RESOURCE FOR LAS VEGAS BUYERS AND SELLERS
Letter From Ticor Title of Nevada..................................................................3 Why Working With A Real Estate Agent Benefits You..................................4 The Selling Process...........................................................................................5 For Sale - Now What?......................................................................................6 Frequently Asked Questions for Sellers..........................................................8 Seller’s Information...........................................................................................9 The Buying Process.........................................................................................10 Ideal Home Checklist.....................................................................................13 Title and Escrow Process................................................................................14 What is an Escrow?.........................................................................................15 Flow of an Escrow..........................................................................................16 What is Title Insurance?.................................................................................17 21 Reasons for Title Insurance.......................................................................18 70+ Ways To Lose Your Property.................................................................19 Comparison of Title Insurance Coverage.....................................................21 Life of a Title Search.......................................................................................22 Vesting: Common Ways of Holding Title......................................................23 Signing Appointment.......................................................................................25 What Closing Costs Are All About...............................................................26 What Do We Pay?..........................................................................................28 Moving Tips.....................................................................................................29 Moving Expenses.............................................................................................31 Utilities And Other Important Contacts ......................................................32 Need A Little Negotiating Strength?..............................................................34 2 © 2024 Ticor Title of Nevada TABLE OF CONTENTS
At Ticor Title we are committed to constantly and consistently exceeding your expectations. Our friendly and very competent staff will do everything possible to assure your transaction is handled professionally and accurately so that your experience is a pleasant one. We want you to be happy you’re doing business with Ticor Title of Nevada because we want to be your title company of choice for all your real estate transactions. We are, “The Most Resourceful People In Town.” Sincerely, Charlie Carr-Laliberte County Manager Southern Nevada Operations Ticor Title of Nevada is committed to providing you with all the resources needed to either sell or purchase a property. This resource guide is just one of the tools we offer to assist you. It provides an abundance of helpful information that you will find useful whether buying or selling your home. Dear Ticor Title Customer, 3 LETTER FROM TICOR TITLE OF NEVADA
4 © 2024 Ticor Title of Nevada WHY WORKING WITH A REAL ESTATE AGENT BENEFITS YOU Statistics Sources: Forbes, Realtor Magazine, Redfin, NAR Agents help sell your CURRENT HOME while also finding a FUTURE HOME FOR YOU. AGENTS TAKE CARE OF ALL THE PAPERWORK. SAVE YOU TIME by being your liaison. Agents will HELP YOU NAVIGATE THE LEGAL REQUIREMENTS of buying or selling a home. Agents are bound by law to act as your fiduciary agent. POSSESS A WIDE SELECTION of available homes NOT VISIBLE TO THE PUBLIC. BUYERS RELY ON THEIR AGENTS 87% of buyers bought their home using a real estate agent 88% of buyers would use them again or at least recommend them to someone else. Home showings are SCHEDULED EASILY AGENT-LISTED HOMES SELL FOR 18% more than for sale by owner homes. Agents are the experts. TRUST THEIR JUDGMENT. Agents understand the art of CONTRACT NEGOTIATION. AGENTS WILL GUIDE YOU From A TO Z so nothing is missed. Agents put emotions aside and GET THE DEAL DONE. KNOWLEDGEABLE ABOUT VARIOUS NEIGHBORHOODS. MORE HOME SELLERS ARE WORKING WITH AGENTS 89% of home sellers used an agent to sell their home. 2015 was the lowest share of FSBO sales (8%) recorded since 1981. 48% of people selling homes WITHOUT AN AGENT end with a LOWER SELLING PRICE $$$ BENEFITS YOU WHY WORKING WITH A REAL ESTATE AGENT
5 THE SELLING PROCESS
Check Your Home’s Curb Appeal ... A home that is visually appealing and in good condition will attract potential buyers driving down the street. Take the drive yourself and look at your home objectively and critically through another’s eyes. Take inventory of what you see. Questions to Ask Yourself: • Are the lawn, trees and shrubs properly mowed, trimmed and well-maintained? • Are garbage, debris and children’s toys stored out of sight? • Are there cracks in the foundation or walkways? • Are the gutters, windows and doorknobs clean and welcoming? • Do the window casings, shutters, siding or doors need painting or washing? • Are lawn mowers and hoses properly stored? • Do you see any other signs of disrepair? • Is the walkway to the front door swept with a nice welcome mat in place? Take A Look Inside... Strong outside curb appeal will lure potential buyers to take a look inside. Now you have the job of living up to their expectations. Fortunately, there are plenty of easy improvements that can be made to the interior of your home without spending a lot of money. • A CLEAN HOME IS ESSENTIAL Windows, floors and bathrooms should sparkle as should your kitchen and all appliances. Shampoo dirty carpets, wash and wax hardwood floors and remove grease and grime from walls. Polish and dust your furniture. • REMOVE UNNECESSARY CLUTTER Remove unnecessary clutter from the garage, and closets. You can make your home appear larger by removing some of the furniture. Thinning out clothes in your closets will give the impression that your home has adequate closet space. 6 © 2024 Ticor Title of Nevada FOR SALE - NOW WHAT?
• BE AWARE Be sure your home has a pleasant aroma. You may be used to the smell of a pet or cigarettes, but such odors can be a strong turn-off to others. Proper use of air fresheners, scented potpourri or fresh flowers can increase the appeal of your home. Ideally, popping a batch of frozen cinnamon rolls in the oven right before a showing will provide a welcoming aroma. • REMOVE VALUABLES Remove valuables such as jewelry and other items from view. You may want to consider putting articles such as these in a safe deposit box during the time your home is for sale. • FRESH PAINT If any of your rooms need a fresh coat of paint, use a neutral off-white color. Painting is a minor expense and can create a feeling of freshness when a buyer walks through your home. • REPAIRS Repair any leaky faucets and squeaky doors. Make sure you have clean heating and air conditioning filters. Remember, anything that will help you convey the message that “this home has been carefully maintained” will only add to the probability that you will get the price you want. Cosmetic changes do not have to be expensive. In fact, costly home improvements do not necessarily offer a good return on your investment when you sell. Attention to the basics that will help increase the marketability of your home. “Showing” Day When your agent calls to advise you that your home will be shown to a potential buyer, there are some things you can do to enhance your home’s appeal. Attention to these last-minute details can make the difference as to whether or not you receive an offer on your home. • Open draperies, curtains and shutters. • Turn on interior lights. • Straighten up. • Air freshener. • Remove clutter. • Confine pets. If possible, leave your home while the Realtor® shows it to potential buyers. Many times, buyers feel more comfortable looking around if you’re not there. If you cannot leave, greet your guests politely and retreat to another room. 7 FOR SALE - NOW WHAT?
• WHY DO I HAVE TO PAY INTEREST ON MY LOAN PAYOFF PAST THE DATE OF CLOSING? Your lender continues to charge interest until they receive funds in the amount necessary to payoff your loan in full. Sometimes this takes 1 to 2 business days from when they receive your funds. • WHEN DO I CANCEL MY HOMEOWNER’S INSURANCE? Do not cancel your homeowner’s insurance until escrow has closed. • WHAT IS A STATEMENT OF INFORMATION? This is the form we use in order to distinguish you from others with similar names. After obtaining certain information, we can then identify the true buyer and seller in order to disregard any judgments, liens or other matters on public record that have nothing to do with our customers. • WHAT IS A DEED OF RECONVEYANCE? The Deed of Reconveyance is a recorded document issued by your lender once your note is paid in full. This document is recorded in the county in which the property is located and shows that the Deed of Trust (mortgage) that was recorded in your name has been released. • WHEN DO I GET A REFUND FROM MY PREVIOUS LENDER FOR MY IMPOUND ACCOUNT? Normally, your lender will send any balance left in your impound or escrow account with them within 30-60 days once their loan has been paid in full. If you have any questions regarding your impound or escrow account please contact your lender. 8 © 2024 Ticor Title of Nevada FREQUENTLY ASKED QUESTIONS FOR SELLERS
SELLER’S CONFIDENTIAL INFORMATION FOR ESCROW SELLER # 1 Name: Address: City/State/Zip: Home Phone: Work Phone: Fax: E-Mail: Social Security Number: Married Single Divorced SELLER # 2 Name: Address: City/State/Zip: Home Phone: Work Phone: Fax: E-Mail: Social Security Number: Married Single Divorced LOAN # 1 Lender Name: Address: City/State/Zip: Phone: Fax: Loan Number: Estimated Balance: Prepayment Penalty? Yes No I Don’t know LOAN # 2 Lender Name: Address: City/State/Zip: Phone: Fax: Loan Number: Estimated Balance: Prepayment Penalty? Yes No I Don’t know Name of Homeowner’s Association: Management Company: 9 SELLER’S INFORMATION
10 © 2024 Ticor Title of Nevada THE BUYING PROCESS
Prior to showing homes to you, I ask that you meet with me; together we will answer the following questions: • What kind of house are you looking for? (single story, 2-story, condo, townhouse) • What is your price range? Have you met with a lender to determine affordability? • Have you made a list of home features that are important to you? (checklist, needs vs. wants) • What is your time frame? Are you ready to move now? • Do you have to sell another home? Starting The Process: 1. Determining price range is one of the most important steps in the buying process. It involves meeting with a loan officer to get pre-approval for a specific purchase price. As per lender guidelines, your loan officer will prepare a Loan Estimate, which shows the fees associated with your loan. Upon receiving the estimate, you will know the approximate purchase price you can afford. When you find the right home, you want to have a strong negotiating position. A seller will be more likely to accept your offer if you have a mortgage lender’s pre-approval for a specific loan amount. In other words, the seller knows that you can afford to buy the house. 2. Negotiating your offer to purchase requires extensive expertise in the Las Vegas real estate market for both new and resale homes. Your Ideal Home Checklist in with the approval amount from the lender, will enable you to choose a home and your realtor will negotiate the best possible offer for you. 11 THE BUYING PROCESS
• Home warranty (Protects mechanical systems, built-in appliances & air conditioning for 1 year. Optional coverage available for pool, spa, washer, dryer, refrigerator, and septic.) • Special assessments and LID or SID • Homeowner’s association fees (HOA Fees), transfer fees • Inspection fees (i.e. pest/termite, structural, mechanical, well & septic, water, survey and environmental hazards) • Closing date and physical possession • Title and escrow company • Personal property and fixtures - Items that will stay with the home • Due diligence time frames • Seller concessions • Repairs and/or allowances • Amount of earnest money deposit 3. Once you have an accepted offer, you along with your real estate agent review the Seller’s Real Property Disclosure Form and any other seller disclosures. Other disclosures may include: • Environmental hazards i.e. asbestos, mold, lead-based paint • Methamphetamine lab • Assessments • Rental property - need security deposits, lease agreements and associated documents • Sale subject to court approval - i.e. probate, bankruptcy - need all associated documents • Zoning or master plan provisions or changes of which seller is aware, that may affect property or its use • Hazard insurance claims - CLUE report • Construction defects litigation or settlement 4. Next, escrow will be opened with a fully executed Offer To Purchase and earnest money deposit. Typically, the closing process takes 30-45 days. 5. Prior to the closing date, we will accomplish the following: • Get homeowner’s insurance in place and review moving tips • Review inspection results and corrections • Review preliminary title report, follow up with lender in regard to loan approval and appraisal amount 6. Schedule walk-through inspection, review settlement statement, schedule signing appointment at Ticor Title, wire funds for closing, bring your valid ID. The property becomes yours when the documents are recorded at the County Recorder’s Office. Ticor Title will notify your real estate agent when your transaction has recorded. *Please note: keys and possession not transferred at escrow signing. Aside from price, negotiable items are: 12 © 2024 Ticor Title of Nevada THE BUYING PROCESS
Filling out this checklist will help you and your REALTOR® establish priorities for your ideal home. You will save time by clearly defining your “Needs and Wants” before looking at houses. INTERIOR Very Important Important Neutral # Bedrooms ___ c c c # Baths ___ c c c Square Footage ___ c c c Family Room c c c Living Room c c c Dining Room c c c Kitchen Appliances c c c Laundry Room c c c Flooring c c c Carpeting c c c Fireplace c c c Layout c c c Comments : _____________________________________ EXTERIOR Very Important Important Neutral Landscaping c c c Garden c c c Covered Patio c c c Windows c c c Doors c c c Garage c c c RV Parking c c c Roof c c c Comments : ____________________________________ FEATURES Very Important Important Neutral Distance to Work c c c Distance to Shopping c c c Distance to Schools c c c Entertainment c c c Parks c c c City Services c c c Overall Location c c c Comments : _____________________________________ SYSTEMS Very Important Important Neutral Security c c c Heating c c c Air Conditioning c c c Energy Savings c c c Insulation c c c Plumbing c c c Comments : ____________________________________ EXTRAS Very Important Important Neutral Swimming Pool c c c Spa c c c Workshop c c c Den/Office c c c Guarded Gate c c c Comments : ____________________________________ 13 IDEAL HOME CHECKLIST
14 © 2024 Ticor Title of Nevada TITLE AND ESCROW PROCESS
To do this, the escrow officer takes instructions from the terms of the purchase agreement and the lender’s requirements. This includes receiving funds and documents necessary to comply with the agreement, completing and obtaining required forms and handling final delivery to the proper parties upon completion of the escrow. Necessary information to complete the transaction must be provided to the escrow officer. These elements include loan documents, tax statements, fire and hazard insurance, terms of sale and any seller-assisted financing along with requests for various services that may be paid from the escrow funds. It is the buyer’s responsibility to make necessary arrangements if financing is needed. Proof of the loan agreement must be in the hands of the escrow officer before the transfer of property can take place. When all instructions in the escrow have been completed, the closing can take place. At that time, all outstanding funds are collected and any fees such as title insurance, recording fees, real estate commissions, loan payoffs, etc., are disbursed. Title to the property is then transferred under the terms and conditions of the escrow instructions and appropriate title insurance is issued. When opening escrow, as a buyer or seller, you want to be sure that all the terms and conditions of the sale have been met before the transfer of ownership of that property. Escrow is a written agreement of these terms and conditions held by a neutral third party known as the escrow holder. The escrow officer has the responsibility to impartially carry out the written instructions given by the principals making sure that all conditions are met by both parties. In other words, the escrow officer makes sure that the interest of all parties to the transaction are protected. 15 WHAT IS AN ESCROW?
Prepare Escrow Instructions & Pertinent Documents Obtain Signatures Order Title Search Process Financing Receive and Review Preliminary Reports/ Title Commitments Request Beneficiary Statement Request or Prepare New Loan Application Request Demands (if Any) Request Clarification of Other Liens (if Any) and Review Taxes on Report Receive Beneficiary Statement and Enter Into File. Review Terms of Transfer and Current Payment Status. Obtain Loan Approval and Determine that Terms are Correct Receive Demands and Enter Into File Request Loan Documents Review File To Determine that All Conditions Have Been Met and that All Documents are Correct and Available for Signature (Termite Inspection, Contingencies Released, Fire Insurance Ordered, Additional Documents i.e. Second Deed of Trust, Bill of Sale, etc., Have Been Prepared) Prepare Estimates and Obtain Signatures on All Remaining Documents Forward Documents to Ticor Title Company Obtain Funds From Buyer Return Loan Documents Request Loan Funds Receive Loan Funds Order Recording Close File. Prepare Statements and Disburse Funds Complete Closing; Forward Final Documents to All Interested Parties (Buyer - Seller - Lender) 16 © 2024 Ticor Title of Nevada FLOW OF AN ESCROW
• WHAT IS TITLE INSURANCE? Title insurance insures the owner against any losses due to defects in title, or expenses in legal defense of the title, up to the amount or liability of the actual insurance policy. The title policy is usually in the amount of the purchase price. Generally, title insurance provides coverage only for title problems which were already in existence at the time the policy was issued. An exception to this is to purchase optional additional coverage which costs 10% of the basic title insurance rate. This additional insurance covers post closing cost matters. • WHY BUY TITLE INSURANCE? When buying a home, unlike when buying a car or other consumer goods, it is necessary to have information on the former owner – such as marital status, whether there are outstanding taxes, or if they are involved in a lawsuit, and more. While the former owner may own the property, others may also have rights in the same property. A title search can uncover items such as unpaid taxes, easements, laws and court decisions pertaining to the property, recorded liens or encumbrances and any other matters of record which could affect the title to the property. Often all items affecting the title are not contained in a single book, office or even the same city. Add to this, the possibility of human error at many points. What is not in the public records often causes title problems. For these reasons, a property owner needs the protection title insurance can provide. • ALTA RESIDENTIAL POLICY We are proud to offer the most extensive owner’s title insurance coverage in the industry at no additional cost. Our ALTA Residential Policy insures the owner against the following additional title risks: • Legal right access to and from the land. • Mechanics liens not recorded. • Structural encroachments (except boundary walls or fences). • Protection against zoning violations. On all one-to-four family residential transactions, this policy is issued automatically. It is not necessary for you to specifically request it, and there is no additional charge. Ticor Title is proud to automatically issue this policy. We hope you will take advantage of this by having your next transaction insured by Ticor Title. 17 WHAT IS TITLE INSURANCE?
WE HOPE YOU NEVER HAVE A TITLE CLAIM With home ownership comes the need to protect the property against the past, as well as the future. Each successive owner brings the possibility of title challenges to the property. Title insurance protects a policyholder against challenges to rightful ownership of real property; challenges that arise from circumstances of past ownerships. 1. A fire destroys only the house and improvements. The ground is left. A defective title may take away not only the house but also the land on which it stands. Title insurance protects you (as specified in the policy) against such loss. 2. A deed or mortgage in the chain of title may be a forgery. 3. A deed or a mortgage may have been signed by a person underage. 4. A deed or a mortgage may have been made by an incapacitated person or one otherwise incompetent. 5. A deed or a mortgage may have been made under a power of attorney after its termination and would, therefore, be void. 6. A deed or a mortgage may have been made by a person other than the owner, but with the same name as the owner. 7. The testator of a will might have had a child born after the execution of the will, a fact that would entitle the child to claim his or her share of the property. 8. A deed or mortgage may have been procured by fraud or duress. 9. Title transferred by an heir may be subject to a federal estate tax lien. 10. An heir or other person presumed dead may appear and recover the property or an interest therein. 11. A judgment or levy upon which the title is dependent may be void or voidable on account of some defect in the proceeding. 12. Title insurance covers attorney’s fees and court costs. 13. Title insurance helps speed negotiations when you’re ready to sell or obtain a loan. 14. A deed or mortgage may be voidable because it was signed while the grantor was in bankruptcy. 15. There may be a defect in the recording of a document upon which your title is dependent. 16. Claims constantly arise due to marital status and validity of divorces. Only title insurance protects against claims made by non-existent or divorced “wives” or “husbands.” 17. Many lawyers, in giving an opinion on a title, protect their clients as well as themselves, by procuring title insurance. 18. By insuring the title, you can eliminate delays and technicalities when passing your title on to someone else. 19. Title insurance reimburses you for the amount of your covered losses. 20. Each title insurance policy we write is paid up, in full, by the first premium for as long as you or your heirs own the property. 21. Over the last 24 years, claims have risen dramatically. • HERE ARE 21 REASONS FOR TITLE INSURANCE: 18 © 2024 Ticor Title of Nevada 21 REASONS FOR TITLE INSURANCE
19 70+ WAYS TO LOSE YOUR PROPERTY 1 Forged deeds, mortgages, satisfactions, or releases 17 Deed signed by mistake (grantor did not know what was signed) 2 Deed by person who is insane or mentally incompetent 18 Deed executed under falsified power of attorney 3 Deed by minor (may be disavowed) 19 Deed executed under expired power of attorney (death, disability, or insanity of principal) 4 Deed from corporation, unauthorized under corporate by-laws or given under falsified corporate resolution 20 Deed apparently valid, but actually delivered after death of grantor or grantee, or without consent of grantor 5 Deed from partnership, unauthorized under partnership agreement 21 Deed affecting property purported to be separate property of grantor, which is in fact community or jointly owned property 6 Deed from purported trustee, unauthorized under trust agreement 22 Undisclosed divorce of one who conveys as sole heir of a deceased former spouse 7 Deed to or from a "corporation" before incorporation, or after loss of corporate charter 23 Deed affecting property of deceased person, not joining all heirs 8 Deed from a legal nonentity (styled, for example, as a church, charity, or club) 24 Deed following administration of estate of missing person who later reappears 9 Deed by person in a foreign country, vulnerable to challenge as incompetent, unauthorized, or defective under foreign laws 25 Conveyance by heir or survivor of a joint estate who murdered the decedent 10 Claims resulting from use of "alias" or fictitious name style by a predecessor in title 26 Conveyances and proceedings affecting the rights of service member protected by the Service-Members Civil Relief Act 11 Deed challenged as being given under fraud, undue influence, or duress 27 Conveyance void as in violation of public policy (payment of gambling debt, payment for contract to commit crime, or conveyance made in restraint of trade) 12 Deed following nonjudicial foreclosure, where required procedure was not followed 28 Deed to land including "wetlands" subject to public trust (vesting title in government to protect public interest in navigation, commerce, fishing, and recreation) 13 Deed affecting land in judicial proceedings (bankruptcy, receivership, probate, conservatorship, dissolution of marriage) unauthorized by court 29 Deed from government entity, vulnerable to challenge as unauthorized or unlawful 14 Deed following judicial proceedings subject to appeal or further court order 30 Ineffective release of prior satisfied mortgage due to acquisition of note by bona-fide purchaser (without notice of satisfaction) 15 Deed following judicial proceedings where all necessary parties were not joined 31 Ineffective release of prior satisfied mortgage due to bankruptcy of creditor prior to recording of release (avoiding powers in bankruptcy) 16 Lack of jurisdiction over persons or property in judicial proceedings 32 Ineffective release of prior mortgage or lien, as fraudulently obtained by predecessor in title A typo or an error by a county recorder’s office clerk, liens placed on your property due to unpaid debts or obligations, unresolved claims from missing heirs or unknown owners, disagreements over property boundaries or survey discrepancies, liens that are not properly released after debts are paid off, are all examples of “title defects” that could cause you to lose your property. And even if you don’t lose your property, these title issues could cost you a lot of money or could make it very difficult for you to sell. An Owner’s Title Policy is a form of insurance that provides protection to property owners against potential defects or issues related to the title of the property, even those that are hidden despite the search of public records. It is typically purchased during the process of buying a property and ensures that the owner’s rights and interests are safeguarded. A Loan Policy of title insurance also exists to protect the interest of a mortgage lender. By obtaining an Owner’s Title Policy and a Loan Policy, for a one-time premium, you can have peace of mind knowing that you are protected from unforeseen issues that existed before the issue date of your policy, that may threaten your ownership rights. Your Ticor Title insurance policies also provide legal defense costs unless the matter is excluded or excepted. Continued... Your title insurance policy protects you against potential defects such as:
20 © 2024 Ticor Title of Nevada 70+ WAYS TO LOSE YOUR PROPERTY 33 Disputed release of prior mortgage or lien, as given under mistake or misunderstanding 49 Adverse claim of vendor's lien 34 Ineffective subordination agreement causing junior interest to be reinstated to priority 50 Adverse claim of equitable lien 35 Deed recorded but not properly indexed so as to be locatable in the land records 51 Ambiguous covenants or restrictions in ancient documents 36 Undisclosed but recorded federal or state tax lien 52 Misinterpretation of wills, deeds, and other instruments 37 Undisclosed but recorded judgment or spousal/child support lien 53 Discovery of will of supposed intestate individual, after probate 38 Undisclosed but recorded prior mortgage 54 Discovery of later will after probate of first will 39 Undisclosed but recorded notice of pending lawsuit affecting land 55 Erroneous or inadequate legal description 40 Undisclosed but recorded environmental lien 56 Deed to land without a right of access to a public street or road 41 Undisclosed but recorded option, or right of first refusal, to purchase property 57 Deed to land with legal access subject to undisclosed but recorded conditions or restrictions 42 Undisclosed but recorded covenants or restrictions, with (or without) rights of reverter 58 Right of access wiped out by foreclosure on neighboring land 43 Undisclosed but recorded easements (for access, utilities, drainage, airspace, views) benefiting neighboring land 59 Patent defects in recorded instruments (for example, failure to attach notarial acknowledgment or a legal description) 44 Undisclosed but recorded boundary, party wall, or setback agreements 60 Defective acknowledgment due to lack of authority of notary (acknowledgment taken before commission or after expiration of commission) 45 Errors in tax record (mailing tax bill to wrong party resulting in tax sale, or crediting payment to wrong property) 61 Forged notarization or witness acknowledgment 46 Erroneous release of tax or assessment liens, which are later reinstated to the tax rolls 62 Deed not properly recorded (wrong county, missing pages or other contents, or without required payment) 47 Erroneous reports furnished by tax officials (not binding local government 63 Deed from grantor who is claimed to have acquired title through fraud upon creditors of a prior owner 48 Special assessments which become liens upon passage of a law or ordinance, but before recorded notice or commencement of improvements of which assessment is made And extended coverage may be requested to protect against such additional defects as: 64 Deed to a purchaser from one who has previously sold or leased the same land to a third party under an unrecorded contract, where the third party is in possession of the premises 69 "Mechanics' lien" claims (securing payment of contractors and material suppliers for improvements) which may attach without recorded notice 65 Claimed prescriptive rights, not of record and not disclosed by survey 70 Federal estate or state inheritance tax liens (may attach without recorded notice) 66 Physical location of easement (underground pipe or sewer line) which does not conform with easement of record 71 Preexisting violation of subdivision mapping laws* 67 Deed to land with improvements encroaching upon land of another 72 Preexisting violation of zoning ordinances* 68 Incorrect survey (misstating location, dimensions, area easements, or improvements upon land) 73 Preexisting violation of conditions, covenants, and restrictions affecting the land* ...And many more
1. Someone else owns a recorded interest in your title. 2. A document is not properly signed, acknowledged or delivered 3. Forgery, fraud, duress, incompetency, incapacity or impersonation 4. Defective recording of a document 5. Unmarketability of title 6. Lack of a right of access to and from the land 7. Mechanic’s lien protection 8. Forced removal of the residential structure - encroachments 9. Unrecorded liens by the homeowner’s association 10. Others have rights arising out of leases, contracts or options 11. Plain language 12. Post-policy encroachment 13. Post-policy forgery 14. Building permit violations - forced removal 15. Subdivision law violations 16. Zoning violations - forced removal 17. Restrictive covenant violations 18. Enhanced access feature 19. Location of the land on a map 20. Exercise of mineral rights 21. Living trust coverage 22. Automatic policy increase COMPLETE HOMEOWNER’S POLICY standard Note: This chart is intended for comparison purposes only and is not to be relied on for an explanation of policy coverage. Policy coverages are subject to the terms, exclusions, exceptions and deductibles shown in the policies. ONLY GOOD FOR A PRIMARY HOME 21 COMPARISON OF TITLE INSURANCE COVERAGE
Escrow Officer Opens Title Order With Ticor Title Customer Service Verifies Legal and Vesting if Needed Title Officer Orders Search From Title Plant Computerized Property Chains General Index Sellers & Buyers Searcher Examines Chain & General Index Required Documents are Printed Searching Department Prepares Plat Maps Tax/Bond Lien Searches Prepared by Searching Department Word Processing Operator Types Preliminary Report/Title Commitment Deliver Prelim to Escrow and Lenders New Documents/Demands & Statement of Information Submitted to Ticor Title Escrow Authorizes Recording Documents Record & Encumbrances of Record are Paid Off Title Officer Writes Title Policy Word Processing Retrieves Info & Prepares Final Title Policy Title Policy Released to Client Title Officer Reviews Preliminary Report/Title Commitment 22 © 2024 Ticor Title of Nevada LIFE OF A TITLE SEARCH
Community Property Joint Tenancy Tenancy in Common Tenancy in Partnership Title Holding Trust Community Property w/Right of Survivorship Registered Domestic Partners Parties Opposite sex marriage (husband and wife)/ same sex marriage/ domestic partners Any number of persons (can be husband and wife/same sex marriage/ registered domestic partners) Any number of persons (can be husband and wife/same sex marriage/ registered domestic partners) Only partners (any number of partners) Individuals, groups of persons, or corporations, a living trust Opposite sex marriage (husband and wife)/ same sex marriage/ domestic partners Only partners that are registered with the Nevada Secretary of State’s Domestic Partners Registry Division of Interest Owners and managerial interests are equal (Except control of business is solely with managing spouse) Ownership interest must be equal Ownership can be divided into any number of interests equal or unequal Ownership interest is in relation to interest in partnership Ownership is a personal property interest and can be divided into any number of interests Ownership and managerial interests are equal Ownership and managerial interests are equal (except control of business is solely with managing domestic partner) Title Title is in the “community”. Each interest is separate but management is unified Equal right of possession Each co-owner has a separate legal title to his/her undivided interest Title is in partnership Legal title is held by the trustee; beneficiary has equitable title Title is in the “community.” Management is unified Title is in the “community.” Each interest is separate but management is unified Possessions Both co-owners have equal management control Equal right of possession Equal right of possession Equal right of possession but only for partnership purposes Right of possession as specified in the trust provisions Both co-owners have equal management and control Both co-owners have equal management and control Conveyance Personal property (except “necessaries”) may be conveyed for valuable consideration without consent of other spouse; real property requires written consent of other spouse, and separate interest cannot be conveyed except upon death Conveyance by one co-owner without the others breaks the joint tenancy Each co-owner’s interest may be conveyed separately by its owner Any authorized partner may convey whole partnership property for partnership purposes Designated parties within the trust agreement authorize the trustee to convey property. Also, a beneficiary’s interest in the trust may be transferred Right of survivorship may be terminated pursuant to the same procedures by which a joint tenancy may be severed Personal property (except “necessaries”) may be conveyed for valuable consideration without consent of other partner; real property requires written consent of other partner, and separate interest cannot be conveyed except upon death 23 VESTING: COMMON WAYS OF HOLDING TITLE
Community Property Joint Tenancy Tenancy in Common Tenancy in Partnership Title Holding Trust Community Property w/Right of Survivorship Registered Domestic Partners Death On co-owner’s death, 1/2 belongs to survivor in severalty. 1/2 goes by will to decedent’s devisee or by succession to survivor On co-owner’s death, his/her interest ends and cannot be disposed of by will. Survivor owns the property by survivorship On co-owner’s death, his/her interest passes by will to devisee or heirs. No survivorship rights On partner’s death, his/her partnership interest passes to the surviving partner pending liquidation of the partnership. Share of deceased partner then goes to his/her estate Successor beneficiaries may be named in the trust agreement, eliminating the need for probate Upon death of spouse, his/her interest passes to the surviving spouse, without administration, subject to the same procedures as property held in joint tenancy On co-owner’s death, 1/2 belongs to survivor in severalty. 1/2 goes by will to decedent’s devisee or by succession to survivor Successor’s Status If passing by will, tenancy in common between devisee and survivor results Last survivor owns property Devisee or heirs become tenants in common Heirs or devisees have rights in partnership interest but not specific property Defined by the trust agreement, generally the successor becomes the beneficiary and the trust continues Surviving spouse owns property If passing by will, tenancy in common between devisee and survivor results Creditor’s Rights Property of the community is liable for debts of either spouse, which are made before or after marriage. Whole property may be sold on execution sale to satisfy creditor Co-owner’s interest may be sold on execution sale to satisfy his/ her creditor. Joint tenancy is broken. Creditor becomes a tenant in common Co-owner’s interest may be sold on execution sale to satisfy his/ her creditor. Creditor becomes a tenant in common Partner’s interest may be sold separately by “Charging Order” by his/her personal creditor, or his/her share of profits may be obtained by a personal creditor. Whole property may be sold on execution sale to satisfy partnership creditor Creditor may seek an order for execution sale of the beneficial interest or may seek an order that the trust estate be liquidated and the proceeds distributed Property of community is liable for debts of either which are made before or after marriage; whole property may be sold on execution sale to satisfy creditor Property of community is liable for debts of either partner, which are made before or after registration as domestic partners. Whole property may be sold on execution sale to satisfy creditor Ticor Title has provided these comparisons for informational purposes only. These charts are not to be used to determine how you should acquire ownership in the property. It is strongly recommended that you seek professional advice from an attorney and/or your tax advisor to determine the legal and tax consequences of how your title should be vested. 24 © 2024 Ticor Title of Nevada VESTING: COMMON WAYS OF HOLDING TITLE
Below is a list of items you will need before your appointment to sign your closing documents. • WIRE FUNDS Confirm you have the funds necessary to wire the amount your escrow officer indicated. Nevada’s good funds law requires funds to be wired. Please note: Wire Instructions will not change. Always call before you wire. • IDENTIFICATION There are several acceptable forms of identification which may be used during the escrow process. These include: • A Current Driver’s License • A State Issued ID • A Passport • A Green Card Some lenders may require a copy of your Social Security card at the time of closing. • LENDER’S REQUIREMENTS Make sure you have satisfied your lender’s requirements before coming to Ticor Title to sign your documents. • FIRE & HAZARD INSURANCE When you are buying a single family, detached home (and in some cases, a townhome), be sure to order your insurance before the loan has been approved. You must have the insurance in place before the lender sends the money to Ticor Title. • AFTER COMPLETING THE SIGNING After you have signed all the necessary instructions and documents, the escrow officer will return them to the lender for final review. Following the review, which usually occurs within a day or two, the lender is ready to fund the loan and advises the escrow officer, so that the necessary work can be completed to record the documents and “close” the escrow. • AN ESCROW CLOSING IS... A legal transfer of title to the property from the seller to the buyer and is the culmination of the transaction. Once the Grant Deed and the Deed of Trust are recorded, this completes the transaction and signifies the “close of escrow.” When the escrow office receives confirmation of funding, funds are disbursed. 25 SIGNING APPOINTMENT
• SOME OF THE ITEMS ASSOCIATED WITH CLOSING COSTS ARE: • Title Insurance Premium - Fee paid by an individual to ensure he has a marketable title or (in case of a lender) to ensure its lien position. • Real Estate Commission - Fee paid to a real estate company for services rendered in listing, showing, selling and consummating the transfer of property. • Transfer and Assumption Charges - Fees charged by a lender to allow a new purchaser to assume an existing loan. • Recording Fees - Fees assessed by a county recorder’s office for recording the documents of a real estate transaction. • Loan Fees - Fees charged by a lender in connection with the processing of a new loan. These may include points, origination fee and credit report. • Escrow Fees - Fees charged by a title and/or escrow company for services rendered in preparing documents necessary in the consummation of a real estate transaction. • Additional Settlement - Taxes, insurance, impounds, and interest proration, and termite inspection fees. A Ticor Title of Nevada escrow officer will be happy to review the above and other closing costs with you and explain them before you finalize your transaction and take ownership of your property. Closing costs or settlement costs are an accumulation of separate charges paid to different entities for the professional services associated with the buying and selling of real estate. 26 © 2024 Ticor Title of Nevada WHAT CLOSING COSTS ARE ALL ABOUT
• DEFINITIONS OF CLOSING COSTS Below is an overview of the types of closing costs you may incur on your loan. Some are one-time fees, while others recur over the life of the loan. When you apply for your loan, you will receive a Good Faith Estimate of Settlement Charges and a booklet that will explain the costs in detail. • Loan Origination Fee - This fee covers the lender’s administrative costs in processing the loan. A one-time fee often expressed as a percentage of the loan. • Appraisal Fee - This is a one-time fee that pays for an appraisal - a statement of property value - for the lender. The appraisal is made by an independent fee appraiser. • Credit Report Fee - This one-time fee covers the cost of the credit report that is run by an independent credit reporting agency. • Title Insurance Fees - There are two title policies, a lender’s policy (which protects the lender against loss due to defects in the title) and a buyer’s title policy (which protects you). These are both one-time fees. • Escrow Fee - Fee charged by the title company to handle funds and documents of buyers and sellers. • Document Preparation Fee - There may be a separate, one-time fee that covers the preparation of the final legal papers, including the note and deed of trust. • Prepaid Interest - Depending on the time of month your loan closes, this charge may vary from a full month’s interest to just a few days. If your loan closes at the beginning of the month, you will probably have to pay the maximum amount. If your loan closes at the end of the month, you will only have to pay a few days interest. • PMI Premium - Depending on the amount of your down payment, you may be required to pay an upfront fee for mortgage insurance (which protects the lender against loss due to foreclosure). You may also be required to put a certain amount for PMI into a special reserve account (an impound account) held by the lender. • Taxes and Hazard Insurance - Depending on the month you close, you may be required to reimburse the seller for property taxes. You will also need to pay for an entire year’s (or more) hazard insurance premium upfront. In addition, you may also be required to put a certain amount for taxes and impounds into a special reserve (impound) account held by the lender. • Recording Fees - Fee paid to county to record documents. • Inspection Fees - Fees charged for various inspections of said property. • Home Warranty Plan - Optional Warranty Package that pays for repair/replacement of home’s major systems and appliances. 27 WHAT CLOSING COSTS ARE ALL ABOUT
• Title insurance premium – owner’s policy • Documentary transfer tax (e.g. $1.10p/$1,000 of sales price--may vary by area/state) • Any city transfer/conveyance tax (recording tax) • Payoff of all loans in seller’s name (or existing loan balance if being assumed by buyer) • Interest accrued to lender being paid off • Statement fees • Reconveyance fees and any prepayment penalties • Termite inspection – according to contract (can be paid either buyer or seller) • Termite work (according to contract) • Home warranty (according to contract) • Seller’s portion of escrow fee • Any judgments, tax liens, etc. against seller • Tax proration (for any taxes unpaid at the time of title transfer) • Any unpaid home owner’s dues (can be paid by either buyer or seller) • Recording charges to clear all documents of record against seller • Any bonds or assessments (according to contract) • Title insurance premium – for lender’s coverage • Interest on new loan (from date of funding to 30 days prior to first payment due) • Assumption/change of records fee for takeover of existing loan • Recording charges for all documents in buyer’s name • Termite inspection – according to contract (can be paid for either buyer or seller) • Tax proration (from date of acquisition) • Beneficiary statement fee for assumption of existing loan • All new loan charges (except those required by lender for seller to pay) • Buyer’s portion of escrow fee • Notary fees • Home owner’s transfer fee • Any unpaid home owner’s dues (can be paid by either buyer or seller) • Inspection fees (roofing, property inspection, geological, etc.) • Home warranty (according to contract) • City transfer/conveyance tax (according to contract) • Fire insurance premium for first year THE SELLER can generally be expected to pay for: THE BUYER can generally be expected to pay for: 28 © 2024 Ticor Title of Nevada WHAT DO WE PAY?
MOVING CHECKLIST FOR Before You Move GIVE ADDRESS CHANGE TO: F Post Office F Charge accounts, credit cards F Subscriptions: notice requires several weeks. F Friends & relatives BANK F Transfer funds, arrange check-cashing in new location. F Arrange credit references INSURANCE F Notify insurance carriers of new location: life, health, fire & auto. UTILITY COMPANIES/IMPORTANT CONTACTS F Gas, electricity, water, phone and cable, sewer, trash, and HOA if applicable. F Get refunds on any deposits made. F Notify any monthly service providers MEDICAL, DENTAL, PRESCRIPTIONS, HISTORIES F Ask Doctor & Dentist for referrals. F Transfer needed prescriptions, eyeglasses, X-rays F Obtain birth records, medical records, etc. DON’T FORGET TO: F Empty and defrost freezer. F Clean refrigerator, and place baking soda to dispel odors. F Have appliances serviced for moving. F Clean rugs and clothing before moving. Have them wrapped for moving. F Check with your moving counselor: Insurance coverage, pack & unpack labor, arrival day, various shipping papers, method and time of expected payment. F Plan special care needs for infants. 29 MOVING TIPS
ON MOVING DAY: F Carry enough cash or travelers checks to cover the total cost of moving services and expenses until you make the banking connections in the new location. F Carry jewelry, prescription drugs and documents yourself. F Plan for transporting pets; they are poor traveling companions if unhappy. F Double check closets, drawers and shelves to be sure they are empty. F Leave all old keys needed by new tenant or owner with REALTOR® or neighbor. AT YOUR NEW ADDRESS: F Check on service of phone, gas, electricity, water, sewer, trash, and HOA applicable. F Check pilot light on stove, water heater and furnace. F Have new address recorded on driver’s license. F Register car after arrival in state or a penalty may be charged when getting a new license - apply for new driver’s license. F Register children in school. F Arrange for medical services: Doctor, Dentist, etc... F Order banking checks with new address. F Update voter registration. 30 © 2024 Ticor Title of Nevada MOVING TIPS
TAX DEDUCTIBLE MOVING EXPENSES: • The cost of trips to the area of a new job to look for a home. Your home shopping expedition does not have to be successful for the cost to be deductible. • The cost of having your furniture and other household items shipped, including the cost of packing, insurance, and storage for up to 30 days. • The cost of getting your family to the new home town, including food and lodging expenses on the trip. • The cost of lodging and 80% of food expenses for up to 30 days in the new home town, if these temporary living expenses are necessary because you have not yet found your ideal home or it is not ready when you arrive. • Certain costs associated with the sale of your old home and the purchase of the new one. These expenses, including real estate commissions, legal fees, state transfer taxes and appraisal and title fees, could be used either to reduce the gain on the sale of the previous home or to boost the basis of the new one. It is usually beneficial to count them as moving expenses up to the allowable dollar limits, because this gives you an immediate tax benefit. * This document is intended for reference only. Clients are advised to consult with an Attorney or CPA for any specific deductions. When you meet the IRS’s definition of a qualifying move, the following items are tax deductible. * 31 MOVING EXPENSES
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