Frequently Asked Questions
is the HUD-1 Settlement Statement?
is the HUD-1 Settlement Statement?
if I am unable to be physically present at the closing?
Although an existing general power of attorney can sometimes be insured, a special power of attorney (one which expressly authorizes the transactions being insured) is strongly preferred. The document must be properly executed and notarized. The power of attorney must be recorded to allow the transaction relying on its authority to be insured.
will the title company do if a title defect is discovered?
information will Shamrock Title, LLC require from me?
will you handle the payoff of my current mortgages on the property?
Once we receive your payoff information we will formulate the payoff for inclusion on your HUD-1 settlement statement. Please note that we add additional interest to the payoff that we receive. We take this step because many lenders will refuse a payoff that is short. We eliminate this possibility by providing a cushion in the payoff figure. This may result in you receiving a refund from your lender.
Most sellers request that we wire the proceeds from our account to their account. To facilitate the transfer, you must provide us with your account information. In the normal case, the seller will give us a deposit slip or a voided check. We do not charge for this service.
If you want us to transfer all or a part of your sales proceeds to another title company (if you are purchasing another property) then we will require that you complete an assignment of funds.
I am the buyer, how will I know how much money to bring to closing?
in a Title Search?
The most accurate description of title is a bundle of rights in real property. A title search is the process of determining from the public record just what these rights are and who owns them.
A title search is a means of determining that the person who is selling the property really has the right to sell it, and that the buyer is getting all the rights to the property (title) that he or she is paying for.
The search process will be undertaken by the title company. In most real estate transactions today a title insurance policy is purchased to assure the buyer that he or she has purchased a valid title.
In those transactions where title insurance is involved, the title company must determine insurability of the title as part of the search process. This leads to the issuance of a title policy, which insures the existence or non-existence of rights to the property.
The title insurance company will, at its own expense, defend the title and will pay losses within the coverage of the policy if they occur.
is the Chain of Title?
is a Tax Search?
A due and unpaid tax or special assessment is a prior lien or claim on the property above all others. If a buyer purchases property with unpaid and past due taxes or assessments against it, he or she is likely to find a government body placing the property up for sale to pay those taxes or assessments. A tax search reveals the status of the taxes. Title insurance protects the buyer against loss from unpaid and past due taxes and assessments.
is a Judgment and Name Search?
It is extremely important to be sure that a title is not subject to judgments against the seller or previous owners. Title insurance provides this protection. A judgment against a person named Smith may affect the title of a seller named Smith, depending on whether or not they are the same person. All possible variations of the name must be examined.
For example, the name Smith might be spelled Schmidt, Schmid, Schmidtt, Schmidz, Schmied, Schmiedt, Smid, Smythe, and so on. The name Nichols can be spelled 73 different ways from Nichols to Nychals. The task is to determine which of these applies to the owner in question. First names have to be checked, too. There are 25 foreign forms of John, including Johann, Jehan, Hans, Shaun, Gudi, and Efom.
Rights established by judgment decrees, unpaid federal income taxes, and mechanic’s liens all may be prior claims on property, ahead of the buyer’s or lender’s rights. If a judgment is discovered that constitutes a defect in the title, it is pointed out and the seller must then eliminate it before the title of the new buyer can be insured free and clear of that judgment.
is a Title Commitment?
The mortgage lender is as concerned as the buyer about the quality of the title because the property is to be security for the new mortgage loan. The mortgage lender requires assurance that it has a valid first (or another acceptable priority) mortgage lien on the property. This is not only common sense, but generally is a legal requirement of regulated mortgage lenders.
The lender’s title insurance, however, doesn’t protect the new buyer of the property. Although the land is the same, the interest of the buyer and interest of the lender are very different. The provisions of a lender’s title insurance policy are very different from those of a buyer’s policy, so the buyer should obtain his own policy, often issued simultaneously with the lender’s policy.
may a purchaser(s) hold title in Virginia?
Joint tenancy, also has a right of survivorship and can be used by any two or more individuals, regardless of marital status. A judgment docketed against one joint tenant will reach their interest in the property.
Tenancy in common can be used by any two or more individuals. It does not have an automatic right of survivorship and upon the death of one tenant in common their interest in the property passes through the estate. A judgment against one tenant in common will reach their interest in the property.
Finally, an individual may purchase property in his or her own name.
The foregoing is a summary only and any further, more detailed questions should be directed to an attorney who is licensed to practice in the State of Virginia.