Archive for category: Helpful Resources

What The Beatles Should Know About St. George Short Sales

Well, what the Beatles should know about St. George short sales depends on which Beatles we’re talking about. Paul and Ringo are still alive, but they are rarely, if ever, seen in the Saint George, Utah area. And if Paul and Ringo should know about a St. George short sale, they’re either looking for a bargain or they simply love the beauty and climate of Washington County for the next of their many houses.

Whether those Beatles are interested in the real estate of Southern Utah is for me to know and for you to find out. (You wouldn’t want me to fall out of their graces for revealing secrets, would you?) Perhaps there are other Beatles who may wish to buy a house in St. George. Beatle-loving entomologists, who changed their name to Beatle or folks born with the surname Beatle are options to pursue a St. George short sale; and while ESPN broadcaster, Michelle Beadles, may love St. George, her name is spelled with a D.

Regardless of which Beatles or blokes are considering a St. George short sale, they should know the following six things.

When the owner of a property owes more than it’s worth, he or she may be in the less-than-ideal financial position to sell the property as a short sale. This means that he must get the lender’s permission to sell the house or land for less than what is owed. If the seller convinces the lender that he is in financial hardship and can’t continue to make the mortgage payments, the lender will often agree to a sale of the property for less than the balance of the mortgage. This is preferable to default and foreclosure for the lender, because, for example, $200,000 is better toward a debt of $235,000 than nothing, and foreclosures cost the lenders much more.

Selling your house as a short sale is softer on your credit score than a foreclosure is. You can sell the house, get some emotional relief, and move on to preparing to buy another home, with little hit on the Fico. Keep in mind that the longer the lender takes to approve the short sale and the offer from a buyer, the more months you’ll be late on your mortgage payments, which do affect the FICO score.

The seller doesn’t have to pay sales commission to the real estate agents; the lender pays them.

Because the lender has to approve both the seller’s application for a St. George short sale and also the offers by potential buyers, the sale can take months, usually about 120 days.

The number of prospective buyers of short sales is smaller than for typical real estate because of the waiting time. Some buyers simply don’t have months to wait in purchasing a house, so you have less competition when making offers on St. George short sales.

When making an offer on a short sale, be aware that because of the likely financial duress of the seller, he may not have been able to maintain the property very well, so it will likely need repairs and fix-ups.

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What The Beatles Should Know About St. George Short Sales

Article By: Clear Content Marketing

What Are CC&Rs?

CC&R stands for Declaration of Covenants, Conditions, and Restrictions. It is a list of mandatory requirements that apply to all who live inside the boundaries of a particular homeowner’s association (HOA). HOAs typically exist in covenanted and planned communities. Essentially, St George CC&Rs are lists of neighborhood rules. If you buy a home in a community like this, it is more than likely that CC&Rs will apply. Some of you may already live in such a community and are familiar with the types of statutes that St George CC&Rs tend to contain. Not only do they lay out general neighborhood rules, but they also describe the limitations of property ownership such as what you can and cannot do with your home and property.

The idea behind a CC&R is the prioritization of community property values. They act as a special effort to preserve and protect these values by creating a level of uniformity among homeowners. For the most part, requirements found in St George CC&Rs are sensible and logical and require very little effort to conform. Things that most homeowners do regularly anyway, such as weekly lawn-mowing and weed-pulling, are common examples. Some St George CC&Rs, on the other hand, contain rules that seem completely unreasonable and unnecessary. Examples can include being required to park your car in the garage even though you have a perfectly acceptable and functioning driveway, or being not being allowed to construct a fence around your property, or being limited to only certain sizes and/or breeds of dogs. Many St George CC&Rs even have restrictions on certain paint colors when it comes to painting your own home and other similar constraints. Basically, homeowners who live in communities with active CC&Rs need to always be in the habit of checking them to assure compliance even in the most seemingly ordinary activities such as gardening and remodeling.

Penalties for Non-Compliance

When you close on your home, you will sign a lot of paperwork. One of the documents that will require your signature is one stating that you agree to comply with the CC&Rs that your HOA has set forth (if applicable). Violating the covenants, conditions, and restrictions of your HOA will most certainly result in one of many potential consequences which can include a lawsuit against you, forced compliance, privilege suspension (pool, gym, etc), fines, and any other possible repercussion that your HOA has specified. To give an example, we’ve found that common CC&Rs that defiant homeowners often try to skirt are the ones relating to pets. If your HOA restricts pets to 30 pounds or less and you attempt to hide your Great Dane (somehow) and are subsequently found out, it is likely that the HOA will fine you and/or require you to get rid of Duke, or otherwise move out of the community.

Just make sure that before buying a home in a community with an HOA and St George CC&Rs that you’ve read them all. There very well could be something on that list that prevents you from moving in. Contrarily, there might be a CC&R that is so personally attractive that it persuades you to move there.

Assessments and Dues

St George CC&Rs are almost always associated with monthly or annual dues. Covenanted communities require all residing homeowners to pay these fees on a regular basis. The dollar amount varies between communities, as do non-payment penalties and other assessments that the HOA deems applicable. In situations of non-payment, homeowner’s associations can legally get a lien on your home and threaten foreclosure if the St George CC&Rs articulate such an outcome. Anyone who finds themselves in such a situation has the option to contact a lawyer if they feel HOAs are being unreasonable, hypocritical, or unnecessarily harsh.


What Are CC&Rs?

St George CC&Rs

Article by Clear Content Marketing

10 Best Kept Secrets for Buying a Home – Part 2

This article is a continuation of the Saint George home buyer article 10 Best Kept Secrets for Buying a Home – Part 1.

Let Instinct Influence Your Purchase – Not Emotion

You’re in for heartache if you let emotion be the driving factor to purchasing a home. As a Saint George home buyer, remember that “falling in love with a home” and simply going with it on those grounds alone often has consequences, mostly financial ones. Letting emotions choose your home for you typically ignores instinct and hinders your ability to understand value when it’s presented to you. A Saint George home buyer is an investor. That’s what a home purchase is, so be wise.

Homes Need Physical Examinations

You’d never purchase a used vehicle whiteout taking a look underneath the hood. Use the same mindset when you hit the housing market. Hire a home inspector and gain valuable information about the property. The average cost is around $200 for this service but can result in thousands of dollars of savings. It’s a fantastic way to obtain an opinion from a third party who is unbiased. If issues are found by the inspector, you then have some leverage for getting a lower price. How many stories have you heard of a Saint George home buyer purchasing a home they thought was in great shape but later learned that wasn’t the case? Avoid that with a home inspector.

Understand How to Bid

When a Saint George home buyer places an initial bid on a property, there should be two things and two things only that influence the amount: your realistic opinion on what the property is worth and what you can afford. You don’t want to insult the seller by making an outrageously low bid, but at the same time you need to make sure you are getting a fair price. Low first-time bids tend to be commonplace in general, but this shouldn’t be considered a wise practice in every scenario. Calculating an approximate average price per square foot is a good idea and will help you understand what the market is doing in a particular area. If you can find out near-future intentions of neighbors, this will also provide a benefit to you as a Saint George home buyer. Such knowledge can often predict future decreases in property value. If you find out that a particular seller is behind on their property taxes, this is a wonderful negotiating tool. This information can be acquired by visiting the local county clerk’s office. Gathering all of these information tools puts you at an advantage as a Saint George home buyer because the seller will see that you’ve given their property careful thought which will make you stand out.

Canvas the Neighborhood

Don’t be creepy, but get to know the area. Visit the neighborhood and particular streets with homes of interest to you. Go often. Go during different times of the day and evening. A Saint George home buyer can find out a lot about a neighborhood pretty quickly by doing this. You may discover that the area is in fact not a place you see yourself living despite a home of interested being located there. In addition to getting a feel for the location, be sure to find out distances from the property in question to places you will frequently go like work, the supermarket, gas stations, schools, event centers, etc. Another thing to not overlook is the school district. Even if you don’t have kids, this is important information to know. A notoriously good or bad school district influences the housing market in a surprisingly substantial way. Be a studious Saint George home buyer to increase the quality fo your opportunities.

10 Best Kept Secrets for Buying a Home – Part 2

Saint George Home Buyer

Article By: Clear Content Marketing

 

How Do I Transfer Title From A Personal Name To An LLC?

Forming a limited liability company, or LLC, and then having a property title transferred to it from the owner is a common course of action taken by real estate investors and rental owners. This is because if a lawsuit is filed against the person who owns the property (if someone is injured on the property, for example), that person’s liability is limited as a result of the St George title transfer. Furthermore, it is a good idea to establish a series of LLCs if you are someone who owns numerous rental properties in Washington County or beyond. This allows each one to be insulated from liability claims that may have to do with other properties. Here’s what happen in order to complete a St George title transfer.

If You Haven’t Already Formed An LLC, Do So

This can be done in person or online. Correspond with whatever agency in your state handles business filings to create an LLC. This is a relatively simple task to complete and is a lot less involved than you might think if you have never formed an LLC before.

Get A Tax ID Number And Open An LLC Bank Account

Go to the IRS’s official website and fill out the appropriate form to get a Tax ID Number. You may need a EIN (Employer Identification Number), also called a Federal Tax ID Number if your LLC has employees or multiple owners. This number will allow you to open a bank account using the name of your LLC. You need to do this because the finances associated with your LLC need to be separate from your personal finances for obvious reasons but also because it is necessary to avoid losing your LLC’s liability protection.

Get The Necessary Form For A Deed

Depending on the state, deed requirements can vary but in most cases you will go to the recorder’s office of your county to get a deed form. Your warranty deed will be necessary in order to complete the St George title transfer. If for some reason you are having issues acquiring this form, let us know at Eagle Gate Title and we’ll help you.

Fill Out The Warranty Deed, Sign It, and Record It

In some states, you are required to go to the county offices to obtain the warranty deed. However, when dealing with a St George title transfer at Eagle Gate Title, we can do this for you. We’ll make sure it gets signed and recorded properly so you don’t have to add that to the list of things you need to do. Remember that when reviewing the warranty deed on your own, the LLC is the grantee and you are the grantor.

Have Your Lease Changed

To complete a St George title transfer, all leases need to show that the LLC is now the tenant’s landlord. Rent payments need to go into the LLC bank account that you created.

Conclusion

Fundamentally, the main reason property owners make St George title transfers  is to decrease personal liability in the event of a claim that is property-related. Remember that if you make a St George title transfer, you also need to get liability insurance through a licensed insurance agent so that other claims are also covered. And remember that Eagle Gate Title can help you accomplish every one of these St George title transfer steps, if you wish. We can help navigate any possible hiccups during the process, answer any questions that come up, and provide advice whenever and wherever needed. Transferring a title from a personal name to an LLC shouldn’t be a too much of a headache at all.



  

How Do I Transfer A Title From A Personal Name To An LLC?

St George Title Transfer

Article by Clear Content Marketing 

Understanding Property Deeds

St George property deeds are legal instruments that transfer some property right in real estate. A deed contains three distinct pieces of information: a signature from the individual who is transferring property, the names of all parties involved, and a description of the property being transferred.

Deed Types

There are different types of St George property deeds, all of which are used in specific ways in certain circumstances. These include warranty deeds, grant deeds, and quitclaim deeds. Warranty deeds supply further promises in addition to transferring ownership (including the promise of a title with no liens). The party who transferred property is responsible for compensating the buyer if promises are unable to be kept for any reason. Grant deeds, in addition to transferring ownership, assure the buyer that the property being sold has not been handed over to another person. Quitclaim deeds transfers property ownership rights from the transferring party to someone else. This is the deed type most often used when ownership rights aren’t clear.

Joint Ownership

Even after describing the three main types of St George property deeds, one particular questions still comes up often. How does one purchase property jointly with another person?

Joint ownership of property can be accomplished in one of three ways. The way that one chooses to go about this is very important. The three ways are tenants in common, joint tenants, and tenants by the entirety. Tenants in common allows the parties involved to obtain unequal shares if they desire. It also makes clear the person(s) to which one’s share will fall to upon death of an ownership holder. Joint tenants is the option chosen when both parties desire equal shares of ownership. If one of the ownership holders passes away, their shares fall to the co-owner. The property right in the person’s will does not need to be disposed of under a joint tenant situation. Tenants by the entirety (sometimes called community property) involves spousal property in that both people have full ownership of the entire property and neither can transfer any ownership rights anywhere whatsoever without the other’s consent.

Property Deed Requirements

St George property deeds need to be witnessed, filed, and notarized. Step one is the transferring party visiting a notary so that the signature can be witnessed. Step two is then visiting local county recorder where the land records department is and recording the deed with them so it’s officially filed. The transferring party will keep the original deed and the office will retain a copy.

What Are Trust Deeds and Contracts For Deeds?

There are two more types of St George property deeds that we haven’t mentioned yet – trust deeds and a contract for deed – because they don’t actually transfer property, but it is still important to know about them.

A deed of trust (also called a trust deed) is a mortgage that transfers a property title to another person (the trustee) who holds the land as security for the loan. The title is returned to the borrower after the loan is paid off. A contract for deed is an actual contract that awards a party the property title only until the loans are paid off by the other party, at which point the original borrower receives the title back.

Additional Information

If you have more questions about property deeds, contact Eagle Gate Title and will provide you with all the information you’re looking for. Remember that the purchase of land and property usually represents the largest financial investment that a person will ever make. This shouldn’t be taken lightly. Be sure your are careful and meticulous about making certain that everything is in order when it comes to Saint George property deeds.

Understanding Property Deeds

St George Property Deeds

Article By: Clear Content Marketing

 

What Happens If My Spouse Passes Away And They Are On The Title?

The death of a spouse is an event that often requires the surviving member of the relationship a lot of business to take care of, unfortunately, on top of the grief from losing a loved one. Though one finding oneself in this situation is comparatively common, that certainly does not mean that it is easy. At Eagle Gate Title, we have extensive experience helping Southern Utah folks in this scenario. We know that dealing with a St George title is likely the last thing that anyone wants to be doing in the midst of a tragedy so we want to do everything we can to help and relieve however many burdens as possible. Here is some important information to understand if you or someone you know has a recently deceased spouse on a St George title.

Rights of Survivorship

There are different ways that a married couple can own property together. One of those ways is as joint tenants with rights of survivorship. This means that in the event of death, the St George title belongs to the living spouse. They become the sole owner. Without rights of survivorship in place, the property rights are divided in half; half to the estate of the deceased and half to the living spouse. In this scenario, hopefully there is a will and testament in place for the deceased that has been probated, otherwise the living spouse may not be able to obtain the St George title immediately or (in some cases) state law will determine the outcome.

Life Estate

Some married couples have joint title ownership in the following way: one spouse has a life estate in the property and the other has fee simple interest in it, meaning that that spouse owns the St George title outright. To further explain, perhaps one member of the relationship has kept a life estate for themselves and deeded to their spouse their property interest, or maybe their spouse has deeded a life estate interest to them for property that they previously owned. Whichever it may be in any given circumstance, a person who owns a life estate in the property of their deceased spouse, they only have the right to live there (or posses it) until their own death.

In a situation where the husband passes away and the wife owns the life estate, the children may have the St George title passed to them but would require a court action to terminate their mother’s ownership. In most cases, a widow cannot mortgage/lease the property or otherwise sell any rights whatsoever unless the life estate that she holds is what is called an enhanced life estate. Even if that is the case, she must live in a state where that is recognized. If the widow desires full selling power until the time of her death, an enhanced life estate is required.

Estate

The St George title goes through the wife’s estate if she passes away before her spouse and survivorship provisions have not been included in their deed. It doesn’t matter if there is a will or not, the estate can be administered in probate court or simply probated. If beneficiaries have been named in the deceased wife’s will, her property will pass to them. If there is no will, the heirs of the deceased will have the St George title passed to them. The deceased’s living husband is legally an heir in this scenario, but the laws of the state where the property is located will ultimately determine the amount of property he is granted. In the event where there are no survivorship provisions in the deed, it is possible that the surviving husband could become joint owners with his wife’s siblings, parents, or children from a previous marriage.

Disclaimer of Interest

In the event that the husband does not wish to acquire the St George title or any shares of property of his late wife even though survivorship provisions are contained in the deed, he can file a disclaimer of interest. When this is done, the existing survivorship provisions are cancelled and the shares that were granted to him are transferred into the estate.


What Happens If My Spouse Passes Away And They Are On The Title?

St George Title

Article by Clear Content Marketing

What Should You Expect When Working With a Title Company?

During a real estate transaction, the title company often gets the least amount of spotlight and recognition, even though their involvement is just as important as any other participating party. At Eagle Gate Title, we want our patrons to understand the important role that a Saint George title company plays in their closing process. You should choose your title company wisely, just as you would a real estate agent or an attorney. Here are some things that you should expect during the process of working with the title company you choose – things that we guarantee at Eagle Gate Title.

Both The Buyer and Seller Sign The Contract

Both the buyer and the seller need to sign the purchase contract at which point the real estate agent contacts the title company to have the earnest money and contract submitted.

Receipt From the Title Company

Each party member receives a copy of the check and contract from the Saint George title company. It will include the GF (guaranty file) number as well as the name and contact info of the closing agent.

Closer Performs Their Responsibilities

The closer plays an important role as they conduct the closing meeting, prepare settlement statements, gather documents, request tax statements, request surveys, and takes care of all the communication with all parties involved.

Title Insurance Commitment

A title search will be performed by the Saint George title company after which a commitment will be sent to both parties (for more information on the important details a title search can reveal, click here).

Closing Documents

All closing documents will be provided to both parties just before the closing is scheduled to take place.

Settlement Statement

Every transaction detail and all personal information should be 100% accurate on the settlement statement, including info tax allocation, deeds, and loan documents.

Don’t rush

During the closing meeting, one document at a time will be presented by the closing agent representing the Saint George title company. They will be able to answer any question that anyone present may have to provide clarity for all parties. They shouldn’t rush the process in any way.

Disbursement

Because the Saint George title company acts as an escrow agent and is not a representative of the seller or buyer, they hold the earnest money until the contact states it is time to disburse those funds. All regulations and stipulations will be adhered to during the disbursement of earnest money, whatever they may be.

Earnest Money Prior to Closing

The Saint George title company will regulate and determine if party members who request earnest money before closing are in fact entitled to it.

Dealing With Compromises

In some scenarios, both parties present evidence that they should receive escrow money. Hopefully, a compromise is reached between the two parties. The Saint George title company, however, will not involve themselves in earnest money disputes.

Read the Title Commitment Inside And Out

Be sure that that you know the details of your real estate transaction including what is and isn’t covered by title insurance issued by the Saint George title company,, for example. Neutral is the name of the game when it comes to title company. They’re more like mediators. The buyers and the sellers need to make sure that their own interests are looked after. They need to look the closing documents and title commitment over to make sure that everything is in order. If you would like more information about what you should realistically expect from a Saint George title company, as well as what makes Eagle Gate Title the best choice in Southern Utah, reach out to us. When you work with us, every expectation will be met and then some.

What Should You Expect When Working With a Title Company?

St. George Title Company

Article By: Clear Content Marketing

 

What Is A Foreclosure And How Does It Work?

Certainly you have heard of a foreclosure, but what exactly is it and how does it really work? Purchasing a foreclosure can be beneficial in that they have a reputation for being one of the most inexpensive ways of acquiring a home. There are many misconceptions surrounding St George foreclosures, however. Many people assume that dumping these homes is something banks are desperate to do, which is not the case. St George foreclosures, or any foreclosure for that matter, rarely meet the ideal scenario that folks often wish for.

Homes that have been foreclosed on are properties that once belonged to a homeowner but now belong to a bank. St George foreclosures can be the result of a few different actions by the original owner such as home abandonment or simply giving the deed to the bank willfully. There are many people who mistakenly say that the bank “takes the home back”. This is technically not correct because the bank never legally owned these homes. In these situations, it’s actually the mortgage (or trust deed) that is foreclosed on by the bank, not the home. The correctly terminology is that the bank seized the home.

There are a lot of reasons, mostly life events, that can cause St George foreclosures such as unaffordable maintenance issues, relocation due to job transfer, divorce or marital difficulties, towering debt, health issues that prevent working, job lay offs, and market crashes.

There are some things that you should consider if you’re thinking about approaching a homeowner who wants to foreclose. One is that each state has their own foreclosure proceedings so make sure that you are familiar with Utah laws concerning St George foreclosures. Another is that in many cases it’s preferable to buy the property before it has officially been foreclosed on. Consult a real estate lawyer to help you understand the particular risks and realities of the particular foreclosed St George home that you’re interested in.

Another way to acquire a St George foreclosure is by attending the trustee’s sale and buying a home there. If this is the route that you’re interested in taking, be sure to first locate your local county office and check with them to learn the proper proceedings at these events and how to handle the sale. In most states, the buyer must heed certain rules such as you must purchase the property as is, you may have to pay a large earnest money deposit as well as show proof of financial adequacy, all bids typically must be sealed, and there are almost never contingencies on loans. Sometimes buyers choose to buy St George foreclosures “sight unseen”, meaning they’ve never actually seen the home before. This is obviously risky but is still a method by which St George foreclosures are purchased.

In any scenario involving the purchase of a foreclosure, the buyer must be sure to find out if the property has any liens recorded against it. That is a problem that you likely do not want to inherit. There are methods of making sure something like this doesn’t happen, such as paying for title searches before the trustee sale takes place which allows the seller to enter the arena (so to speak) with insider information.

Finally, a person can choose to buy a St George foreclosure from a bank. Know that if you intend to go this route, not every bank directly sells homes to investors. Some banks prefer to sell St George foreclosures in bulk rather than individually, or vice versa. You’ll need to find out the processes and preferences of the bank you’re planning on working with. Individual foreclosure sales are typically done with the assistance of a real estate agent, many of whom specialize in these types of listings.


What Is A Foreclosure And How Does It Work?

St George Foreclosures

Article by Clear Content Marketing

Important Steps in Buying a Home

“Stressful and exciting at the same time,” said one home buyer.  “Like going through a pregnancy,” said another. Though buying a house has long been considered an integral part of the American Dream, it can be frustrating, fatiguing, scary, and wonderfully exciting at the same time.  This article presents some important steps in buying a home. Hopefully, it will prepare you a little and make the process of buying your house a bit easier.

Step One:

Decide if you really want to buy a house and why.  If you’re married or in a long-term, committed relationship, be sure your partner agrees that home ownership will meet your goals better than renting.  If your spouse believes long-term renting is better, ask for the reasons. This conversation may be eye-opening to your spouse’s real plans and desires.

Your partner may not be aware of the benefits of home ownership: building equity, tax savings, raising credit score, making the place your own to suit your fancy, your hobbies, family gatherings, etc.  When you own a home, you can make it a refuge from the distractions and stresses of the world. You can turn it into a soft place to fall for your children. Granted, an atmosphere of love and acceptance is more important than how comfortable your couches and chairs are.

Certainly, there are times when renting is advisable over purchasing, such as during an unstable real estate market, unsure job situation, where you want to grow roots, money savings, interest rates, and level of commitments to the relationship.  So, if you like your job, want to put down some roots, have some money saved, and are committed to your partner no matter what, then set the goal to buy a house together.

Step Two:

Once you’ve decided that buying a house is right for you, determine your price range, and start looking.  Look in areas where you want your kids to go to school and play with neighbors. Check the distance and safety of the commute to work.  Does it bother you to drive 40 minutes through lots of intersections? Is it important for your health that your commute can be a walk or bicycle ride?   Can you take public transit to and from work? Buses and trains remove the stress of driving and many of the risks, too. Expenses? Yeah, public transportation will save you money.

Step Three:

 After setting your price range and areas where you’d like to live, choose a real estate agent, or use online resources to look for Fisbos.  “For Sale By Owner” houses may save you the commission fees, but they transfer more of the headache of negotiation and paperwork to you. Not everyone is up to that, so asking a real estate agent to help you is recommended.  Talk to a few agents, and ask them how long they’ve been in the profession. Ask what type of houses they have sold. If they’ve sold only million-dollar homes, and you want one that costs $100,000, you’re better off with another agent.  You want someone who considers your business important and worth their time. Ask what their commission rates are and how they look for houses for you.

Step Four:

A very important step in buying a home is making an offer.  When you and spouse have agreed on a good house for you, ask your agent for input.  You don’t have to offer what the agent says; you can “low-ball” it if you want. If the seller replies with, “No way!” you can always come back with a stronger offer.  If the seller is motivated to sell, they’ll counter with a price they’re comfortable with. At this point, it’s a game of who wants it more. Do you want that house so badly that you’re willing to pay top dollar for it, or do you have two or three houses in mind that you’d be happy with? Does your seller want to sell the house so badly that they’ll discount it?   If you convey that you don’t want that house THAT BAD, you’ll get a lower price. Your agent will help you with negotiation.

Step Five:

Choose a reputable title company which has your interests in mind.  A title company protects you during the purchase transaction. A good company will insure the money transactions are correctly done, and they’ll make sure there are no outstanding liens on the property.  You don’t want to buy a house, only to find out later that someone else has a claim to part of its value. This is critical in the important steps in buying a home. Happy Hunting!

Important Steps in Buying a Home

St. George Real Estate

Article By: Clear Content Marketing

 

What Is a PR or Title Commitment?

When you buy a home, there is a lot of paperwork to review before all is said and done. One of those documents is called the title commitment, also known as the preliminary title report (PR for short), title work, or title binder. In simplest terms, the St George title commitment is one of the most important documents that you’ll review before closing because it is the document that explains the title rights guarantee to your new property. It also represents the assurance that there are no defects in the property title and that you have the green light to obtain title insurance.

A St George title commitment is typically issued in the following way. First, the buyer chooses a property. Next, a title commitment is ordered by the realtor. Once the St George title commitment is complete and it is confirmed that there are no defects in the property title, the title company (via regular mail) sends the buyer a copy prior to closing. Any exclusions, conditions, and terms found in a St George title commitment will also be reflected on the title insurance policy that the buyer will review prior to closing.

Something important to remember about a St George title commitment is that, in most cases, you won’t have very much time to review it; probably a few days at most. Because it is time-sensitive in nature, it’s best to acquire some additional knowledge about it before you put your signature on it. Here are some things to consider.

-A St George title commitment has five parts: what is not insured, specific title insurance requirements, what is being insured, the amount of insurance, and who is being insured (buyer and/or lender). Remember that the amount of insurance needs to cover the sales price and loan amount.

-A St George title commitment, in addition to having the five parts mentioned above, is also broken down into two additional sections: Schedule A and Schedule B. Schedule A contains the loan amount, property price, seller/buyer information, and the commitment date – basically everything that the escrow officer receives from the title company. Schedule B contains the exceptions (CC&Rs) and is the most important part of a St George title commitment for buyers to read.

-The exceptions found in Schedule B are extremely important for the buyer to be aware of. These include but are not limited to easements not shown in public records, encroachments, boundary issues, and right of parties in possession. Consider getting OEC as part of your title insurance policy as it will  alleviate many standard exceptions.

-Be meticulous about understanding the conditions. CC&Rs, for example can be bundled in to a St George title commitment. This should be of particular interest to buyers purchasing property in a subdivision or gated community. Be sure you are okay with all conditions that you will be required to adhere to.

-Getting things in writing is not just a suggestion, it’s a necessity. Any problems or concerns that you have about the property, the St George title commitment, or anything else needs to given to your realtor and presented in writing immediately. That way the realtor can efficiently give this information to the seller. The seller will have a contractually obligated amount of time to review and respond. When the buyer is organized and has everything in writing, the process leading toward the completion of a St George title commitment will be much smoother.

If you have any additional questions about St George title commitments, contact a representative at Eagle Gate Title and we would be happy to help you  no matter what your circumstance may be.


What Is a PR or Title Commitment?

St George Title Commitment

Article by Clear Content Marketing

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COTTONWOOD HEIGHTS
7135 S. Highland Dr. Ste #204
Cottonwood Heights, UT 84121
(T) 801.901.3780
ST. GEORGE
229 E St. George Blvd #200
St. George, UT 84770
(T) 435.703.6060
OREM 
59 W University Pkwy
Orem, UT 84058
(T) 801.802.0995
RIVERTON 
1262 W. 12700 S. Unit D
Riverton, UT 84065
(T) 801.901.3780
SUGAR HOUSE
(BY APPOINTMENT ONLY)
2834 Highland Dr
Salt Lake City, UT 84106
(T) 801.901.3780
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