We start by researching the full history of property.
We clear up any known issues and then assume certain kinds of additional risk on behalf of the owners.
Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.
Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.
Through the years, a property may change hands many times due to sale, inheritance, marriage, divorce, or foreclosure.
Each transfer is an opportunity for an error in title to arise, which could affect whether the buyers have full ownership of the property. That’s why you need us!
Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.
Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.
Examples of Claims Against an Owner’s Title Policy
Years prior to selling, a property owner adds a detached garage but does not get permits or notify the county tax office.
Three years after the sale of the property, the county tax office sends the New Owner a bill for back taxes on the improved property, going back to the date the Seller built the garage.
Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.
If a homeowner dies without a will, state law allows two people outside the family (“disinterested parties”) to submit an Heirship Affidavit establishing who the heirs to the property should be.
Obviously, there could be relationships unknown to them, and heirs that were not accounted for can appear years later and claim some of the proceeds of the sale from the new owner or claim an ongoing interest in the property.
It’s possible that documents in the chain of title may be forged, especially a release of lien (claiming a debt was paid), fraudulent “conveyances” (deeds that transfer title to the property), and powers of attorney.
One Common Scam: a fraudster identifies a property not occupied by the owner, files a fake deed transferring title into their own name, and “sells” the home to an unsuspecting buyer.
Title Terms
Closing
The conclusion of the sales transaction when the seller transfers title to the buyer in exchange for consideration.
In Texas, these proceedings are usually held at a Title Company.
Closing Cost Title Terms
Costs the buyer must pay at the time of the closing in addition to the down payment, which may include points, title charges, credit report fee, document preparation fee, mortgage insurance premium, inspections, appraisals, prepayments for property taxes, deed recording fee, and homeowners' insurance.
Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.
Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.
Title Terms
Notary
The main responsibility of a Notary Public is to verify that an impartial party (the Notary Public) has properly informed the signer of a document about its significance and that the signer has confirmed their identity, signature, and reasons for signing the document is authentic.
Title Terms
Power of Attorney
A written authorization by a person to another person to act for them on their behalf. Also known as POA.
Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.
Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.
Meet The Cast
The Listing Agent
• Verify all terms and conditions of the contract have been satisfied before closing.
• Work with the seller to ensure all required forms have been completed and provided to the escrow officer.
• Make sure all repairs have been completed and the property is ready for final walk through.
• The listing agent is not required to attend closing, but sometimes they do.
Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.
The Selling Agent
• Verify all terms and conditions of the contract have been satisfied before closing.
• Carefully review the settlement statement for possible errors.
• Work with the buyer to ensure all required forms have been completed and provided to the escrow officer.
• Take the buyer on a final walkthrough of the property the day before closing to ensure repairs have been made and no damage has occurred since the contract was signed.
• The selling agent is not required t attend closing but most often does.
The Lender
• A good lender is key to closing on time!
• Responsiveness and good communication is of upmost importance.
• Invite the lender to attend the closing.
Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.
Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.
Escrow Officer
• An unbiased third party who leads a team working to ensure the transaction is carried out correctly for both the buyer and the seller.
• Manage the closing documents and money (earnest money and option fee).
• Make sure all documents are filled out correctly.
• Facilitate the closing process and ensure that the property is free of all liens, debts, and the parties to the transaction are who they say they are.
• Responsible for reviewing all closing documents and explaining to each party the documents being signed at the closing table.
Escrow Assistant
• The role of an escrow assistant is to assist the Escrow Officer.
• Chances are good you will speak to one of the escrow assistants through the transaction.
• They might call to remind you of documents needed, or to check on the progress of one that has been requested.
• They will often call to setup the closing day/time with you.
• They do A LOT and are a very important member of the team.
Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.
Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.
Independence Title Business Development Representative
• Business Partner
• Problem Solver
• Connection to Escrow Team
• Advocate
• Support System
Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.
Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.
Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.
Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.
Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.
Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.
ACT II
Greeting and Seating
• Closer will welcome everyone.
• Plan where parties should sit.
• Reserve the seating next to the Closer for your clients.
• Ask Closer if they have a preference.
Seating Chart Example
Understanding Closing Statements
Loan Closing Statements
Buyer’s Closing Disclosure or CD Seller’s Closing Disclosure or CD
Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.
Cash Closing Statement
Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.
ALTA Statement in Detail
Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.
Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.
the
Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403. ALTA Pg. 1
Presented by
Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403. ALTA Pg. 1
Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403. ALTA Pg. 2
Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403. ALTA Pg. 2
HUD Statement in Detail
Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.
ALTA Pg. 3 x/x/xx
Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.
Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.
Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.
by the Education Team at Independence Title. TREC Approved Continuing Education Provider License#
HUD Pg.1
Presented
403.
HUD Pg.1
Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.
Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.
HUD Pg.1
HUD Pg.2
Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.
Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.
HUD Pg.2
HUD Pg.2
Your Closing Statement Checklist
Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.
HUD Pg.2 x/x/xx
Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.
Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.
Deed of Trust
• 15-20 pages
• Buyer initials each page
• Signs and notarizes last page
• Mortgage document
• Recorded after closing
• Creates a lien on the property
• Lender can use to foreclose
Note
• 3-5 pages
• Buyer initials each page
• Must be Notarized
• Promise to pay
• Contains loan terms
• Not recorded
• Goes back to lender
Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.
Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.
Other Loan Documents
MORTGAGE INSURANCE DISCLOSURE
PAYMENT AND AMORTIZATION SCHEDULE APPRAISAL/VALUATI ONS ACKNOWLEDGMENT
COMPLIANCE AGREEMENT/ERROR S AND OMISSIONS CORRECTION AGREEMENT
HAZARD DETERMINATION
INITIAL ESCROW ACCOUNT DISCLOSURE STATEMENT BORROWER CONSENT TO USE TAX RETURN INFORMATION
NOTICE REGARDING FURNISHING NEGATIVE INFORMATION OCCUPANCY AFFIDAVIT AND FINANCIAL STATUS
FORM 4506-C AND W9
HOLD HARMLESS
RIGHTS ACKNOWLEDGMENT AND AGREEMENT
Seller Documents
Warranty Deed
• 3-5 pages
• Must be notarizes
• Conveys title to the buyer
• Creates a vendor’s lien if there is a Mortgage
• Recorded after closing
Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.
Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.
Title Company Documents
1099-S CERTIFICATION FOR NO INFORMATION REPORTING
AFFIDAVIT OF DEBTS AND LIENS
AFFIDAVIT OF IDENTITY
AFFIDAVIT
AFFILIATED BUSINESS AGREEMENT DISCLOSURE CLOSING VERIFICATION AND AGREEMENT NOTARY CERTIFICATION
SELLER PROCEEDS INSTRUCTIONS TEXAS DISCLOSURE
Celebrate Your Clients!
• Bring a closing gift
• Take a picture of the big day using an Independence Title Agent One filter.
• Get a Video Testimonial
Independence Title will send signed docs to the lender Once received, the lender will give funding approval.
Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.
Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.
Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.
The Commission Disbursement Authorization
The CDA, often referred to as the DA, is a document sent to the title company, attorney, or entity handling the closing. It gives instructions on how commission should be dispersed.
Always ask how you will be notified of funding.
Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.
Necessary documents are recorded
Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.
Title Policy
Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.
Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.
Presented by the Education Team at Independence Title. TREC Approved Continuing Education Provider License# 403.
