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
If you are still feeling puzzled about renting vs. buying a house, the experts back at Schutt Law in Fort Myers have prepared this post to help you make the best decision according to your current circumstances.
If you want to know more about the implications of having title insurance, contact the title insurance professionals at Schutt Law in Fort Myers at (239) 540-7007. They will be glad to guide you and respond to all your questions concerning title insurance and real estate queries such as renting vs. buying a house.
Let’s Get Down to Business
You've likely encountered the constant doubt about renting vs. buying a house whenever you daydream about making a home of your own. This investment is an important step that requires you to evaluate and financial planning in different aspects of your life while considering multiple variables. For that reason, it's key to ask yourself the following questions to expedite this process and find the most cost-efficient option according to your lifestyle.The Questions That Will Help You Make Your Conclusion
For some people, the rent is reduced to what they can afford at the moment. However, the answer to the discussion of renting or buying a house is not so simple since it depends on your financial health. When you're considering what to do, the following questions will help you see your options. Remember that your preferences may change over the years since living by yourself is not the same as living with a family and taking care of each member. So, the questions you must answer are the following:- Where do you want to live?
- Who will live in the house?
- How much can you pay?
- Do you have money at your disposal to pay a down payment?
- Is it possible for you to access a mortgage loan?
- How long do you think you will live in that house?
- Do you want stability or flexibility?
What Are the Advantages of Renting a House?
There are different costs associated with renting or buying a home. A hefty deposit is required for the majority of rental contracts or leases. This payment covers the landlord's property against deterioration and damages caused by the lessee. Generally, as a tenant, you will pay the first and last month's rent when you sign the lease. But, each month, you will have to pay the money for the property's rent and the services you consume and cover the maintenance service expense (if there is such a fee).Getting title insurance is not an excessive decision regarding your rights of ownership. If you'd like to know more, reach out to the experts at Schutt Law in Fort Myers by calling (239) 540-7007 and let them handle your purchase of title insurance or advise you on renting vs. buying a house.
Rents Involve Smaller Costs
An apartment's or a loft's monthly rent is usually cheaper than what you would pay for a monthly installment of a mortgage loan. Plus, maintenance costs tend to be minimal. When you live in a rental property, you don't have to put much into it; it is enough to keep it well cared for.Renting Allows You to Change Housing Easily
If you need to leave the place you live in for some reason, you can change to another quite readily, and it is common for them to ask you to give enough advance notice. Plus, you can save the difference in costs and buy other assets. For instance, when you only pay rent, you can set aside an amount to save or make an investment.What Are the Benefits of Buying a House?
If you want to buy a house or an apartment, having the money for the down payment is key, which will be around 20% of the price of the house's intrinsic value. In addition to this, you will need to plan the monthly payment of the mortgage loan. Depending on the type of credit you have chosen, fees may increase or decrease over time. Although it's a considerable investment, it can give you several benefits such as:Increasing Your Assets
You will have added a crucial asset to your portfolio at the end of the mortgage loan payment: real estate. Venturing into real estate and homeownership is one of the most efficient and safest investments as properties have surplus value. The real estate market is one of the most stable options to make your money work for you. In times of uncertainty, it's one of the best ways to diversify portfolios.Buying a New or a Used House?
You can capitalize on the capital gains accumulated over time. If the home's value increases year by year, then selling that property will help you collect a higher revenue after the deal is closed.Having title insurance is a warranty that protects your ownership rights. If you'd like to know more about this service, call Schutt Law in Fort Myers to get all your doubts clarified by their experts. Dial (239) 540-7007 or email glenysh@schuttlaw.com if you're curious about title insurance or renting vs. buying a house.
12601 New Brittany Blvd
Fort Myers, FL 33907
Phone: 239.540.7007
Fax: 239.791.1080
