|
|
|
|
|
|
|||||
|
|||||
SETTLEMENT SERVICES FOR BUYERSThe Lawyer's Role [Do I need a lawyer for my house closing, or would it be ok to use a (non-lawyer) title insurance company?] In urban areas it is not unusual for buyers to use the services of a non-attorney title insurance agent for the closing of the real estate; however in this part of Central Pennsylvania, the preferred practice is to have an attorney conduct the closing. The attorney is representing only your interests, and will make sure your rights are protected throughout the transaction. At Roy & Beswick, the cost of title insurance is the same when you hire an attorney to handle your closing as it would cost you to hire a non-attorney agent of a title company. Attorney Roy believes that by using an attorney who is willing to listen to your concerns, meet with you early in the process, and answer your questions, you will be getting better service for your money. Her goal is to have your closing go smoothly. By having an early discussion, any issues specific to your situation can be identified and a plan for addressing them can be formulated. Shortly after being contacted, Attorney Roy will offer the buyer a free initial office consultation to be held early in the process of buying a home. If the buyer lives out of town, this consultation can be by done telephone instead of at a face-to-face meeting. If you elect to take advantage of the initial consultation, you will not be meeting the attorney for the first time at the closing. Your questions can be answered early on. First time home buyers seem to benefit the most from these consultations. Attorney Roy does not charge fees for conducting the closings at her office. There are no "hidden" closing fees. All fees are disclosed in writing before representation begins. The attorney's fee is included in the title insurance rate, and no attorney's fees outside of that are charged for a routine closing.
The Title Search [What is a title search?] A title search is detailed research and careful investigation of records concerning the quality of ownership of real estate. Most agreements of sale provide that the buyer is entitled to receive from the seller "good and marketable title," which is title to the real estate free of liens of mortgages, judgments, taxes, child support arrearages, claims of heirs, claims of contractors, and the like. The title search is designed to reveal any defects in title, and to determine what steps must be taken in order for the buyer to receive good title. The accepted convention for title searches in Central Pennsylvania is that they are done for a sixty year period measured from the date of the title search backwards. The names of the current owner and all previous owners and parties in interest are searched by the attorney or title searcher. These parties can include corporations, deceased parties, spouses, children, heirs and others. Depending upon who or what entities appear in the chain of title, the search can involve research of sources outside of the Recorder of Deeds and Prothonotary's offices at the courthouse. For example, tax collectors, PACSES (the state agency which monitors child support payments), Bankruptcy Courts, Department of Revenue, and other sources are routinely contacted by the buyer's attorney. Knowing where to search, given the specific facts of a case, is very important.
What kinds of problems can a title search reveal? A title search will reveal covenants and restrictions, rights of way which were recorded, unpaid taxes, mortgages, judgments against the seller, among other things.
Do I need title insurance? Yes, because of the inherent risk involved in purchasing real estate. There are certain problems that a title search cannot reveal. It is not always possible to eliminate the risk of fraud and forgery, mental incompetence, a seller's dishonesty concerning marital status and claims of a spouse, or other risks. Attorney Roy purchased title insurance coverage for herself because she realizes there is always some hidden risk in buying real estate, even where an excellent title search is done. Title insurance is required by nearly all lenders. At a minimum you will likely be required to obtain title insurance for your lender. Purchasing coverage for you as an owner is a relatively modest additional cost, and a good investment.
What is title insurance? Title insurance is one of the oldest forms of insurance dating back to the 1800s, and its purpose is to protect the buyer of real estate from possible claims involving the ownership of the real estate. The buyer pays a one time fee for the insurance at the closing, and this fee includes the cost of the title search. In exchange for paying the fee, the buyer receives a title insurance policy and coverage which lasts for the ownership of the real estate. If there is a lender, a loan policy is also issued. The amount of coverage for the lender declines as the loan balance is paid down, and ends when the loan ends. For this reason, most buyers also purchase owner's title insurance coverage. Title insurance protection lasts beyond the lifetime of the attorney who issued it. Should any person or entity come forward claiming to have rights to the real estate after the attorney is deceased or unavailable, then the insured buyer/owner should contact the title insurance company for assistance.
Title Insurance Rates & types of coverage In Pennsylvania buyers are charged an "all-inclusive rate" for title insurance. It means you are paying one amount (at closing) which includes the insurance premium, the cost of executing the title search, and the closing fee. If you are buying a home, you will have the choice of traditional coverage and enhanced coverage. Enhanced coverage provides greater protection and costs more than traditional coverage. Attorney Roy will answer your questions about your options, to help you decide between the two types. Whenever possible, we will charge you a reduced rate called the "reissue" rate. This is available to buyers of residential real estate when the seller has title insurance, or the property was conveyed within the last 10 years (as evidenced by a recorded deed to a bona file purchaser for value), or if the purchase funds are paying off a prior institutional mortgage recorded within the past 10 years. We will be glad to quote you the rates for traditional coverage (regular and reissue rates) and for enhanced coverage. Our phone number is 570-524-7881.
When to contact Attorney Roy You should contact Attorney Roy when you have found a house or land you are interested in purchasing. The first step in buying real estate is entering into an agreement of sale. For more information about the agreement of sale, see "Agreements of Sale."
Agreements of Sale In all sales of real estate there must be a written agreement of sale for the transaction to be enforceable, and for the protection of all parties. Attorney Roy would be glad to assist you by preparing an agreement of sale for you or by reviewing an agreement prepared by another party before you sign it. Fees for reviewing or preparing agreements of sale vary depending upon the complexity of the transaction. Please call to discuss your particular situation. Our goal is to have your closing go as smoothly as possible, and having a well-drafted agreement of sale is the first step in the process.
New Construction [Does Attorney Roy assist buyers in new construction?] Title insurance, preparation of stipulations and waivers of mechanic's liens, and review of construction contracts are services provided by Attorney Roy.
Commonwealth Land Title Insurance Company [What title company does Attorney Roy represent?] Attorney Roy is an agent for Commonwealth Land Title Insurance Company. She has been helping buyers and sellers with real estate matters, including title issues and conducting closings, since 1987. Commonwealth Land Title Insurance Company is a subsidiary of Land America Financial Group, Inc. In 1876, Commonwealth's predecessor, The Real Estate Title Insurance Company of Philadelphia, founded the title insurance industry. For more information about LandAmerica and Commonwealth go to www.landam.com.
|
|
|
|||||||||||||
