Why is
transferring title to real estate differ from
transferring to title to personal property, such
as a car?
Real estate is permanent and can have
many owners over the years, as well as rights to
use the property. In order to transfer clear
title to real property, it is first necessary to
determine the rights outstanding on the
property.
What is
a title search?
A title search is a detailed examination
of the historical records concerning a property.
These records include deeds, mortgages, court
records, property and name indexes, taxes and
many other documents. The purpose of the search
is to verify the property owner's right to sell
or finance the property and to discover any
claims or defects to the property.
What
kind of problems can a title search
reveal?
A title search can reveal several types
of defects in title, liens, encumbrances and
restrictions. Among these are unpaid taxes,
easements, unsatisfied mortgages, judgements
against the property owner and restrictions of
use or transfer.
What is
title insurance?
Title insurance is a policy of protection
against loss if any of the problems listed above
result in a claim against your ownership.
How
does title insurance protect my investment if a
claim should arise?
If a claim is made against your property,
title insurance, in accordance with the policy,
will assure your legal defense, including paying
court costs and related fees. If the claim
proves valid, you will be reimbursed for your
actual loss up to the face amount of the policy.
What
are the different types of title
policies?
There are two types of title policies- a
lender's policy and an owner's policy. The
lender's policy protect the lender's interest in
the property as security for the outstanding
balance under the buyer's mortgage. The owner's
policy protects the buyer's investment in the
property up to the face amount of the
policy.
What is a
HUD Settlement Statement
(HUD-1)?
This is a summary of the financial
portion of the real estate transaction. The HUD
will list the purchase price, loan amount,
closing costs for both buyer and seller and show
all pro-rations and sums to be disbursed by the
title company to all parties.
What is
pro-ration of property taxes?
This is the process of charging either
the buyer or seller for their share of real
estate taxes owed on the property for their
respective time of ownership. Taxes are said to
be "pro-rated" back or forward to the due date
of the property taxes.
What is
pre-paid interest?
This is interest due from the date of a
loan closing to the first day of the following
month. Most loans require payments to be due on
the first day of the month. Each monthly payment
reflects the principle and interest due on the
loan for the previous month. A loan closing on
the 20th day of the month will require interest
adjustment through the 1st day of the following
month. The first payment will then be due on the
1st day of the month following. Interest
adjustment is considered a settlement charge and
will be disclosed on the HUD.
NCA Home is a full
service discount residential real estate brokerage. Professional real
estate services for California buyers and
sellers. Visit us today at www.ncahome.com or call
(707) 693-0100.
