Escrow Tip: What information is found in the Title Commitment?

What information is found in the Title Commitment?

Upon opening escrow and the completion of the title search, you will receive a Commitment for Title Insurance, and copies of those matters as disclosed in Schedule B Section 2-Exceptions
(NOTE: If you do not receive these documents with the Commitment for Title Insurance, request them from your Escrow Officer).

The Commitment for Title Insurance has three schedules: Schedule A and Schedule B Section 1-Requirements and Schedule B Section 2-Exceptions. Below is a brief description of some of the matters reflected in the referenced schedules.

Schedule A

  • Effective Date of Commitment. (The date through which the records of the County Recorder have been searched.)
  • Proposed Owners Policy to be issued, the amount of coverage (sales price) and the proposed insured (Buyer).
  •  Proposed Loan Policy (if applicable) to be issued, the amount of coverage (loan amount) and the proposed insured (Lender).
  •  Type of Interest to be insured in subject property (In most cases this will be Fee).
  •  Legal Description of the property to be insured.

 

Schedule B Section 1-Requirements

  •  Payment of delinquent real and personal property taxes, if any.
  •  Payment of Homeowners Association transfer fees and charges.
  •  Payoff and recordation of a release of any loans, judgments and/or liens affecting title to the subject property.
  •  Recordation of a release of any previously paid liens that have not yet been released of record.
  •  Recordation of corrective documents as may be determined through the examination of the title.
  •  Request for authority documents of a legal entity that may be involved in the transaction (i.e corporate resolution, LLC operating agreement, trust agreement).
  •  Recordation of document(s) transferring title to buyer. (Deed)
  •  Recordation of lenders security document. (Deed of Trust)

Schedule B Section 2-Exceptions
The matters reflected in this section affect the title to the real property. You will take title “Subject To”  these matters of record (i.e. easements, right of ways, covenants, conditions and restrictions, homeowners association, taxing districts, well agreements, road maintenance agreements).

You should review these documents with your real estate agent and/or legal advisor.

Escrow Tip: The Plat Map

THE PLAT MAP

Viewing the Subdivision Plat Map for the subject purchase property is essential due diligence for every buyer and their agent. Information found on a plat map cover sheet and final plat can include:

· Lot Dimensions

· Private and public utility easements

· “No access” easements

· Setbacks

· Designated water provider

· Zoning

· Private and public streets

· Recorder’s sequence #’s for additional research documents like CC&Rs and permits

Many of the Title Commitment “Schedule B” items (the items the buyer is taking “Subject to”) may be found in the Dedication, the General Notes, and the Keynotes/Legend) sections of the subdivision Plat Map.

The plat map is included with the Title Commitment, and copies can also be obtained from our Property Research Department.

Escrow Tip: HUD Homes

HUD Homes

All Contracts ratified on or after 11/17/2013 will be subject to the “Buyer Select” closing agent program. The Buyer will now get to choose their own Title Company. HUD will no longer pay for the escrow fee, which now will be a Buyer expense. This is stated from BLB Resources “Buyer Select Closing Agent Addendum”. Item #5 of the HUD 9548/ Sales Contract form, has HUD either providing seller credits for financing and closing costs, or in some cases they do not pay anything, except recordation of the Deed.

As part of the contract process, HUD will have your Escrow Officer sign a “HUD-Closing Instructions and Certification” and sign and initial their “Attention Escrow” documents. These forms require a State License number and HUD ID # (or Title ID #). Contact your Title Security Agency Escrow Officer and they can provide you with both. A complete list of our Escrow Officers can be found here.