Why Two Title Policies Are Required

Nearly every sale of a residential property involves the purchase of two policies of title insurance, an Owner's Policy and a Lender's Policy

For the Seller
The purchase of a home is one of the most expensive and important purchases most of us ever make. Your buyer will want to make sure that the property is indeed yours to sell and that there are no unknown liens, claims, or encumbrances held against the property. Your buyer will choose your property for its features and amenities. Enhancing these amenities with an Owner's Policy of title insurance from a reputable title company is just as important as the work you put into maintaining and improving your property.

For the Buyer
For most of us, buying a home requires help with financing the purchase price. Your home loan is secured by the new home you are buying. Your lender will want to make sure that the security for their loan is protected by title insurance and that you are the owner of record. The Lender's Policy of title insurance insures your lender, and any purchasers or assigns of the loan, that their lien has priority over the liens not shown in the policy. Many lenders condition their loans upon the purchase of a Lender's Policy.

According to real estate custom and practice, the seller pays a one-time premium for the new buyer's Owner's Policy based on the sales price of the property. The title company searches the public records to identify and eliminate risks. The new buyer's Owner's Policy indemnifies the buyer against loss and provides a defense in the event of claims against the title pursuant to the terms of the policy. For a one-time charge, the buyer's Owner's Policy protects the buyer for as long as the buyer owns the property.The buyer is typically responsible for paying the one-time premium to provide the Lender's Title Policy based on the loan amount.

The premium payments are typically collected and disbursed at closing, at which time the policies take effect.

For more information, please call me: 858-603-7879

Home Buyers and Agents, If Financing A New Home, Be Prepared for New Closing Forms - The Loan Estimate and Closing Disclosure

Beginning October 3, 2015, the Good Faith Estimate (GFE), the HUD-1 and the Truth-in- Lending Act (TILA) disclosures will be replaced in most transactions by two new forms – the Loan Estimate and the Closing Disclosure. 
The Loan Estimate will be required for most transactions in which a loan application was received on or after the effective date. It replaces the GFE and the initial TILA disclosures. The Closing Disclosure will be required for any transaction in which a Loan Estimate was issued. It replaces the HUD-1 and final TILA disclosures.
These changes are the result of Dodd-Frank legislation, enacted in 2011, which directed the Consumer Financial Protection Bureau (CFPB) to create rules and regulations integrating the GFE and HUD-1 forms with the TILA disclosures. The regulation is sometimes referred to as the “TILA/RESPA Integrated Disclosure Rule” because it seeks to integrate disclosures required by the Truth-in-Lending Act and by the Real Estate Settlement Services Act (“RESPA”). 
The new forms are designed to aid the consumer in comparison shopping, improve consumer understanding and prevent surprises at the closing table.

In general, the new forms and rules will impose no new legal obligations on agents and brokers and will not impact the day-to-day handling of sales. However, it is widely expected that the new forms and rules may create delays in closing. 

The Loan Estimate integrates and replaces the existing GFE and the initial TILA forms. It combines an estimate of loan costs and terms, along with various disclosures relating to the loan terms. 
Generally, the creditor must deliver or place in the mail the Loan Estimate no later than the third business day after receiving the consumer’s application, and delivery of the Loan Estimate must occur no later than the seventh business day before consummation of the transaction. This second rule will typically only impact extremely short escrows.

The Closing Disclosure integrates and replaces the HUD-1 and final TIL disclosures. It enumerates all of the actual costs of the closing and loan terms, along with various disclosures relating to the terms of the loan. The borrower must receive the Closing Disclosure no later than three business days before consummation.

For More Information on New Closing Procedures, please call me at 858-603-7879. 

Zillow, Trulia? Listingbook! Another Great Alternative to Search for Homes in San Diego

This a really an easy way to snoop around and see what's available on the market - whether you're six months out from purchasing a home or just six weeks away from needing to get settled in to the right place. Listingbook is a fantastic home search tool. Listingbook is a program that I sponsor and subscribe to so that potential buyers (and sellers) who express wanting to view properties online have a means to do so. Unlike some of the other big-name property listing programs you'll find online, the listing information contained in Listingbook is accurate and up to date. 

Listingbook interfaces directly with the local Multiple Listing Service (MLS) and provides you with morning reports that offer information on new listings and status changes such as price reductions or whether a property you've had your eye has gone under contract, has been sold or has come back on the market.

If you're not satisfied with other online tools such as Trulia or Zillow, turn to Listingbook. You'll be able navigate through MLS listings as an agent would, implement your own criteria and track homes of interest.

To get started, send me an email at robert@sandiego-ca-homes.com with some basic information or simply go straight to www.rmsandiegohomes.listingbook.com and follow the activation steps. From there, you are on your own and can search for properties independently. Have a question, you can always send and email, call or text. This is a no-obgligation, no-cost service to you.

Feel free to peruse the brochure below to learn more. Just one click on the image to enlarge.  -Robert

Who Pays What? A Closer Look at Closing Costs

Who pays closing costs when buying a home? Does the buyer pay everything, or do the costs get divided between buyer and seller? Is it negotiable? These are some of the costs that are "customarily" borne by Buyer and Seller during a residential real estate transaction in San Diego. Take a look...


The BUYER Can Generally Be
Expected To Pay For:
•   "Lender's" title insurance policy premium
•   Escrow fee
•   Document preparation (if applicable)
•   Notary fees
•   Recording charges for all documents in buyer's name
•   Termite inspection (defined by contract)
•   Tax proration (from date of acquisition)
•   All new loan charges (except those required by lender for seller to pay)
•   Interest on new loan from date of funding to 30 days prior to first payment date
•   Assumption or change of records fee for takeover of existing loan
•   Beneficiary statement fee for assumption of existing loan
•   Inspection fees (roofing, property inspection, geological, etc.)
•   Home warranty (defined by contract)
•   City transfer or conveyance tax (defined by contract)
•   Fire insurance premium for the first year
•   Messenger fees (if applicable)

The SELLER Can Generally Be
Expected To Pay For:
•   "Owner'sn title insurance policy premium
•   Escrow fee
•   Real estate commission
•   Document preparation fee for deed
•   Documentary transfer tax (typically $1.10 per $1,000.00 of sale price)
•   City transfer or conveyance tax (defined by contract)
•   Any loan fees required by buyer's lender (FHV,VA)
•   Payoff all loans in seller's name (or existing loan balance if being assumed by buyer)
•   Interest accrued to lender being paid off, statement fees, reconveyance fees and prepayment penalties
•   Termite work (defined by contract)
•   Home warranty (defined by contract)
•   Any judgments, tax liens, etc., against the seller
•   Tax proration (for any taxes unpaid at time of transfer of title)
•   Any unpaid homeowners dues
•   Recording charges to clear all documents of record against seller
•   Any bonds or assessments (defined by contract)
•   Any and all delinquent taxes
•   Notary fees
•   Homeowners transfer fee
•   Messenger fees (if applicable)

Please Note: The above-listed Seller and Buyer closing costs are negotiable in any transaction
and are defined by the Contract between the two parties.

Call or email me with any questions you may have: 858-603-7879 or robertmoore@coldwellbanker.com

Buyers Beware: Ensure That Your Agents Are Using The Newly Revised Residential Purchase Agreement

Buyers, this may come as a surprise to some agents: The CALIFORNIA ASSOCIATION OF REALTORS® Residential Purchase Agreement (RPA) has been revised as of November 2014. The 2014 RPA is 10 pages long and contains 32 paragraphs and approx. 150 lettered paragraphs, some of which have been relocated within the RPA. The revisions encompass newly written/introduced or modified language in the Agreement. Please check with your agents to ensure that they are using the correct version of the Residential Purchase Agreement and attendant forms when submitting your offer. For more information on this subject, please feel free to call me at 858-603-7879 or email me at robert@sandiego-ca-homes.com

www.sandiego-ca-homes.com.

                                              BR/RM