Proactive Tips to help your Clients with TRID; Easements and Title Searches The information contained in these slides are a presentation as it pertains to Title Insurance and underwriting guidelines of title insurance and in no way should be considered legal opinion or legal advice. Please consult an attorney should you have legal questions or need legal advice or legal documents prepared.
TRID points for SELLING AGENTS: • Get requested documentation to Lender ASAP • Closing Estimate form – to Settlement Agent upon receipt • Changes in price/credits to Lender and Settlement Agent ASAP • PROVIDE HOA DISCLOSURE DOCUMENTATION TO SETTLEMENT AGENT ASAP!!! Only provided to Seller’s Settlement Agent prior to TRID • Provide Propane Reading days prior to CD Issuance-Consider POC • Check property prior to Settlement and Walk Thru - Repairs Made? • CONTACT LENDER 7 DAYS PRIOR TO SETTLEMENT DATE – CLOSING DISCLOSURE ISSUANCE – SET A CALENDAR REMINDER ***Handout • Provide Settlement Agent with copy of Lender Issued Closing Disclosure ASSUME THAT LENDER WILL NOT ALLOW ANY TYPE OF WALK – THRU CREDIT TO THE BUYER
TRID points for LISTING AGENTS: • Provide HOA DISCLOSURE DOCUMENTATION TO THEIR SETTLEMENT AGENT ASAP • Perform Preliminary Walk-Thru days before Settlement Date • Contact Selling Agent 3-4 Days prior to Settlement – Has Closing Disclosure been issued?
TRID points for ALL AGENTS: • Provide Brokerage Legal Name and State License # • Provide Realtor Legal Name and State License # • Get familiar with the Closing Disclosure – THE NEW HUD-1 * Buyer Closing Disclosure * Seller Closing Disclosure * ALTA Settlement Statements * PRIVACY ISSUES WITH PROVIDING SELLER CD – Permission
ALTA BEST PRACTICES: • Most Lenders require us to CERTIFY and DOCUMENT that we meet these standards: 1. CURRENT LICENSING (BUSINESS AND TITLE/SETTLEMENT) 2. WRITTEN ESCROW TRUST ACCT PROCEDURES/VERIFICATION OF RECONCILIATIONS 3. WRITTEN PRIVACY AND INFO SECURITY PROGRAM *** 4. REAL ESTATE SETTLEMENT PROCEDURES AND POLICIES 5. WRITTEN PROCEDURES FOR TITLE POLICY PRODUCTION, DELIVERY, REPORTING AND REMITTANCES 6. MAINTAIN PROFESSIONAL LIABILITY AND FIDELITY COVERAGE 7. WRITTEN POLICIES AND PROCEDURES FOR RESOLVING CONSUMER COMPLAINTS
Switching Gears: EASEMENTS • The “privilege to use that land of another in a particular manner and for a particular purpose,” as quoted in Beach vs. Turim, Trustee, et al. • Burdette v. Brush Mountain Estates, LLC (2009) & Beach vs. Turim, Trustee, et al. (2014) created questions about how title insurers look at easements. • Legal issue vs. Title issue-Could it be argued vs. Title Co. willing to insure • Most Title Insurers require a document CREATING AND CONVEYING an Easement – Plats are NOT considered to be Documents of Conveyance – in order to insure the property TOGETHER WITH an Easement. • Road Maintenance is an issue when a Lender is involved in the transaction. • If property is on a private road, ASK QUESTIONS about the access and who maintains the Easement/Right-of-Way.
TITLE SEARCHES: • SEARCH FOR CURRENT OWNER – Then find Deed into Current Owner and go back in time from there – Normally 40-60 Years back. • Be sure that the person signing the Contract IS the current Owner. * “Estate of …” – Either “_____, Executor of the Estate of …” (if Executor is given the Power of Sale) ; Devisees of the Will, or Heirs of the deceased if no Will – These sellers will need to be prepared to supply supporting documentation. All names will need to be searched. • Search for Seller and Buyer for Judgments, IRS Liens, Common Names • Search Tax Records • NOTE: If Buyers names are added to contract, let Settlement Agent know asap so that search can be done on the person added.
Karla H. Floyd is the Co-Owner and Licensed Title Insurance Agent for CloSure Title & Settlement Company, LLC. The information contained in these slides are a presentation as it pertains to Title Insurance and underwriting guidelines of title insurance and in no way should be considered legal opinion or legal advice. Please consult an attorney should you have legal questions or need legal advice or legal documents prepared.
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