Wire Fraud

Recently, someone lost $136k because they didn't recognize the signs of wire fraud.

You must be diligent in protecting yourself from this.

Wire Fraud

The best way to protect yourself is by the following:

--NEVER accept changes to wire instructions via email. Our wire instructions NEVER change.
-ALWAYS call to verify wiring instructions. Call a number that you are 100% confident is correct, not just the phone number provided in the email signature line.
-Look over the wire instructions to see if there are any typos, grammatical errors, or suspicious names of banks/anything out of the ordinary. Double check the name of the beneficiary & see if the bank you are wiring is local.
-Double check the email address that the wiring instructions came from.

If something doesn't seem right, do NOT wire. Verbally speak with someone you trust to confirm wiring instructions.

CPL

You wouldn’t want to give a large sum of money to someone just hoping they’ll do what you intend with it right? Same with the lender! The letter protects the lender, insuring that the title company will act in their best interest, and in accordance with their closing instructions related to the title policy.

Identification

If you cannot provide that proof you will not be able to sign for the transaction and it can be frustrating that something so simple can delay the process. Make sure you have it (and that it’s not expired) before coming in!

Closing & Settlement

If you are purchasing a home, even though the documents are signed, the ownership does not transfer until funds are received and the warranty deed is recorded with the county. That is the true “closing”.

Settlement Statement

The settlement statement can also be used to estimate how much money you'll net from selling a home or how much money you'll need to bring to closing.

Searchers

Searchers (sometimes known as title examiners or abstracters) examine documents such as deeds, deeds of trust, liens, judgments, and other pertinent records. They assess liabilities and risks, and are able to recognize title defects and propose solutions.

Wire Fraud

When this is done, criminals can send out emails that might appear to be coming from a legitimate business or recognized coworker. Once they gain access to an email account, they will monitor messages to find someone who is in the process of buying a home or property. They can then use this stolen information to email fraudulent wire transfer instructions to their victims.

The best way to keep yourself safe from wire fraud is to stay informed-- and never depend on e-mail alone.

Assignment of Mortgage

It also means that the lender’s title insurance policy for that property will be transferred. The new lender gains possession of the insurance policy that had been previously owned by the past lender. In essence, this document facilitates the smooth sale of mortgages from one lender to the next.

Searchers

Search for Liens and Judgments: This search will allow us to see any judgments against the individual parties involved or liens that affect the transfer of clean title on a property. For example, if construction was done on the property and not paid for, the person who completed the work could place a mechanic's lien on the property.

Inspection Report: This is a physical inspection of the property that may be necessary to confirm boundary lines, or to check if another party is encroaching on the land.

Privacy

Remember that we as the title company need permission from the signed buyer or seller to share any documents or information associated with the transaction. Please help us by also respecting the privacy of others.

Escrow Officer

An escrow officer essentially serves as a neutral middle man in the context of an escrow agreement. An escrow agreement is a contract between two parties where they agree that a third party should hold an asset on their behalf until their transaction is completes. The funds or assets are held by the escrow officer until they receive appropriate instructions or until other contractual obligations have been fulfilled.

Closing

According to the standard purchase contract, "settlement" is when you meet with your title company to sign all of your documents. When purchasing a home, even if all of the documents are signed, the ownership does not transfer until funds are received and the warranty deed is recorded at the county. That is "closing" and it can occur up to four calendar days after settlement.

The Closing

Once all documents are signed by the borrower, they are sent in a loan package to the lender. The lender will usually take 24-72 hours to approve, then fund escrow. Once all funds are received from the lender, escrow can record the Warranty Deed and then the Trust Deed with the county recorder. Now the title has been switched and a new mortgage is secured by the property.

History of Title Insurance

In response to this, the Pennsylvania legislature passed a law in 1874 allowing for the creation of title insurance ventures for the protection of those buying real estate.

The first company was called "The Real Estate Title Company of Philadelphia" and its intention was to "insure the purchasers of real estate and mortgages against losses from defective titles, liens, and encumbrances." In its first year, it issued 169 policies.

Vesting

Joint tenants, however, means that if one of the parties passes away, the other party is now the sole owner of the property. In the state of Utah, vesting will default to tenants in common, unless otherwise specified on the warranty deed.

The Title Search

A search, which is completed by a title professional, will reveal any liens, unpaid debts, or taxes on the property in the past. Your lender will want to see that these are taken care of as soon as possible. Be aware that problems may arise, but the sooner you are able to address them the better.

Transaction Procedure

Step Three: Clearing/Document Preparation- this is when escrow officers and assistants gather personal information such as DOB's to remove judgments or liens. All the information begins to be added to the CD and documents are prepared.
Step Four: Signing/Closing- CD's, and/or loan documents are signed by the involved parties, as well as Warranty Deeds, Trust Deeds and any other documents to be recorded with the county.
Step Five: Funding/Recording- Once the money has been received from the responsible parties, the file is funded and the documents are recorded with the county. Remember, it is not until ownership or new mortgages are recorded by the county that a transaction is considered complete. This also means that moving into your new home will need to wait until after recording.

Privacy

Remember that we as the title company need permission from the signed buyer or seller to share any documents or information associated with the transaction. Please help us by also respecting the privacy of others.

Reconveyance

This Reconveyance document is signed by the trustee and recorded with the county. When recorded, this document lets everyone know that the debt has been satisfied.

Title Insurance

One example could be a judgment or lien from a prior owner that was never satisfied before you took title. Just because someone sells their property, doesn't mean that any liens or judgments they have on the property are wiped clean. For a one-time premium your title insurance policy will remain in effect for as long as you own the property.

Title Insurance

Title insurance has many benefits; it even protects you against the possibility of a neighbor or someone else putting up a fence, pool, deck, shed, driveway, etc., on your new property. Should this occur before you close, title insurance will pay the cost of any legal battle or other efforts to settle the matter out of court in order to have the item removed from the property that is legally yours.

Seller Financing

Be sure you have all of the seller's loan documents, especially if there is a second mortgage, and learn to check the county website abstract for recorded mortgages and miscellaneous liens. If you are unsure of the information contained in the recorded documents abstract, go ahead and give us a call!

Policies

Owners Policy: An owners title insurance policy (an Owner's Policy) protects the buyer in a real estate transaction. This policy is typically issued in the amount of the real estate purchase price and will remain in effect as long as the owner has an interest in the property. An owners policy protects the owner of a home from risks that may arise from past events.

Loan Policy: A loan policy insures the mortgagee against loss that may occur as a result of defective title, or against loss of priority of the mortgage. A loan policy is issued in the amount of the loan, and liability decreases as the mortgage debt is reduced.

Commission

The closing process can be tricky-- trust the professionals! Come to us for all of your title needs. Contact us at info@chargertitle.com or (801) 216-8880!