ANSWERS TO TITLE & ESCROW QUESTIONS

I hope to answer some of the most common questions you might have and provide you with step-by-step information that will clarify your part in this process.  My goal is to make the experience simple and understandable, thereby reducing the stress which can accompany an unfamiliar procedure.  While every transaction is different, I believe the general information presented will be of help to you.   I welcome any questions you may still have after viewing this information.  Please feel free to contact me.  I look forward to working with you. LIFE OF AN ESCROW Click here to view a timeline of the complete escrow process!  EQUITY SHARING Equity sharing is a form of ownership and investment that allows two or more parties to share an interest in real property. It is frequently used in situations where, because of the high cost of housing, one party, the investor, puts down the bulk of the down payment, and the other, the owner-occupant, puts down little or no down payment but agrees to pay a monthly amount consisting of rental payments, mortgage payments, taxes, and other specified charges, and lives in the property.  CLICK HERE for a summary of the major issues to be addressed in an equity sharing agreement and the advantages and disadvantages of this form of ownership. CALIFORNIA WITHHOLDING TAX ON THE SALE OF REAL PROPERTY This article discusses the requirement under California law that a buyer (or transferee) withhold and transmit to the Franchise Tax Board (FTB) funds equal to 3 1/3 percent of the sales price of California real property at the time of transfer of the property unless an exemption applies for the seller (or transferor).  CLICK HERE for the complete legal article. ALTERNATIVE SOLUTIONS IN A CHALLENGING REAL ESTATE MARKET LAND CONTRACTS ALTERNATIVE SOLUTIONS IN A CHALLENGING REAL ESTATE MARKET AITD's TIPS FOR SELLERS: Wire Transfer Guidelines   WHY TITLE INSURANCE? There are few things in life more important than protecting your home.  The following matters are examples of why you need a Title Insurance Policy.  Remember that the best title examination or search cannot protect your equity and home from matters not appearing in the public records.  However, a Title Policy can protect you from: ·         Documents executed under false, revoked or expired powers of attorney. ·         False impersonation of the true land owner. ·         Undisclosed heirs. ·         Improperly recorded legal documents. ·         Prescriptive rights in another not appearing of record and not disclosed by survey. ·         Failure to include necessary parties to certain judicial proceedings. ·         Defective acknowledgements due to improper or expired notarization. ·         Corporate franchise taxes as liens on corporate real estate assets. ·         Gaps in the chain of title. ·         Mistakes and omissions resulting in improper abstracting. ·         Forged deeds, mortgages, wills, releases or mortgages and other instruments. ·         Deeds by minors. ·         Deeds which appear absolute, but which are held to be equitable mortgages. ·         Conveyances by an heir, devisee or survivor of a joint estate who attempts to attain title by ill-gotten means. ·         Inadequate legal descriptions. ·         Conveyances by undisclosed divorced spouses. ·         Duress in execution of wills, deeds and instruments conveying or establishing title. ·         Issues involving delivery of conveyancing instruments. ·         Deeds and wills by persons lacking legal capacity. ·         State inheritance and gift tax liens. ·         Errors in tax records. ·         Demolition and substandard building liens. ·         Administration of estate and probate of wills of missing persons who are presumed deceased. ·         Issues of rightful possession of the land. ·         Issues concerning the rightful conveyances by corporate entities. ·         Deeds and mortgages by foreigners who lack legal capacity to hold title. ·         Legal capacity of foreign personal representatives and trustees. ·         Issues involving improper marital status. ·         Improper modifications of documents. ·         Rights of divorced parties. ·         Conveyances in violation of public policy. ·         Misinterpretation of wills and ancillary instruments ·         Deeds by person falsely representing their marital status. ·         Claims by creditors of decedent against property improperly conveyed by heirs and devisees. ·         Issues concerning unlawful taking by eminent domain or condemnation. ·         Special tax assessments. ·         Real estate homestead exceptions. ·         Forfeitures of real property due to criminal acts. ·         Issues concerning adoption of children. ·         Conveyances and proceedings affecting rights of military personal protected by the Soldiers and Sailors´ Civil Relief Act. ·         Issues concerning interests noted in financial statements filed under Uniform Commercial Code. ·         Interests arising by deeds of fictitious parties. ·         Adverse possession. ·         Lack of jurisdiction or competency in judicial proceedings. ·         Community property issues. ·         Utility easements. ·         False affidavits of death or heirship. ·         Interstate estate.

Click a link below to view the topic   What is escrow Escrow Services Info to Open Escrow Transaction Checklist Q&A: Title Insurance Comparison of Policies Ways of Holding Title Top 9 Q&A: Buyers Top 9 Q&A: Sellers Common Problems What is a Prelim? Who Pays for What? Statement of Info (SI) The Title Search The Appraisal Important Tax Dates Tax Prorations CA State Withholding Discounts Available Closing & Title Costs Why Pay Commission?

COMMON TITLE TERMS Abstract of Title:  A compilation of recorded documents relating to a parcel of land.  Also known as a "Preliminary Title Report." Binder: A report issued by a title insurance company setting forth the condition of title and setting forth conditions, which, if satisfied, will cause a policy of title insurance to be issued.  Also known as a "Title Commitment." Chain of Title: The chronological order of conveyancing a parcel of land from the original owner to the present owner. Encumbrance: A chain, lien or charge against real property. Grant Deed: A deed used to convey title.  By law, a grant deed gives certain warranties of title. Joint Tenancy: An undivided interest in property, taken by two or more joint tenants.  The interest must equal, accruing under the same conveyance, and beginning at the same time.  Upon death of a joint tenant, the interest passes to the surviving joint tenants, rather than to the heirs of the deceased. Lien: An encumbrance against property for money, either voluntary (i.e. mortgage), involuntary (i.e. judgment), or by operation of law (i.e. property tax lien). Mechanics Lien: A lien created by state law for the purpose of securing priority of payment for the value of work performed and materials furnished in construction or repair of improvements to land, and which attached to the land as well as the improvements. Quiet Title Proceeding: A court action to establish or clear up uncertainty as to ownership to real property.  Often required if a lien or cloud appears on title that cannot be resolved. Quit Claim Deed: A deed by which the grantor gives up any claim he may have in the property.