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
Receiving a counteroffer to your offer on the house is a good thing. You get to negotiate a more suitable deal for both parties. Here are some things you can bargain for.
It’s Time for the Negotiations to Begin
The process of buying a house is full of the unexpected. Will you find your dream home? Will it be within your price range? Will the seller accept your offer? You never know! But when you do find a house and you choose to place an offer on it, there are three possible outcomes. The seller can accept your offer, they can reject it, or they can present a counteroffer. If your offer was accepted, you’re one step closer to becoming a homeowner. If it was rejected, your search continues. But if you get a counteroffer, the fun negotiating part begins. It means that the seller wants to sell you their home, but they need a better deal. This is the perfect time to negotiate a better arrangements. Remember that a lower price isn't always the best option, here are some things you can negotiate.6 Things You Can Negotiate Into a Real Estate Deal
Closing Costs
The closing costs are first or final payments and one-time fees you need to make on the day of the closing. There are different payments for both the buyer and the seller. For the buyer, they usually include the title insurance, home appraisal and inspection, and some others. The buyer ends up paying around 2-5 percent of the closing costs, separate from the total cost of the house. The seller, usually pays for the transfer taxes, the owner’s title insurance, and the warranties they include with the house. You can add a stipulation to divide the financial burden equally. When you do come to an agreement, contact Schutt Law-Title Insurance Agency at (239) 540-7007 to get the title insurance process in TARGET started.Fixtures, Furniture, and Other Items Left in the Property
Light fixtures and major appliances are usually included in the sale unless stated otherwise in the contract. It also varies from state to state. You do need to make sure that both yourself and the seller are on the same page when it comes to that. If you don’t want something to stay in the house, like washing machine or dryer, you can add that condition to the contract as well. Maybe you like some of the seller’s furniture or décor ;that’s not included in the sale. You can offer to pay more to cover some of those elements and see if they accept. Talk to your realtor about your state’s requirements, as most states require that any personal property sold along with the property appears on a separate contract than the real estate deal.The Warranty
There are some systems like the HVAC, plumbing, and hot water system that will remain with the house. You want to make sure that they’re fully functioning and won’t break as soon as you move in. You can ask the seller to include a warranty for your first year of ownership to cover the repairs in case something goes wrong with the agree systems or appliances.Necessary Repairs
All houses have flaws a home inspection, and a home appraisal will both prove that. The house you want probably needs a whole bunch of different repairs. You can negotiate with the seller to buy the place for a lower price and deal with the repairs on your own, get them to do all the repairs and pay a bit extra, or pay for half of the repairs. You need to be careful about including specific details in the contract and don’t forget to ask for the receipts and warranties of everything that gets done.Moving Day
As a buyer, the moving day is one of the best bargaining chips at your disposal. ;Usually, you get to move in as soon as the title has been transferred, but you can negotiate that. If you have time on your side and are in no hurry to move in, you can arrange a flexible move-in date. Perhaps the seller is not yet ready to move out because they still haven’t found a new house or their home buying process is still underway. You can lease back them back the house for a determined amount of days. They will have to pay rent, the utilities, and upkeep cost while they remain in the house, but they won’t need to move out in a hurry.Get Your Title Insurance Process in TARGET Started
You need to purchase your title insurance policy before the day of the closing arrives. Once you come to an agreement with the seller, call Schutt Law-Title Insurance Agency at (239) 540-7007 to request your title insurance policy and get the process started. ;12601 New Brittany Blvd
Fort Myers, FL 33907
Phone: 239.540.7007
Fax: 239.791.1080
