Remember to provide the Loan Status Update

Remember to provide the Loan Status Update

Your Escrow Officer, at Title Security Agency, is here to assist with the prompt closing of every transaction. When opening escrow one of the important documents to provide to your Escrow Officer is the Loan Status Update aka “LSU”. The LSU allows for delivery to the Seller within five days after contract acceptance. Since escrow is oftentimes opened prior to those five days the transmittal to escrow of the LSU is overlooked. If at any time during the transaction the lender changes, notify your Escrow Officer right away. There are instances where the buyer may be denied a loan from the lender they have chosen. Submittal of the LSU within the prescribed time period, after the acceptance of the Contract, is crucial to the transaction. If the LSU is not submitted to escrow, and cancellation due to denial of the loan is submitted inside of 3 days of the original closing date, buyer may not automatically be entitled to a refund of their earnest monies.

Lines 59-61 of the Arizona Residential Resale Real Estate Purchase Contract outlines the return of the earnest monies.

“Fiscal Cliff” averted – 1031 Exchange Helps Investors

1031 Exchange Helps Investors

The Senate bill passed the House and contained a number of important issues relative to the housing market. Brigitte Echave, with Leverage Exchange Group, LLC, (1031 Exchange company) has written an article that highlights some of the provisions contained in the bill.

The Bush-era reduced tax brackets remain intact, except for income earners in the $400,000 + range. Even the AMT was reviewed and repaired. This new tax bracket will affect taxpayers in the higher incomes by implementing a 39.6% tax rate. Coupled with the 3.8% surcharge on investment income some investors could see capital gain rates of 23.8% on real estate investment sales.

Financially distressed owners of homes with underwater mortgages can rest easy now that the Mortgage Forgiveness Debt Relief act was extended through 2013. This means that those homeowners who face foreclosure or short sale, on their primary residence, will not face a large tax bill on the “phantom” income derived from these two events. Great news for the distressed home owner.

Tax credits for energy efficient home improvements remains available. This tax credit is modest ($200 – $500) but does allow owners a credit on their tax bill for installation of energy-efficient windows, insulation and other upgrades. A tax credit for energy-efficient new homes is in play and allows builders and contractors to claim $2,000 tax credit on new homes that meet federally specified energy-conservation standards. Even U.S. based manufacturers of energy efficient appliances are able to obtain credits for appliances produced with energy efficiency!

Now may be the time for all investors to consider the use of a 1031 Exchange. Brigitte indicates that with the Obamacare surcharge and Arizona’s own state capital gain tax rate, taxpayers could see a capital gain rate of 28.8% on investment properties. Find out more about 1031 Exchanges by calling Brigitte at 520-979-8256 or find more information online at www.leverageexchange.com

For a full copy of the Bill go to:
http://www.gpo.gov/fdsys/pkg/BILLS-112hr8eas/pdf/BILLS-112hr8eas.pdf

Read more in the1031 Newsletter – Fiscal Cliff

Beneficiary Deed

Beneficiary Deed

In 2001, Arizona became the second state to enact a statute (ARS §33-405) which permitted the use of a beneficiary deed to transfer real estate upon the death of the owner. In other areas of the country the deed is referred to as a transfer-on-death (TOD) deed. The beneficiary deed is similar in all respects with other deeds used to transfer real estate, except the one crucial difference being that the deed does not take effect until the death of the conveying party. The owner of real property is permitted to designate by deed, a beneficiary of the real property, and, on the death of the owner, the property passes to the beneficiary without the need for probate. In 2007 there were only 9 states that recognized the beneficiary/TOD deed. Currently there are 17 states which allow the use of beneficiary/TOD deeds.

The 17 states are: Arizona, Arkansas, Colorado, Hawaii, Illinois, Indiana, Kansas, Minnesota, Missouri, Montana, Nevada, New Mexico, North Dakota, Ohio, Oklahoma, Oregon, and Wisconsin. On January 1, 2013 Nebraska’s death deed act will go into effect.

                Each state has specific laws that govern the use of the deed in their state.

Aside from states that recognize transfer on death deeds by state statute, at least three states – Florida, Michigan and Texas – recognize an “enhanced life estate deed,” also called a “Lady Bird Deed,” under state common law. In these states, an enhanced life estate deed functions in a manner similar to a transfer on death deed.

                The beneficiary deed is a relatively easy and inexpensive way to transfer real property and aids in avoiding probate. Since this type of transfer is seen by many as an easy and inexpensive way to transfer real estate, many assume that the use of an attorney to prepare the document is unnecessary. However, as with any estate planning, a consultation with an attorney is probably best. Estate tax limits change constantly and consideration must be given to the tax implications which may arise upon the death. The taxes are just one consideration when contemplating the use of a beneficiary deed there are many others factors to consider. The attorney drafting the estate plan will review and discuss the clients entire estate. The attorney will also ensure that a durable power of attorney exists, with specific provision to permit the revocation of a beneficiary deed. A revocation may become necessary if the grantor becomes incapacitated. Such incapacitation without a durable power of attorney could further complicate matters especially for caregivers of the incapacitated party.

              Upon the death of the grantor to the beneficiary deed, further documentation is necessary to effect the end intended result of the deed. Such as, recordation of the death certification and an affidavit. A beneficiary deed which is executed but never recorded has no effect on the property as the statute in Arizona (§33-405) requires that the deed be recorded. This requirement prevents any transfer to occur on someone’s deathbed.

If you would like to read more about beneficiary deeds we have found the article written by Thompson Law Group to be most helpful. The article can be found here.

The preparation of documents by Title Security Agency and its Escrow staff can only take place when a transaction is opened for the purchase, sale, loan or refinance of a property. As such, preparation of beneficiary deeds are not part of the services offered by Title Security Agency.

If you have questions or comments regarding this blog post contact Brigitte Echave at Brigitte.Echave@TitleSecurity.com or 520-722-2578.

Escrow Earnest Money Delivery

Escrow Earnest Money Delivery

         Recently our Escrow Officers and staff have noticed that earnest monies are being mailed to escrow instead of being hand delivered. Escrow is not officially opened until the escrow earnest money funds are deposited into escrow. If the Tucson Processing and Distribution Center of the USPS closes, which has been discussed, then mail within Tucson will take longer and the escrow earnest monies will be delayed further when mailed. Once an accepted contract is in hand the escrow earnest monies should accompany the contract upon the opening of escrow.

               The best method for delivering the escrow earnest money is to deliver the funds with the contract or contact one of our Business Development team members and have your contract, along with the escrow earnest monies check, picked up. The earnest monies should be in the form of a cashiers check. A wire is also an acceptable method of delivery. By contacting one of our highly skilled escrow officers you can obtain the wire instructions for your transaction.

               As you can see when a buyer mails an escrow earnest money check, this will cause a delay in the opening of the escrow which may breach the terms of the contract. If you are uncertain what forms of escrow earnest monies are acceptable, contact your escrow officer. A complete list of our branches can be found here!

If you have questions or comments concerning this blog post contact Brigitte Echave – 520-722-2578 or Brigitte@LeverageExchange.com.

Inside Tucson Business features Title Security Agency

Inside Tucson Business features Title Security Agency

Did you catch the story that Inside Tucson Business ran on October 12, 2012? Title Security Agency is celebrating its 40th year anniversary which is no small accomplishment.  Considering the changes which have occurred from 1970 to 2012, Title Security Agency has been known to be innovative, entrepreneurial and always on the cutting edge of whatever is new in the real estate industry. The changes in our industry and the world are vast and well detailed in the story run by Inside Tucson Business. Tom Sullivan Jr. attributes the many successes of the company to the employees who make Title Security the great company it is. Go to Inside Tucson Business to read the full story. Read More. Tell us what you think, we would love to hear from you, our customer!

SHOES — Donate yours today!

 
 
 
 
 
 
 
 

 

Are you looking for a way to make a difference? Title Security Agency is always looking for a way to make a difference in the lives of others in our community. If you would like to join us, please consider donating your new or gently used shoes for a good cause. Any shoes collected will go to Casas de los Ninos, the Primavera Foundation or to Soles 4 Souls.

If you would like to donate contact Ellen Gille at ellen.gille@titlesecurity.com. Help make a difference in the life of someone else!

TOGETHER WE CAN MAKE A DIFFERENCE IN THE COMMUNITY

Community Service

Community Service

At Title Security Agency (TSA) we have a community service committee designed to assist the employees of TSA perform community service throughout Tucson. The committee meets to determine where a group of employees might volunteer together as a team and meet the needs of the Tucson community.

Below are the upcoming community service projects and drives we have planned:

Tomorrow, Saturday, September 22nd and Saturday October 20th, 10:45 a.m. to approximately noon – Make sandwiches for the Casa Maria Catholic Workers House to distribute to the hungry, poor and homeless – at St. Pius X Catholic Church, 1800 N. Camino Pio Decimo, Tanque Verde Room – If interested, just show up and make sandwiches and assemble sack lunches, over 600 lunches are made in two hours. Employees, friends, family members and children welcome. (This event occurs every four weeks).

Saturday, October 13th, 9:00 a.m. to noon – Community Food Bank of Southern Arizona, 3003 S. Country Club, #221 – Pack food boxes on an assembly line. This is a 3 hour commitment. This is our third time doing this event, it is work, but, we have a lot of fun. Employees, friends and family members are welcome to join in, must be 16 years old and must wear closed-toed shoes, no sandals. If you wish to participate, please RSVP to Ellen Gille (ellen.gille@titlesecurity.com) by October 5h.

During the month of September – Did you know that over 1.5 billion pairs of shoes lay idle in American closets? We are having a new and gently used men’s, women’s and children’s shoe drive to benefit Primavera, Casas de los Ninos and Soles for Souls. We have placed a collection box at the Main Office.

The picture contained herein is of a recent Ben’s Bell event!

Please consider joining in – together we can make a difference!
Thank you,
The TSA Community Service Committee

TUCSON Real Estate Education ~ Got Yours?

 

TUCSON REAL ESTATE EDUCATION

             Title Security Agency is a company founded on innovation and one that embraces entrepreneurial endeavors. To that vein, Title Security Agency is committed to providing continuing real estate education classes in Tucson.  Our goal is to be a go to source for anyone, in Tucson and beyond, seeking CE credits for real estate license renewal. When looking for educational opportunities, check out our real estate education classes located on our calendar here.  Our focus has always been to provide the Tucson real estate community with practical knowledge as well sound technical information, necessary for successful real estate transactions.  Real Estate Education is paramount to the success of each party involved in the closing process. Every month we hold educational classes for our staff and encourage our team members to seek learning opportunities within the community.  Title Security is dedicated to providing venues that allow for consistent continuing education.

               Whether you have 2 or 22 years of real estate experience, the main purpose of real estate education is to ensure that you remain familiar with the changes that are always impacting our business.  The knowledge we can glean from others in the business as well as the situations we encounter every day are invaluable.  The continued growth and success of our businesses as well as the personal growth received through continuing real estate education may sometimes be overlooked but are none the less extremely valuable to each and every one of us.

               Every month Title Security Agency hosts the C. David McVay Schools in our training room located at our main office on Tanque Verde.  Over the past few decades, David McVay has been there to guide and educate real estate professionals.   He spends many hours pouring over current data and information on the industry and stays current on changes so that he can convey these changes during his seminars.  His humor only adds to the information you receive and allows each participant a moment to laugh at situations they themselves have probably encountered at some time during their tenure in the real estate business.

               The real estate finance industry is constantly changing.  The credit class or real estate finance class always contains current information.  These two classes offer many suggestions for solving credit and finance issues.  Investors are making their way back into the market and the finance class as well as credit class will help to load your investor tool box with ideas on how to help your investor with their lending and credit issues.  Speaking of investors another class that is offered each month through the TSA monthly education is the 1031 Tax Deferred Exchange class.

               The 1031 Exchange class is valuable to the Realtor® that wants to assist their investor clients in maximizing their returns on each investment property.  Whether an investor is looking to sell now or in the future the information obtained in the class is invaluable.    More investors are returning to the marketplace and getting the latest information relating to this subject will only enhance your business.

               As you can see Title Security Agency remains committed to your professional growth and success.  Find a class that works for you, visit our class calendar today! Remember, Title Security Agency is your partner when it comes to Tucson Real Estate Education.

If you have questions or comments concerning this blog post contact Brigitte Echave – 520-722-2578 or Brigitte@LeverageExchange.com. Visit Leverage Exchange Group.

 

Title Security