Wise words from First American Title on good funds.

Wise words for the English comprehension deprived title agents who don't understand the simple phrase "goods funds required".FATIC has thoughtfully expanded their explanation in an agency bulletin that says:"DO NOT DISBURSE ANY FUNDS IN ANY TRANSACTION UNLESS YOU HAVE GOOD FUNDS IN YOUR ACCOUNT. Not even just this once. Not even for your best customer. Not even if the realtor, mortgage broker,

query: title endorsements how to show on HUD-1

Good question. I like to disclose the endorsements on the next separate line beneath the title premium line of the HUD. Here's a typical endorsement disclosure on my HUDs.Loan Policy Endorsements 710 & 900 (short form policy 100 & 300 included) $200.00FYI - In Pennsylvania our ALTA endorsements have different numbers.Note that the endorsements are for the benefit of the lender,

incidental boundary line change requires title search

You're not going to believe this but I had TWO of these cases to examine today. How weird is that? Both cases were virtually the same.First let me explain an incidental boundary change. A boundary change is a minor subdivision in which adjoining property owners agree to exchange portions of their land.How do you do it? Hire an attorney who specializes in real estate. The attorney will: run a

arbitration

I picked this up in a Google Alert:TITLE INSURANCE ARBITRATION WAS A RIP-OFFDEAR BOB: We had a very bad experience with our owner's title insurance policy. Several months after we bought our home it was discovered we did not have clear title. The title company admitted they made a mistake and offered to pay a percent of the insurance claim. They wanted to go to arbitration. The arbitrator ruled

query: what states do abstractors need to be licensed in

No license is required in Pennsylvania, that's for sure. I'm unware of any state requiring a license to abstract. Are you? I'd like to know, so please send a comment our way.The title insurer is responsible to the consumer for the work of the abstractor. Title insurers can and should use care when selecting an abstractor because the abstract provides the raw data used in examination. It's key to

query: unsatisfied construction lien found by a title examiner

Is this a mechanics lien? Mechanics liens are tricky and title insurance may or may not cover the lien. A good title examiner will report the lien and the title underwriter will analyze the situation and decide if the lien is valid. If so, the owner of the property must clear title.About two years ago we processed a refinance transaction and found a mechanics lien. The borrowers had failed to pay

query: title insurance indemnification fraudulent transfer

Indemnification is compensation for loss or damage. Losses due to fraudulent transfers are covered by title insurance unless, of course, the insured had knowledge of, or participated in the fraud.

query: title insurance policy issue within 6 months

In Pennsylvania, a title insurance commitment is only good for six months so if the insurer has not converted the commitment into a policy, the title must be re-examined and another title commitment issued.Now, why might the issuance of a policy be delayed?Well, you can purposefully delay the issuance of a policy.I've had consumers purchase land with cash, obtain a title commitment and delay the

query: not telling the lender that you pay child support will they find it on the preliminary title report

Can you spell fraud? FRAUD, yes that's what you are committing when you fail to disclose a child support obligation to your mortgage lender. And, yes, they just might find it on the preliminary title report.In Pennsylvania, we check the child support web site for every buyer and seller in a purchase transaction, and every borrower in a refinance transaction.

query: refuse to pay title insurance

Well, if you are paying cash for the property, that's an option, but I would advise against it.Most mortgage lenders will require a loan policy and they expect you to pay for it.In Pennsylvania, we are required to issue an owner policy in a purchase transaction unless you affirmatively say you do not want it. We are expected to assume that you DO want an owner title policy. Want to know why?

query: why should the seller have title insurance

DW - Please contact the seller and see if they have an owner policy. DCThat's a note a put in a file today when I examined title for a buyer. Why? Because I found a problem, actually two problems. One problem we will resolve prior to closing. The other problem is more tricky and I would like to request indemnification from the seller's title company.Here's what I found. My seller purchased the

query: title insurance affirmative coverage oil & gas

A typical residential title search is not adequate when you are interested in minerals, oil, and gas. You should notify your title insurer up-front that you want affirmative coverage. They may not have the ability to handle your needs. Look for an attorney or title company who specializes in mineral rights. Affirmative coverage is available once the rights are established. Expect to pay more for

drive by purchase

"When they saw that I had researched that and paid the liens it built a trust and through our discussions they decided to bypass the costly title insurance and then I also persuaded them to bypass the attorney to draw up the deed and in doing so we both saved quite a bit of money."Let's hope this story has a happy ending. I doubt it. These buyer bought a pig in a poke as far as I am

National Insurance Act

Gotta take some time here and read this.You know, when you have an industry refusing to police itself, draconian measures are often deemed necessary.ALTA, MBA, NAMB, NAR have proven themselves untrustworthy in their testimony before lawmakers, state and federal. Under the illusion of leadership they perform the same ole dog and pony show while their members rape and pillage the citizens of these

query: commitment for title insurance not issued

If you have ordered an owner policy, you have a right to review the title insurance commitment prior to closing.I recommend that you not close unless you do review the commitment.If your title insurer refuses to provide the commitment upon request, fire them and find an honest title insurer.Bear in mind that the title insurer cannot produce the commitment until the title has been examined. If you

query: mortgagee title policy vs. owner title policy

Actually, it's called a loan policy, but that's ok. I'll bet you are a lender because most people don't know the word mortgagee. ;) Anyway.....The loan policy insures the lender only. That's the biggest difference.Homebuyers who pay for a loan policy are receiving absolutely no protection at all.Lenders are smart. They won't loan money without title insurance protection. How did they get so

query: what does TIRBOP stand for

TIRBOP is the Title Insurance Rating Bureau of Pennsylvania. Here's an excerpt from their manual.BTW, a revised manual has been issued effective 4-1-07. I will begin posting the changes this week. The revisions, I believe, are mainly references to the new ALTA 2006 policies which become mandatory in Pennsylvania for title commitments issued on or after 4-1-07.LENDERS - PLEASE TAKE NOTE. TITLE

query: owe title search fees reimbursement buyer refinance

I'm not real sure about the buyer and refinance connection. If you are being asked to reimburse the cost of a search, expect to also cover lien letter costs. These fees vary so much geographically it's hard to quote a range here. In our market, search costs for one chain run $100 to $150 roughly. Lien letters can run anywhere from $5 to $250. Lien letters in most of our market would run less

query: approved attorney fee share of the fees in Pennsylvania for title insurance

See TIRBOP Manual 5.0 Methods of Operation, C. "The charge for search, examination of title and the settlement by the Approved Attorney is not governed by this Manual."The issuing title agent must follow TIRBOP guidelines. They will issue an invoice with fees you will itemize on the HUD-1 and show payable to the agency. You may charge anything else you please for search, examination and

TIRBOP Policies and Rates

5.0 METHODS OF OPERATIONA. "Company or Agent Procedure". Under this procedure, the Insurer or Agent examines title and handles settlement and issues a Commitment and/or policy. The Charges for policies issued under this procedure are set forth in Section 5.50 of this Manual.B. "Approved Attorney Procedure". Under this procedure, the Approved Attorney certifies the title to the Insurer or Agent

query: judgment liens place on wrong property

Well, I'll have to limit my comment to Pennsylvania because I don't know if this applies where you are. Judgments, unless they are tied to an equity action, are personal and may attach to all property. Those tied to an equity action are property specific.

query: what does permitted exception mean

I'll take a stab that the permitted part is lender based. A title policy can include any exception that is relevant. Whether or not it's permitted would be the determined by the insured, either the lender or the homeowner. For instance, a mortgage lender may prohibit exceptions for restrictive covenant violations, but permit exceptions for oil and gas leases. I know that might seem confusing,

query: title examiner pay

There are two functions, abstract and examination, and they vary according to the custom of your area. Here in Pennsylvania, the abstractor is typically paid $100 to $150. The cost to the consumer of abstract and examination is included in the title insurance premium.

query: typical time to provide title insurance

Once a transaction is closed, the title insurance may be issued. Most title agents wait until the recorded documents come back from the Recorder's office. I would wait 60 days following closing, then call to check the status of your policy.

TIRBOP Supplemental Charges

3.1 CANCELLATION CHARGEIf application is canceled after the Commitment is issued under Company or Agent Procedure, a minimum Charge of $100.00 is to be made for such cancellation.3.2 ESCROW SERVICE CHARGEAll escrows and escrow services shall be the subject of a written agreement when the Insurer or its Agent holds funds from a settlement or closing for disbursement at some later date. A

TIRBOP General rules, continued...

2.9 A written notice must be provided to every purchaser of a title insurance policy at or prior to closing, which shall be signed by or on behalf of the purchaser of the title insurance policy, and shall include language substantially in the following form:IF THIS CONVEYANCE OR REFINANCE OCCURS WITHIN TEN YEARS OF A PREVIOUS INSURANCE OF THE SAME PROPERTY, YOU MAY BE ENTITLED TO A REDUCED RATE.

query: title insurance versus legal opinion states

Both are available in every state. I recommend you purchase an owner policy no matter where you are. Most mortgage lenders will require a loan policy no matter where the property is located.Here's my post comparing the two:title search vs. attorney title opinion vs. owner title insurance

query: lender tax cert. liability Pennsylvania

I confess I'm having trouble with the exact issue but let me take a stab....We have a crappy system in Pennsylvania for collecting taxes, both current year and delinquent years. It's pretty darn hard to verify what's been paid and who collects it. The really crappy thing is that even when you find the correct tax collecting authority, they won't back their certifications.So, when the tax

query: should I buy title insurance new construction?

Yes. You should always buy title insurance when you buy real estate.Ask about mechanics liens and whether or not they are covered by title insurance in your market.

query: subprime problems affect title companies

You betcha. Title insurance underwriters and agents who made a market serving the subprime lenders will most definitely be affected. The loss of volume alone will be tough but look for the more interesting development. Watch to see who get taken out for fraud. Much of the subprime collapse is linked to fraudulent transactions. As the FBI unravels the subprime fraud tapestry look for title

query: who is responsible for sending out the title insurance policy to the buyer

The issuing title agent, attorney or title underwriter is responsible for sending policies to the lender and the buyer. You should have a copy of the title insurance commitment in your hands before you close. Whoever issued the commitment, will issue the policy. Sixty days is a reasonable period to wait after closing without getting worried. After sixty days, make inquiries.Some attorneys and

query: title insurance underwriting mortgage foreclosure

Got to guess this is an examiner looking for tips. Here's one. Make sure you carefully look at evidence of service. Make sure all possible liens and interests were divested.One pretty serious misstep is service to the federal government. Some folks disagree, but the federal government may choose to ignore any action that does not list them as the defendant in the suit. That's the only

query: how to compare good faith estimates

I have two posts which should help:compare interest rates and "good faith estimates"real life title insurance cost comparison

query: skipping four mortgage payments at closing

hmmmmm........I'm guessing you are talking about a refinance transaction.Depending on the timing of your closing, you may have a breather from payments but you're not really skipping any. Here's an example:You have an existing mortgage with a payment due date of the 1st of April. The grace period is 15 days.You schedule your refinance closing for the 10th of April. Even with the rescission

query: does title insurance cover adverse possession?

The question isn't entirely clear, are we surprised because you didn't know I would try to answer it!Two comments:If you are hoping your title insurance will help you make a claim of adverse possession, I would say no.If you are being threatened by an adverse possession claim by another person against your property, contact your title insurance company immediately. Make your inquiry in writing

Search engine queries will be answered...

I use Statcounter.com to gage traffic to my blogs. I can see the words used for search engine queries driving readers to the blogs. I just had a "DUH" moment. I promise to start specifically answering your query. Why not? If I know the answer, I will post your query exactly as entered into the search engine so you can find it again. I will comment and hopefully offer assistance. I have to

TIRBOP General rules, continued...

2.8 Sections 5.3, 5.4 and 5.6 of this Manual provide that reduced rates are applicable when evidence of previous insurance is provided within a specified period of time. As evidence of previous insurance, an Insurer shall rely upon:(a) the recording (within the period of time specified within the applicable Section of the Manual) of either: (1) a deed to a bona fide purchaser for value,

TIRBOP General rules, continued...

2.5 Insurer may withhold delivery of the policy of title insurance and have no liability until all applicable Charges, set forth in this Manual, have been paid in full and all conditions of the Insurer's Commitment satisfied.2.6 All Charges made pursuant to this Manual must be paid at the time of closing, unless otherwise agreed to by Insurer or as otherwise set forth in this Manual.2.7 No

TIRBOP General rules, continued...

2.2 Insurer, upon notification to its applicant, may decline to search, examine, issue its Commitment or insure any title, or to issue any endorsement to a policy. Insurer may, at any time, in its sole discretion, refuse an application or cancel any unclosed application of the applicant, without liability on the part of the Insurer.2.3 Insurer may impose additional Charges in especially

TIRBOP General rules

2.1 All Charges for title insurance coverage provided by the approved policies and endorsements must be made as set forth in this Manual.The Charge(s) set forth in this Manual include transmittal of documents and/or funds by first class U.S. Mail, transfer of funds by the issuance of checks, the delivery of documents and checks for recording, and the delivery of documents and checks to the

an interesting refinance tale

A few weeks ago I received a call from a former customer seeking a quote for a refinance. She said her lender wanted her to use their affiliated title agency but since she was happy with our service and price, she preferred to use our office.That's not so unusual, but there ARE two unusual things that happened and I decided to take a break from the TIRBOP manual typing to share them here.1.

TIRBOP Definitions

“Insured” is the party to whom coverage is extended by the terms of the policy. “Insurer” is a title insurance company which is a member or subscriber of the Title Insurance Rating Bureau of Pennsylvania. Unless otherwise indicated, “Insurer” includes all who are expressly authorized to act on behalf of the Insurer, including its employees and Agents. Agent” is a person, firm, association,

Pennsylvania Title Rate Manual TIRBOP

I decided sharing portions of the TIRBOP manual might help consumers understand title insurance in Pennsylvania. I decided to actually type the material because I find typing relaxing AND it's a good refresher. Since I'm typing, I'll leave out parts that I think aren't really necessary and are hard to type, like the table of contents which looks like a real killer. LOL.......okay, here goes.....

mortgage loans not paid off?????

This is a horrible story. Unfortunately, where there is a lot of money, you will find predators. That's why good regulatory standards and enforcement are so important.I've heard this story before. Attorneys and title agents stealing the escrow accounts. We as an industry should be policing ourselves and we've been having that discussion on Radical Title Talk.This Title Insurance Talk forum is

Action in Equity

I'm pretty busy today but the file I'm working on is one I feel compelled to share with you. It's a cash transaction. The buyer, thankfully, decided to purchase title insurance.I am reviewing title and find an action in equity involving a private roadway. An action in equity is a lawsuit that is specifically tied to a the property identified in the suit. This means that any decision will