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

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

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

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

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

Avoiding Wire Fraud

If there’s money involved, criminals usually want to steal it. Since real estate transactions have high dollar amounts going around they become huge targets. Check out this video from the American Land Title Association on how to protect your money and advice on if you’ve been targeted:

#alliancetitle #alta #hop #wirefraud #realestate #security

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

Not Enough Homes At All Prices

You may have known the housing market has very low inventory, but according to the latest findings from Realtor.com, it’s the case for all price ranges. Existing home sales hit 5.6 million and the national median home price went up 3.9% to $250,400 in March. For more numbers and some commentary, check out the article:

https://www.realtor.com/news/real-estate-news/fewer-existing-affordable-existing-homes/?iid=rdc_news_hp_carousel_theLatest

#alliancetitle #markettrends #industrynews #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

6 House Foundation Early Warning Signs

Your home’s foundation is a super important part that most homeowners don’t often think about, if at all. Not only could a deteriorating foundation cause thousands of dollars in repairs down the line, but it could also turn into a huge safety issue. Check out this article from Realtor.com for 6 warning signs that your foundation could need fixing:

https://www.realtor.com/advice/home-improvement/house-foundation/

#alliancetitle #homeimprovement #realestate #title #escrow