Saturday, July 25, 2009
Title Insurance Class
If you'd like more detail and answers to questions about title insurance, consider attending a FREE class, Title 101, offered by Jerrold F Spaeth, the General Counsel at 1st Integrity Title, Wednesday, July 29, from 10-12am. Sign in here on my web site. One of the things to like about Your Castle Real Estate is the variety of classes offered to buyers, sellers, investors, and realtors alike!
Friday, July 24, 2009
Title Insurance Insurance Required
WHY?
Every real estate buyer expects to get a title that is free and clear. Lenders don't want to risk their first position to claim the title they're lending on in case of default. To make sure there is nothing to taint the title, all loans using the property as collateral and judgements against previous owners must be removed before the buyer can have a clean title. It could be an expensive, legal mess if someone showed up claiming a legal right to your new home!
WHAT?
Title insurance is one of those common closing costs you expect when buying and selling real estate or refinancing a loan. Lenders and informed buyers require a legal review of a property's chain of title to determine if there are any outstanding claims on the property or against the current owner (or previous claims against previous owners when they owned the property). So the title company researches public records for mortgages, secured lines of credit, possible judgements against the owners, similarly named people with judgements, unpaid taxes, mechanic's liens, easements, HOA rules and records, rights of way, and other items that could place a claim on the property being sold. Lenders require a policy to cover the value of the loan and buyers require a policy to cover the purchase price of the property. So, there are usually 2 policies written for each transaction. DORA (the Colorado Dept of Regulatory Agencies) has a more indepth explanation of title insurance at http://www.dora.state.co.us/pls/real/Ins_Survey_Reports.Report_Selection_Criteria?p_report_id=TITLE&p_label. The title commitments for each policy are delivered to the buyer and lender after the title transfer is recorded in the county where the property is located.
WHO PAYS & WHEN?
Title insurance is paid once, at closing. The fee covers costs of the title search, examination, policy writing and risk. By law, in Colorado, the buyer and seller can choose their own title insurer. Practically, however, since discounts are given when the same company provides the title insurance for the lender and for the buyer, usually only one company handles each transaction. Since most people deal with title insurance infrequently, it is customary for the realtor or lender to suggest a company. Further, in Colorado, it is usually the seller who chooses the company in a transaction, since they usually pay for the property title commitment-the more costly of the 2 policies written at closing. More importantly, a lender's policy has different provisions than a buyer's policy and is written more to assure the lender they have a valid first position claim against the property. Buyers want assurance that there is not and will not be any hinderance to transferring the title to them and that the transferred title will be marketable later.
HOW MUCH?
Each title insurer is required to post their rates. However, rates tell nothing about the closing services nor the depth of the coverage of the insurance policy. Rates are posted at http://www.dora.state.co.us/pls/real/Ins_Survey_Reports.Report_Selection_Criteria?p_report_id=TITLE&p_label .
There's much more to title insurance, so feel free to ask or comment.
Every real estate buyer expects to get a title that is free and clear. Lenders don't want to risk their first position to claim the title they're lending on in case of default. To make sure there is nothing to taint the title, all loans using the property as collateral and judgements against previous owners must be removed before the buyer can have a clean title. It could be an expensive, legal mess if someone showed up claiming a legal right to your new home!
WHAT?
Title insurance is one of those common closing costs you expect when buying and selling real estate or refinancing a loan. Lenders and informed buyers require a legal review of a property's chain of title to determine if there are any outstanding claims on the property or against the current owner (or previous claims against previous owners when they owned the property). So the title company researches public records for mortgages, secured lines of credit, possible judgements against the owners, similarly named people with judgements, unpaid taxes, mechanic's liens, easements, HOA rules and records, rights of way, and other items that could place a claim on the property being sold. Lenders require a policy to cover the value of the loan and buyers require a policy to cover the purchase price of the property. So, there are usually 2 policies written for each transaction. DORA (the Colorado Dept of Regulatory Agencies) has a more indepth explanation of title insurance at http://www.dora.state.co.us/pls/real/Ins_Survey_Reports.Report_Selection_Criteria?p_report_id=TITLE&p_label. The title commitments for each policy are delivered to the buyer and lender after the title transfer is recorded in the county where the property is located.
WHO PAYS & WHEN?
Title insurance is paid once, at closing. The fee covers costs of the title search, examination, policy writing and risk. By law, in Colorado, the buyer and seller can choose their own title insurer. Practically, however, since discounts are given when the same company provides the title insurance for the lender and for the buyer, usually only one company handles each transaction. Since most people deal with title insurance infrequently, it is customary for the realtor or lender to suggest a company. Further, in Colorado, it is usually the seller who chooses the company in a transaction, since they usually pay for the property title commitment-the more costly of the 2 policies written at closing. More importantly, a lender's policy has different provisions than a buyer's policy and is written more to assure the lender they have a valid first position claim against the property. Buyers want assurance that there is not and will not be any hinderance to transferring the title to them and that the transferred title will be marketable later.
HOW MUCH?
Each title insurer is required to post their rates. However, rates tell nothing about the closing services nor the depth of the coverage of the insurance policy. Rates are posted at http://www.dora.state.co.us/pls/real/Ins_Survey_Reports.Report_Selection_Criteria?p_report_id=TITLE&p_label .
There's much more to title insurance, so feel free to ask or comment.
Thursday, July 23, 2009
Denver Real Estate News
Are you a real estate news junkie? Some of my readers are real estate insiders. This new venture may just give you the fix you need. Written by John Rebchook, former real estate reporter for the Rocky Mountain News, and Oliver Frascona, a well-known Colorado real estate attorney, the posts so far have been informative and spot on with timely information. Check it out, if you want the first scoop. www.insiderealestatenews.com
Recent articles include:
* Foreclosures subside, but job losses a worry
Denver-area foreclosures, growing like a cancer a for years, are showing some strong signs that they are receding. Go to Full Article
* Foreclosure investing hot
Outside investors with cash or lines of credit, are increasingly picking up foreclosed homes at public trustee auctions. Go to Full Article
Recent articles include:
* Foreclosures subside, but job losses a worry
Denver-area foreclosures, growing like a cancer a for years, are showing some strong signs that they are receding. Go to Full Article
* Foreclosure investing hot
Outside investors with cash or lines of credit, are increasingly picking up foreclosed homes at public trustee auctions. Go to Full Article
Tuesday, July 14, 2009
New Colorado rules for CO detectors
Did you hear? As of July 1, 2009, carbon monoxide detectors with alarms are now required for homes that are for sale or rent in Colorado. You may remember the publicized CO deaths in the Lofgren family last November 2008 at a vacation home in Aspen and in the Johnson family last January 2009 of their daughter attending college in Denver. These deaths lead to the recent law (CRS 38-45) . Approved CO detectors need to be located within 15 feef of the entrance to all bedrooms. Also, in multi-family rentals, an approved CO detector needs to be within 25 feet of any fuel-fired heater, appliance, fireplace, or garage.
What makes a CO detector "approved"? It follows the Consumer Product Safety Commission (CPSC) standards. Read the label and look for: UL standard 2034 or IAS standard 6-96 .
How do you know it is working, since CO is a colorless, odorless, toxic gas? When installing it, of course, follow the manufacturer's instructions. Make sure an alarm is within 15 feet of each sleeping area and has a working battery or is tied into the home's electrical wiring. CO mixes with air, so the detector needs to be in the open and can be placed at any level. There is a test button, like those on a smoke detector, to make sure the alarm sounds when the circuit is closed. The CO detector works by closing the circuit and turning on the alarm when CO levels of a certain amount are present for a set amount of time. The amounts of CO are measured in parts per million (ppm). Below 70 ppm CO, most people don't have any symptoms. CO blocks the body's ability to use O2. The CDC has a good explanation of this. Symptoms of increasing CO poisoning include headaches, dizziness, fatigue, nausea, up to chest pain, unconsciousness, and death.
What do you do if the CO detector alarm sounds and you're not feeling the symptoms listed above? Open the windows, turn off the heater or whatever is burning fuel and call the qualified technician for that fuel burning device. If you're feeling the symptoms above when the alarm sounds, evacuate the house and call 911. The fire department has equipment to measure CO levels and can provide needed first aid.
Sellers, landlords, buyers, and renters have one more safety device to be aware of in their residences. Home sellers and landlords are to install these devices. Home buyers and renters need to check for these, as they would for smoke detectors. Distressed homes being sold "as-is" may not have CO detectors installed and may not have sellers who will/can install the detectors, so buyers be aware of that additional fixup the property will need.
What makes a CO detector "approved"? It follows the Consumer Product Safety Commission (CPSC) standards. Read the label and look for: UL standard 2034 or IAS standard 6-96 .
How do you know it is working, since CO is a colorless, odorless, toxic gas? When installing it, of course, follow the manufacturer's instructions. Make sure an alarm is within 15 feet of each sleeping area and has a working battery or is tied into the home's electrical wiring. CO mixes with air, so the detector needs to be in the open and can be placed at any level. There is a test button, like those on a smoke detector, to make sure the alarm sounds when the circuit is closed. The CO detector works by closing the circuit and turning on the alarm when CO levels of a certain amount are present for a set amount of time. The amounts of CO are measured in parts per million (ppm). Below 70 ppm CO, most people don't have any symptoms. CO blocks the body's ability to use O2. The CDC has a good explanation of this. Symptoms of increasing CO poisoning include headaches, dizziness, fatigue, nausea, up to chest pain, unconsciousness, and death.
What do you do if the CO detector alarm sounds and you're not feeling the symptoms listed above? Open the windows, turn off the heater or whatever is burning fuel and call the qualified technician for that fuel burning device. If you're feeling the symptoms above when the alarm sounds, evacuate the house and call 911. The fire department has equipment to measure CO levels and can provide needed first aid.
Sellers, landlords, buyers, and renters have one more safety device to be aware of in their residences. Home sellers and landlords are to install these devices. Home buyers and renters need to check for these, as they would for smoke detectors. Distressed homes being sold "as-is" may not have CO detectors installed and may not have sellers who will/can install the detectors, so buyers be aware of that additional fixup the property will need.
Subscribe to:
Comments (Atom)