What services do we provide for Buyers?
● Title review: Once we receive a ratified contract from the buyers, we order a title search
from an abstractor and carefully review the title search to make sure the title is clear.
● Collect real estate tax: We contact the county government and confirm the payment of
the real estate tax is current. If there is any delinquency, we collect the delinquent
amount at the settlement and send the payment to the county.
● Collect HOA/Condo dues: We contact the HOA or a condo association for the property
and confirm the payment of the HOA/condo due is current. If there is any delinquency,
we collect the delinquent amount at the settlement and send the payment to the
association. Also if there is any fees charged to the buyer by the HOA/condo
association, we collect the fees at the settlement and send the payment for the buyer.
● Communicate with the buyer’s lender and issue lender’s title policy: We provide
the title commitment to the buyer’s lender and collect the fees per lender’s instruction.
We prepare the settlement statement per lender’s instruction, assist the buyer to execute
the lender’s paperworks to receive the lender’s funds in our escrow account and
disburse the funds per lender’s instruction. We issue lender title policy once deed and
other title documents are on public record.
● Payoffs: We contact all parties who are secured by the property and obtain the payoff
statements to make sure all parties, who have secured interest against the property, get
paid from the settlement. Further, we track the release of such liens to make sure that
the buyer has ownership of the property free from the previous owner’s liens.
● Survey: If the buyer chooses to order a survey, we order a survey from a surveyor.
● Settlement and notary: We meet with buyers, explain the settlement statement and
other legal documents and help the buyers to execute them and loan documents
properly. We provide the notary service.
● Owner’s title policy: We issue owner’s title policy once deed is on public record.
What is title insurance?
A Title insurance policy protects lenders or owners against loss as a result of title defect. The
insurer will reimburse the insured for the loss and any related legal expenses, up to the face amount
of the policy. There are two main types of title insurance: owner’s title insurance and lender’s title
insurance.
Lenders always require a buyer to purchase lender’s title insurance for the lenders. The lender’s title
insurance protects only the lender, not the buyer. It’s a good idea to make sure the buyer purchases
an owner’s title insurance policy as well.
For just a little more money over the lender’s only policy you can get an owner’s and lender’s policy
combination that protects your ownership interest. In addition, should you die, the ownership
interests of your heirs or devisees are also protected under this same policy. You pay a premium
only once and policy continues in force until you sell to a third party.
Why should I purchase title insurance when the title search is already done?
A title search can identify title defects on the public record such as unreleased
mortgages, unpaid property taxes, or judgments attached to the properties and any
restrictions limiting the use of the land. However, there are other title defects do not
show up on the public record such as fraud or forgery. Also people make mistakes.
The abstractors search would not be perfect because there could be some records
under incorrect index due to clerical errors, which can also jeopardize your legal
ownership. This is why Americans invented title insurance back in 1800.
Buyer’s checklist for purchase
● Confirm with your realtor that we have all contract addendums, especially as to changes
in sales price, loan amount or any credits
● Review your sales contract to make sure that you have done everything required on
schedule per the contract such as applying for a loan, home inspection, radon or walk-
through inspections.
● obtain a hazard insurance policy, provide a policy to your lender and provide a paid
receipt or an invoice to us
● Determine who will order the termite inspection and make sure the termite report is
delivered to the lender and to us.
● Schedule the settlement date and time through your realtor or us. If any purchaser will
not attend the settlement, a power of attorney should be executed prior to settlement.
You should make sure that the power of attorney is reviewed and approved by the
lender. You should send a copy of the executed power of attorney should be provided to
us prior to the settlement and bring the original power of attorney to the settlement.
● We will let you know the amount of the funds that you need to bring to the settlement
table as early as possible, but often the final figure may not be available until the last
minute. In that case, we will advise the estimated number for you. PLEASE TRY TO
WIRE THE FUNDS rather than bring a cashier’s check. Unlike most people believe, the
funds via cashier’s check will not be immediately available. It generally takes 3 business
days for a cashier’s check to be cleared, which would delay the recording of the
documents and disbursement to the parties. No personal checks over $2,500 will be
accepted.
● Give yourself enough time after the final walkthrough to resolve any issues discovered
during the final walkthrough. Please keep in mind that holding funds in escrow is rarely
approved by the lender in time prior to the settlement.
