Frequently Asked Questions
Title Insurance
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- 1. What does a closing attorney or settlement agent do?
- The purchase or refinance of a house will require that you enter into a legally
binding contract with the seller of the property. An experienced real estate attorney can help you understand how the contract affects your rights and what
legal obligations it imposes on you. Our office, along with your real estate agent, will be responsible for keeping track of your transaction and bringing it to a smooth conclusion.
- 2. What is title insurance and why do I need it?
- Title insurance insures that your title is good both on and off the record, and protects against fraud
and forgeries within the record. The bank will require that the buyer purchase title insurance from an approved title insurance company to insure its mortgage. This is known as
Lender's Title Insurance. The buyer must pay the premium even though the policy only benefits the bank. However, at the closing the buyer has the opportunity to purchase
Owner's Title Insurance that will benefit the buyer.
- 3. Am I required to purchase title insurance?
- A lender will always require a lender's title insurance policy, for both purchases and refinances. An
owner's policy is an option to a buyer at closing, and it strongly recommended by Penner Law Firm. When you refinance you are obtaining a new loan, even if you stay with
your original lender. Your lender will require lender's Title Insurance to protect their investment in the property. You will not need to purchase a new owner's title policy; the
one you bought at the purchase is good for as long as you and your heirs have an interest in the property.
- 4. How long does my coverage last?
- An owner's policy will last for as long as you or your heirs retain an interest in the property and, in
some cases, even beyond. A lender's policy will expire upon payment in full of a mortgage.
- 5. How are title insurance premiums calculated?
- Fees for title insurance vary depending on the location of the property to be insured, as well as the
regulation status of the state where the property is located. The premium's cost is most heavily dependent upon the value of the property. Please see our rate calculator to
determine your potential title insurance cost.
Closing
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- 1. What do I need to do to prepare for Closing?
- First, you should pay close attention to the instructions given by your Realtor and requests made by
your Lender. In addition, we will guide you throughout the process of preparation for the closing, and any information we need from you as well as any documentation that you
need to bring to the closing with you. Being prompt in providing all requested information is key to keeping all the processes moving that ultimately enable us to conduct a
smooth and seamless closing transaction for you.
- 2. What should I know about buying and selling a house?
- The purchase of your home is likely to be your single greatest financial investment. You should
have an attorney review the contract to buy or sell your house before you sign a binding contract.
- 3. How long before I can close?
- The time it takes to get to a closing of a real estate transaction is largely determined by the contract
between the parties and the time needed to get lender approval if a mortgage is involved. In a typical residential transaction, most contingencies (other than financing and sale of
the Purchaser's residence) can be removed within two weeks. Financing should be resolved within 30-45 days.
- 4. How long will my closing last?
- Closing a transaction should not be an ordeal. We typically budget one hour for a residential resale
and 30-45 minutes for a refinance.
- 5. The seller already has a real estate attorney; Why do I need my own attorney?
- The seller's attorney is there only to represent the seller's interests, and what may be in the seller's
best interest may not be in yours as a buyer. The seller's attorney has no ethical or contractual obligation to protect your interests. Your attorney is the only one who can advise
you on whether the proposed terms of the contract are in your best interest, and can suggest appropriate additions or modifications to better protect you.
- 6. Do I need an agreement in writing in order to purchase property?
- Yes. Any agreement for the sale of real property must be in writing in order to be binding upon the
parties. While licensed real estate agents and brokers can assist in preparing real estate purchase contracts by filling in blanks on pre-printed purchase agreements, they cannot
dispense legal advice, and you are always within your rights to request that your real estate attorney prepare the purchase agreement, or review the document your real estate agent
has prepared before you sign it. You can even include an attorney approval provision in any agreement you sign. If your transaction requires anything other than filling in blanks,
only an attorney can assist you with this. Be very cautious if real estate agents attempt to prepare contracts.
If you would like to ask any other questions, or would like to learn more about the title insurance or real estate closing processes, please contact us.