SCHUTT LAW FIRM, P.A.
Phone: 239.540.7007
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Schutt Law Firm, P.A. - Attorney Profile
Home Closing 101
Do you know what to expect on closing day?
Most people don’t. And that can lead to some uneasiness. But help is here. The American Land Title Association, or ALTA, has created a website featuring information every homebuyer can use to help familiarize themselves with the closing process before walking into the closing
The Home Closing 101 Site
At Home Closing 101 you will find information you can use to prepare yourself for closing. The site covers topics such as title insurance, escrow fees and closing costs. So when the time comes to sign on the dotted line you’ll feel fully prepared.
Home Closing 101 is especially helpful for first time buyers. Buying a house is an exciting time and the more you know about the process, the more relaxed you’ll be going through it. Spend a little time on the site and you can walk through the home buying process, receiving explanations for each step and helpful hints on how to find the right people to help you on your journey to homeownership.
Click here to start learning about the home buying process.
What Is American Land Title Association (ALTA)?
Founded in 1907, ALTA is the national trade association and voice of the title insurance industry. ALTA members search, review and insure land titles to protect home buyers and mortgage lenders who invest in real estate.
ALTA members advocate safe and efficient transfer of real estate and insist on high standards when searching land title records and preparing insurance documents. The industry seeks to eliminate risk before insuring, which provides homebuyers with the best possible chance of avoiding land title problems. But, title difficulties can and do occur, and members offer both Owner’s and Lender’s title insurance policies as effective safeguards.
Click here to visit the ALTA website.
About Stewart Title Insurance
Stewart (NYSE: STC) is a leading provider of real estate services, including global residential and commercial title insurance, escrow and settlement services, lender services, underwriting, specialty insurance and other solutions that facilitate successful real estate transactions. Stewart offers personalized service, industry expertise and customized solutions for virtually any type of real estate transaction, through our direct operations, network of approved agencies and other companies within the Stewart family. Through a focus on integrity, smart growth and conservative management, Stewart remains committed to serving our customers, innovating and improving to meet their needs in an ever-changing market.
Please click on the link below for more information:
WHY TITLE INSURANCE?
Owning real estate is one of the most precious values of freedom in this country. You want the assurance that the property you are buying will be yours. Other than your mortgage holder, no one else should have any claims or restrictions against your home.
Title insurance is issued after a careful examination of the public records. But even the most thorough search cannot absolutely assure that no title faults are present, despite the knowledge and experience of professional title examiners. In addition to matters shown by public records, other title problems may exist that cannot be disclosed in a search. Title insurance eliminates any risks and losses caused by faults in title from an event that occurred before you owned the property.
Title insurance is different from other types of insurance in that it protects you, the insured, from a loss that may occur from matters or faults from the past. Other types of insurance such as auto, life, or health cover you against losses that may occur in the future. Title insurance does not protect against any future faults, but does protect you from risks or undiscovered interests. Another difference is that you pay a one-time premium for a policy that remains effective until the property is sold to a new owner - even if that doesn't occur for decades.
What is a Lender's Policy?
A lender's policy, also known as a loan policy or a mortgage policy, protects the lender against loss due to unknown title defects. It also protects the lender's interest from certain matters which may exist, but may not be known at the time of the sale.
This policy only protects the lender's interest. It does not protect the purchaser. That is why a real estate purchaser needs an owner's policy.
What is an owner's policy?
An owner's policy protects you, the purchaser, against a loss that may occur from a fault in the ownership or interest you have in the property. You should protect the equity in your new home with a title policy.
What does an owner's policy provide?
- Protection from financial loss due to demands that may be charged against the title to your home, up to the cost of the title policy.
- Payment of legal costs if the title insurer has to defend your title against a covered claim.
- Payment of successful claims against the title to your home covered by the policy, up to the cost of the policy.
Why the seller needs to provide title insurance?
Any purchaser will need evidence that his investment in your property is free of title defects. The title insurance policy that you provide the purchaser is a guarantee that you are selling a clear title to your real estate, unencumbered by any legal attachments that might limit or jeopardize ownership. It will reassure your purchaser that he or she is protected from any risks or losses and could help you close your deal.
Why the buyer needs title insurance?
Without title insurance, you may not be fully protected against errors in public records, hidden defects not disclosed by the public records, or mistakes in examination of the title. As a result, you may be held fully accountable for any prior liens, judgments or claims brought against your new property. If this should occur, your title policy insures that you will be defended at no cost against all covered claims up to the amount of the policy.
How much does title insurance cost?
The insurance commission approves and controls the premiums for title insurance policies. The premiums are paid only once and the cost depends upon the purchase price of the property and the policy amount must be equal to the purchase price.
What does title insurance protect from?
- Fraud
- Adverse possession
- Rights of divorced parties
- Deeds by minors
- Undisclosed Heirs
- Errors in tax records
- False affidavits of death or heirship
- Probate matters
- Deeds and wills by persons of unsound mind
- Conveyances by undisclosed divorced spouses
- Forfeitures of real property due to criminal acts
- Deeds by persons falsely representing their marital status
- Documents executed by a revoked or expired Power of Attorney
- Defective acknowledgements due to improper or expired notarization
- Mistakes and omissions resulting in improper abstracting
- Forged deeds, mortgages, wills, releases and other documents
- False impersonation of the true land owner
Learn about common real estate fraud schemes and how to protect yourself from them in this post by Schutt Law in Fort Myers, FL.
Common Types of Real Estate Fraud
Real estate fraud is a growing problem in the United States, costing billions of dollars each year. It can take many forms, from simple scams to complex schemes involving multiple parties. Understanding the common types of real estate fraud can help you protect yourself from becoming a victim.
Don't let real estate fraud steal your dreams. Protect your investment with expert legal guidance from Schutt Law Firm, P.A. in Fort Myers, FL. Call (239) 540-7007 today for a consultation and ensure your real estate transactions are secure.
1. Foreclosure Fraud
Foreclosure fraud occurs when someone tries to take advantage of a homeowner in distress. This can be done by:
- Falsely claiming to be able to help the homeowner avoid foreclosure. These scammers may charge upfront fees for services they never provide.
- Deeding the property to a straw buyer. This allows the scammer to take out a new mortgage on the property and then disappear with the money.
- Filing fraudulent documents to take ownership of the property. This is often done by forging the homeowner's signature on a deed or other legal document.
2. Loan Modification Scams
Loan modification scams are similar to foreclosure fraud, but they target homeowners who are struggling to make their mortgage payments. These scammers may:
- Charge upfront fees for loan modification services. They may promise to get the homeowner a lower interest rate or monthly payment, but they often do nothing to help.
- Convince the homeowner to sign over the deed to their property. This allows the scammer to take out a new mortgage on the property and then disappear with the money.
- Collect the homeowner's mortgage payments but not forward them to the lender. This can result in the homeowner falling further behind on their mortgage and eventually facing foreclosure.
3. Property Flipping Fraud
Property flipping is a legitimate investment strategy, but it can also be used to commit fraud. This is done by:
- Inflating the value of a property. This can be done by getting a false appraisal or by making cosmetic improvements that do not add real value to the property.
- Selling the property to an unsuspecting buyer. The buyer may end up paying far more than the property is worth.
- Using straw buyers to purchase and quickly resell properties. This can create the illusion of market demand and drive up prices.
4. Real Estate Investment Scams
Real estate investment scams often target people looking for a high return on their investment. These scams may:
- Promise guaranteed returns. No investment can guarantee a return, and any investment that promises high returns with little or no risk is likely a scam.
- Pressure investors to make a quick decision. Scammers often use high-pressure sales tactics to get people to invest before they have time to think about it.
- Use complex investment structures. This can make it difficult for investors to understand where their money is going and how it is being used.
5. Title Fraud
Title fraud occurs when someone forges or alters a property title to transfer ownership to themselves. This can be done by:
- Stealing the homeowner's identity. This allows the scammer to forge the homeowner's signature on a deed or other legal document.
- Filing fraudulent documents with the county recorder's office. This can be done by bribing or impersonating a government employee.
- Creating a fake title insurance policy. This can make it difficult for the rightful owner to recover their property.
Navigating the complexities of real estate? Avoid costly mistakes and potential fraud with the experienced attorneys at Schutt Law Firm, P.A. in Fort Myers, FL. We'll help you understand the process and protect your rights. Call (239) 540-7007 for more information.
How to Protect Yourself from Real Estate Fraud
There are several things you can do to protect yourself from real estate fraud:
- Work with reputable professionals. Choose a real estate agent, lender, and title company that you trust.
- Do your research. Before you buy or sell a property, be sure to do your research and understand the process.
- Be wary of unsolicited offers. If you are contacted by someone offering to help you with your mortgage or foreclosure, be cautious.
- Never sign anything you don't understand. If you are unsure about something, ask a lawyer or other trusted professional to review it for you.
- Keep your personal information safe. Be careful about who you share your personal information with, especially online.
If you believe you have been a victim of real estate fraud, you should contact law enforcement and an attorney immediately.
Real estate transactions should be exciting, not stressful. Gain peace of mind with Schutt Law Firm, P.A. in Fort Myers, FL by your side. We provide comprehensive legal counsel to prevent real estate fraud and ensure a smooth closing process. Call (239) 540-7007 to discuss your needs.
12601 New Brittany Blvd
Fort Myers, FL 33907
Phone: 239.540.7007
Fax: 239.791.1080
