Archive for June, 2010

How To Select A Realtor

Friday, June 25th, 2010

The sale or purchase of real estate is often the largest single purchase we make, and involves negotiation and preparation of legal documents and the consequences can be monumental.  Choose your Realtor® just like you would a physician, attorney or accountant.  This process should involve a face to face interview with several persons who you believe would capably represent your interests. The personal interview will better enable you to determine if you and the Realtor® can work well together and whether the Realtor® demonstrates competence.  Also, before you hire a real estate agent, ask if they are a member of the National Association of Realtors®.  A Realtor® is professional, ethical and experienced.   Interview several potential agents.  Don’t be shy.  Ask all of the questions you might have, especially those which will confirm the person’s integrity, depth of experience and knowledge of real estate, including these:

1.         How long have you been in business?

2.         What certifications and designations do you hold, such as ABR, SFR, etc?

3.         Will both you and your Broker represent only my interests in the transaction?

4.         May I have a list of references from clients you have served who I could contact to hear first hand about their experience?

5.         May I have a list of persons actively involved with real estate or related field that you have done business with and would recommend you to me?

6.         What fees do you charge, and how are they paid?

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What Is Title Insurance And Why Is It Important?

Thursday, June 24th, 2010

Title insurance is an insurance policy that guarantees that the property title is generally free from the problems of hidden liens and claims.   Most title insurance policies protect purchasers against a loss arising when there is a title defect (when the status of the title to the purchased property is other than as represented), so if the insured (the purchaser) suffers a loss as a result of a title defect, the title insurance company will reimburse the insured for that loss, and any related legal expenses, up to the face amount of the policy, which is usually the original purchase price.

Title insurance differs significantly from other forms of insurance. While the functions of most other forms of insurance is risk assumption through the pooling of risks for losses arising out of unforeseen future events (such as death or accidents), the primary purpose of title insurance is to eliminate risks and prevent losses caused by defects in title arising out of events that have occurred in the past.

Title insurers perform an extensive search of the public records to determine whether there are any adverse claims to the subject real estate. Those claims are either eliminated prior to the issuance of a title policy or their existence is excepted (deleted) from the coverage offered.

Why should you obtain an Owner’s Title Insurance Policy?

Title insurance can provide a range of benefits to the Purchaser.  As a purchaser of real estate, you should have protection against serious financial loss due to a defect in the title to the property purchased. A title insurance policy may cover both claims arising out of title problems that could have been discovered in the public records, and those so-called “non-record” defects that could not be discovered in the record, even with the most complete search.

How much does the Owner’s Title Insurance Policy Cost?

 As a general rule, it is the custom in our market, that the Seller pays the one time, single, premium for the Purchaser’s Owner’s Title Insurance Policy, and the Purchaser pays the premium for the policy insuring Purchaser’s lender.

 Be sure that your Realtor® is familiar with and understands title insurance issues.

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