Talon Northwest Neighborhoods

Receiving too much email? Talon looks to lighten your inbox with eGreen

The day has finally come! Complaints about "too much email" have surpassed complaints about "too much paper". For as long as I can remember in this business, "quit killing me with paper!" has been the the number one complaint coming from title company customers. It's no wonder, considering that there are subdivisions in our local market with CC&R's approaching a thousand pages! Until email delivery of title documents is clearly seen as "legal delivery" these cries for being "green" are sure to continue.

The term eGreen was our attempt in coming up with a term that stands for email conservation. There was a day when The Talon Group practically stood alone in emailing current transaction status and custom reports to all real estate professionals involved with the deal. Now just about every corner of our industry is using email to inform and market their features. Here's a scary thought, imagine when politicians start robo-email campaigns to supplement their robo-calls...

What is Talon doing to reduce email?

We're not going to recycle them if that's what you were thinking. Instead, we will start by consolidating our Weekly Escrow Report onto one merged email. This alone reduces email emissions down from 2,009 to just 374 at the date this post was written. We'll continue look at other email friendly approaches as we examine our other status communications. 

Subscription Manager is another tool The Talon Group is deploying to help strengthen your e-zone layer. When you see the words Subscription Management at the bottom of our reports, simply click the link and choose which emails you would care not to receive. You'll even have options to receive your emails in text rather than HTML!  If you prefer to review these reports over your smart phone, you might want to check out this option.  You can always change back if you don't like it.

 

Sorry for the long post but I believe this one is worth your time!  We will continue to explore other avenues that will help ALL of us be more efficient.

 

At least read the "vesting" on the title report!

We realize as well as anyone how tough it is to read everything that crosses your desk these days. Let's face it, some preliminary title reports can be measured in pounds rather than pages when you take into account the supporting documentation! However, If you were to narrow your focus to just one line on the title report, we would recommend you look at the vesting. Especially in today's climate where banks are sitting on foreclosed properties and distressed homeowners are desperately trying to hang on to their homes.

Here's a recent scenario that illustrates our point: As customary in the Puget Sound real estate market, a real estate broker requested us to prepare a preliminary title report for their new listing. Other than a rather lengthy metes and bounds description and a number of old easements that ran with the property, the report was pretty clean. We vested ownership in a major bank by virtue of a Trustee's Deed that recorded about a month and a half before the listing was taken.

A buyer makes an offer through another broker about two weeks after the property was listed. We update the report and sent copies out to all the parties per instructions written into the standard P&S agreement. Pretty typical right? Well, not when the P&S shows a different seller than the vested owner shown on our report!

As it turns out, the "sellers"  believed that the foreclosure was incorrectly executed and that they could retain (or regain) unencumbered ownership in the property by recording various documents to that effect.  The documents recorded did not, in fact, revert ownership back to the seller and have now created a "clouded" and currently unmarketable or insurable title. 

As a side note, the sellers were assisted in this process by a person who represented himself (on these recorded documents) as an "Authorized Representative" of both the Seller and Lender.

In an effort to resolve this discrepancy, our title officer spoke with both brokers and discovered that neither of them were relying on the vesting reported by the preliminary commitment. The selling broker remarked that he checked the tax records through a database provided by his multiple listing service (Realist) to confirm the name of the seller. Another side note: These tax record databases are rarely pulling the most current information and make no efforts in determining proper vesting. 

Reading how a title company has vested in a particular property can save many hours and headaches in a real estate transaction. In this case, a buyer, the buyer's lender, escrow company, and both brokers could have avoided this mess all-together. 

Third side note: It's not entirely uncommon that a title company has the vesting incorrect on the preliminary commitment. Either way, it is imperative that all professionals rely on each other to find any missing pieces and create a positive experience for both the buyer and correctly vested seller. 

Szymbark, Promorze, Poland originally uploaded by LeszekZaldo

Who sends the buyer a copy of the title commitment?

This topic sounds like a snooze-fest, until you're involved in a transaction where the buyer uses the title contingency as an escape route.  This week we've had three different real estate agents call and ask if we had sent their buyer a copy of the title commitment.  The answer was no because in each situation The Talon Group was issuing title insurance while a different company was the escrow service provider.  It is our local custom that the escrow company send the title commitment to the buyer.  This may seem strange to those of you not familiar with our industry so let me explain. 

In the Northwest a commitment for title insurance is often requested at the time a real estate agent acquires a listing.  When a buyer signs a Purchase and Sale Agreement that is sent to escrow, the escrow team calls the title department to request an updated title commitment.  The next step is for title to update the commitment (aka issues a "2nd Report") send it to the real estate agents, escrow and lender (if known/applicable).  Escrow then sends a hard copy of the title commitment, underlying documents and map to the buyer. 

Why doesn't title send the commitment to the buyer?  A couple reasons I can think of off the top of my head;

1. Title doesn't have the buyers information so they can't send it to them.  2nd Reports are most often requested via phone call or email from the escrow team in which the buyers current address is not disclosed.  (why should it?  that's not something the title department has traditionally needed or asked for)
2. It's become our local  "industry standard" that the hard copies be sent by escrow. 
3. Not all Purchase & Sale Agreements include the buyers current address. Most do, but not all. 

However, just because this has always been the process doesn't mean it will always have to be that way.  Maybe this is the time for our industry to change.  What do you think?  Who should send the buyer a copy of the title commitment?  Some agents prefer to be the one to send that information to the buyer.  What about you?  Can you imagine a scenario where you would not want the title company to send the title commitment to a buyer?     

The Title Perspective - Adverse possession in the news

Adverse Possession

Recently it's been all over our local news media about the Puyallup, Washington homeowners (that were in the process of foreclosure) and found the locks on their home changed and a new family living in their home.

In this second installment of "The Title Perspective" we'd like to share some insights from our Sr. Title Officer, Tim Daniels, on Adverse Possession.

A few of us at The Talon Group, having been in the industry for a few years now, have heard many (as we fondly refer to as) 'The War Stories'. What's often missed in the public dialogue is

1. How much can go wrong when it comes to owning clear title to a piece of property, and

2. The perspective of the individuals that are often the greater part of the solution to these real estate issues.

I'm talking about title officers.

They don't make this stuff up... A few, like Tim, have had years of experience dealing with every possible aspect of real property issues and because of that they've gotten very involved with the owners, sellers, builders, buyers, local government, real estate agents, lenders, attorneys, developers, judges and courts. After all, that's what they do... They help facilitate solutions.

In times like now it's becoming rare that title companies have a local expert like Tim. That's what sets us apart from our competitors.

This is not legal advise. Tim is simply sharing what some of the issues the owners, buyers, and the bank might face as this situation unfolds from the perspective of one who gets involved and tries to help manage a solution.

If you missed the media coverage on the recent Puyallup Adverse Possession story... here's a few links...

Local King 5 News, Seattle...

Puyallup couple says squatters trying to take over their home

Local Komo 4 News, Seattle...

The Home Equity Theft Reporter Cases & Articles

We hope you find this useful and informative... Please share your comments and feel free to ask questions...

René Fabre

Special Projects, Real Estate Information

Who directs title insurance? Part II

Yesterday I published a post regarding a consumer who was comparison price shopping for title and escrow services in Seattle.   I'd like to share an edited (shortened for your benefit, trust me) version of our second email exchange.

******************************

Dear Ms. Agnew;

Thanks for the information.  So far I have seen several quotes for both standard and "homeowners plus" coverage.  Having familiarity with residential real estate transactions it has become quite clear to me that there is a wide range in quality of escrow services.  Talon certainly has a good reputation in that regard. [Thank you!]

Title insurance, however is a commodity that is vastly overpriced and a huge cash cow to the companies that offer it.  In my humble opinion all states should follow the state of Iowa:

http://www.nytimes.com/2005/07/06/business/06title.html?_r=1

I don't mind paying a fair price for a service, but since I just bought and paid for title insurance in 2004 on this property, have paid off the loans and know full well that there aren't any legal liens, the premium I pay is 100% profit with zero risk to the insurer.  I am just looking to minimize this useless expense.

Thanks,

[Mr. Seller]

******************************

Dear [Mr. Seller];

Comparing title insurance in Washington state to what Iowa has is not actually comparing "apples to apples".  Iowa has a charge for coverage, an abstractor to search the property and an attorney to sign off on the findings.  Add to that the fact that many lenders won't accept that product and are requiring additional coverage, which cost is most likely passed on to the consumer.  Then when you do have an issue keep in mind you'll be contacting a government run agency and not a private sector company.  Usually those two have very different levels of customer service.  We could spend countless emails debating the merits and pitfalls of Iowa's substitute for title insurance but I don't think that's your real goal.

Please feel free to give me a call if you have any additional questions.  Whatever your decision, I wish you the best of luck with your sale.

Thank you,

Julie Agnew

****************************

Title Insurance premiums in Washington state are amongst the lowest in the country.  

Please visit: http://www.iowarealtors.com/legislative/titleinsurance.htm for more information regarding Iowas state run version of title insurance.  

Selling your property when you're separated but not divorced

The Talon Group deals with many different title issues on a daily basis.  Below is one such issue our chief title officer, Tim Daniels, is currently working on with a seller.

Scenario:  A married couple bought a house in 1995.  They legally separate in 2000.  Fast forward to the current day, the wife has decided to sell the property, it's been listed for awhile and she's accepted an offer from a qualified buyer.

Other Important Info:  The wife has resided on the property since 1995.  She has held sole financial responsibility for the mortgage, taxes and any maintenance or improvements associated with the property.  The legal separation agreement does not address ownership of the property.

Question:  Does the husband need to sign the Purchase and Sale Agreement and Statutory Warranty Deed transferring ownership to the new buyers?

Possible Resolutions

1) He signs both Purchase and Sale Agreement and Statutory Warranty Deed.  A split of seller proceeds may need to be negotiated between the two sellers.

2) He Quit Claims the property to his wife which establishes it as her separate estate. (the seller proceeds may need to be negotiated in this instance too)

3) The husband cannot be located and the wife decides to initiate a quiet title action to remove his interest from the property.

The Talon Group is happy to help you address any title situation however we are not in a position to offer legal advice.  In any divorce situation it may be in your best interest to seek legal counsel before choosing your course of action.