of proven industry experience, Alliance Title’s resources help you guide your customers through the benefits of owner’s title insurance with confidence.

Visit blog.alliancetitle.com to access the following ALTA HOP resources and more:

Additional information and resources are available at Homeclosing101.org

#alliancetitle #ALTA #homebuyers #hop #realestate #title #escrow

Guide Your Clients

Do you have questions or need resources to help explain the title and escrow process? Do you wish there was an easy way to prepare your clients with information? Ask us about the materials we have available to help guide you and your clients to a successful transaction.

Client Resource Guide:  You are the trusted advisor to your clients and with that in mind, this brief guide was made for you. Browse to be up-to-speed on title, escrow, tax prorations and more.

Buyer-Seller Guide: Most of your clients don’t buy and sell homes often. Share this handy booklet on our website with your clients to help them understand the closing process.

Visit www.alliancetitle.com or request a copy of these great resources from your local Alliance Title office.

#alliancetitle #guides #buying #selling #title #escrow #resources

7 Reasons Why Every Homebuyer Needs Owner’s Title Insurance

Buying a home is like a rollercoaster; emotional, exciting and intimidating. For a confidence boost, make sure you get an owner’s title insurance policy — here’s why:

Protects your largest investment. A home is probably the single largest investment you will make in your life. You insure everything else that’s valuable to you – your life, car, health, pets, etc., so why not your largest investment? For a one-time fee, owner’s title insurance protects your property rights for as long as you own your home.

Reduces your risk. If you’re buying a home, there are many hidden issues that may pop up only after you purchase your home. Getting an owner’s title insurance policy is the best way to protect yourself from unforeseen title discrepancies. Don’t think it will happen to you? Think again.

Title claims can include:

  • outstanding mortgages and judgements, or a lien against the property because the seller has not paid his taxes
  • pending legal action against the property that could affect you
  • an unknown heir of a previous owner who is claiming ownership of the property

You can’t beat the value. Owner’s title insurance is a one-time fee that’s very low relative to the value it provides. It typically costs around 0.5% of the home’s purchase price.

Covers your heirs. As long as you or your heirs own your home, owner’s title insurance protects your property rights.

Nothing compares. Homeowners insurance and warranties protect only the structure and belongings of your home. Getting owner’s title insurance ensures your property rights are protected.

8 in 10 homebuyers agree. Each year, more than 80% of America’s homebuyers choose to get owner’s title insurance.

Peace of mind. If you’re buying a home, owner’s title insurance lets you rest assured, knowing that you’re protected from inheriting possible debts or legal problems, once you’ve closed on your new home.

To learn more about owner’s title insurance, visit our ALTA HOP Resources on our blog or contact your local Alliance Title representative.

All publications of the American Land Title Association are copyrighted and are reference herein by specific permission from the American Land Title Association (ALTA). http://www.alta.org/

 

#alliancetitle #alta #homebuyeroutreachprogram #hop #buyers #title #escrow

Why 20% of Homebuyers May Not Sleep Tonight

Every year about 20% of homebuyers fail to protect themselves by not getting owner’s title insurance. This leaves them exposed to serious financial risk – causing endless worry and regret.

If you’re thinking of buying a home, here’s what you need to know to protect yourself and your property rights, so you can rest assured once you’ve purchased your home:

Looking for Potential Threats

During the home-closing process, your title professional will help transition the home from the seller to you, the homebuyer, by examining public records. Generally, if a problem is discovered, the title professional works to resolve them before you purchase the home.

However, even after a title search is performed and you purchase your home, problems could arise that threaten your ownership rights. Examples include:

  • Undiscovered tax liens
  • Forged signatures in the chain of title
  • Recording errors
  • Undisclosed easements
  • Title claims by missing heirs* or ex-spouses

Getting owner’s title insurance protects your property rights from threats like these. Here’s a real-life example of how it works:

True Story

A family in Missouri unknowingly purchased their home from a seller who had taken out a separate $419,000 loan on the property. But this fact was not discovered during the closing process, and the family’s lender paid the seller directly instead of paying off the existing loan.

Soon, the family faced foreclosure because someone else had claim against their title. Fortunately, the family had owner’s title insurance. So the title company paid the debt and the family kept their home – and peace of mind.

This story has a positive ending, but without owner’s title insurance, the family could have faced serious costs, and even eviction.

Support and Free Information

To buy your home with confidence, you need to work with a trusted title professional. Alliance Title has experts who will help you throughout the home closing process. They will also advise you on how to protect your property rights and avoid costly problems by getting owner’s title insurance. For more information, contact your local Alliance Title representative.

*Actual coverages may vary by state, company or locality. For exact terms, conditions, exclusions, and limitations, contact your local Alliance Title branch.

All publications of the American Land Title Association are copyrighted and are reference herein by specific permission from the American Land Title Association (ALTA). http://www.alta.org/

Bidding War: Increase Your Chances

You already know the market is growing more competitive by the day, so are you and your clients prepared for a bidding war? In addition to setting expectations with your customers up front, there are a few pointers that could help get your offer selected. Check out this article from CNBC on tips and some statistical odds on how you can help your client win:

https://www.cnbc.com/2018/04/10/house-hunting-heres-how-to-win-a-bidding-war.html

#alliancetitle #businesstrends #businessbuilder #realestate #title #escrow

Homebuyer Title Insurance FAQs

Buying a home is a big decision and likely the largest investment most of us will ever make. Owner’s title insurance helps you buy with confidence because it’s the smart way to protect your property rights. To help you understand how owner’s title insurance works, here are answers to common questions:

What is title?

Title is your right to own or use your property. Title also establishes any limitations on those rights.

What is a title search?

A title search is an early step in the homebuying process to uncover issues that could limit your rights to the property. If a title issue is discovered, most often your title professional will take care of it without you even knowing. After the title search is complete, the title company can provide a title insurance policy.

What is title insurance?

If you’re buying a home, title insurance is a policy that protects your investment and property rights.

There are two different types of title insurance: an owner’s policy and a lender’s policy.

  1. An owner’s policy is the best way to protect your property rights. Either the buyer or seller may pay for this policy. Ask your title professional how it’s handled in your area.
  2. A lender’s policy is usually required by the lender and only protects the lender’s financial interests. The buyer typically pays for this policy, but that varies depending on geography. Ask your title professional how it’s handled in your area.

Why should I purchase owner’s title insurance?

Owner’s title insurance protects your investment in your property from certain future legal claims regarding ownership of your property. For a one-time fee, you and your heirs receive coverage for as long as you own your home. The owner’s policy also covers potential legal fees and court costs for settling claims covered by your policy.

What does owner’s title insurance cover?

Sometimes undiscoverable defects can come up after the title search. Under an owner’s title insurance policy, you are protected against certain undiscovered errors in the title.

Title issues include unknown:

  • Outstanding mortgages and judgments, or a lien against the property because the seller has not paid his taxes
  • Pending legal action against the property that could affect you
  • Unknown heir of a previous owner who is claiming ownership of the property

Unforeseeable title claims include:

  • Forgery: making a false document
    • For example, the seller misrepresents the identity of the person who sold the property.
  • Fraud: deception to achieve unfair gain
    • For example, someone steals your identity and either sells your house without your knowledge or consent, or takes out a second mortgage on the property and walks away with the money.
  • Clerical error: inconsistent paperwork and historical records
    • For example, an unforeseeable discrepancy in the property or fence line can cause confusion in ownership rights.

What does owner’s title insurance cost?

The one-time payment for owner’s title insurance is low relative to the value of your home. A typical title insurance policy costs around 0.5% of the home’s purchase price.

How long am I covered?

Your owner’s insurance policy lasts for as long as you or your heirs own your property. Your life will change over time, but your peace of mind never will.

What happens at closing?

Closing is the final step in executing the home buying transaction. It is the process that allows the transfer of ownership to occur. Upon completion of the closing process, you get the keys to your home!

Where can I get more information?

The American Land Title Association helps educate homebuyers like you about title insurance so you can protect your property rights. Check out www.homeclosing101.org to learn more about title insurance and the home closing process.

You can also connect with your local Alliance office where our friendly professionals are ready to help answer your questions.

#alliancetitle #alta #hop #titleinsurance #title #escrow

Is Downsizing The Right Move?

With the economy improving and the real estate market heating up, more young people are getting good paying jobs and moving out of the family home. It also means that it could be a good time for those parents to look at downsizing. Assisting your clients in making an informed decision can help you build trust and figure out if it really is the right move for them — saving everyone valuable time.

Check out this article from CNBC on how to decide if downsizing is the right choice:

https://www.cnbc.com/2018/04/09/downsizing-your-home-how-to-determine-if-a-smaller-house-is-the-right-move.html

#alliancetitle #realestate #businessbuilder #millennials #title #escrow

Rate Hikes & Millennial Homebuyers

It’s no secret that interest rates are increasing, but that trend isn’t stopping millennials from buying. That’s pretty important to know because millennials are the largest group of homebuyers in the country! Check out this article from MReport on what types of loans millennials prefer and some other important figures:

http://themreport.com/daily-dose/04-04-2018/rate-hikes-and-millennial-homebuyers

#alliancetitle #markettrends #millennials #title #escrow

4 Reasons Homeowner’s Insurance Gets Dropped

Similar to a title insurance policy, homeowner’s insurance is extremely important. Unfortunately, insurance companies can drop your coverage for a number of reasons. Take a look at this article from Realtor.com for four common reasons why homeowner’s insurance companies can drop you from coverage:

https://www.realtor.com/advice/buy/home-insurance-company-drop-coverage/

#alliancetitle #homeowners #insurance #title #escrow #homebuyers