7. TRANSFER OF TITLE (8%)

foreclosure

- a property that is being sold by the lender due to the buyer's default. - The lender will usually sell the property at auction after proper notice has been provided, and often after allowing the borrower the right to cure the default

title abstract (abstract of title)

- a summary of the property's title history. - Attorneys and title companies who prepare them research public records as well as other information to identify the title history.

deed

- a written and signed legal instrument of conveyance. - the document that legally transfers (conveys) title to real property from the owner (grantor) to the new owner (grantee). - Title officially changes hands when the grantor delivers it to the grantee and the grantee accepts it.

Covenant of right to convey

The grantor has the right to convey both title to and possession of the property.

Covenant of Seisin

The grantor holds title to and possession of the property.

Covenant of further assurances

The grantor promises to take whatever actions necessary (within his power) to correct any title defects.

Danette hasn't paid her property's water bill for the first quarter, which was due on April 1. She's closing with her property's buyer, Jason, on April 1. What type of expense is this and how will it appear on the settlement statement? A. This is a prepaid expense and will appear as a buyer debit and a seller credit. B. This is an accrued expense and will appear as a buyer debit and a seller credit. C. This is a prepaid expense and will appear as a seller debit and a buyer credit. D. This is an accrued expense and will appear as a seller debit and a buyer credit.

- Because this bill is due but hasn't been paid, it's an ACCRUED item and will appear as a buyer credit and seller debit at closing.

Quitclaim Deed

- carries with it no warranties to the grantee. - It only releases any of the grantor's property rights to the grantee. - typically used to clear up a simple cloud on title

deed in trust (deed of trust)

- conveys real estate to a trustee for the beneficiary named in the trust agreement. - EX: in states that use a non-judicial foreclosure process, the deed is conveyed to a trustee who holds it until the mortgage loan is paid in full OR until the borrower defaults and the lender must foreclose.

Habendum clause

- defines the type of interest and rights the grantee will have. - Not every deed needs it, but if the interest is less than fee simple, this is generally where it is described

Real Estate Settlement Procedures Act (RESPA)

- ensures that buyers receive an estimate of closing costs (on the Loan Estimate ( LE ) form) from the lender within 3 days of loan application & a final disclosure of closing costs (on the CD) at least 3 business days before closing. - This gives the buyer the opportunity to compare the LE with the CD and determine what, if any, changes may have occurred

chain of title

- establishes the path of property ownership from its first owner to the current owner. - It begins with the current owner and works backwards.

Executor's Deed

A document signed by an executor of an estate, transferring ownership of real property to a devisee or natural heir.

Jerrica is set to close on the property she's buying on Friday. Because of other delays in the closing date, Jerrica's interest rate as of the day of closing will increase by 1/4 of a percent. What impact does this have on the closing? A new Closing Disclosure must be issued at least three days before the closing date. A new Loan Estimate must be issued, so the closing date must be moved back. Jerrica will not be able to close until she re-applies for her loan. The closing date will remain the same, but Jerrica will need to bring additional funds to the closing.

Any interest rate change of more than 1/8 of a percent requires a new Closing Disclosure, triggering a new three-day waiting period. --> A new Closing Disclosure must be issued at least three days before the closing date.

Ray purchased a new home and soon discovered an issue with one of the windows. He filed a claim with the warranty provider, but it was denied. After mediation, the issue still remains unresolved. What is the most common next step? Arbitration A second round of mediation Condemnation Litigation

Arbitration - The 1ST course of action for disputed home warranty claims is typically MEDATION. - If this is unsuccessful, disputed claims will go to ARBITRATION.

Margaret has received her Closing Disclosure from the lender. To best protect her interests, what should she do with it? Compare it to the Loan Estimate. File it with her mortgage papers. Take it to the closing. Use the information to compare loan costs with those of other lenders.

Compare it to the Loan Estimate. Margaret should compare the Closing Disclosure figures with those on the Loan Estimate to ensure that no undisclosed changes in loan costs have been made.

At the closing on June 15, the buyer is assuming a mortgage presently on the property, on which the monthly interest charge is currently $600. The seller has made the payment due on June 1. Assuming a VA mortgage, what is the adjustment made at closing?

Debit seller $300; credit buyer $300.

Covenant of warranty or warranty forever

In this most important covenant, the grantor promises to protect and defend the title against lawful claims made by others.

Covenant of warranty or warranty forever

In this most important covenant, the grantor promises to protect and defend the title against lawful claims made by others.

How does title insurance affect the lender? It protects the lender against any future default in the buyer's payment. It protects the lender against unexpected increases in loan costs. It protects the lender from loss due to defective titles. It protects the lender from the property value decreasing due to market fluctuations or property damage.

It protects the lender from loss due to defective titles. The property is used as collateral (security) for the loan. Title insurance protects a lender against the loss of security as a result of a title problem.

Jennings has received a Closing Disclosure from his lender. What's the purpose of this form? A. To estimate closing costs B. To estimate the seller's net proceeds C. To detail the costs Jennings will owe at closing D. To disclose the distribution of commissions that will occur at closing

The Closing Disclosure (settlement statement) is provided at least 3 days before closing and details the buyer's closing costs as well as other loan terms, such as the projected monthly payment.

Mediation

The first course of action for disputed home warranty claims

Covenant of quiet enjoyment

The grantor assures that the grantee's use and enjoyment of the property will be unimpaired and unrestricted, subject to public police powers and private deed restrictions.

Covenant against encumbrances

The grantor assures the grantee that there are no encumbrances against the title other than those identified in public records or the deed itself.

Jorge accepted a seller's offer of insurable title. The transaction hasn't reached closing, and a previously unknown title defect has been revealed. What happens now? Jorge has to take steps to remove the defect before he can close. The seller is still required to clear the title defect before closing. The seller may not be required to attempt to clear the defect before closing. The title insurance company is required to cover the title defect.

The seller may not be required to attempt to clear the defect before closing.

debit

a charge that a party must pay.

What is the duration of a home warranty's coverage?

as disclosed in the contract that offers the warranty

An exception to title insurance coverage is

defects that clearly appear in the title search.

Loan Estimate (LE)

furnished by lenders provides an estimate of closing costs the buyer will pay.

Arbitration

the process or act of resolving a dispute

sheriff's or referee's deed

used to convey foreclosed property or property sold for tax liens

Lamar closes on his new home next week. It's a 37-year-old split level, so his agent asked if he's interested in purchasing a home warranty. "Why would I need a warranty?" he wondered. "Didn't the home inspection identify all of the issues?" What's the agent's best response to Lamar's question? A home warranty covers things the inspection didn't address, like appliances, as well as structural issues that occur. Buying a home warranty almost guarantees you won't have any issues! If you purchase a home warranty and something breaks, you can sue the seller. The inspection is only as good as the inspector, and there is no guarantee that the inspector found all potential issues.

- A home warranty often covers items that weren't inspected. - Also, even the systems that WERE inspected are subject to problems or failure. --> A home warranty covers things the inspection didn't address, like appliances, as well as structural issues that occur.

How might the lengthy purchase process for a short sale or foreclosure impact a buyer's financing? A. Lenders won't lock in an interest rate because of the distressed nature of the sale. B. An existing interest rate lock may expire before the transaction is ready to close. C. The lender may not be willing to finance a short sale or foreclosure. D. The purchase price may increase over time.

- A short sale is no more or less risky for a lender to finance than a non-distressed property sale, so lenders won't hesitate to provide an interest rate lock on the loan. This eliminates options A and C. - The price at which a borrower purchases a short sale is determined by the seller, the lender, and the agreed-upon purchase contract, so the purchase price can't increase once the contract is signed. This eliminates option D. - Because a short sale is complex and lenders tend to move slowly in the short sale transaction, the buyer risks losing an interest rate lock and being forced to lock in the rate again. Option B is the correct answer. + Interest rate locks are only viable for a short period of time. + The transaction time to close a distressed property sale may be longer than the interest rate lock period, forcing the buyer to lock the rate again and potentially increase loan fees.

Which of these guarantees is offered by a general warranty deed but NOT a special warranty deed? A. The seller owns the property (title). B. The seller is legally allowed to sell the property. C. The property is free of debt or other claims taken on during the grantor's period of ownership. D. The seller will defend against all claims against the property's title.

- A special warranty deed usually carries just 3 warranties. - Both a special warranty deed and a general warranty deed guarantee that the grantor owns the property, so we know option A isn't correct. - Both deed types also guarantee that the grantor is legally permitted to sell the property, so option B is incorrect. - Both deed types state that the property is free of debts or encumbrances acquired during the grantor's ownership period except those noted on the deed; of course, the general warranty deed goes beyond that and warrants that there are no encumbrances (no matter when acquired) other than those identified in public records or the deed itself. Thus, option C is out. - The special warranty deed doesn't warrant that the seller (grantor) will defend against any claims made on the title—so option D it is!

Warranty of Completion of Construction

- Both the FHA and VA require new-home builders to provide it to protect buyers of newly built homes financed with FHA or VA loans. - It assures that the property was built according to plan and protects the buyer against equipment, material, or workmanship defects. The warrantor (likely a third-party home warranty provider) agrees to repair and pay for covered defects and restore any portion of the home damaged by fulfilling warranty obligations.

Murphey's farm has been in his family for generations, since his great-great-great-grandfather received it as a land grant in 1862. What's the beginning point of this property's chain of title? A. Murphey, the current owner B. Murphey's grandfather, the prior owner C. The federal government that originally granted the land D. Murphey's great-great-great-grandfather

- Chain of title begins with Murphey, the current owner (Option A). The abstractor who's researching the chain of title will first look to see that Murphey is the true owner. - Then the process works backwards from Murphey, with the abstractor ensuring that the property was properly conveyed each time it changed hands. So we know that the chain of title doesn't begin with Murphey's grandfather, great-great-great-grandfather, or the federal government (Options B, C, and D).

Joshua just got a copy of the preliminary report from his title company and is surprised to see that there's a mechanic's lien against his property. What is the first step he should take to clear this lien? A. Ask the company that filed the mechanic's lien to execute a quit claim deed. B. File a suit to quiet title. C. Pay the bill that resulted in the mechanic's lien. D. Sue the company that filed the mechanic's lien for failing to notify him.

- In order to file a mechanic's lien, the lienholder must provide notice to the property holder of the lien. - Joshua needs to pay the bill that resulted in the lien OR prove that the bill was indeed paid.

REO (Real Estate Owned)

- In this type of sale, ownership has reverted to the lender because of a failed foreclosure sale or because the borrower surrendered ownership of the property to the lender through a deed in lieu of foreclosure - may still be subject to homeowner's rights of redemption depending on the state. Owner redemption periods have often expired by the time lenders put an REO property on the market. - Time from offer to closing may be lengthy because of the more complicated processes involved, including potential lender foreclosure audits to ensure that the foreclosure process was completed properly. - Clouds on title aren't uncommon, though lenders hoping to unload the property may clear those up before putting it on the market

For Federal income tax purposes, which of the following are costs of homeownership that may be deducted from gross income?

- Mortgage loan interest, - local property taxes, - mortgage loan origination fees.

construction warranties

- On average, they cover structural damage or major construction defects (such as foundation issues) for 10 years. Major systems (heating, air conditioning, electrical, etc.) may also be covered for a period of time, such as 2-5 years.

credit

- a charge that a party has already paid, an amount that will be reimbursed, or an amount that is promised. - Common buyer: include earnest money, mortgage amount, seller concessions (such as a seller paying some of the buyer's closing costs). - Common seller: include sale price of the property, prepaid taxes or utilities

Responsibilities of escrow agent

- Properly manage any escrow funds, including distributing escrow funds (based on instructions from the parties or the court) in case of a dispute. - Manage transaction documents and instructions from the parties. - Perform (or delegate the performance of) the title search. - Work with lenders and other necessary third parties to get required information. - Manage contract instructions, broker commissions, and title policy. - Prepare closing documents and conduct the closing meeting. - Record required documents. - Verify funding of buyer's loan and arrange payoff of seller's loan. - Distribute funds. - File 1099-S forms as necessary

Margo's accountant tells her that she's eligible to deduct the property taxes she paid on her residence. Select the statement about this deduction that's true. A. Margo has to be an investor to be eligible to deduct property taxes. B. Margo can only deduct the property taxes charged back to her at closing. C. Margo is in the ownership stage of the property ownership lifecycle. D. Margo is in the reversion stage of the property ownership lifecycle.

- Tax laws are complex and change frequently, and these are 2 of the reasons that licensees should never offer tax advice. Always encourage your clients to consult an expert for specific advice. - In general, both investors and homeowners can deduct annual property taxes under certain circumstances, so option A is incorrect. - Homeowners who are eligible to deduct property taxes may do so each year if they itemize their deductions, so that rules out option B. - Though Margo can deduct the portion of property tax she pays when she sells her property, the deduction isn't specifically related to the property sale, but rather a continuation of her right to deduct property taxes if she itemizes deductions, so option D is incorrect. - Homeowners, under the right circumstances, may deduct annual property taxes paid, so option C is your answer.

Ari owned acreage in a rural area. He sold a small portion of it to a neighbor in an informal transaction but made no record of the sale or change of ownership. A developer offered Ari several million dollars for the entire acreage, and Ari eagerly accepted the offer. What covenant is Ari in danger of violating? Against encumbrances Quiet enjoyment Seisin Warranty

- The covenant of SEISIN guarantees that the grantor owns the property that appears in the deed. - Because the sale of property to Ari's neighbor was never recorded, his deed still shows that he owns the entire parcel.

Which of these statements about a deed's habendum clause is true? It describes any easements or liens against the property. It's a description of the act of conveyance. It's required in all deeds. It's the full legal property description.

- The habendum clause: describes the type of conveyance. defines the type of interest and rights the grantee will have. - It's typically used if title being conveyed is less than fee simple.

What special concern do foreclosed properties often present? A. The homeowners may or may not have property insurance. B. The property sale may be subject to additional fees that will be passed to the new buyer. C. There may be tax implications due to buying the property at a discount. D. There could be hidden title issues.

- The most common concern when purchasing a foreclosure is the state of the title. - An unclear chain of ownership can make future sale of the property difficult.

A closing agent has several duties to perform before the closing, as well as several after. Which of the following is a task the closing agent must complete AFTER the closing? A. Perform a title search. B. Arrange payoff of the existing loan. C. Prepare a closing statement. D. Obtain title insurance.

- The title search, closing statement preparation, and title insurance purchase must all be completed PRIOR to closing. - After closing, the closing agent makes arrangements to pay off the seller's existing loan with the proceeds from the buyer. "We're recorded and funded" is music to a licensee's ears.

Any limitations or subject to clauses.

- This clause describes any interest that the grantor has reserved for him- /herself. - It also describes deed restrictions and encumbrances that "run with the land.

Marsha's title insurance policy was issued on closing day, which was June 18. The policy lists standard exclusions as well as requirements for the company to issue the policy, such as paying off existing recorded liens. Which of these will NOT be addressed in the schedule of exceptions? A. Smith and Martin Building and Rehab files a mechanic's lien on June 18. B. Karen has an unrecorded lease on the property. C. Marsha's second mortgage on the property, which was properly recorded in January. D. The local cable company's unrecorded easement through the property for underground wiring. Marsha disclosed this to the title company.

- Title policies provide a blanket exclusion (meaning exceptions to coverage) for items not recorded in the public records, items recorded after the policy's issuance, and disclosed and undisclosed easements and rights of way. - Smith and Martin filed their mechanic's lien on the same day the policy was issued, so the title search wouldn't have found it. Thus, we know that option A will be excluded from the policy by a blanket statement that excludes liens filed after the policy is issued. - We also know that items not recorded on the public record will be excluded, again by a blanket statement in the schedule of exceptions, so options B and D will also be excluded. - That leaves us with option C, which was Marsha's properly recorded second mortgage. This second mortgage will not appear in the schedule of exclusions, but Marsha will have to pay off this second mortgage in order for the policy to be issued.

Which of these statements accurately represents one of the required elements in a deed? A. The grantee must sign the deed and provide consideration. B. The deed language includes an act of conveyance and may include a habendum clause. C. The grantee must be legally competent. D. The grantee must be of legal age.

- What's key to remember here is that the grantor is the seller & the grantee is the buyer. Once we've got that straight, you can recall that the grantor must sign the deed, but the grantee provides the consideration, so option A is incorrect. - The grantor must be legally competent (of sound mind) and of age. The grantee, however, isn't required to be legally competent or of age. The only stipulation is that the grantee be fully identifiable. So, now we know that options C and D are incorrect. - A deed may include a habendum clause (to more fully explain any limitations on ownership) and must include an act of conveyance (the granting clause), so option B is correct. --> The grantor is the seller. The grantee is the buyer. The grantor must sign the deed, be of legal capacity, and be positively identified. The deed must include an act of conveyance and may include a habendum clause.

Gap

- When the last grantee is not the next grantor, it exists in the chain. - It must be resolved, sometimes by branching out from public records, in order for clear title to be given

Cloud on Title (Title Defect)

- any encumbrances, such as a lien or inheritance claim, that prevents the seller from providing clear, marketable title. - The most common in a real estate transaction is the seller's existing mortgage lien. That lien is usually resolved at closing when the seller's proceeds are used to pay off the loan. - Other financial liens against the title may include mechanic's liens (liens filed by someone who worked on the property but didn't get paid) and property tax liens. Sellers must pay off all financial liens against the property before conveying title. - Lack of sole ownership can create them. For example, if a divorce decree stipulates that one party retains ownership of the couple's property but no deed is recorded to convey the other party's ownership rights, the seller must track down the non-owner party to have that party execute a quit claim deed to clear the title. - Unknown heirs to property conveyed upon or after the owner's death can become an issue when those heirs step forward to claim an interest in the property. Typically attorneys or the courts must step in to assist in settling this type of ownership issues. - Taxes, unrecorded liens, and unrecorded deeds are all potential title problems that may not be discovered in a title search.

Property taxes

- calculated based on the property's assessed value. - Governments like them as a revenue base because they're a stable, reliable revenue source. - Include: + The calculation of property tax owed by both the buyer and seller at closing. + The possibility that a sale will trigger reassessment of the property and increase taxes. + Review of the title commitment to ensure that there are no tax liens against the property. + The buyer's potential income tax deduction for property taxes and mortgage interest paid. + The seller's potential capital gains tax paid on the financial gain resulting from the property sale. Federal tax laws may permit sellers to exclude proceeds (up to $250,000 or $500,000 if married and filing jointly) of the sale of their primary residence from capital gains taxes

Recordation

- ensures that the buyer's ownership (title) is protected. - It provides constructive notice of the sale/purchase, which means that the record is publicly available to anyone who does a records search. - Once the grantor's signature has been acknowledged, the deed is recorded in the land records of the jurisdiction in which the property is located.

marketable title

- has no defects or clouds to which a reasonable buyer would object. - It's not necessarily a perfect title. - Sellers can convey it if the title search reveals no doubt about property ownership and there aren't any liens or encumbrances that won't be cleared at closing.

Closing Disclosure (CD)

- identifies who pays what at closing - Lenders must provide it a minimum of 3 days before closing.

Accrued expenses

- items the seller owes on closing day but that will eventually be paid by the buyer (unpaid current property taxes, for example) - appear in the seller's debit column & the buyer's credit column.

escrow agent

- may be a broker, title representative, escrow officer, or attorney, though the most common is likely to be a title company representative. - This individual is also called the closing agent and has many responsibilities

acceleration clause

- may be in effect once a borrower defaults. - This clause allows the lender to make the entire loan amount due immediately

Foreclosure & short sale transactions

- may cause special title and closing issues that licensees and buyers need to take into consideration. - These sales may be referred to as distressed sales, because the property owner is under financial stress to sell.

Bargain and Sale Deed

- most often used in tax or foreclosure sales. - It generally has no expressed warranty against encumbrances but does typically imply a warranty that the grantor has title and the right to covey.

General Warranty Deed (full covenant and warranty deed)

- offers the greatest warranty to buyers and is the preferred type of deed in most situations. - provides 6 covenants (promises).

insurable title

- one against which there may be known defects (such as easements), but the title company has notified the parties of the defect and has agreed to insure against it (not list it as a policy exception). - As the less rigid title standard, it is still acceptable to most buyers. - A key concern is that sellers who offer it instead of marketable title may not have to clear up title problems that come up before closing.

Consideration

- such as "for one dollar" or "for good and valuable consideration;" - indicates that the grantor received something of value in exchange for the title

Act of conveyance

- the granting clause such as "... does hereby bargain, grant, deed, and convey ..." - signifies the grantors intent to convey the property.

prepaid expenses

- those already paid by the seller but that the buyer should pay a portion of (such as prepaid real estate taxes, utilities paid in advance). - These items are credited to the seller and debited to the buyer

Special Warranty Deed

- typically warrants only against title defects acquired during the grantor's ownership of the property. - It guarantees that the grantor owns and may convey the property, and warranties that the property is free of any debts or encumbrances not noted in the deed. - most often used in conveying commercial properties.

Which of the following statements best describes the risk taken by NOT recording a deed?

A subsequent purchaser's recorded deed could take precedence over any unrecorded instrument.

Why is a foreclosure more likely to have title issues than a non-foreclosure? Borrowers who are in foreclosure are permitted to acquire unrecorded liens. Borrowers who can't afford loan payments may have taken out other loans against the property. Lenders are permitted to place secondary liens on property that's entering the foreclosure process. Lenders don't take appropriate precautions to maintain clear title.

Borrowers who are unable to pay the mortgage may also have been unable to make property tax and secondary mortgage payments. --> Borrowers who can't afford loan payments may have taken out other loans against the property.

Carly's closing on an REO property was suddenly delayed due to an internal audit. What does this mean? Carly's lender decided to further audit her loan application materials. The banking association is auditing the lender's foreclosure files. The federal government is auditing the lender's foreclosure process. The lender has requested a title audit to ensure that the foreclosure was properly handled.

The lender has requested a title audit to ensure that the foreclosure was properly handled. Lenders may request a title audit to ensure that the bank that owns Carly's property performed the foreclosure correctly.

What does an REO on a lender's assets mean? The lender has agreements with real estate listing agents. The lender owns real estate after a foreclosure sale. The lender prepares property management agreements. The lender received proceeds from a foreclosure sale.

The lender owns real estate after a foreclosure sale.

"I don't understand why I'd want a home warranty," says your buyer, Ted. "The home inspection said there weren't any problems." How should you respond to Ted? A. "It's absolutely your decision. But the inspector can't predict problems that haven't happened yet." B. "I highly recommend a home warranty to all of my buyers; it would be silly not to get one." C. "Purchasing a home warranty might get you a financial break with your lender." D. "Home inspectors can't find everything!"

Think of the home inspection as a snapshot in time. It tells the buyer about the property condition at any given moment—not about the condition next week or next month. - Option D isn't a good response because it implies that home inspectors can be inept. - Home warranties are a type of insurance which last for a given time period (typically a year), so they cover conditions that didn't exist during the inspection. - While a licensee should always recommend a home inspection, a home warranty is only important in certain cases. Option B isn't correct. - And there is no lender benefit for home warranties, so option C isn't correct. - Option A is the best answer, because it explains that a home warranty is completely optional and is meant to cover future issues.

John and Amy purchased a builder's home warranty when they bought their home. They have a problem with the footers that could lead to serious problems with their home. How many years does a builder's home warranty typically cover this type of damage? A. One B. Three C. Five D. 10

This question requires you to first identify what type of damage this is, and then recall the standard warranty period for this type of damage. - A footer is the first thing poured for the foundation, so a footer issue is a foundation issue—so a structural problem. - Structural issues are typically covered for 10 years in builder's warranties. --> The correct answer is Option D.

Stu is buying Freddie's property. What must occur for the transfer of title to take place? A. Freddie must deliver the deed to Stu. B. Stu must sign the deed. C. Stu must convey the deed. D. Freddie and Stu must sign the deed.

You may remember studying about the essential elements of a deed, and this question addresses some of those elements. - The grantor must sign the deed, but the grantee isn't required to sign. This eliminates options B and D. - The grantor (seller) conveys the deed, so option C is out. - Option A is the correct answer, because the grantor (Freddie) must deliver the deed to the grantee (Stu). --> Property is conveyed when the grantor delivers a properly executed deed to the grantee. Freddie must sign the deed and deliver it to Stu.

credit

a charge that a party has already paid, an amount that will be reimbursed, or an amount that is promised

debit

a charge that a party must pay. - Buyer include appraisal & credit report fees, inspection costs, mortgage recording tax, title insurance, loan fees, attorney's fees. - Seller: include transfer taxes, broker commission, attorney's fees, recording documents to clear title, existing mortgage satisfaction

Short Sale

a property that the seller, with the lender's permission, is selling for less than the seller owes against the property.

Even with title insurance, the policyholder may still suffer losses arising from

land use change due to zoning ordinances.

Acknowledgement

means that the party signing (in the case of a deed, the grantor) has gone before a competent party (typically a notary) and indicated that the signature is their own and that they signed voluntarily

Home warranty

programs provide peace of mind by covering system or appliance problems that may develop after a home is purchased.

Title insurance

protects BUYERS & LENDERS (through separate policies) against financial loss that might be incurred because of TITLE DEFECTS discovered after closing.

Home warranty programs

provide peace of mind by covering system or appliance problems that may develop after a home is purchased.

Prorations

shared expenses that either party owes at closing are prorated (divided between) the parties depending on when closing occurs. Include: - Property taxes and HOA dues - Fuel (propane or oil tank) - Water and sewer charges