Take 5 minutes to review your title commitment
Legal Description: This is the single most important item to check. Is ALL property to be conveyed listed on the Purchase and Sale Agreement? Are all Parcel Numbers being sold/purchased included in the Preliminary Commitment?
Vesting: Generally, whoever signed the Purchase and Sale Agreement should be listed as being in title on the property. If not, look for a Real Estate Contract as an exception. If one of the parties is deceased, contact your title or escrow officer to see what documentation is needed.
Identity Matters: An Identity Affidavit may be required to determine if liens, judgments etc; actually belong to the parties involved.
Buyer Names/Vesting: If you are the Selling Agent, it is a good idea to make sure that your buyer's names are spelled correctly. Also, how are they taking title (husband/wife, single, joint tenants, etc)? If a married buyer wants to take title as his/her separate estate, the Lender and the Escrow Company will need this information, and a Quit Claim Deed signed by the non-participating spouse will be required.
Taxes/Assessments: Senior citizens sometimes get an exemption, which allows them to pay lower taxes. This will change when a sale occurs. Also if a mobile home is included in the sale, there may be 2 tax parcel numbers even if the title to the mobile home has already been eliminated.
Encumbrances/Liens Paid But Not Released: Depending on the type of encumbrance, this can be a simple matter of getting a re-conveyance (Deeds of Trust, etc), or as complicated as a Quiet Title Action (Real Estate Contracts with no fulfillment deed).
Pending Actions: A pending divorce involving either the seller or buyer needs to be handled on a case-by-case basis. A Quit Claim Deed is generally not sufficient to resolve these matters, as a Divorce Court can overturn it.
Easements/Road Maintenance Agreements: If these items are recorded, the title company will show them in the Preliminary Commitment. Title companies do not "approve" these items as being accurate or properly worded. Many lenders, particularly FHA and VA lenders, have specific requirements regarding Road Maintenance Agreements.
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