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
Getting title insurance will probably be a request from your mortgage lender, but it never hurts to know what the process entitles. Here is a quick guide to the title insurance process in Fort Myers, FL.
You did it! You’re almost done with the long process of buying a home. You found a house, successfully bid on it, and now you need to complete a few steps before officially becoming a home owner. As your mortgage lender will request, you need to get a home appraisal, and get title insurance as a condition for your loan. You’re probably interested in learning what exactly goes on in the title insurance process in order to understand your lender’s request, which is why Schutt Law- Title Insurance Agency has enlisted the six steps in the title insurance process in Fort Myers, FL.
Step 1: Apply for Title Insurance
In order to get the title insurance process started, you need to call your chosen agency and request it. You should do this right before your offer has been accepted because it’s a process that needs to be completed before closing .When you call Schutt Law- Title Insurance Agency they will provide a brief report with all the basic information about the property such as, how the title is presently on record.Step 2: Record Search and Title Examination
Once the title researcher has established all the basic information, they will look into the home’s historical records. The records should contain information about mortgages, liens, wills, and current problems with the deed to the property. It’s actually really common to find deed problems during the title search. There are plenty of reasons why they can arise: missing heirs, unknown liens, encroachments, illegal deeds, and sometimes accidental errors when transcribing the information in public records. All title problems should be fixed before closing or you’ll be stuck with someone else’s responsibilities.Step 3: Binder Issuance
After the title record has been examined your title agency will prepare a binder, also known as a preliminary title report. The report stipulates the protection provided by the title insurance company. You will find the amount of coverage, the protected parties, the policy terms and conditions, and the limitations under which the coverage functions. These limitations will detail any clouds found on the title that might affect the sale. This is the moment when you make your decision if you’re going to go ahead with the title insurance process or let it go. Talk to Schutt Law-Title Insurance Agency if you have any questions about the preliminary title report. It’s always better to make a decision with all the possible information, and they will gladly answer every question that you have. Remember that their number is (239) 540-7007.Step 4: Revealing the Clouds
Clouds are unrevealed issues on the title. There are plenty of reasons why they can appear: unpaid taxes, inaccurate services, foreclosure attempts, encumbrances, and other recent occurrences under the present owner. Don’t forget that any title issue left behind by the previous owner becomes your responsibility and sometime fixing those issues can be costly.Step 5: Clearing the Clouds
Now that the binder has made the clouds visible, an investigation is started to find their origin in order to find a solution. Sometimes, clouds can be easily resolved in a matter of hours. Some other times, the process can take weeks or even months to be resolved, if they require legal action. It will probably be a pricey affair to deal with.Step 6: Pay a Title Insurance Premium
Your last step in getting title insurance for your new home in Fort Myers, FL, is to make a single premium payment. Unlike any other types of insurance, title insurance needs to be paid for only once and you and your heirs are protected for life…or until someone decides to sell off the property. The premium will be paid along with other legal fees and taxes as part of the closing tasks. As soon as you make the premium payment, one of the copies of the title insurance policy will go to your mortgage lender and another to the property’s records. After this you can forget all about having to deal any more payments for your title insurance.Begin Your Title Insurance Process in Fort Myers, FL
If you’re sure that you’ve found “The One” and your offer has been accepted, you should do all you can to protect your new investment. As you know all kinds of insurance are available, although they can be costly, many of them are truly necessary. Title insurance is one of those needed insurances. Go ahead and call Schutt Law-Title Insurance Agency at (239) 540-7007 to begin the process pronto. Soon you’ll be in your new home resting comfortably knowing you’ve got all the protection you need.12601 New Brittany Blvd
Fort Myers, FL 33907
Phone: 239.540.7007
Fax: 239.791.1080
