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

Mistakes To Avoid Before Selling

It’s definitely smart if you or your clients want to save money in repairs before selling a house by taking a DIY approach. What if the DIY project isn’t done right and ends up costing way more in time and stress for a professional to fix your mistake? Here’s an article from Realtor.com on some of the worst mistakes that can be made before selling a house:

https://www.realtor.com/advice/sell/selling-your-home-diy-repairs-to-avoid/?iid=rdc_news_hp_carousel_theLatest

#alliance #homeselling #realestate #selling #homeimprovement #title #escrow

Real Estate & Friendship Can Be Tricky

Having friends that want to either buy your or sell you a house may appear to be easy — until things get complicated. Kim Kardashian sold her $17.8 million house to her friend Marina Acton in November, but it’s back on the market. Could Acton have felt obligated to buy the home because she’s Kim’s friend and regretted doing so after the fact? Who knows, but take a look at this article from Realtor.com on how friendship can make buying or selling with friends complicated:

https://www.realtor.com/news/celebrity-real-estate/kim-and-kanyes-home-for-sale-again/?iid=rdc_news_hp_carousel_theLuxeLife

#alliancetitle #realestate #homebuyers #homesellers #title #escrow

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

Efficient House Hunting

The weather is getting warm and houses don’t last on the market long. Apps and online services have simplified house hunting, but some listings don’t always truthfully represent the listing, so checking out a house in person can really be worth your time. Here’s an article from Realtor.com with six helpful tips for more efficient house hunting:

https://www.realtor.com/advice/buy/house-hunting-maximize-your-time/

#alliance #househunting #title #escrow #realestate #homebuyers

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/

9 Inspection Myths

Home inspections are one of the most nerve wracking parts of a transaction because it could make or break the deal. There’s a lot that goes into a home inspection and what you may think is true might not be so. Take a look at this article from Realtor.com on 9 of the most common home inspection myths:

https://www.realtor.com/advice/buy/home-inspection-myths/

#alliancetitle #realestate #buying #selling #title #escrow

ALTA Core Values

Similar to the Alliance Core Values, the American Land Title Association (ALTA) has Core Values that describe how they operate in order to set an example for the industry. ALTA’s Core Values outline the duties they have to customers and partner organizations to conduct business in a consistent and ethical manner. Here at Alliance, we share many of the same ideals and build on them so we can deliver an equally stellar experience to our customers and communities.

Check out ALTA’s Core Values and how they were developed:

https://www.alta.org/business-tools/our-values.cfm

#alliance #ALTA #corevalues #community #title #titleinsurance

Millennials Choose Family Over Location

As the largest portion of homebuyers, millennials are considering buying homes close to their families and friends instead of schools or trendier locations. This piece of data was uncovered by the 2018 Home Buyer and Seller Generation Trends report from the National Association of Realtors. Take a look at this article from MReport for more of the report’s findings:

http://themreport.com/daily-dose/03-14-2018/family-location-millennials

#alliance #businessbuilder #markettrends #realestate #millennials #title #escrow