Escrow Tip: International Funds

April 2 in Blog by anchortitlewave No Comments

International Funds

When dealing with an international customer, they should consult with their Title Security Agency escrow officer as to the acceptance of funds via personal check or outgoing wire procedures due to our NEW company policy.

Incoming wires are always accepted, this NEW Title Security Agency policy is only involving outgoing wires, and incoming personal checks, cashier’s checks & money orders – that are subject to clearing by the international bank and can take up to 8 weeks for clearing

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Escrow Tip: Why does my refinance need Title Insurance

March 4 in Blog by anchortitlewave No Comments

Why does my refinance need Title Insurance?

When you refinance, you still keep your Owner’s Policy from your purchase, but Lenders will require a new title search and Loan Policy to protect their lien holder position in the property.

Even if your home was recently purchased, there are still issues that could arise with the title due to mechanics liens, unpaid judgments, or tax liens. Perhaps easements have recently been created. All of these items may affect the use of the property, or otherwise “encumber” the title.

Whether you are purchasing a new or existing home, or refinancing, title insurance provides an underwriting service to mortgage lenders to ensure the borrower has clear ownership rights to the property, free and clear of any other claims to ownership. Strong underwriting protects consumers, and title insurance fulfills a key part of this due diligence.

Title Security Agency of Arizona is here to assist you and your lender whenever title insurance is needed.

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

February 25 in Blog by anchortitlewave No Comments

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.

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Escrow Tip: The Plat Map

February 24 in Blog by anchortitlewave No Comments

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.

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Escrow Tip: HUD Homes

February 5 in Blog by anchortitlewave No Comments

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.

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Escrow Tip – Home Warranties

January 24 in Blog by anchortitlewave No Comments

Please make sure lines 258-264 of the Purchase Contract are filled out as specifically as possible.

Example: Suppose the contract is silent on Line 262, and Line 263 just has a dollar amount of $600.00 to be paid by the seller. Does this mean the buyer’s agent can tack on as many extras as it would take to reach $600.00?

The words “at a cost not to exceed” mean that the seller has agreed to pay for the stated coverage only. If there is no optional coverage on the contract, then the seller has agreed to pay for a standard warranty policy and nothing more.

Do note – your Escrow Officer cannot order the home warranty for the transaction.

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Escrow Tip: When does the buyer get Keys?

January 2 in Blog by Diane Warren No Comments

Are your buyers new to Arizona? Best to let them know early in the process, that Arizona is an Escrow state.

Closing monies and key

In some states, possession of the property is turned over after funds are transferred. In an escrow state, the additional step of recordation is required, before legal transfer has been completed. If your buyers are from an abstract state like, say New York State, they may wonder why they cannot get their keys at the signing table, and may be disappointed and upset.

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Escrow Tip: What is the time table for Payoff of Seller’s Loan?

November 18 in Blog by anchortitlewave No Comments

Remember that Seller’s loan is not paid off the same day as their signing. As a rule of thumb your Escrow Officer will collect 5 extra days of interest, to account for the time between signing and the payoff, which occurs after the buyer’s lender funds. After the buyer’s lender funds, we can record. It is after recordation that we can send the seller’s payoff. If extra interest has been collected that is not needed for the payoff, it will be refunded by the seller’s lender thru the refund of their impound account.

An Example:
Seller signs on Monday November 4th and interest is collected thru Friday the 8th. Buyer’s loan funds on afternoon of Thursday 7th and the transaction records on Thursday at 4pm, which is past the wire cutoff time of 2pm. Seller’s payoff wire would go Friday Nov 8th.

For FHA loans the interest is collected for each month up front and is not calculated in days.
Keep that in mind, if the calendar month advances between seller’s signing and recordation.

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Some of our emails to you are now encrypted – why?

September 17 in Blog by anchortitlewave No Comments

The Consumer Financial Protection Bureau (CFPB) continues to put policies in place that follow their ongoing efforts for consumer protection. In response to these efforts, ALTA (American Land Title Association) has implemented some Best Practices for all title and escrow companies. One of these Best Practices is around how title and escrow companies handle Non Public Information (NPI).

NPI includes any information we hold in our systems and/or files that is non-public – specifically in our industry, that would be a social security number or personal tax ID numbers. ALTA now recommended that all companies that handle NPI information in files take every precaution to protect this information against security risks.

In response Title Security Agency has implemented a procedure and now all emails that contain NPI information will be encrypted. We are utilizing an encryption program by McAfee to secure these emails.

If we send you an email that may contain NPI, you will receive an email in your regular inbox. The subject line will state “secure web mail: outbound email encryption”. And it will show the email address of the Title Security employee who sent you the email. You will then be asked to click on a link to “access your secure web mail account”. Click on that link, and it will step you through how to set up your McAfee account. Once you have completed this set up process, you will be able to access the email by entering a password you have set up and can also respond to the email, if necessary.

I know that this may take a bit of time to get used to, but it is a system that is being put into place for an important reason – to protect you and your client’s personal information. With the increased cyber-fraud and identity theft in today’s world, we need to take every precaution to protect our consumers.

Please contact us with any questions you have about our new email encryption.

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Escrow Tip – IRS Form 1099-S

August 7 in Blog by anchortitlewave No Comments

When is a 1099-S issued in the sale of Real Property?

For sales or 1031 exchanges of certain real estate, the Escrow Officer is legally required to report the proceeds to the IRS using form 1099-S.

Some sales of principal residences are exempt from 1099-S reporting; in these cases an “IRS Form 1099-S Certification Exemption Form” is signed by the seller under penalty of perjury. Not all principal residences are exempt.

Some sellers exempt from 1099-S reporting are Corporations, Governmental Units and builders.

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What Is Escrow?

June 25 in Blog by anchortitlewave No Comments

As a buyer or seller, you want to be certain all conditions of your sale have been met before property and money changes hands. The technical definition of an escrow is, “A transaction where one party engages in the sale, transfer or lease of real or personal property with another person who delivers a written instrument, money or other items of value to a neutral third person, called an escrow agent or escrow holder.” The third person holds the money or items for disbursement upon the happening of a specified event or the performance of a specified condition.

Simply stated, the escrow holder impartially carries out the written instructions given by the principals. This includes receiving funds and documents necessary to comply with those instructions, completing or obtaining required forms and handling final delivery of all items to the proper parties upon successful completion of the escrow.

The escrow holder must be provided with the necessary information to close the transaction. This may include loan documents, tax statements, fire and other insurance policies, terms of sale and any financing obtained by buyer, and requests for various services to be paid out of the escrow funds.

If the transaction is dependent on arranging new financing, it is the buyer’s responsibility to make the necessary arrangements. Documentation of the new loan agreement must be in the hands of the escrow holder before the transfer of property can take place. When all instructions in the escrow have been carried out, the closing can take place. At this time, signatures are obtained by all parties, all outstanding funds are collected and fees such as title insurance premiums, real estate commissions, termite inspection charges, etc, are paid. Title to the property is then transferred under the terms of the escrow instructions and the appropriate title insurance policies are issued.

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