tag:blogger.com,1999:blog-22483331131732379272024-03-26T16:47:09.827-05:00Dallas Real EstateAll the news in North Dallas residential real estate.Lydia Blairhttp://www.blogger.com/profile/02407907329823751820noreply@blogger.comBlogger1248125tag:blogger.com,1999:blog-2248333113173237927.post-5666122178982871232022-03-14T06:00:00.002-05:002022-03-14T06:00:00.194-05:00Sharing Your Home Sales Price - Do or Don't?<div><p class="MsoNormal"></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEidgf7O3_laTTAaWLnbJOhWfzgbv-Kx9sW0ts3XqscuERmK-yAf6S1TATBsHGppVcIVfJhnA7AppbZpgYvsvVum33iOE3ji2zdCtDFyMpiUh3gNZKXDv9kCPeAVwLxMpzrm0WwyDgFJXSRRLvJwJZusUpYhHv96H9ccueNsYSF0m73cSuRW-2w9vfgF=s1720" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1096" data-original-width="1720" height="204" src="https://blogger.googleusercontent.com/img/a/AVvXsEidgf7O3_laTTAaWLnbJOhWfzgbv-Kx9sW0ts3XqscuERmK-yAf6S1TATBsHGppVcIVfJhnA7AppbZpgYvsvVum33iOE3ji2zdCtDFyMpiUh3gNZKXDv9kCPeAVwLxMpzrm0WwyDgFJXSRRLvJwJZusUpYhHv96H9ccueNsYSF0m73cSuRW-2w9vfgF=s320" width="320" /></a></div><br />Texas homebuyers quickly find their new mailboxes filled
with solicitations and requests after their purchase. They are also overrun
with appeals and demands for information regarding the purchase of their
property. <o:p></o:p><p></p>
<p class="MsoNormal">In addition to the sham mortgage insurance offers and tax
filing service scams are enticements to disclose the sales price of their
property. Most of these communications look very official and it can be hard to
decipher what is legitimate and what is not. Almost none of it is. <o:p></o:p></p>
<p class="MsoNormal"><b>Texas is a
non-disclosure state<o:p></o:p></b></p>
<p class="MsoNormal">In Texas, a buyer or seller is not required to disclose the
sales price of a property to anyone or any entity whatsoever. Real estate sale
prices are not public record. <o:p></o:p></p>
<p class="MsoNormal">In most states, you can look up any address through the
county property tax appraiser to see the most recent sales price. The public
has access to sales prices in 38 states. In some states, the public disclosure
of real estate sale prices may be printed in local media or appear on the
publicly recorded deed. In other ‘disclosure’ states, only governmental
entities have access to the sales price. <o:p></o:p></p>
<p class="MsoNormal">Our state considers a property sale to be a private
transaction and you have a right to keep the details away from curious folks as
well as government agencies.<o:p></o:p></p>
<p class="MsoNormal"><b>With whom should you
share your sales price?<o:p></o:p></b></p>
<p class="MsoNormal">There is no law that says the state, county, city or appraisal
districts can require you to provide your sales price. Nosy neighbors and
relatives may also ask or speculate about what you paid for a property. It is
nobody’s business.<o:p></o:p></p>
<p class="MsoNormal">You do not need to disclose the purchase price to the County
Tax Office, your HOA, an appraiser, prying neighbors or anyone else. Your tax accountant
is the only person with whom you should share the purchase price of a property.
<o:p></o:p></p>
<p class="MsoNormal"><b>Why does the County
want to know? <o:p></o:p></b></p>
<p class="MsoNormal">Many Texas appraisal districts want full disclosure of real
estate sales prices to help establish the taxable value. Texas has no state
income tax. Our high property taxes help make up for that. Texas property taxes
are assessed and paid by counties, cities, schools, appraisal districts, etc.
The total property taxes average about 3% of the assessed value of the property
each year. If your tax assessor has your actual sales price, they will usually
base your taxes on that price. <span style="color: #c00000;"><o:p></o:p></span></p>
<p class="MsoNormal"><b>Zestimates &
Other guessers<o:p></o:p></b></p>
<p class="MsoNormal">Web sites like Zillow attempt to place a “home value” on a
property based on different formulas. The estimated sales price and value
posted on most web sites are inaccurate. These automated valuation models
include limited information gathered from publicly recorded mortgage liens, tax
assessments and geographic maps. <o:p></o:p></p>
<p class="MsoNormal">Their estimates do not include actual sales prices or take
into account data such as negotiated concessions, repairs, closing costs, etc.
that one of the parties may have paid. They do not take into account lot sizes,
condition of the property, etc. Only licensed Realtors and Appraisers have
access to all of this information.<o:p></o:p></p>
<p class="MsoNormal"><b>Who really knows the
sales price?<o:p></o:p></b></p>
<p class="MsoNormal">The buyer, seller, agents, title company and mortgage lender
all know the sales price of a property. If a property is for sale in the
Multiple Listing Service (MLS), then the listing broker must report the sale
and sales price to the MLS. The MLS collects and maintains this proprietary
information. <span style="color: #2e74b5; mso-themecolor: accent5; mso-themeshade: 191;"><o:p></o:p></span></p>
<p class="MsoNormal">Property owner information, not sales price, is public information.
Marketing and sales companies scour county records every day and collect
information on deed transfers and filing of mortgage liens. That is where they
find the addresses of new homeowners to solicit. A lot of the junk mail will
also come from folks who find you when you turn on your utilities. That is also
public information unless you request that that the utility provider make it
private. <o:p></o:p></p>
<p class="MsoNormal"><b>How to reduce requests<o:p></o:p></b></p>
<p class="MsoNormal">What should you do when faced with an official request
asking for the details of the sale? Ignore it. There is enough information out
there about all of us already. In my opinion, no one should offer up this additional
financial and personal information voluntarily.<span style="color: #c00000;"><o:p></o:p></span></p></div><span style="font-size: xx-small;">[where: 75230]</span><div class="blogger-post-footer">[where: 75230] [what: Dallas, Texas, Real Estate]
<script type="text/javascript" src="http://w.sharethis.com/widget/?tabs=web%2Cemail&charset=utf-8&style=default&publisher=04622363-6964-4e9c-ba4b-be5ae762c92b"></script></div>Lydia Blairhttp://www.blogger.com/profile/02407907329823751820noreply@blogger.com06030 Sherry Ln, Dallas, TX 75225, USA32.8618738 -96.8077454.5516399638211524 -131.963995 61.172107636178843 -61.651495tag:blogger.com,1999:blog-2248333113173237927.post-39398035453179549412022-03-07T06:00:00.000-06:002022-03-07T06:00:00.182-06:00<div><div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEjl_uWkP-2Ec6O4w-iRtVf_0e3Q3Zb4529cUhLm4GRQBqY10hCiOJVOal7TEC7_I0rHUOTthr2BCkNlSBPEybMiYFP2-fJ17jMtocT3g2lmyTdXKcXUkwSokAUKA8VFUGiCiZWb99kaxvgRhdsqKT1gijF-zfohjBza-QHYP3iocCzZ5F0g5Uq-3AfC=s2048" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1364" data-original-width="2048" height="213" src="https://blogger.googleusercontent.com/img/a/AVvXsEjl_uWkP-2Ec6O4w-iRtVf_0e3Q3Zb4529cUhLm4GRQBqY10hCiOJVOal7TEC7_I0rHUOTthr2BCkNlSBPEybMiYFP2-fJ17jMtocT3g2lmyTdXKcXUkwSokAUKA8VFUGiCiZWb99kaxvgRhdsqKT1gijF-zfohjBza-QHYP3iocCzZ5F0g5Uq-3AfC=s320" width="320" /></a></div><br />When someone can’t make it to the title company on closing day to sign the necessary papers, a popular solution is to use a mobile notary. Mobile Notary services have been around a long time and are more sought-after than ever now. </div><div><br /></div><div>Notary services are crucial in real estate transactions. Several documents are required to be notarized in order for a property to change hands. Validating signatures and identities of signers keeps the process authentic and reduces the chance of fraud. </div><div><br /></div><div>Unlike signing in a traditional title office setting, a mobile notary travels to the client’s location to meet them in person.</div><div><br /></div><div><b>Benefits</b></div><div>Mobile notaries offer a convenient service.</div><div><br /></div><div>“I can travel to your home, office, or any location you need. Those could include a business, hospital, hotel, coffee shop, or parking lot,” says Henry Eford, a Certified Loan Signing Agent. “I go to a lot of locations that your title company may not be able or willing to accommodate.”</div><div><br /></div><div>These bonded professionals can be scheduled just about any hour of the day and many specialize in flexible, after-hours closings. The convenience and efficiency of signing documents at your preferred time and location can save the signer the hassles of traveling to a title office. A mobile notary can be there when and where you need them. The service can be provided in any state in the U.S.</div><div><br /></div><div><b>Notary/Signing Agents</b></div><div>There is a difference between a mobile notary and a signing agent. The typical notary’s job is to witness the signature. They do not act as an escrow officer or attorney. They cannot explain the closing documents or details of a specific transaction. If a person wants some explanation of documents they are signing, they should request a signing agent.</div><div><br /></div><div>“Loan signing agents are notaries trained in mortgage and title documents,” says Eford. “As a certified loan signing agent, I ensure that all needed signatures and initials are obtained and I travel to the signer’s location to do so. Often my services include additional duties like printing the loan document packages, and delivering the completed loan documents to the title company or lender.”</div><div><br /></div><div>Signing agents are screened and certified to meet compliance requirements for a remote closing.</div><div><br /></div><div><b>Time and Cost</b></div><div>A remote closing with a mobile notary must be scheduled and approved in advance by the title company. When closing documents are signed outside of the title company office, the originals must be returned to the title company for processing, funding, and finalizing the transaction. This often requires paperwork to be signed a day in advance.</div><div><br /></div><div>In arranging and approving for someone to sign documents with a mobile notary, the title company may consider factors like security, turnaround time, efficiency, and accuracy.</div><div><br /></div><div>Typical mobile notary/signing agent cost ranges from $85 to $400 depending on location, the experience of the notary, and additional services like printing, scanning, and delivering originals. Maximum notary fee charges are set by each state. In Texas, notaries may charge $6 for the first signature and $1 for each additional signature. They may also charge for copies, a separate travel fee, and mileage for traveling to the customer’s location.</div><div><br /></div><div>International notaries are an entirely different challenge. These can be complicated and require a lot of time and coordination. Often the parties are better off delaying closing until the signer is back in the country.</div><div><br /></div><div>While the fees for mobile notary services add to the transaction costs, they are often a good value when the signer considers the convenience, expenses of travel time, and deadlines.</div></div><span style="font-size: xx-small;">[where: 75230]</span><div class="blogger-post-footer">[where: 75230] [what: Dallas, Texas, Real Estate]
<script type="text/javascript" src="http://w.sharethis.com/widget/?tabs=web%2Cemail&charset=utf-8&style=default&publisher=04622363-6964-4e9c-ba4b-be5ae762c92b"></script></div>Lydia Blairhttp://www.blogger.com/profile/02407907329823751820noreply@blogger.com0tag:blogger.com,1999:blog-2248333113173237927.post-86801152904568379572022-02-28T06:00:00.010-06:002022-02-28T06:00:00.221-06:00HOA Resale Certificates<div><p class="MsoNormal"></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEgM6O52dkYeaoyR3rlUsOwQzuRsPwjkUDCp4cTA8NMgvzyfDLQfMLq31Pe1XAf2QQU47awygM9nMTDOmc_1Nw2RJJNTd4L-1NN71P-9AKKnwFaa_B_0yqAr2kP6rqYPA_yClz3FUNhK2azVOEJY2ZxzKIpBdUYnJd6uhY6XdFYh94dXZymwktIQHW9D=s2580" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1883" data-original-width="2580" height="234" src="https://blogger.googleusercontent.com/img/a/AVvXsEgM6O52dkYeaoyR3rlUsOwQzuRsPwjkUDCp4cTA8NMgvzyfDLQfMLq31Pe1XAf2QQU47awygM9nMTDOmc_1Nw2RJJNTd4L-1NN71P-9AKKnwFaa_B_0yqAr2kP6rqYPA_yClz3FUNhK2azVOEJY2ZxzKIpBdUYnJd6uhY6XdFYh94dXZymwktIQHW9D=s320" width="320" /></a></div><br />Resale Certificates are often a frustration when buying or
selling a property with a Home Owners or Property Owners Association. They are
required when selling a property that has mandatory dues or assessments paid to
an HOA. <o:p></o:p><p></p>
<p class="MsoNormal"><b>What is a Resale Certificate? <o:p></o:p></b></p>
<p class="MsoNormal">A resale certificate is actually a set of documents prepared
by the HOA or the HOA’s management company. They contain disclosures and
detailed information about the property and the HOA community. <o:p></o:p></p>
<p class="MsoNormal">While associations have their own sets of rules, some
requirements are alike for all Texas transactions with mandatory associations.
In Texas, the seller must provide a resale certificate to the buyer by the
deadline stated in the purchase contract. <o:p></o:p></p>
<p class="MsoNormal">The Texas Real Estate Commission provides a standardized
resale certificate form for both single family homes and condominiums. <o:p></o:p></p>
<p class="MsoNormal"><a href="https://www.trec.texas.gov/sites/default/files/pdf-forms/37-5.pdf">https://www.trec.texas.gov/sites/default/files/pdf-forms/37-5.pdf</a>
<o:p></o:p></p>
<p class="MsoNormal"><a href="https://www.trec.texas.gov/sites/default/files/pdf-forms/32-4_0.pdf">https://www.trec.texas.gov/sites/default/files/pdf-forms/32-4_0.pdf</a><o:p></o:p></p>
<p class="MsoNormal"><b>The cost<o:p></o:p></b></p>
<p class="MsoNormal">The cost for
obtaining a resale certificate in Texas is capped at $375. Since it is the
seller’s responsibility to provide it, the seller typically pays this expense
at the time it is ordered. <o:p></o:p></p>
<p class="MsoNormal">HOA management companies usually expect payment upfront
before they will process an order. By Texas law, they have 10 business days
(usually 14 calendar days) to deliver the resale certificate and documents once
the order is placed and payment is received.<o:p></o:p></p>
<p class="MsoNormal">There is no restriction on rush or demand fees. If the requested
information is due before 10 business days, the additional expedited or demand
fees range can range from $100 to $350 on up. To avoid rush fees, allow adequate time in the
contract for these documents to be delivered. <o:p></o:p></p>
<p class="MsoNormal">The HOA may also charge transfer fees, processing fees,
account closure fees, or fees for items like common area keys. These are
disclosed in the resale package. <o:p></o:p></p>
<p class="MsoNormal"><b>Essential elements
</b><o:p></o:p></p>
<p class="MsoNormal">When a property is part of a mandatory association, the
owners must pay dues to maintain amenities, shared areas and perhaps other
services. An HOA resale certificate discloses the amount and frequency of dues
and assessments. It includes a financial outline of the HOA, including the
budget, reserves and previously approved future special assessments or dues
increases.<o:p></o:p></p>
<p class="MsoNormal">The rules and regulations of the association are made known
in the governing documents. Restrictions and rules that owners are expected to
follow are spelled out. These can often include details about landscaping, pets
and animals, sign and flags, holiday decorations, parking, noise levels, rental
restrictions and more. Architectural requirements and aesthetic rules such as
front door color, fence design, roof materials, etc. are specified in these
documents. <o:p></o:p></p>
<p class="MsoNormal">Association voting procedures, board member elections, etc.
are explained. The common areas, maintenance, and repairs that the association
is responsible for are detailed as well as the owner maintenance requirements. The
Resale Certificate also discloses any lawsuits they are involved with, and
other information. <o:p></o:p></p>
<p class="MsoNormal">Specific information about the property being sold is
included in the resale package. This gives the buyer notice of any violation of
the HOA rules prior to closing. This will also reveal if the current owner is
behind on any dues. <o:p></o:p></p>
<p class="MsoNormal"><b>Acceptance of the HOA documents <o:p></o:p></b></p>
<p class="MsoNormal">Once the resale package is disclosed, silence is considered
consent. It is the buyer’s right and responsibility to review the HOA rules,
restrictions, requirements, and resale certificate to ensure they are
comfortable with the association’s mandates.<o:p></o:p></p>
<p class="MsoNormal">As stated in the contract, after receiving the HOA documents
and resale certificate, the buyer has a specified number of days to terminate
the contract if they don’t like what the resale certificate or other documents
reveal. <o:p></o:p></p>
<p class="MsoNormal">The buyer’s mortgage lender will want to review the HOA
information for details such as owner occupancy rates, lawsuits, and the HOA
financial health. If a property doesn’t meet the lender’s criteria, they may
refuse to issue a loan.<o:p></o:p></p>
<p class="MsoNormal">The purpose
of the resale certificate is to provide transparency and protection to all
parties. It ensures the buyer is informed about the community they are joining,
their obligations to the HOA and the rules they are agreeing to follow. <o:p></o:p></p></div><span style="font-size: xx-small;">[where: 75230]</span><div class="blogger-post-footer">[where: 75230] [what: Dallas, Texas, Real Estate]
<script type="text/javascript" src="http://w.sharethis.com/widget/?tabs=web%2Cemail&charset=utf-8&style=default&publisher=04622363-6964-4e9c-ba4b-be5ae762c92b"></script></div>Lydia Blairhttp://www.blogger.com/profile/02407907329823751820noreply@blogger.com06030 Sherry Ln, Dallas, TX 75225, USA32.8618738 -96.807745-31.654310392229817 122.56725499999999 90 43.817255tag:blogger.com,1999:blog-2248333113173237927.post-18301155424310820552022-02-18T06:00:00.004-06:002022-02-18T06:00:00.216-06:00State of the Texas Title Industry 2022<div><p class="MsoNormal"></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEitchoT_mOTF_RpcUkJzY36b3i6JA6PLytA0saSTG2WHespC1eeuZWR2wSCWd0-as61wqWAsZEpwFYTAleT4N5a3jYA5gQzD8E1AUp9HwxVBiMO9rmRAXSGp0fyOFsqdikdogZaV1ejWPIlkDk09kpwFsIn4p7zpDKDha3WTBmtKCn8Esdpi2y0LHl6=s2771" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1712" data-original-width="2771" height="198" src="https://blogger.googleusercontent.com/img/a/AVvXsEitchoT_mOTF_RpcUkJzY36b3i6JA6PLytA0saSTG2WHespC1eeuZWR2wSCWd0-as61wqWAsZEpwFYTAleT4N5a3jYA5gQzD8E1AUp9HwxVBiMO9rmRAXSGp0fyOFsqdikdogZaV1ejWPIlkDk09kpwFsIn4p7zpDKDha3WTBmtKCn8Esdpi2y0LHl6=s320" width="320" /></a></div><br />Let’s start by pointing out that the real estate market is
like the weather. It is very localized. It changes like the seasons. And it can
often be unpredictable. Stormy skies today may be sunny tomorrow. And just
because it is raining in Houston doesn’t mean it is the same in Austin. <o:p></o:p><p></p>
<p class="MsoNormal">The year 2021 was an unexpectedly good one for the title
industry. Historically low interest rates, a strong housing market and hearty
refinance numbers made for a positive year. <o:p></o:p></p>
<p class="MsoNormal"><b>Higher prices, Fewer Transactions<o:p></o:p></b></p>
<p class="MsoNormal">We’ve started 2022 with a record low inventory of homes for
sale across North Texas. Consequently, we’re expecting fewer sales in 2022. Fewer
real estate sales means less business for the title industry. <o:p></o:p></p>
<p class="MsoNormal">With the rise in both home prices and interest rates,
housing affordability is expected to worsen. As long as demand exceeds supply, 2022
will challenge potential home buyers. That makes this housing market very
different than some of the booming seller’s markets we’ve seen in the past 20
years. <o:p></o:p></p>
<p class="MsoNormal">This year of high prices is not the real estate bubble the
country experienced prior to the great recession of 2007-2009. There have not
been a lot of subprime and risky mortgages issued in recent years. This market
is a different situation because it is driven by supply and demand. Most homeowners
currently have positive equity in their properties. <o:p></o:p></p>
<p class="MsoNormal">As mortgage rates rise, the refinance volume is expected to
dip and provide less title insurance business in that sector as well. Refinance
transactions typically account for at least 20 percent of annual title
insurance volume. Industry experts from
The Title Report indicate that refinance transactions could drop by 40 percent.
That will depend on interest rates which are expected to slowly rise to about
3.6 percent on average by the end of the year. <o:p></o:p></p>
<p class="MsoNormal"><b>Changes in the Title Industry<o:p></o:p></b></p>
<p class="MsoNormal">The title business has had to adapt to a lot of change -
like most businesses in the last two years. The pandemic brought about a boom
in remote signings and curbside closings. Record setting volumes have combined have
created their own challenges in this business that is highly regulated by the
state. <o:p></o:p></p>
<p class="MsoNormal">This past year also saw a rise in financial scammers and
security breaches. Additional security and advanced technology in the title
world are expected to continue developing rapidly throughout 2022. Title
companies will be expected to adapt quickly to the changing technology and additional
requirements to challenge their expertise. <o:p></o:p></p>
<p class="MsoNormal">The consensus among industry experts is that while 2022 may
not be as robust as the previous year, it should still be another good year for
title volume. Confidence remains strong as we see what direction 2022 takes us. <o:p></o:p></p></div><span style="font-size: xx-small;">[where: 75230]</span><div class="blogger-post-footer">[where: 75230] [what: Dallas, Texas, Real Estate]
<script type="text/javascript" src="http://w.sharethis.com/widget/?tabs=web%2Cemail&charset=utf-8&style=default&publisher=04622363-6964-4e9c-ba4b-be5ae762c92b"></script></div>Lydia Blairhttp://www.blogger.com/profile/02407907329823751820noreply@blogger.com16030 Sherry Ln, Dallas, TX 75225, USA32.8618738 -96.8077454.5516399638211524 -131.963995 61.172107636178843 -61.651495tag:blogger.com,1999:blog-2248333113173237927.post-19192891161967384092022-02-14T06:00:00.011-06:002022-02-14T06:00:00.198-06:00Sending Purchase Funds to the Title Company<div><div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEjh7N-slwi4qT6vQimHMdOgWjeFAKpeK0e6qe_X9DFCcqwTDxl__kVPksn37Xq9l3YSHLusZSIPi7aPo5btMbXPkmCIYLOONuqehwqoCn578eZC3U9_JFTfzmOYMVWhb_OPMXHysi9ux224hOVQCSMQVUFQjcthGjFo9_Q2chyGyKWnb4-2XGQmVo7p=s2048" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1386" data-original-width="2048" height="217" src="https://blogger.googleusercontent.com/img/a/AVvXsEjh7N-slwi4qT6vQimHMdOgWjeFAKpeK0e6qe_X9DFCcqwTDxl__kVPksn37Xq9l3YSHLusZSIPi7aPo5btMbXPkmCIYLOONuqehwqoCn578eZC3U9_JFTfzmOYMVWhb_OPMXHysi9ux224hOVQCSMQVUFQjcthGjFo9_Q2chyGyKWnb4-2XGQmVo7p=s320" width="320" /></a></div><br />Not all money transfers are created equal. Both wire and Automated Clearing House (ACH) transfers are ways to electronically move money from one bank account to another. They may seem alike, but they are not.</div><div><br /></div><div>These methods of sending funds are referred to as an EFT or electronic funds transfer. EFT is an umbrella expression that includes various types of financial transactions. EFT payments include wire transfers, ACH transfers, e-checks, ATMs, Point of Sale transactions, and more.</div><div><br /></div><div>Understanding the differences between these is crucial when sending money to a title company.</div><div><br /></div><div><b>Wire Transfer</b></div><div>Wire transfers are electronic payments used to send funds directly from one entity’s bank account to another’s. With wire payments, funds are instantly accessible when they arrive in the payee’s bank account and the recipient can access the funds without delay.</div><div><br /></div><div>Wires are often used for large transactions when reliability and speed are critical factors. Because of the speed, once funds have been wired, reversing the transfer is difficult if not impossible.</div><div><br /></div><div>Wire transfers can include a cost to both the sender and the recipient. Wire transfer fees are set by each financial institution and range from $10 to $100 to send or receive a wire transfer.</div><div><br /></div><div>Title companies warn clients that wire transmissions are often the target of scams. It is essential to confirm the person and account that the funds are being sent to prior to initiating a wire transfer. Wire instructions will always include the bank routing number, account number, and name of the party receiving the money.</div><div><br /></div><div>Wire transfers are preferred by title companies for security and dependability. They are much better than cashier’s checks, which can take longer to process and have become easy to counterfeit.</div><div><br /></div><div><b>ACH Transfer</b></div><div>An Automated Clearinghouse transfer, or ACH, also moves money electronically. This is similar to sending a check and is becoming more common as a means to replace paper checks. ACH transfers may be the system used if you have automated bill payments, direct payroll deposits, or make direct person-to-person payments through PayPal, Venmo, or another system.</div><div><br /></div><div>ACH payments are typically best for frequent or recurring transactions where the amount is smaller. Consumers like them for recurring payments for utilities, loans, etc., and for payments for services like Uber. Both large and small businesses like ACH as an e-payment method in this digital economy. Money can be both sent and received with ACH transfers.</div><div><br /></div><div>The lower cost makes an ACH an appealing option for most consumers. Most ACH transfers are free for the sender or cost just a few dollars. While ACH payments are less expensive, wire transfers are faster. </div><div><br /></div><div>The ACH network electronically processes transfers in large batches or groups to an automated clearinghouse, which sends them onto a bank. These can take a few hours or several days to complete and clear. The process is too slow for funding real estate transactions where time is of the essence. With a real estate sale, the closing is not complete and the property does not change ownership until all funds are confirmed and processed by the title company. ACH payments do not meet the definition of “good funds” per the Texas Insurance Code, Title XI, Section 2651.202. Sending the title company an ACH transfer for closing is a recipe for delays.</div><div><br /></div><div>In addition to the time factor, title agents are averse to ACH transfers because they may be reversed. The criteria for stopping an ACH transfer is determined by each bank. </div><div><br /></div><div>When purchasing a property, always confirm that funds sent to the title company are via a confirmed wire transfer and not an ACH transfer. If your Bank of America rep tells you they are the same thing, they are wrong. Follow the title company instructions and remember that the task of getting good funds to the title company on time is the responsibility of the buyer.</div></div><span style="font-size: xx-small;">[where: 75230]</span><div class="blogger-post-footer">[where: 75230] [what: Dallas, Texas, Real Estate]
<script type="text/javascript" src="http://w.sharethis.com/widget/?tabs=web%2Cemail&charset=utf-8&style=default&publisher=04622363-6964-4e9c-ba4b-be5ae762c92b"></script></div>Lydia Blairhttp://www.blogger.com/profile/02407907329823751820noreply@blogger.com0tag:blogger.com,1999:blog-2248333113173237927.post-61328089976781386702022-02-03T12:31:00.004-06:002022-02-03T12:31:49.599-06:00Real Estate & Money Laundering<div><div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEj-_Qz8DA_Qwmu9_mxbaEoa7trNtC9wFLZZoIbVTaP5MEDKJRQSDoPrSBQDcZYdrRB6hVG5WNQ8TSFN0n_QLRHB49Dh7jyAPjPoN2k6Z62pl4QicXDjCrQUwqttE_G6qi_vKZZfj0395no-YcezyQHpxQ5eyw5Ww5BpIul563yF7vjrclSjiHuitH22=s2048" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1449" data-original-width="2048" height="226" src="https://blogger.googleusercontent.com/img/a/AVvXsEj-_Qz8DA_Qwmu9_mxbaEoa7trNtC9wFLZZoIbVTaP5MEDKJRQSDoPrSBQDcZYdrRB6hVG5WNQ8TSFN0n_QLRHB49Dh7jyAPjPoN2k6Z62pl4QicXDjCrQUwqttE_G6qi_vKZZfj0395no-YcezyQHpxQ5eyw5Ww5BpIul563yF7vjrclSjiHuitH22=s320" width="320" /></a></div><br />Criminal activity in both residential and commercial real estate is going strong. The U.S. has become a “safe haven” for money laundering with real estate investments leading the way. </div><div><br /></div><div>The figures are “staggering” according to a recent report from Global Financial Integrity (GFI), a Washington-based research institute that studies the movement of illicit finances. They report that billions of dollars were laundered through U.S. real estate between 2015 and 2020.</div><div><br /></div><div>Drug dealers, arms traders, terrorists, and other criminals typically acquire these funds from illegal activities and seek to hide their source. These are not small-time crooks. Some are anonymous shell companies or complexly structured corporations.</div><div><br /></div><div>Most cases concerning real estate and money laundering involve money from abroad. Some come from political figures who have “plundered, looted, and laundered the assets of their home countries,” according to the GFI report. The report cites cases of millions laundered by investors from Russia, the Ukraine, Venezuela, and Equatorial Guinea. In one example, a Beverly Hills property was purchased with $100 million embezzled from Kuwait’s Department of Defense. </div><div><br /></div><div>The GFI report states that real estate money laundering problems expand outside of luxury markets and big cities. They also occur in remote towns, suburbs, and rural areas. Residential properties are popular with money launderers, but commercial properties are an easy target as well. Income-producing commercial properties often carry a higher value and include hotels, offices, condominium developments, and retail centers. </div><div><br /></div><div>An assortment of professionals such as attorneys, real estate agents, and title agents assist these criminals “either through willful blindness or direct complicity” reports the GFI. Monitoring and enforcement of this type of illegal activity “nose-dived” during the previous government’s administration.</div><div><br /></div><div>The report reveals that the current U.S. approach to residential real estate money laundering — using geographic targeting of certain counties — is inadequate. Currently, commercial real estate is not subject to any federal disclosure requirements to discourage money laundering.</div><div><br /></div><div><b>What are the Feds doing about it?</b></div><div><br /></div><div>As a core national security issue, the current White House administration issued a National Security Study Memorandum earlier this year to counter these criminal efforts. The purpose is to make it more difficult for money launderers and criminals to conceal their activities. Directed at criminal organizations and individuals, the aim is to bolster the government’s ability to combat corruption and to freeze and recover stolen assets. </div><div><br /></div><div>The Treasury Department is under pressure from the president to repeal the regulatory exemption for real estate agents, who are not required to identify their clients or to report suspicious activity at this time. The U.S. is the only major member of the G7 that does not require real estate professionals to adhere to money laundering rules.</div><div><br /></div><div>The Justice Department will continue to review evidence of financial crimes and expects to increase both the number and scope of monitoring activities. These enforcement actions should put significant impediments on these financial criminals.</div><div><br /></div><div><b>What are title companies doing to help?</b></div><div><br /></div><div>Title insurance companies are required to report suspicious activity, but the details for doing that are vague. In certain areas (including Dallas and Tarrant Counties), title companies must file reports to the Financial Crimes Enforcement Network (FinCEN). This organization is part of the U.S. Department of Treasury and aims at reducing criminal purchases.</div><div><br /></div><div>Currently, title companies must identify and report persons purchasing residential properties over $300,000 with cash and under the name of a business, LLC, or other legal entity.</div><div><br /></div><div>The Texas Department of Insurance prohibits title companies from accepting certain forms of payment for the purchase of real estate to help protect against crime and fraud. Funds must be delivered by wire transfer, cashier’s check, certified check, money order, or personal check.</div><div><br /></div><div>All title companies are legally required to report any cash or personal checks for a purchase that total more than $10,000 to the IRS. This is designed to discourage money laundering, tax evasion, and other illegal activities. Seems like it hasn’t slowed down the big criminals.</div><div><br /></div><div>Hopefully, change is on the way</div></div><div><span style="font-size: x-small;">[where: 75230]</span></div><div class="blogger-post-footer">[where: 75230] [what: Dallas, Texas, Real Estate]
<script type="text/javascript" src="http://w.sharethis.com/widget/?tabs=web%2Cemail&charset=utf-8&style=default&publisher=04622363-6964-4e9c-ba4b-be5ae762c92b"></script></div>Lydia Blairhttp://www.blogger.com/profile/02407907329823751820noreply@blogger.com0Dallas, TX, USA32.7766642 -96.79698789999999124.812454773375372 -105.58605039999999 40.740873626624627 -88.007925399999991tag:blogger.com,1999:blog-2248333113173237927.post-33684592208841732592022-01-09T13:26:00.002-06:002022-01-09T13:26:28.426-06:00Expect Delays in 2022 Real Estate Closings<div><div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEjoYIs6ia1qEPVWKr8saWfCR0mGanoGkcZUVMGGjt4FpbXCIOwZR1zlaOhPtMgHgW9cSCznEW_D9zX6nzFyyvp55jPxHVL_KiZ03h7aRJ3AxuGxeW44QRkEApgZCztKXUMllEdUSnOCDUjDWs4WhVe9wjniHJiM8AnOjtdH34BDSj5W3n5WZXOm79u8=s2048" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1117" data-original-width="2048" height="175" src="https://blogger.googleusercontent.com/img/a/AVvXsEjoYIs6ia1qEPVWKr8saWfCR0mGanoGkcZUVMGGjt4FpbXCIOwZR1zlaOhPtMgHgW9cSCznEW_D9zX6nzFyyvp55jPxHVL_KiZ03h7aRJ3AxuGxeW44QRkEApgZCztKXUMllEdUSnOCDUjDWs4WhVe9wjniHJiM8AnOjtdH34BDSj5W3n5WZXOm79u8=s320" width="320" /></a></div><br />If you are buying, selling, or refinancing a property in the next few weeks or months, expect delays. In case you haven’t heard, there is a labor and staffing shortage in the U.S. The ripple effect is has hit the real estate industry in several ways. </div><div><br /></div><div><b>Who and what has caused delays?</b></div><div>There are many links in the chain of people involved in a transaction from start to finish. There are an equal number of reasons for delays. Closing delays are not usually intentional. While some delays can be avoided with enough advance planning, it is difficult right now to anticipate every potential setback. We are in a unique real estate market and additional obstacles seem to pop up every week.</div><div><br /></div><div>Just like restaurants, retail stores, fulfillment centers, etc., there are labor and supply problems in our industry. There is no shortage of real estate agents or title companies ready and willing to keep the wheels of the real estate industry turning. However, the increased demand for homes and loans in 2021 paired with capacity issues in many real estate-related businesses is a formula for snafus.</div><div><br /></div><div>While most real estate closing are settled on time, the current backlog lies with:</div><div><br /></div><div><b>Lenders:</b> Almost a third of closing delays are due to financing issues, according to the 2021 National Association of Realtors report. Lenders are dealing with record volumes and staffing shortages.</div><div><br /></div><div><b>Appraisers</b>: The second most common reason for closing delays this year is appraisal issues. Demand for appraisals has been at all-time highs and there is a shortage of appraisers. Increased valuations have made this job more difficult. </div><div><br /></div><div><b>Surveyors</b>: Another industry seeing high demand and a shortage of licensed professionals.</div><div><br /></div><div><b>Inspectors</b>: Ditto. Everyone is working to keep up with demand.</div><div><br /></div><div><b>Underwriters</b>: The huge number of transactions have lending and insurance underwriters overwhelmed.</div><div><br /></div><div><b>Repairmen, movers, etc</b>.: Again, labor and supply problems are plaguing multiple industries.</div><div><br /></div><div><b>What can you do?</b></div><div>If you are buying, get pre-approved by a lender before signing a contract. Stick with that lender.</div><div>Make your contract dates realistic. You may need to plan for 45 or 60 days to close instead of the traditional 30 days we often see in Texas.</div><div><br /></div><div>Book inspections and repair people as soon as possible. It is the responsibility of both buyers and sellers to obtain qualified professionals for these tasks.</div><div><br /></div><div>Confirm that the appraisal is ordered at least three to four weeks prior to the closing date. Once completed, the appraisal must be reviewed by the lender and their underwriter.</div><div><br /></div><div>Ensure that the existing survey is approved or a new one is ordered at least three weeks prior to closing. The title company, lender and underwriter must review and approve any survey for use.</div><div><br /></div><div>Make sure the lender has everything they need quickly. Lenders often require additional documents throughout the loan process. The quicker they receive them, the quicker they are reviewed and approved.</div><div><br /></div><div>Communicate often and promptly. Surprise delays or last minute rescheduling is frustrating for all parties.</div><div><br /></div><div>Work with professionals who respond quickly and can help deal with problems.</div><div><br /></div><div>Be prepared, patient, and kind with everyone trying to do their job during difficult times.</div></div><span style="font-size: xx-small;">[where: 75230]</span><div class="blogger-post-footer">[where: 75230] [what: Dallas, Texas, Real Estate]
<script type="text/javascript" src="http://w.sharethis.com/widget/?tabs=web%2Cemail&charset=utf-8&style=default&publisher=04622363-6964-4e9c-ba4b-be5ae762c92b"></script></div>Lydia Blairhttp://www.blogger.com/profile/02407907329823751820noreply@blogger.com06030 Sherry Ln, Dallas, TX 75225, USA32.8618738 -96.8077454.5516399638211524 -131.963995 61.172107636178843 -61.651495tag:blogger.com,1999:blog-2248333113173237927.post-537276714313157652021-12-06T06:00:00.002-06:002021-12-06T06:00:00.188-06:00Digging into your Home's Mineral Rights<div><p class="MsoNormal"><span style="line-height: 107%;"></span></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiTVFkDBmnLrgU3PRCcT_Fij5pUGQwIo7hyphenhyphen7Hy0zUwLHHs24dAlJC0CMDe3SkakX0m2LrYqkOQwgUVJhv9fiFBUIPcQvh6tUAuUiT0-fgFvu5Yt-IhkGVOsah_-RXRvnEgE7-fQ4xkRAA8/s640/Mineral-Rights.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="382" data-original-width="640" height="191" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiTVFkDBmnLrgU3PRCcT_Fij5pUGQwIo7hyphenhyphen7Hy0zUwLHHs24dAlJC0CMDe3SkakX0m2LrYqkOQwgUVJhv9fiFBUIPcQvh6tUAuUiT0-fgFvu5Yt-IhkGVOsah_-RXRvnEgE7-fQ4xkRAA8/s320/Mineral-Rights.jpg" width="320" /></a></div>When
purchasing a Texas property, the mineral rights may or may not come with it.
Uncovering and then cashing in on mineral rights are not as easy as Jeb
Clampett shootin’ up some crude.<o:p></o:p><p></p>
<p class="MsoNormal"><b><span style="line-height: 107%;">Do
Mineral Rights Always Transfer?<o:p></o:p></span></b></p>
<p class="MsoNormal"><span style="line-height: 107%;">Whether any
mineral rights transfer with a property depends on what rights the current
seller owns. Let’s dig a little deeper. In the beginning of time (or for the
sake of this article, let’s say 300 years ago), a piece of land included all
rights to the property along with the right to do what you wanted with it.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="line-height: 107%;">But in time,
some property rights may have been given away, taken away, or sold. A
property owner can transfer all or part of their property rights by deed,
lease, easement, mortgage, or will. Someone who owned your piece of land 100
years ago could have done any of those with the mineral rights. You may own a
huge piece of land and have no right to the minerals that lie beneath it.<o:p></o:p></span></p>
<p class="MsoNormal"><b><span style="line-height: 107%;">TREC
Residential Contract, Paragraph 2D<o:p></o:p></span></b></p>
<p class="MsoNormal"><span style="line-height: 107%;">Using the
standard TREC residential contract, the mineral rights owned by the seller
transfer with the property per paragraph 2D. But only the mineral
rights owned by the seller will transfer to the buyer. An owner can’t
sell you rights that they don’t have. If the seller wants to retain any of
the mineral rights, an addendum must be included.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="line-height: 107%;">The mineral
rights addendum specifically states: “A full examination of the title to the
Property completed by an attorney with expertise in this area is the only
proper means for determining title to the Mineral Estate with certainty …”<o:p></o:p></span></p>
<p class="MsoNormal"><span style="line-height: 107%;">Even though
the surface rights may convey to the buyer, the subsurface mineral rights like
gas, oil and other mineral rights that may not necessarily transfer. Surface
rights that transfer can include natural resources such as plants, water and
other resources. Details on ownership of those need expert legal advice as
well.<o:p></o:p></span></p>
<p class="MsoNormal"><b><span style="line-height: 107%;">How Do
You Get The Mineral Rights?<o:p></o:p></span></b></p>
<p class="MsoNormal"><span style="line-height: 107%;">If you
really want to who owns the mineral rights for a property, hire an abstract
company. Or you can try the do-it-yourself method by researching the property
records at your county clerk’s office. It is often necessary to trace records
back through several transactions to determine where they may have initially
been sold and then whether those rights were then sold to someone else.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="line-height: 107%;">In Texas,
mineral rights are transferred with a Mineral Deed. Occasionally,
mineral rights are not sold but are leased. A leasehold is a different scenario
that needs a real estate attorney’s guidance.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="line-height: 107%;">Laws
concerning mineral rights can be complicated. Just remember that property
ownership is completely separate from mineral rights ownership. Sorry folks,
but you have no rights to your land’s minerals if you don’t legally own the
rights.<span style="font-size: 12pt;"><o:p></o:p></span></span></p>
<p class="MsoNormal"><span style="font-size: x-small;"><i><span style="line-height: 107%;">The
opinions expressed are of the individual author for informational purposes only
and not for the purpose of providing legal advice. Contact an attorney to
obtain advice for any particular issue or problem</span></i><span style="line-height: 107%;"><o:p></o:p></span></span></p>
<p class="MsoNormal"><span style="font-size: xx-small;"><o:p> </o:p>[where: 75230]</span></p></div><div class="blogger-post-footer">[where: 75230] [what: Dallas, Texas, Real Estate]
<script type="text/javascript" src="http://w.sharethis.com/widget/?tabs=web%2Cemail&charset=utf-8&style=default&publisher=04622363-6964-4e9c-ba4b-be5ae762c92b"></script></div>Lydia Blairhttp://www.blogger.com/profile/02407907329823751820noreply@blogger.com06030 Sherry Ln, Dallas, TX 75225, USA32.8618738 -96.8077454.5516399638211524 -131.963995 61.172107636178843 -61.651495tag:blogger.com,1999:blog-2248333113173237927.post-64405197416446821672021-11-26T06:30:00.000-06:002021-11-26T16:10:02.816-06:00HOA Violations - Who is responsible? <div><p class="MsoNormal"></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhwEKIirsHRKyWEojcrEtGX9l_iydGO38WyUWcQES4ckCmVi9cB8DV9QwqjJTGYKluHc7dPHvfTMf2_gBji-9dv4hqDyjPN5tPwEPSODsPihWgQpIAiX9RWkEied0VZaqmjB1XeSFQfHNI/s1024/HOA+violations.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="666" data-original-width="1024" height="208" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhwEKIirsHRKyWEojcrEtGX9l_iydGO38WyUWcQES4ckCmVi9cB8DV9QwqjJTGYKluHc7dPHvfTMf2_gBji-9dv4hqDyjPN5tPwEPSODsPihWgQpIAiX9RWkEied0VZaqmjB1XeSFQfHNI/s320/HOA+violations.jpg" width="320" /></a></div>A recent home buyer posed a question about an HOA violation
concerning their new home. It seems the fence installed by the previous
homeowner a couple of years ago doesn’t conform to the HOA rules. Now the HOA
is requiring the new owner to bring the fence into compliance with the HOA
regulations. Who is responsible for correcting a violation of an HOA
restriction?<o:p></o:p><p></p>
<p class="MsoNormal"><b>What is fair? </b><o:p></o:p></p>
<p class="MsoNormal">When a property is part of a mandatory homeowners association, a violation of the HOA rules, regulations, or restrictions does
not usually hinder a sale. And the seller is not automatically obligated to
resolve the violation.<o:p></o:p></p>
<p class="MsoNormal">After closing, the new buyer may get a letter from the HOA
stating that they are out of compliance and must fix the issue. That kind of
surprise shouldn’t happen, but certainly does sometimes.<o:p></o:p></p>
<p class="MsoNormal"><b>Know your rights</b><o:p></o:p></p>
<p class="MsoNormal">When there is a mandatory owners association (HOA), the
standard TREC contract has a provision for providing HOA documents and for the
buyer to object to any issues. The buyer is entitled to receive copies of all
documents that govern the maintenance or operation of a property including
restrictions, bylaws, rules and regulations, and a resale certificate.<o:p></o:p></p>
<p class="MsoNormal">HOA documents are essentially restrictions to the owner’s
use of their property. These can include a variety of matters: how many and
what kind of pets are allowed, signs or flags being displayed, parking of
vehicles, guests allowed, cable or internet services available, front door
color, fence design, roof materials, etc. What is fine with one new homeowner
may be completely unacceptable to another.<o:p></o:p></p>
<p class="MsoNormal">The Resale Certificate discloses the amount
and frequency of dues and assessments, any lawsuits they are involved with, and
other information. A current resale certificate is required from the HOA to
state if they are aware of any current violations to their rules and
restrictions.<o:p></o:p></p>
<p class="MsoNormal">The HOA disclosure on the resale certificate gives the buyer
notice of any violations prior to closing.<o:p></o:p></p>
<p class="MsoNormal">As stated in the contract, after receiving the HOA documents
and resale certificate, the buyer has three days to terminate the contract if
they don’t like what the resale certificate or other documents reveal.<o:p></o:p></p>
<p class="MsoNormal">Or the buyer could address any issues with the seller within
that three-day period and come to an agreement. The buyer and seller could
amend the contract to require the seller to fix a violation.<o:p></o:p></p>
<p class="MsoNormal">In the case of our new homeowner, they did not take notice
of the violation disclosed by the HOA or the fence restrictions. And they did
not object to the HOA documents in the three-day period. The seller claimed to
have no previous HOA notice of the violation and therefore had no obligation to
disclose an unknown issue.<o:p></o:p></p>
<p class="MsoNormal"><b>Know your responsibilities</b><o:p></o:p></p>
<p class="MsoNormal">When it comes to HOA documents, the buyer must be proactive.
It is the buyer’s responsibility to review the HOA rules, restrictions,
requirements, and resale certificate prior to purchase. The three-day period
for objections is important. HOA documents can total more than 100 pages.
That’s a lot of reading to do in less than three days.<o:p></o:p></p>
<p class="MsoNormal">If the HOA has a website, they are required by law to post
their restrictions on their site. If you’re considering the purchase of
a property with a mandatory owners association, why not go to their website and
review the rules, regulations and restrictions prior to executing a contract?<o:p></o:p></p>
<p class="MsoNormal">The buyer has a duty to ask questions and resolve any HOA
item they have an issue with. This should happen as soon as they receive HOA
documents. The three-day period is their opportunity to request that the seller
fix any violations. If they fail to do so, then along with buying the property,
they are buying the problem that comes with it.<o:p></o:p></p>
<p class="MsoNormal">A buyer of a property with a mandatory HOA is obligated to
pay assessments and to follow the restrictive covenants governing the use,
maintenance, and occupancy of the property and community. They need to take the
time to understand their HOA commitment.<o:p></o:p></p>
<p class="MsoNormal">Buyers have the right and responsibility to make an informed
decision on their purchase.<o:p></o:p></p>
<div align="center" class="MsoNormal" style="text-align: center;">
<hr align="center" noshade="" size="0" width="100%" />
</div>
<p class="MsoNormal"><i><span style="font-size: x-small;">The opinions expressed are of the individual author for
informational purposes only and not for legal advice. Contact an attorney for
any particular issue or problem.</span></i><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size: xx-small;"><o:p> </o:p>[where: 75230]</span></p></div><div class="blogger-post-footer">[where: 75230] [what: Dallas, Texas, Real Estate]
<script type="text/javascript" src="http://w.sharethis.com/widget/?tabs=web%2Cemail&charset=utf-8&style=default&publisher=04622363-6964-4e9c-ba4b-be5ae762c92b"></script></div>Lydia Blairhttp://www.blogger.com/profile/02407907329823751820noreply@blogger.com0Dallas, TX, USA32.7766642 -96.7969878999999912.4982080917089817 -131.95323790000003 63.055120308291016 -61.640737899999962tag:blogger.com,1999:blog-2248333113173237927.post-7383613041992889122021-10-06T06:00:00.009-05:002021-10-06T06:00:00.211-05:00Texas 2021 Real Estate Legislative Update 2.0<div><p class="MsoNormal"></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi40NoSLGj01FRW2yl5xZFCrxHV2_koO5v7LHKFI0yOmtOrcpBNTZdOFlbUNT15vPgcQGswi2G6xLnw-E2BWrS1GDghrxxWEoJH_wyFBlGKKel5ceFC7Xtvly1eEI8CCIBR_2TSgPlF400/s2048/Real+Estate+2021+Texas+Legislative+Updates+2.0.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1170" data-original-width="2048" height="183" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi40NoSLGj01FRW2yl5xZFCrxHV2_koO5v7LHKFI0yOmtOrcpBNTZdOFlbUNT15vPgcQGswi2G6xLnw-E2BWrS1GDghrxxWEoJH_wyFBlGKKel5ceFC7Xtvly1eEI8CCIBR_2TSgPlF400/s320/Real+Estate+2021+Texas+Legislative+Updates+2.0.jpg" width="320" /></a></div>A little property tax relief is coming for some Texas
homeowners. Two minor property tax bills were approved at the Texas
Legislature’s August 2021 Special Session. With some of the highest property
tax rates in the country, most homeowners welcome any law that provides Texans
a tax break.<o:p></o:p><p></p>
<p class="MsoNormal"><b>New Homeowner Homestead Exemption<o:p></o:p></b></p>
<p class="MsoNormal">Under current law, when someone purchases a home, they must
wait until January 1 of the following year to receive the benefit of a homestead
exemption. This new law allows a homebuyer to receive their homestead exemption
in the year that they acquire the property, rather than having to wait for
January 1 of the following year.<o:p></o:p></p>
<p class="MsoNormal">Starting in January 2022, new Texas homeowners who qualify
for a homestead exemption will become immediately eligible to receive a
property tax reduction when they purchase their property. Those buyers will
receive the exemption allocated proportionally from the time they purchase the
property. For example, if the buyer purchases the property in February, they
will receive the homestead exemption on that year’s tax bill for February
through the end of the year.<o:p></o:p></p>
<p class="MsoNormal">Texas homestead exemptions from counties, schools, cities,
and special districts reduce the property taxes for the homeowner. The amounts
vary from county to county. All Texas homesteads receive a $25,000 exemption on
their home’s value from school property taxes. Other local entities, like cities
and counties, offer a separate residence homestead exemption. A homestead
exemption can typically save a homeowner 10%-20% on their property taxes.<o:p></o:p></p>
<p class="MsoNormal"><b>Senior and Disabled Exemptions<o:p></o:p></b></p>
<p class="MsoNormal">The Texas Legislature passed “an Act relating to the
reduction of the amount of a limitation on the total amount of ad valorem taxes
that may be imposed by a school district on the residence homestead of an
individual who is elderly or disabled to reflect any reduction from the
preceding tax year in the district’s maximum compressed rate and to the
protection of school districts against the resulting loss in local revenue.”<o:p></o:p></p>
<p class="MsoNormal">That’s a mouthful of legal jargon. Essentially, this
legislation proposes a reduction in school taxes for seniors and disabled
Texans. It would extend the school property tax rate cuts approved by the Texas
Legislature in 2005, 2007, and 2019.<o:p></o:p></p>
<p class="MsoNormal">School property taxes for homeowners who are at 65-plus
years old or who are disabled are frozen at the amount owed in the year they
qualify. However, when some school districts reduced their tax rates, those
homeowners did not see a reduction in their tax bills due to this frozen value.
The new law would reduce the frozen value by the same percentage as the
reduction in a school district’s tax rate, starting in the 2023 tax year.<o:p></o:p></p>
<p class="MsoNormal">Because there are different property tax laws for Texas
elderly and disabled property owners, reforms to their tax rates must be made
by constitutional amendment. Texas voters will need to approve this on local
election ballots in 2022. If approved, the amendment to authorize this tax cut
would take effect in January 2023.<o:p></o:p></p>
<p class="MsoNormal"><b>Texas Property Taxes<o:p></o:p></b></p>
<p class="MsoNormal">No one likes to pay taxes and Texans don’t like hearing that
our property taxes are higher than most other states. However, we do not have
state income taxes like many other states. Texas counties set their own
property tax rates, and they vary across the state. Counties with smaller
populations tend to have lower property taxes. The average property tax rate in
Texas is 1.8 percent of the property’s appraised value.<o:p></o:p></p></div><div><span style="font-size: xx-small;">[where: 75230]</span></div><div class="blogger-post-footer">[where: 75230] [what: Dallas, Texas, Real Estate]
<script type="text/javascript" src="http://w.sharethis.com/widget/?tabs=web%2Cemail&charset=utf-8&style=default&publisher=04622363-6964-4e9c-ba4b-be5ae762c92b"></script></div>Lydia Blairhttp://www.blogger.com/profile/02407907329823751820noreply@blogger.com16030 Sherry Ln, Dallas, TX 75225, USA32.8618738 -96.80774532.860071399891723 -96.809890767211911 32.863676200108273 -96.805599232788083tag:blogger.com,1999:blog-2248333113173237927.post-58606386976055948172021-10-03T12:11:00.003-05:002021-10-03T12:15:03.155-05:00Texas 2021 Real Estate Related Updates<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiloc_y3yF_oj62bJMAjhz5-UY2M1FCMjwPTAqicYIzfTEPEghrg0pZdvdY54ABGJKzG-x48We7tzSYFW-VXsChkDsMCb6cxMRAFIId1SuNG3GPf359WsDujDPJeW5bZSnZhbntneR2oug/s1024/Real+Estate+2021+Texas+Legislative+Updates.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="635" data-original-width="1024" height="198" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiloc_y3yF_oj62bJMAjhz5-UY2M1FCMjwPTAqicYIzfTEPEghrg0pZdvdY54ABGJKzG-x48We7tzSYFW-VXsChkDsMCb6cxMRAFIId1SuNG3GPf359WsDujDPJeW5bZSnZhbntneR2oug/s320/Real+Estate+2021+Texas+Legislative+Updates.jpg" width="320" /></a></div><br />Real estate topics took a back seat to big issues like the pandemic and power grid failures in 2021 with the Texas Legislature. Of the 3,800 bills enacted into law, real estate still got a little attention. Some of the welcome changes coming next week are due to lobbying efforts from the Texas Association of Realtors and the Texas Land and Title Association. New real estate contracts reflecting these laws are now available and are required to be used by Realtors starting September 1, 2021.<div><b><br /></b></div><div><b>Homeowner Associations</b> </div><div><br /></div><div>The law from Senate Bill 1588/House Bill 3367 requires more transparency from HOA management companies. It puts a cap on the costs for obtaining subdivision information, resale certificate updates, and HOA transfer fees. The limit for the fee to obtain subdivision information will be $375 and the fee for an updated resale certificate is topped at $75. </div><div><br /></div><div>The new law also states that the HOA’s publicly filed management certificate must disclose the amount of any transfer fees charged with the sale. That information will be made available in the Texas Real Estate Commission (TREC) database. This will allow agents to look up the transfer fees on a property prior to listing it for sale or submitting a purchase offer for their buyer. It offers protection to homeowners and buyers against unreasonable fees and surprises. Additional consumer privacy protections for homeowners are included in this new law. </div><div><br /></div><div>Effective September 1, 2021, the law is being phased in. TREC will establish a database to accept management certificates from HOAs and make it available to the public by December 1, 2021. HOAs must electronically file their management certificate with TREC no later than June 1, 2022. </div><div><div><br /></div><div>Unfortunately, some HOA management companies (and companies that provide HOA resale certificates and documents) have already found a way around the new law limiting their fees. A resale package from Condocerts.com last week included a transfer fee (normally paid at the time of closing) and a processing fee. Instead of $375 for the resale package, the upfront cost to the seller was $650. Fortunately, we had enough time to avoid their outrageous rush fee.</div></div><div><br /></div><div><b>Public Improvement Districts (PIDs) </b></div><div><br /></div><div>House Bill 1543 is now a law that requires a property owner in a PID to disclose that the property is in a PID and certain details of the PID prior to executing a contract with a buyer. The PID notice must be acknowledged by the buyer and seller and will be recorded in county records at the time of the sale.
A PID is a special district created by a city or county. It allows a special assessment tax against properties within the district for improvements or maintenance. The existence of a PID on a property can currently be found in the county appraisal district tax records. More details of a PID must now be filed with the county deed records starting September 1, 2021. </div><div><br /></div><div><b>Appraisers </b></div><div><br /></div><div>House Bill 2533 specifies that unless a lender requires a full appraisal for a financial transaction, a licensed appraiser is not required to comply with Uniform Standards of Professional Appraisal Practice (USPAP) when performing an evaluation. If an appraiser performs an evaluation that is not in compliance with USPAP, then it must include a notice stating that the evaluation is not an appraisal performed in compliance with USPAP. This takes effect on June 14, 2021.
A new Statute of Limitations law from House Bill 1939 provides for a two-to-five-year limit for lawsuits filed based on an appraisal or appraisal review. This excludes lawsuits based on fraud or breach of contract and is effective September 1, 2021. </div><div><br /></div><div><b>Quitclaim Deeds</b> </div><div><br /></div><div>Transferring title in Texas with a Quitclaim Deed should become easier after September 1, 2021. This law will allow a purchaser of a property with a Quitclaim Deed to be considered a bona fide purchaser if at least 4 years have passed since the deed was recorded.
Title companies are wary of quitclaim deeds because, unlike a warranty deed, they only convey whatever interest the signer may or may not have in the property. The signer of a quitclaim deed may have limited or no ownership of the property. There is no warranty of full ownership being transferred. This new law may remove quitclaim deed concerns if at least 4 years have passed. It does not affect quitclaim deeds recorded prior to September 1, 2021.</div><div><br /></div><div><b>Mechanic’s Liens </b></div><div><br /></div><div>A new law extends the description of lien rights. Subcontractor liens must now be filed within a particular time period and notice requirements are detailed. Limitations for filing suit to foreclose a lien and who must be licensed to file a lien are now updated. </div><div><br /></div><div><b>Judgments on Homestead Properties </b></div><div><br /></div><div>Using a homestead affidavit to remove a judgment on a property just got clarification. Previously, a homeowner seeking to remove a judgment in order to sell or refinance would sign a homestead affidavit, send it to the creditor, wait 30 days and see if the creditor disputes the homestead claim. The new law allows the owner to sign a homestead affidavit and record it with the county at any time. The creditor is still notified of the recording and has 30 days to dispute it, but the homeowner can get the affidavit and issue of homestead resolved ahead of a transaction. </div><div><br /></div><div><b> Racial Restrictive Covenants </b></div><div><br /></div><div>Some older subdivisions in Texas have original restrictive covenants regarding certain racial or ethnic groups. These have been invalid and unenforceable for decades but they still show up in the county records as legal documents. This new law allows a property owner to request that the County Clerk actually remove the language of the racial restrictions from the public record. The county would remove the document and attach another document stating that a restriction that is void has been removed. While a good concept, this law just changes the county paperwork. </div><div><br /></div><div><b>Freedom of Expression </b></div><div><br /></div><div>House Bill 3343 prohibits insurers (like title insurance or homeowners’ insurance) from discriminating on the basis of political affiliation or expression. </div><div> And if the rules of real estate are driving you to drink, then you may have notice House Bill 1024. Restaurants may start including alcoholic beverages in delivery and to-go orders. It has no effect on real estate transactions but cheers to that law anyway.</div><div><span style="font-size: xx-small;"> [where: 75230]</span></div><div class="blogger-post-footer">[where: 75230] [what: Dallas, Texas, Real Estate]
<script type="text/javascript" src="http://w.sharethis.com/widget/?tabs=web%2Cemail&charset=utf-8&style=default&publisher=04622363-6964-4e9c-ba4b-be5ae762c92b"></script></div>Lydia Blairhttp://www.blogger.com/profile/02407907329823751820noreply@blogger.com0Allegiance Title32.861881 -96.80788732.861768350083111 -96.808021110450738 32.861993649916883 -96.807752889549249tag:blogger.com,1999:blog-2248333113173237927.post-42383571006781108892021-08-17T07:44:00.000-05:002021-08-17T07:44:09.570-05:002021 Real Estate Scams & Fraud<div><p </p><div class="separator" style="clear: both; font-family: inherit; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhSchoqH7YPv8Arz5jZFZkvdI_nhFOjt65NIvj084xE0kMRkgJYN4iasPDfRoYnQmfCcPVO2ekCIAHP5ll_tS_JWP2yiz56PVsguooIcJRMGY5B52lrU4vV8Tuj3NK9GhnN_t_B__Z7j7Q/s1024/2021+Real+Estate+Scams+Fraud.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="653" data-original-width="1024" height="204" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhSchoqH7YPv8Arz5jZFZkvdI_nhFOjt65NIvj084xE0kMRkgJYN4iasPDfRoYnQmfCcPVO2ekCIAHP5ll_tS_JWP2yiz56PVsguooIcJRMGY5B52lrU4vV8Tuj3NK9GhnN_t_B__Z7j7Q/s320/2021+Real+Estate+Scams+Fraud.jpg" width="320" /></a></div><span style="font-family: inherit;">Scams, fraud, breaches, and phishing are everyday concerns for today’s title companies. Financial and privacy threats continue to evolve in 2021 and increased with the pandemic. Not only do these cost the title company time and money, but they also create additional hurdles for buyers, sellers, brokers, agents, and lenders.</span><p></p><p style="background-color: white; box-sizing: border-box; margin: 0px 0px 28px; padding: 0px;"><span style="font-family: inherit;">Texas and California lead the country in monetary losses reported to the FBI due to scams. Let’s take a look at some of the biggest threats we’re seeing right now and what you can do to protect yourself and your clients.</span></p><h2 s><span style="box-sizing: border-box;"><span style="font-family: inherit; font-size: small;">Data And Information Breach</span></span></h2><p style="background-color: white; box-sizing: border-box; margin: 0px 0px 28px; padding: 0px;"><span style="font-family: inherit;">A data breach can be where so many problems begin. This is when your private information is stolen. Make no mistake- this is a sophisticated multi-billion-dollar business run by smart professionals who are very good at what they do.</span></p><p style="background-color: white; box-sizing: border-box; margin: 0px 0px 28px; padding: 0px;"><span style="font-family: inherit;">The criminals are not usually stealing this information from the title company. They’re getting it from individuals like you. This is typically a clever manipulation of the natural human tendency to trust. Once the criminal has your private information, they may hack into or monitor your computer to get your login and/or passwords to accounts. They may intercept emails and download viruses or ransomware.</span></p><p style="background-color: white; box-sizing: border-box; margin: 0px 0px 28px; padding: 0px;"><span style="font-family: inherit;">Your phone and computer are the biggest risks for a breach. Do you have sensitive or irreplaceable information on your computer or phone? Most people do. Do you back them up regularly? Most people don’t. Most computer users do not have even basic cybersecurity. Scammers know this. You might as well be falling for the Prince of Nigeria scam.</span></p><p style="background-color: white; box-sizing: border-box; margin: 0px 0px 28px; padding: 0px;"><span style="font-family: inherit;">A scammer can use your information to impersonate or manipulate you or your accounts. Their next step is to gain access to your information and/or computer, monitor your activity, and ultimately steal money. In a real estate transaction, they can attempt to divert buyer down payments, earnest money, mortgage payoffs, seller proceeds, etc.</span></p><p style="background-color: white; box-sizing: border-box; margin: 0px 0px 28px; padding: 0px;"><span style="font-family: inherit;">Almost 97% of breaches start with emails. The most powerful way to avoid this is to be wary of every email you receive. Establish strong passwords and change them every three months. It doesn’t matter if you rotate using names of state capitals, vegetables, car models, months, … Just get a system of changing them that works for you. Only use secure Wi-Fi connections and avoid all free Wi-Fi connections in public locations for both your computer and your phone.</span></p><h2 style="background-color: white; box-sizing: border-box; line-height: 1.2; margin: 0px 0px 10px;"><span style="box-sizing: border-box;"><span style="font-family: inherit; font-size: small;">Wire Fraud</span></span></h2><p style="background-color: white; box-sizing: border-box; margin: 0px 0px 28px; padding: 0px;"><span style="font-family: inherit;">A 2021 survey by the American Land Title Association reports that one-third of all title company transactions have experienced a wire fraud attempt. Wire fraud is carried out by criminals who impersonate escrow officers, real estate agents, or lenders. They persuade home buyers to wire funds into their accounts during the closing process. These scams are very clever and are often carried out by criminal organizations with untraceable offshore accounts. The FBI estimates that only 12-15% of wire fraud is reported.</span></p><p style="background-color: white; box-sizing: border-box; margin: 0px 0px 28px; padding: 0px;"><span style="font-family: inherit;">Wire transfer crooks hack legitimate emails or send buyer emails posing as someone involved in the transaction. They monitor a pending sale, and when the closing date nears, they send the buyer instructions to wire the closing funds to their fraudulent account. This scam is so lucrative that the fraudsters even set up fake websites that look similar to the title company or lender you’re working with, making them seem legitimate. They may create an email address that appear familiar, but one number or letter is off. It’s easy to miss the small inaccuracy or misspelling.</span></p><p style="background-color: white; box-sizing: border-box; margin: 0px 0px 28px; padding: 0px;"><span style="font-family: inherit;">Always be suspicious of any email or text requesting a change to wiring instructions. Before sending money, go back to the original documents you received from your title company and call the phone number listed there to verify the wiring instructions. Never click on links or send money without verifying wire instructions with a live person. Pick up the phone and only call the number that you first received from that contact (not the latest email).</span></p><h2 style="background-color: white; box-sizing: border-box; line-height: 1.2; margin: 0px 0px 10px;"><span style="box-sizing: border-box;"><span style="font-family: inherit; font-size: small;">Check Fraud</span></span></h2><p style="background-color: white; box-sizing: border-box; margin: 0px 0px 28px; padding: 0px;"><span style="font-family: inherit;">The frequency of fraudulent and counterfeit cashier’s checks is rising. A fake cashier’s check may clear immediately when first deposited. However, when the bank determines that the check is fraudulent, they take the money back. This can happen days or weeks after the deposit.</span></p><p style="background-color: white; box-sizing: border-box; margin: 0px 0px 28px; padding: 0px;"><span style="font-family: inherit;">Many title companies now treat a cashier’s check similarly to a personal check and require buyers to wire money to them if the amount is substantial.</span></p><h2 style="background-color: white; box-sizing: border-box; line-height: 1.2; margin: 0px 0px 10px;"><span style="font-family: inherit; font-size: small;">… <span style="box-sizing: border-box;">And More</span></span></h2><p style="background-color: white; box-sizing: border-box; margin: 0px 0px 28px; padding: 0px;"><span style="font-family: inherit;">There are a lot of real estate scams that we only hear about in title company offices. Rip-offs like roofer scams, fake rental house cons, moving company swindlers, etc. happen every day. The pandemic has led to a rise in cons like foreclosure relief scams that claim they can help homeowners save their homes and reduce their mortgage payments for an upfront fee. They sometimes claim to be affiliated with a government agency or housing assistance program. Remember, these guys are pros at ripping people off, and their methods keep getting more creative.</span></p><p style="background-color: white; box-sizing: border-box; margin: 0px 0px 28px; padding: 0px;"><span style="font-family: inherit;">Unfortunately, buyers and sellers are the targets of scammers, and the losses they suffer keep mounting. In the end, only you can protect yourself.</span></p></div><span style="font-family: inherit; font-size: xx-small;">[where: 75230]</span><div class="blogger-post-footer">[where: 75230] [what: Dallas, Texas, Real Estate]
<script type="text/javascript" src="http://w.sharethis.com/widget/?tabs=web%2Cemail&charset=utf-8&style=default&publisher=04622363-6964-4e9c-ba4b-be5ae762c92b"></script></div>Lydia Blairhttp://www.blogger.com/profile/02407907329823751820noreply@blogger.com06030 Sherry Lane, Dallas, TX 75240, USA32.9277907 -96.782486132.465838728922861 -97.33180250625 33.389742671077144 -96.23316969375tag:blogger.com,1999:blog-2248333113173237927.post-88924556364449383552021-07-05T06:00:00.012-05:002021-07-05T06:00:00.217-05:00You Can't Take it with you when you Sell<div><div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgBm7xRTJR0YF78iv5RVrgjFn2Izp42qRKS-HK7Gp9R2ZfzX4oUHQt99XFfGavYyL5tmIHvlPWj8jl3AGFP_uFcfRCzzrko0lP8MjWhlqsUog94PWwMvx-qQV2ULvSm7fnOh7ql3XlrzoI/s640/You+cant+take+it+seller.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="378" data-original-width="640" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgBm7xRTJR0YF78iv5RVrgjFn2Izp42qRKS-HK7Gp9R2ZfzX4oUHQt99XFfGavYyL5tmIHvlPWj8jl3AGFP_uFcfRCzzrko0lP8MjWhlqsUog94PWwMvx-qQV2ULvSm7fnOh7ql3XlrzoI/s320/You+cant+take+it+seller.jpg" width="320" /></a></div><br />There is often confusion about what a seller can and cannot take from a house when they sell it. Things can get unpleasant and disputes can erupt when all parties are not clear.</div><div><br /></div><div>Let’s shed a little light on what goes and what stays when a home sells in Texas.</div><div><br /></div><div><b>What conveys?</b></div><div>Paragraph 2B of the standard Texas real estate contract lists specific items that must convey with the property unless otherwise stipulated. These are items that are permanently installed and built-in. They include appliances, window screens, mirrors, ceiling fans, mail boxes, light fixtures, and more.</div><div><br /></div><div>Paragraph 2C of the contract lists additional accessories that must remain with the property such as fireplace screens, curtains and rods, blinds, fireplace logs, garage door controls, etc.</div><div><br /></div><div>Whether or not an item conveys with the house can often depend on if it is considered permanently attached or built-in. For example, if a mirror is hanging on a nail in the powder bathroom, it is not permanently installed and the seller may take it. However, a mirror glued to the wall or screwed in by framing is considered attached and remains with the house. A kitchen refrigerator does not go with the house unless it is built-in. If it is built-in, then it must remain.</div><div><br /></div><div>Mounts and brackets for televisions and speakers are listed in paragraph 2B and must stay put. However, the actual television and speakers do not go with the sale. Outdoor cooking equipment that is built-in must remain, but items like free standing grills do not. Paragraph 2C lists draperies, curtains and rods as items that must stay. All keys plus controls for gates and garage doors must also convey.</div><div><br /></div><div><b>What to exclude?</b></div><div>Any items that the seller wants to exclude must be listed on the first page of the contract. I often see a favorite light fixture or specific window treatments listed in this space.</div><div><br /></div><div>Personal property items belong to the seller and go with the seller. The seller may opt to gift something (like a washer and dryer) to the buyer and the buyer may agree to accept it. If the buyer does not agree to accept it, then the seller must remove all personal property prior to giving possession. A Non-Realty items addendum should be completed by both parties for any personal items transferring from seller to buyer. </div><div><br /></div><div>Texans may find it surprising that in some countries, the seller takes everything but the kitchen sink – literally. I’ve seen folks buy a home in Europe and discover that the seller takes all appliances, light fixtures, door knobs, etc. In other countries (particularly resort areas), the seller may leave everything, including the furnishings and dishes.</div><div><br /></div><div>When in doubt, read the details in Paragraph 2 and put what you want in writing at the time you sign the contract. Then everyone will understand what you can and can’t take with you when you go.</div><div><span style="font-size: x-small;">[where: 75230]</span></div></div><div class="blogger-post-footer">[where: 75230] [what: Dallas, Texas, Real Estate]
<script type="text/javascript" src="http://w.sharethis.com/widget/?tabs=web%2Cemail&charset=utf-8&style=default&publisher=04622363-6964-4e9c-ba4b-be5ae762c92b"></script></div>Lydia Blairhttp://www.blogger.com/profile/02407907329823751820noreply@blogger.com0tag:blogger.com,1999:blog-2248333113173237927.post-23145088235119408992021-06-28T06:30:00.001-05:002021-06-28T06:30:00.235-05:00Are Title Records Gender Biased?<div><div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj-p4PAqbnpY3-271BTrsbDJxM5g1GlzxH78lvHM_MhRE2vueU9tf-k_FZiPQy9svMaIpnS1Ar5vJ9GL2p_fjlWjKZuOTKpo46cfaOB7D_Odw7i_oSA4zi9QJSbt0lMV9iBgiXmCXpmTqQ/s640/Gender+Bias+Real+Estate.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="352" data-original-width="640" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj-p4PAqbnpY3-271BTrsbDJxM5g1GlzxH78lvHM_MhRE2vueU9tf-k_FZiPQy9svMaIpnS1Ar5vJ9GL2p_fjlWjKZuOTKpo46cfaOB7D_Odw7i_oSA4zi9QJSbt0lMV9iBgiXmCXpmTqQ/s320/Gender+Bias+Real+Estate.jpg" width="320" /></a></div>When the title to a piece of Texas real estate is held in both a man and woman’s names, the first name listed on the deed is usually the man’s name. The man’s name is then shown as the primary title holder on tax records and legal documents.</div><div><br /></div><div>One must wonder if this is some kind of antiquated tradition. Or is the system chauvinistic?</div><div><br /></div><div>The reasoning has nothing to do with gender bias. When the title company receives a contract, they reference the buyer or buyer’s names as they appear on the contract. Whichever name is listed first becomes the first name listed on title documents and on the deed.</div><div><br /></div><div>However, when the buyer is getting a mortgage for the purchase, the title company must match their documents with the lender’s paperwork. The names must appear exactly the same and in the same order on both the mortgage lien (deed of trust) and on the ownership deed (warranty deed).</div><div><br /></div><div>Typically, the first person listed on the loan application becomes the first name listed on the lender documents. The mortgage lender will list the new owner names on their mortgage lien to be filed by the title company. The title company will match the names and their order for documents to be signed at closing.</div><div><br /></div><div>After closing, the title company records the ownership transfer and liens with the county. Tax records are then changed to the new owner names as they were recorded with the county.</div><div><br /></div><div>The buyers’ names must also mirror their names as they appear on their IDs (driver’s license or passport). If Billy Bob is really William Robert, then that is how his name needs to appear on all purchase documents. Likewise, if Sally Sue is really Sarah Susan, then that is how her name will appear on purchase documents.</div><div><br /></div><div>Regardless of whose name appears first, in most residential real estate, both owners are considered joint owners with neither of them owning a larger interest in the property than the other. Whose name appears doesn’t really matter.</div><div><br /></div><div>If it matters to the buyers, then they should discuss it with their mortgage lender and the title company prior to closing.</div><div><br /></div><div><i><span style="font-size: xx-small;">The opinions expressed are of the individual author for informational purposes only and not for the purpose of providing legal advice. Contact an attorney to obtain advice for any particular issue or problem.</span></i></div></div><div><i><span style="font-size: xx-small;">[where: 75230]</span></i></div><div class="blogger-post-footer">[where: 75230] [what: Dallas, Texas, Real Estate]
<script type="text/javascript" src="http://w.sharethis.com/widget/?tabs=web%2Cemail&charset=utf-8&style=default&publisher=04622363-6964-4e9c-ba4b-be5ae762c92b"></script></div>Lydia Blairhttp://www.blogger.com/profile/02407907329823751820noreply@blogger.com1Dallas, TX 75225, USA32.8695051 -96.7895573999999934.5592712638211523 -131.94580739999998 61.179738936178843 -61.633307399999993tag:blogger.com,1999:blog-2248333113173237927.post-15677233106521238482021-06-19T06:00:00.002-05:002021-06-19T06:00:00.214-05:00Are Cash Buyers Better? 4 tips to decide<div><div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiF1ONLAXy7iRBNgnITW23Jx6sXDuXhxS4wJywS3l0DrldIokbup6ezF6PE9ej5g0tGtGDnGzi61SqnXLH3L_Ct9MJQ991nWb6VobnU97aulBX3gzmFYv6_dROtRdEV-MtKJ5xSWWdUnPI/s1024/Are+Cash+Buyers+Better.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="687" data-original-width="1024" height="215" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiF1ONLAXy7iRBNgnITW23Jx6sXDuXhxS4wJywS3l0DrldIokbup6ezF6PE9ej5g0tGtGDnGzi61SqnXLH3L_Ct9MJQ991nWb6VobnU97aulBX3gzmFYv6_dROtRdEV-MtKJ5xSWWdUnPI/w320-h215/Are+Cash+Buyers+Better.jpg" width="320" /></a></div>Why would a home seller prefer a cash buyer? After all, the seller gets their funds from the title company the same way regardless of how the buyer pays.</div><div><br /></div><div>Sellers often do not care where the purchase money is coming from, as long as the buyer can get their loan approved in a reasonable amount of time – and the seller gets their money. However, the mortgage loan process can be time-consuming and comes with no guarantees.</div><div><br /></div><div>Let’s look at four reasons why a cash homebuyer may be more appealing than a buyer getting financing:</div><div><br /></div><div>1. Skip the appraisal.</div><div>Mortgage lenders require an appraisal of the property to determine if they will lend funds for the purchase of the property. Let’s face it. Home appraisals are unpredictable. In our changing market of rising prices, the uncertainty of an appraisal adds risk. There is less chance of the deal falling through if a home sale does not require an appraisal.</div><div><br /></div><div>2. Disregard buyer loan approval.</div><div>When a homebuyer is financing a purchase, the sale is typically contingent on the buyer obtaining loan approval within a specified amount of time. If the buyer can’t get their financing, they can’t buy the property. They may get out of the contract (within a specified time) if there is a financing contingency. Despite promises and pre-approval letters, a seller cannot be certain that a buyer will qualify for their loan.</div><div><br /></div><div>3. No property loan approval.</div><div>In addition to a buyer qualifying for their loan, the property must also meet lender’s requirements for the loan. Those requirements involve the appraisal, insurability of the property and any lender-required repairs. Depending on the terms of the contract, the buyer may be able to get out of the contract if the property does not meet the lender’s terms for their loan.</div><div><br /></div><div>4. Quicker closing. </div><div>The loan approval process often takes weeks. Cash sales can take just a few days to close. The vetting of both the buyer and the property condition is effectively skipped when no lender is involved. However, just how quickly a sale can close also depends on how ‘clean’ the title may be. The same title search is conducted on both cash and financed transactions to uncover all liens and encumbrances on a property.</div><div><br /></div><div>Money is Money</div><div><br /></div><div>A cash buyer will not actually be paying in actual cold, hard cash. In Texas, real estate must be purchased with “good funds” such as a wire transfer or cashier’s check. The title company has the discretion to determine which good funds it will accept.</div><div><br /></div><div>All title companies are legally required to report any cash or personal checks used to close a transaction that total more than $10,000 to the IRS. This is designed to discourage money-laundering, tax evasion, drug trafficking, and other illegal activities.</div><div><br /></div><div>Regardless of the source of the funds, the money passes hands through the title company.</div><div>Historically, most cash buyers are investors, second homebuyers, or older buyers who are using the proceeds from the sale of another property. Traditionally, the percentage of cash homebuyers in the U.S. hovers just above 20 percent.</div><div><br /></div><div>For many sellers, a cash offer does not overly impress. Just because a buyer is paying cash does automatically earn them the right to bargain or jump to the head of the buyer line in this hot market. While there are advantages to picking a cash offer, most sellers will agree to an offer with terms that suit them best.</div></div><div><span style="font-size: x-small;">[where: 75230]</span></div><div class="blogger-post-footer">[where: 75230] [what: Dallas, Texas, Real Estate]
<script type="text/javascript" src="http://w.sharethis.com/widget/?tabs=web%2Cemail&charset=utf-8&style=default&publisher=04622363-6964-4e9c-ba4b-be5ae762c92b"></script></div>Lydia Blairhttp://www.blogger.com/profile/02407907329823751820noreply@blogger.com06030 Sherry Ln, Dallas, TX 75225, USA32.8618738 -96.80774517.300731860628311 -114.38587 48.423015739371685 -79.22962tag:blogger.com,1999:blog-2248333113173237927.post-8632535303444609742021-05-31T10:10:00.012-05:002021-05-31T10:10:00.200-05:00The Texas Real Estate Contract Kick Out Provision<div><p class="MsoNormal"></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhICGKg8o0Tf226F983NBJ87wTJtxhtHZEttTaCf7qCsG3SAT0R0fneW8HMbbPswH9RZheQQkrrIFNze5Lw9SznwqjW2YoOQmQwXaMWG0Pok3400OUowsIusTSLtI72DxZIyh3uxLHuwdA/s2048/Kick-Out-Provision+in+Texas+Real+Estate+contracts.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1336" data-original-width="2048" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhICGKg8o0Tf226F983NBJ87wTJtxhtHZEttTaCf7qCsG3SAT0R0fneW8HMbbPswH9RZheQQkrrIFNze5Lw9SznwqjW2YoOQmQwXaMWG0Pok3400OUowsIusTSLtI72DxZIyh3uxLHuwdA/s320/Kick-Out-Provision+in+Texas+Real+Estate+contracts.jpg" width="320" /></a></div>A Kick Out provision goes by many names in the world of
Texas real estate contracts. It’s also known as a Knock Out clause, a Sale of
Other Property contingency or simply a contingent contract.<o:p></o:p><p></p>
<p class="MsoNormal">A Kick Out provision is actually an addendum to the contract
that takes into consideration the sale of another property by the buyer. It
makes the contract conditional on the buyer selling a property they currently
own.<o:p></o:p></p>
<p class="MsoNormal">“When a property goes under contract with this contingency,
the property is shown in the MLS system as ‘Active Kick Out.’ This
classification is different than the “Under Contract,” “Pending,” or “Active
Option” categories. The property is technically not off the market.<o:p></o:p></p>
<p class="MsoNormal">According to the MetroTex Association of Realtors, the description of Active
Kick Out, or KO, status is:<o:p></o:p></p>
<p class="MsoNormal">“Property has an offer contingent upon the sale of another
property by buyer. Still available for showings and backup offers. Will expire
on the original expiration date the agent entered.”<o:p></o:p></p>
<p class="MsoNormal">While this provides the buyer a benefit, in return it
affords the seller a benefit as well. This Kick Out addendum essentially allows
the seller to “kick out” the buyer if the seller receives an offer from another
buyer. If the seller accepts an offer from another buyer, they must give notice
to the current buyer and allow the current buyer the option to either remove
the contingency or terminate the contract. If the contract terminates, the
backup contract moves into the primary position.<o:p></o:p></p>
<p class="MsoNormal">As always, there are a couple of important items to note and
to make this provision work.<o:p></o:p></p>
<p class="MsoNormal"><b> This option is not available to the seller without
this addendum.<o:p></o:p></b></p>
<p class="MsoNormal">Our Texas real estate contracts generally don’t give a
seller the option to get out. This addendum does. It gives the seller the
opportunity to require that the buyer waive the contingency with a day or two
notice AND it lets the seller require the buyer to put up additional earnest
money if they waive the contingency. Many real estate advisors suggest the
additional earnest money amount should be a “meaningful” enough amount to
reflect the buyer’s sincerity.<o:p></o:p></p>
<p class="MsoNormal"><b>This contingency on the sale of other property is
actually a contingency on the buyer’s receipt of proceeds from the sale of
other property.<o:p></o:p></b></p>
<p class="MsoNormal">The buyer must receive the funds from the sale of their
property in order to move forward with this purchase. If the buyer doesn’t
receive the funds from their sale, they may get out of the contract. This could
become an issue if the buyer were closing their sale on a Friday afternoon and
funds were not disbursed before end of business. They wouldn’t have the
proceeds from their sale until the following Monday (or later if that Monday
were a holiday). Or there could be some sort of judgment or lien on the
property that prevents the buyer from receiving any proceeds from their sale.<o:p></o:p></p>
<p class="MsoNormal">Sellers sometimes welcome a Kick Out provision because it
allows them to continue marketing their property while they have it under
contract. Buyers can appreciate a Kick Out addendum because it reduces their
risk if their sale proceeds are a necessity for their purchase.<o:p></o:p></p>
<p class="MsoNormal">Cooperation from both sides can help keep a deal from
landing on its bum.</p></div><span style="font-size: xx-small;">[where: 75230]</span><div class="blogger-post-footer">[where: 75230] [what: Dallas, Texas, Real Estate]
<script type="text/javascript" src="http://w.sharethis.com/widget/?tabs=web%2Cemail&charset=utf-8&style=default&publisher=04622363-6964-4e9c-ba4b-be5ae762c92b"></script></div>Lydia Blairhttp://www.blogger.com/profile/02407907329823751820noreply@blogger.com06030 Sherry Ln, Dallas, TX 75225, USA32.8624524 -96.80717969999999232.860649995540811 -96.8093254672119 32.864254804459193 -96.805033932788078tag:blogger.com,1999:blog-2248333113173237927.post-77174630715978721532021-05-19T06:00:00.001-05:002021-05-19T06:00:00.206-05:00The New 2021 Real Estate HOA Addendum<div><div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjiPd62u06vmn90GKyLUfad9gt4GayALjp9KUxOTZd0OuPIgdOv4icqM9o2jW2P639aRNR0FgM6nnQD5MqROUqERf18HWQLnNJuim1N4mCoATLd4N_ra4TWkAMuxoxLb99XQ2x7COxUuZM/s1536/New+Texas+HOA+Addendum.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1152" data-original-width="1536" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjiPd62u06vmn90GKyLUfad9gt4GayALjp9KUxOTZd0OuPIgdOv4icqM9o2jW2P639aRNR0FgM6nnQD5MqROUqERf18HWQLnNJuim1N4mCoATLd4N_ra4TWkAMuxoxLb99XQ2x7COxUuZM/s320/New+Texas+HOA+Addendum.jpg" width="320" /></a></div>If you are selling a property that is part of a Homeowner’s Association, get ready for a potential surprise. I’m finding some upset sellers dealing with the recent change to paragraph C in the HOA addendum.</div><div><br /></div><div>Last month (April 2021), the Texas Real Estate Commission made a slight change to the form titled Addendum For Property Subject to Mandatory Membership In A Property Owners Association — a big name for a small document that can have a big impact on your closing costs. This addendum is considered part of the contract when the property is part of a mandatory HOA.</div><div><br /></div><div>The previous HOA addendum addressed the limit that the buyer would pay for “association fees or other charges association with the transfer.” Buyer and seller would agree on an amount and fill it in on the addendum. Typically, the amount filled in on this addendum was between $100 and $300 for the buyer’s limit. The seller would pay any association transfer fees that exceeded the buyer’s responsibility filled in on the addendum.</div><div><br /></div><div>The previous HOA addendum also had a paragraph D that stated the “buyer shall pay any deposits for reserves required by the Association.” That changed in April.</div><div><br /></div><div>The new HOA addendum states the limit that the buyer will pay for “association fees, deposits, reserves and other charges associated with the transfer.” I am still seeing the amount filled in between $100 and $300.</div><div><br /></div><div>What many sellers and agents do not notice (until it is too late) is that paragraph D no longer requires the buyer to pay for the reserves. That part of the addendum was deleted. The deposits and reserves paid by the buyer are now lumped together with the transfer fee and are limited to the amount filled in the addendum. The seller must pay any amount over that limit. These charges are in addition to the usual seller expense for the resale certificate and HOA documents that must be provided to the buyer.</div><div><br /></div><div>That is not a problem unless your HOA has a fee for reserves. HOA reserves are sometimes referred to as capital reserves, capital contribution, mandatory reserves, reserve deposit, etc. Some folks call it a ‘buy in.’ It is the HOA fee charged to new buyers in a development to build up their funds.</div><div><br /></div><div>The reserve fee can be hefty. I’ve seen it range from $1,000 to $10,000. Some sellers are getting an ugly surprise when they realize the capital reserve fee is now mostly their responsibility.</div><div><br /></div><div>Imagine you are a seller who purchased a property a few years ago and paid the HOA capital contribution when you bought your home. Now you may be paying it again for your buyer because the amount listed for the buyer’s limit is only $150 and barely covers the transfer fee.</div><div><br /></div><div>Do not count on your HOA or HOA management company to guide you on this new addendum. Most HOA management companies are unaware of this change.</div><div><br /></div><div>Many HOA documents state that the capital reserve fee is a buyer responsibility. However, if the addendum signed by the seller states that the buyer is only paying up to a small limit for fees, then the seller must adhere to the contract that they signed and pay the balance.</div></div><div><span style="font-size: xx-small;"><br /></span></div><span style="font-size: xx-small;">[where: 75230]</span><div class="blogger-post-footer">[where: 75230] [what: Dallas, Texas, Real Estate]
<script type="text/javascript" src="http://w.sharethis.com/widget/?tabs=web%2Cemail&charset=utf-8&style=default&publisher=04622363-6964-4e9c-ba4b-be5ae762c92b"></script></div>Lydia Blairhttp://www.blogger.com/profile/02407907329823751820noreply@blogger.com0tag:blogger.com,1999:blog-2248333113173237927.post-3286046455901834752021-05-02T06:00:00.001-05:002021-05-02T06:00:00.245-05:00Six Tips to buying a home in a seller's market<p style="box-sizing: border-box; margin: 0px 0px 28px; padding: 0px;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhsOCBsIp09jdgrFrjqCoZAefebHcH_rL9e432-VI1TFWC26xeu81tDmvjrxRy3mqucIq9xH9SLTW-YGFGoxh-fcrW1A96t9P5BjKVRFlZUf10bnZd8IS642r1OadLjGP9uY8SlU2I7NHI/s2048/Buying-a-home-in-a-seller-market.jpg"><img border="0" height="202" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhsOCBsIp09jdgrFrjqCoZAefebHcH_rL9e432-VI1TFWC26xeu81tDmvjrxRy3mqucIq9xH9SLTW-YGFGoxh-fcrW1A96t9P5BjKVRFlZUf10bnZd8IS642r1OadLjGP9uY8SlU2I7NHI/w320-h202/Buying-a-home-in-a-seller-market.jpg" width="320" /></a></p><p style="box-sizing: border-box; margin: 0px 0px 28px; padding: 0px;">Anyone with their finger on the pulse of Texas real estate knows that we are in the midst of a hot seller’s market. Anxious buyers are making generous offers in a desperate attempt to buy a home. However, an offer well over the asking price is not always enough to win the right to buy your dream home.</p><p style="box-sizing: border-box; margin: 0px 0px 28px; padding: 0px;">Let me pose a unique perspective to our readers and potential buyers. At the title company, we see the winning contracts. The buyers whose offers are rejected never make it to the title company.<br /><br />The successful contracts in today’s market share a few common characteristics that potential buyers may want to note. If you want to win in this competitive market to buy a house, consider these tips:</p><p style="box-sizing: border-box; margin: 0px 0px 28px; padding: 0px;">1. Keep it simple.<br /><br />Make your offer clean and with just a few, short contingencies. Contingencies include financing, inspection periods, right to object, etc. Any contingencies should appear reasonable and easily attainable. Most of the contracts I am seeing have short option, financing, and objection period contingencies. In this market, you won’t have much luck including a contingency such as the sale of another property.</p><p style="box-sizing: border-box; margin: 0px 0px 28px; padding: 0px;">2. Close within a reasonable time.<br /><br />Ask the seller when they want to close. Then check to see if your lender can meet that date. Most lenders require 30 days or more. The longer the time to close, the more risk to the seller. Too many things can go wrong that the seller has no control over. The buyer could lose their job or change their minds. Acts of nature can occur (remember the deep freeze of a couple of months ago?). Many savvy sellers want to narrow the time from contract to closing.<br />3. Provide proof of financial ability.<br /><br />Knowledgeable sellers often realized that a verifiable buyer might be a better proposition than a questionable buyer making a higher offer. The buyer should show documentation that they have the financial means to pay what they are offering. They should already be pre-approved for a loan at the terms they are offering.<br /><br />As is often the case, cash is king. When there is no lender involved, concerns about appraisals and financing are gone. The lower the buyer’s cash down payment, the higher the likelihood that the financing may not materialize.</p><p style="box-sizing: border-box; margin: 0px 0px 28px; padding: 0px;">4. Put down substantial earnest money and option fee.<br /><br />This is a reflection of the buyer’s commitment. The option fee enables the buyer to essentially take the seller’s house off the market for a period of time. Once all parties sign the contract, it is unavailable to other buyers. The buyer should offer enough to the seller to make it worth it.<br /><br />While earnest money can be any amount, it also reflects the buyer’s sincerity and ability. It can be concerning when a buyer offers a contract with a substantial down payment but the earnest money they are offering is a small fraction of the down payment.</p><p style="box-sizing: border-box; margin: 0px 0px 28px; padding: 0px;">5. Write a love letter.<br /><br />I am not a fan of cover letters but I’ll admit that they sometimes help. Nothing said in a buyer’s nice cover letter is binding. Some sellers, like myself, feel that everyone’s money is the same color of green. They don’t care about a sappy story. However, people are emotional beings and sometimes a sweet letter can tug at the heartstrings. If a buyer’s agent thinks it will help them, why not give it a shot?</p><p style="box-sizing: border-box; margin: 0px 0px 28px; padding: 0px;">6. Make it easy for the seller.</p><p style="box-sizing: border-box; margin: 0px 0px 28px; padding: 0px;">Many contracts today provide a temporary lease back to the seller that allows them to move out a few days or even weeks after the closing. Some allow them to take specific fixtures with them. A buyer may offer to purchase a pool table or piano that the seller won’t be using at their next house. A buyer perceptive to the seller’s needs will find themselves a step ahead.<br /><br /><br />[where: 75230]</p><div class="blogger-post-footer">[where: 75230] [what: Dallas, Texas, Real Estate]
<script type="text/javascript" src="http://w.sharethis.com/widget/?tabs=web%2Cemail&charset=utf-8&style=default&publisher=04622363-6964-4e9c-ba4b-be5ae762c92b"></script></div>Lydia Blairhttp://www.blogger.com/profile/02407907329823751820noreply@blogger.com0tag:blogger.com,1999:blog-2248333113173237927.post-53475340428881499472021-03-29T06:00:00.005-05:002021-03-29T06:00:10.871-05:00Understanding the Underwriting Process<div><p class="MsoNormal"><span style="font-size: 12.0pt; line-height: 107%;"></span></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiP161gvmRvhD_iUiIp_HLYGFt55x89m1Mrq2VRnrsqdcJwyV7Cwlm-h8T7ZpqyNXaDXYw3WKMmUg_1ROyEGs7CerZEcyNrf82zN8MCI1wKZrgBOOxmw9OMyOUtMLTXkR5V8FD7odNkIKo/s640/Underwriting.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="371" data-original-width="640" height="233" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiP161gvmRvhD_iUiIp_HLYGFt55x89m1Mrq2VRnrsqdcJwyV7Cwlm-h8T7ZpqyNXaDXYw3WKMmUg_1ROyEGs7CerZEcyNrf82zN8MCI1wKZrgBOOxmw9OMyOUtMLTXkR5V8FD7odNkIKo/w400-h233/Underwriting.jpg" width="400" /></a></div>In the real
estate world, we often reference underwriting requirements, underwriter
approval, and underwriting review. Many buyers and sellers don’t understand
what underwriting means or how much it affects their transactions. Let’s pull
back the curtain for a peek at that mysterious thing we call
underwriting. <o:p></o:p><p></p>
<p class="MsoNormal"><span style="font-size: 12.0pt; line-height: 107%;">Underwriting is
a sophisticated decision making process that involves interpreting data to
determine if a company will take on a financial risk. The underwriter’s job can
include conducting research, investigating details and weighing the known risk
factors to determine if insurance coverage or a loan will be issued.<o:p></o:p></span></p>
<p class="MsoNormal"><b><span style="font-size: 12.0pt; line-height: 107%;">Types of
Underwriters<o:p></o:p></span></b></p>
<p class="MsoNormal"><span style="font-size: 12.0pt; line-height: 107%;">With the
possibility of sounding like Bubba from <i>Forrest Gump</i>, there are
different kinds of underwriters. There are mortgage underwriters, homeowner’s
insurance underwriters, life insurance underwriters, health insurance
underwriters … and title underwriters.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size: 12.0pt; line-height: 107%;">Your
mortgage underwriter will verify your income, assets, debt, and property
details in order to issue final approval for your loan. Your homeowner’s
insurance underwriter will determine the insurability of the property and how
much to charge you for insurance. And we’ve got title insurance underwriters
too.<o:p></o:p></span></p>
<p class="MsoNormal"><b><span style="font-size: 12.0pt; line-height: 107%;">How Title
Underwriting Works<o:p></o:p></span></b></p>
<p class="MsoNormal"><span style="font-size: 12.0pt; line-height: 107%;">Before a
sale is officially closed and title insurance is issued, a property must go
through the underwriting process. This is a vital component of a real estate
transaction because we cannot complete the sale without this due diligence. A
title agent cannot waive requirements or make special provisions to offer you
insurance without the consent of the underwriter.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size: 12.0pt; line-height: 107%;">A title
insurance underwriter is responsible for checking title to the property to
ensure ownership, rights and compliance with Texas real estate laws. They
evaluate your property’s history and the title company’s research of the chain
of title, looking for anything that could present challenges with ownership
and/or owner’s rights.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size: 12.0pt; line-height: 107%;">The
underwriter also looks for common issues like liens or judgments attached
to the property, legal description errors, deed mistakes, unreleased
marital rights, rights of heirs or minors, etc. To ensure a clear title, issues
like boundary disputes, divorces, probate proceedings, adverse possession,
bankruptcies, and more must be addressed to determine the significance of risk.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size: 12.0pt; line-height: 107%;">Furthermore,
the underwriter must review and disclose anything that would be an exception to
the title insurance policy. These include issues that could affect the owner’s
use and enjoyment of the property such as easements, encroachments, rights of
way, survey matters, and restrictions.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size: 12.0pt; line-height: 107%;">After
evaluating the title risk, the underwriter may seek ways to mitigate a risk, if
possible, and will ultimately decide whether to insure the title to the
property. We all want to protect a buyer from closing on a property that does
not have clear title.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size: 12.0pt; line-height: 107%;">An
underwriter authorizes the title company to write the title insurance policy,
assumes the financial risk and insures the property against insurance defects.
The title insurance underwriter will then legally defend the property owner if
any undetected issues arise with the title. In simple terms, the title company
sells the title insurance policy and the underwriter determines whether they
should and will sell that coverage. <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size: 12.0pt; line-height: 107%;">A title
company may have one, two, or several underwriters. The title company must meet
strict standards to qualify to write title policies with an underwriter. I work
with nine different underwriters and each has a slightly different approach.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size: 12.0pt; line-height: 107%;">Title
companies and underwriters are cautious because a simple mistake can lead to
paying out thousands of dollars on a title insurance policy. Every title
insurance policy carries a risk that the customer will file a claim — a
potential loss to the insurer.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size: 12.0pt; line-height: 107%;">Title
companies must be diligent and knowledgeable to comply with state and federal regulations
and to also conform to their underwriter’s standards. Avoiding claims and
issuing marketable title is the goal of every title company.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size: 12.0pt; line-height: 107%;">If you are
purchasing a property, make sure you are selective about your title company and
their title insurance underwriter. Not all title underwriters are alike. As a
buyer, you have the legal right to select the title company you want.
Have someone you feel is dedicated to your best interests.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size: xx-small;"><span style="line-height: 107%;"> </span>[where: 75230]</span></p></div><div class="blogger-post-footer">[where: 75230] [what: Dallas, Texas, Real Estate]
<script type="text/javascript" src="http://w.sharethis.com/widget/?tabs=web%2Cemail&charset=utf-8&style=default&publisher=04622363-6964-4e9c-ba4b-be5ae762c92b"></script></div>Lydia Blairhttp://www.blogger.com/profile/02407907329823751820noreply@blogger.com0Dallas, TX, USA32.7766642 -96.7969878999999914.4664303638211535 -131.95323789999998 61.086898036178845 -61.640737899999991tag:blogger.com,1999:blog-2248333113173237927.post-82639022535702839182021-03-16T06:30:00.003-05:002021-03-16T06:30:04.489-05:00Cash Offers in Real Estate<div><div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg_vpQjDSTGFZg5msJNSwrIS6Z2y0wZfLF5wiDC1_tF_gd0tJJzKHXVSKo_aqicadDxDA7WtGBPLztUuto8V4lqDsVhOOsymh4nnZNa_EPsa6neo7Z-7oMe01QHpbpMgfB_3NrroTjEVQI/s2048/Cash+offer.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1178" data-original-width="2048" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg_vpQjDSTGFZg5msJNSwrIS6Z2y0wZfLF5wiDC1_tF_gd0tJJzKHXVSKo_aqicadDxDA7WtGBPLztUuto8V4lqDsVhOOsymh4nnZNa_EPsa6neo7Z-7oMe01QHpbpMgfB_3NrroTjEVQI/s320/Cash+offer.jpg" width="320" /></a></div>We often hear that cash is king is real estate. A cash offer is more appealing to a seller than an offer contingent on the buyer financing the purchase. How much a cash offer appeals to a seller is debatable. Some buyers think it entitles them to offer less for a property. Let’s get to the heart of that conversation.</div><div><br /></div><div><b>Why a Cash Offer Appeals to a Seller</b></div><div><br /></div><div>When a homebuyer is financing a purchase, the sale is typically contingent on the buyer obtaining loan approval for that financing. That means if the buyer can’t get their financing, they can’t buy the property. The approval process can take days or weeks.</div><div><br /></div><div>Additionally, the property must meet lender’s requirements for the loan. Those requirements involve the appraisal, insurability of the property and any lender required repairs. Depending on the terms of that specific contract, the buyer may be able to get out of the contract if the property doesn’t meet lender terms or if the buyer can’t qualify for their loan.</div><div><br /></div><div>While all that is going on, the seller is in limbo waiting for the loan approval. A cash offer can typically close quicker than a purchase involving a lender. But that really depends on the lender and how ‘clean’ the title may be. </div><div><br /></div><div>The buyer’s financing typically makes little or no difference in the seller’s closing costs unless it involves a VA or FHA insured loan. For that reason, sellers often don’t care where the money is coming from, as long as the buyer can get their loan approved in a reasonable amount of time. For many sellers, a low cash offer doesn’t sweep them off their feet.</div><div><br /></div><div><b>How Much a Cash Purchase Saves The Buyer</b></div><div><br /></div><div>Paying cash for the property can save the buyer on closing costs. Of course, we’re not talking about actual cold, hard cash – as in paying for a property with $100 bills. The U.S. government doesn’t allow that to discourage illegal activities like money laundering.</div><div><br /></div><div>But a purchase without a mortgage can save on various title and lender fees. Assorted lender fees include the application, processing, credit report, appraisal, flood certificate, doc prep, etc. Borrowers may also opt to pay points (a percentage of the loan) up front to secure a lower interest rate on their mortgage. That adds to their costs to purchase the property.</div><div><br /></div><div>If buying with cash, the buyer also saves on the cost of recording the lien with the county court. Most lenders require additional endorsements to the title insurance policy to cover items such as restrictions, lease holds, taxes, etc. Those endorsements can add more than $100 to the closing costs.</div><div><br /></div><div>Obviously, some purchasers finance their property because they don’t have the cash. Others may have the cash assets and don’t want to tie up their money in a non-liquid investment like real estate.</div><div><br /></div><div>Regardless of the source of the funds, the money passes hands through the title company. In the end, the seller looks for their money from the title company. At that point, it’s all the same color of green.</div></div><div><span style="font-size: x-small;">[where: 75230]</span></div><div class="blogger-post-footer">[where: 75230] [what: Dallas, Texas, Real Estate]
<script type="text/javascript" src="http://w.sharethis.com/widget/?tabs=web%2Cemail&charset=utf-8&style=default&publisher=04622363-6964-4e9c-ba4b-be5ae762c92b"></script></div>Lydia Blairhttp://www.blogger.com/profile/02407907329823751820noreply@blogger.com0tag:blogger.com,1999:blog-2248333113173237927.post-8066087996658548462021-03-04T06:30:00.001-06:002021-03-04T06:30:06.386-06:00Electronic Signature Do's and Don'ts<div><p style="box-sizing: border-box; margin: 0px 0px 28px; padding: 0px;"><span style="background-color: white; font-family: inherit;"></span></p><div class="separator" style="clear: both; text-align: center;"><span style="background-color: white; font-family: inherit;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgc6zsnUht1WkrUSTe8MyHpw9MErOMP7mlokj5j8oxplatGMOFWIGW1twHKADUuLHbxdrd1VDhdTdcmXzw4tnuL5iqTEucyeKJ0zEI-BSQMcRzO0TU8dm6oZwA7FJ8mNK7yF1OS-iMSB7s/s640/Electronic-Signatures+on+contracts.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="405" data-original-width="640" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgc6zsnUht1WkrUSTe8MyHpw9MErOMP7mlokj5j8oxplatGMOFWIGW1twHKADUuLHbxdrd1VDhdTdcmXzw4tnuL5iqTEucyeKJ0zEI-BSQMcRzO0TU8dm6oZwA7FJ8mNK7yF1OS-iMSB7s/s320/Electronic-Signatures+on+contracts.jpg" width="320" /></a></span></div><span style="background-color: white; font-family: inherit;">The real estate industry has been ramping up its use of technology to conduct business over many years. Now, more than ever, buyers and sellers frequently execute signatures to seal the deal on contracts for efficiency and convenience.</span><p></p><p style="box-sizing: border-box; margin: 0px 0px 28px; padding: 0px;"><span style="background-color: white; font-family: inherit;">Digitally signed real estate contracts became more popular about 15 years ago with the passage of electronic signature law. These laws support the principle that e-signatures and records hold the same legal authority as pen and paper records. E-signing documents is mainstream in 2020.</span></p><p style="box-sizing: border-box; margin: 0px 0px 28px; padding: 0px;"><span style="background-color: white; font-family: inherit;">But before you sign on the virtual dotted line, please follow these important suggestions:</span></p><p style="box-sizing: border-box; margin: 0px 0px 28px; padding: 0px;"><span style="background-color: white; font-family: inherit;"><span style="box-sizing: border-box;">DO</span> realize that electronically signed contracts are legally binding just like a traditional, hand-signed document. Treat it as you would any legal document.</span></p><p style="box-sizing: border-box; margin: 0px 0px 28px; padding: 0px;"><span style="background-color: white; font-family: inherit;"><span style="box-sizing: border-box;">DON’T</span> sign too quickly. One of the beauties of electronically signing documents is that it is quick and easy. But it’s not a race. “But I didn’t see that” is not an excuse to present later. All electronically presented documents should comply with legal requirements to enable to signer to view and read the document prior to signing.</span></p><p style="box-sizing: border-box; margin: 0px 0px 28px; padding: 0px;"><span style="background-color: white; font-family: inherit;"><span style="box-sizing: border-box;">DO</span> read the entire document. Don’t just view the document – read it. You know there is a difference. Missing a checked box about the survey, financing, deadlines, etc. could cost you big bucks later.</span></p><p style="box-sizing: border-box; margin: 0px 0px 28px; padding: 0px;"><span style="background-color: white; font-family: inherit;"><span style="box-sizing: border-box;">DON’T</span> rely on your verbal requests to actually appear in writing on the contract. If you want a home warranty, check to see if it is there. If the dining chandelier is supposed to be excluded, ensure that it is in writing. Verbal agreements are not legal in Texas real estate.</span></p><p style="box-sizing: border-box; margin: 0px 0px 28px; padding: 0px;"><span style="background-color: white; font-family: inherit;"><span style="box-sizing: border-box;">DO</span> keep a copy (either electronically or printed) of the documents you sign. I like to save resources and operate paperless as much as anyone. But keep in mind the size of your real estate investment and commitment. All too often, a buyer or seller doesn’t have a copy of the contract they signed until someone like me sends it to them days after they have signed. </span></p><p style="box-sizing: border-box; margin: 0px 0px 28px; padding: 0px;"><span style="background-color: white; font-family: inherit;"><span style="box-sizing: border-box;">DO</span> track, save and label all signed documents. Often a contract may go back and forth between parties while they are negotiating. The changes may be slight but significant. Keep a copy of the last document that you signed to avoid misunderstandings. Just like paper documents, electronic contracts can be altered after they are signed. Unlike a paper document, electronically signed contracts are time stamped if proof is needed.</span></p><p style="box-sizing: border-box; margin: 0px 0px 28px; padding: 0px;"><span style="background-color: white; font-family: inherit;"><span style="box-sizing: border-box;">DON’T </span>blame your agent or anyone else if you sign a document electronically and later claim it isn’t what you intended. If the terms and conditions are not clear before you sign, then don’t rush into signing. </span></p><p style="box-sizing: border-box; margin: 0px 0px 28px; padding: 0px;"><span style="background-color: white; font-family: inherit;">Today’s technology options make it quick and easy to digitally sign most documents on smartphones, laptops, tablets and workstations. The processes for authentication and verification of signers is safe and sophisticated.</span></p><p style="box-sizing: border-box; margin: 0px 0px 28px; padding: 0px;"><span style="background-color: white; font-family: inherit;">Although real estate contracts can be executed completely electronically, the use of e-signatures is optional. If you’re unsure about electronically signing a contract, the traditional process of using ink and paper still works.</span></p></div><span style="background-color: white; font-family: inherit; font-size: xx-small;">[where: 75230]</span><div class="blogger-post-footer">[where: 75230] [what: Dallas, Texas, Real Estate]
<script type="text/javascript" src="http://w.sharethis.com/widget/?tabs=web%2Cemail&charset=utf-8&style=default&publisher=04622363-6964-4e9c-ba4b-be5ae762c92b"></script></div>Lydia Blairhttp://www.blogger.com/profile/02407907329823751820noreply@blogger.com0tag:blogger.com,1999:blog-2248333113173237927.post-31305443321530479392021-02-06T08:40:00.000-06:002021-02-06T08:40:05.806-06:00New Real Estate Survey measurement rules<div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhuD9XcJjc61YTom5bLhMmdrvB2EIvwrwzWhYBosyBJfrgOnOdMOmBZ9ZeTgHkAzwKZJhCUwhhtYfUjjADmFDc_mfTduq9Uxy-8n5v2taq3Q32C8lbMHR23UrrTXJjlEbn2Eel7Cnibhd8/s2048/US+Real+Estate+Survey+changes.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1428" data-original-width="2048" height="223" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhuD9XcJjc61YTom5bLhMmdrvB2EIvwrwzWhYBosyBJfrgOnOdMOmBZ9ZeTgHkAzwKZJhCUwhhtYfUjjADmFDc_mfTduq9Uxy-8n5v2taq3Q32C8lbMHR23UrrTXJjlEbn2Eel7Cnibhd8/w320-h223/US+Real+Estate+Survey+changes.jpg" width="320" /></a></div><br /><div>Not all surveyors have two right feet. But some do.</div><div><br /></div><div>For more than 100 years, there have been two different survey definitions of the 12-inch measurement known as a foot. But change has been afoot for some time for the official measurements used by U.S. surveyors.</div><div><br /></div><div>Many land surveyors use the widely accepted International Foot for measurements. However, the “U.S. Survey” foot is still used by some land surveyors in 40 U.S. states and territories. Texas is one of them.</div><div><br /></div><div>Soon the International Foot will be mandated for use throughout the U.S. The National Institute of Standards and Technology states that the International Foot will become officially used by all surveyors by 2022. That means the Texas system of using the U.S. Survey Foot will need to get the boot. The Texas Legislature designates the state standard for survey measuring applications in the Texas Natural Resources Code, Subtitle B, Chapter 21.</div><div><br /></div><div>The difference between these measurements is miniscule. When measuring a mile, the International Foot is about an eighth of an inch smaller. So it’s not going to make a difference in your average residential survey. But it can make a difference when measuring large distances. In a measurement of 1 million feet, the difference is 2 feet.</div><div><br /></div><div>The problem started almost 90 years ago. In 1893, the U.S. government definition of a foot was 1,200 meters divided by 3,937. That makes a foot equal 0.3048006+ meters. In 1933, the International Foot was created. It was defined as 0.3048 meters, exactly. The last digits were eliminated. By 1959, the U.S. government switched to the International Foot and mandated its use – except for surveying and mapping applications.</div><div><br /></div><div>The minor difference may seem insignificant, but it has caused problems for surveyors, engineers, and planning officials for high-speed rail and bridges in some states. It seems prudent to use the same measuring stick like the rest of the world to avoid errors, confusion, and additional costs. Discontinuing the use of the U.S. Survey Foot is expected to bring uniformity and accuracy for professionals in the surveying, mapping, and engineering businesses.</div><div><br /></div><div>Industry icon Barry Rhodes with Burns Surveying has worked in the surveying business for more than 50 years and is responsible for more than 120,000 surveys in North Texas.</div><div><br /></div><div>“The difference in measurements are so minute for local surveyors,” says Rhodes. “The difference isn’t usually a big deal unless you’re dealing with long pipelines or something similar. When you go really long distances, you have the curvature of the earth to deal with.”</div><div><br /></div><div>Rhodes doesn’t expect the change to create problems for Texas surveyors. “I always use the U.S. Foot. But if the state says to make the change, we’ll do it,” Rhodes said. “Our software probably has the option to convert.”</div><div><br /></div><div>The next time someone tells you that a foot is 12 inches, you might want to add that the official definition of a foot is actually 0.3048 meters. Even in Texas.</div></div><div><span style="font-size: x-small;">[where: 75230]</span></div><div class="blogger-post-footer">[where: 75230] [what: Dallas, Texas, Real Estate]
<script type="text/javascript" src="http://w.sharethis.com/widget/?tabs=web%2Cemail&charset=utf-8&style=default&publisher=04622363-6964-4e9c-ba4b-be5ae762c92b"></script></div>Lydia Blairhttp://www.blogger.com/profile/02407907329823751820noreply@blogger.com06030 Sherry Ln, Dallas, TX 75225, USA32.8614286 -96.80701189999999232.85962618447418 -96.8091576672119 32.863231015525827 -96.804866132788078tag:blogger.com,1999:blog-2248333113173237927.post-60427959102189736422021-01-02T08:30:00.025-06:002021-01-02T08:31:35.795-06:00The Truth about Title Theft Protection<div>
</div><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman";"><p class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjWriXXvgfrUfzlQOcN51cGFL_GUXuFLZfjwc4a6tf4-NEMNpMbOJP1kv84pfHsdI94jp5NmQMw1VGqdVw7nnV5RVe5FJLOrv_7HWhyphenhyphenbeoTTCBokgxuIwTileKYDnSp6E1-xiEN8CIKPdU/s1024/Title+Theft+Truth.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="591" data-original-width="1024" height="185" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjWriXXvgfrUfzlQOcN51cGFL_GUXuFLZfjwc4a6tf4-NEMNpMbOJP1kv84pfHsdI94jp5NmQMw1VGqdVw7nnV5RVe5FJLOrv_7HWhyphenhyphenbeoTTCBokgxuIwTileKYDnSp6E1-xiEN8CIKPdU/w320-h185/Title+Theft+Truth.jpg" width="320" /></a></p></span><div style="line-height: normal; margin-bottom: 21pt; text-align: left;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman";"><span style="font-family: inherit;"><br />You may have seen the ads or heard the
buzz about companies offering title monitoring services or “title theft
protection.” Are they legitimate or just a scam? Is there any real value in
these services?</span></span></div><div style="text-align: left;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman";"><span style="font-family: inherit;">First, let me clarify that “title
coverage” offered by some of these unregulated companies is not title
insurance. They do not actually protect you from fraud, title thieves,
scammers, etc. Their standard service does include taking any actions
regarding the rightful ownership of your property.</span></span></div><div style="text-align: left;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman";"><span style="font-family: inherit;"><br /></span></span></div><div style="text-align: left;">
<span style="font-family: inherit;"></span></div><div style="line-height: normal; margin-bottom: 7.5pt; text-align: left;"><b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman";"><span style="font-family: inherit;">What is Title
Theft Protection?</span></span></b></div><div style="text-align: left;">
<span style="font-family: inherit;"></span></div><div style="line-height: normal; margin-bottom: 21pt; text-align: left;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman";"><span style="font-family: inherit;">Monitoring services like Secure Title
Lock and Home Title Lock offer subscriptions that say they will alert you to
court filings affecting your home’s title. For $100-150 a year, they will
monitor court records to show title fraud or theft. The “protection” they offer
is basically a notification that someone has changed the ownership or deed to
your property.</span></span></div><div style="text-align: left;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman";"><span style="font-family: inherit;">“Title theft” is a fairly new term
that has generated a handful of companies feeding on consumer fears. These
companies suggest that criminals can “steal” your property by forging your name
on a deed, then resell the property or take out a mortgage loan against it.
They claim a title thief can stick you with a debt that isn’t yours.</span></span></div><div style="line-height: normal; margin-bottom: 21pt; text-align: left;"><br /></div><div style="line-height: normal; margin-bottom: 21pt; text-align: left;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman";"><span style="font-family: inherit;">That isn’t true. Though a title thief
or forger could attempt to steal your home, the consequence is actually a lot
of headaches and legal hassles for a property owner. Proving and dealing with
fraud can be time consuming and expensive. Title theft protection
services are meant to be proactive in helping you shut down mortgage fraud.</span></span></div><div style="text-align: left;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman";"><span style="font-family: inherit;">The benefits of a title monitoring
service are ambiguous. They are only designed to alert you to a change in your
title. They don’t prevent the fraud and they don’t actually help you deal with
it if it happens. A title theft monitoring service will not help to clear or
correct a title. They have no legal obligation to assist the owner with a title
theft and they don’t offer protection against financial losses. That’s what
home title insurance is for.</span></span></div><div style="text-align: left;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman";"><span style="font-family: inherit;"><br /></span></span></div><div style="text-align: left;">
<span style="font-family: inherit;"></span></div><div style="line-height: normal; margin-bottom: 7.5pt; text-align: left;"><b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman";"><span style="font-family: inherit;">What is Title
Insurance?</span></span></b></div><div style="line-height: normal; margin-bottom: 7.5pt; text-align: left;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman";"><span style="font-family: inherit;">Title Insurance protects the owner and their lender from the possibility
of someone contesting their ownership of a property. When buying or refinancing
a home, you need a title insurance policy if you are closing at a title company
or getting a mortgage loan. The title insurance premium paid at closing
protects you for the entire time you own the property.</span></span></div><div style="text-align: left;">
<span style="font-family: inherit;"></span></div><div style="line-height: normal; margin-bottom: 21pt; text-align: left;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman";"><span style="font-family: inherit;">Title insurance not only protects you
from financial loss, it requires the title company to legally defend you if
your ownership is ever challenged. However, it insures against issues on the
title when you purchase the property. It doesn’t cover future criminal
incidences.</span></span></div><div style="text-align: left;"><b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman";"><span style="font-family: inherit;">How to Protect
Your Home Title</span></span></b></div><div style="text-align: left;">
<span style="font-family: inherit;"></span></div><div style="line-height: normal; margin-bottom: 21pt; text-align: left;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman";"><span style="font-family: inherit;">You don’t need to pay a company to
protect you from thieves putting their names on your home title. You can easily
monitor your title yourself for free. Just go to your county’s tax web site and
periodically check your property record. Ensure that it shows your correct name
and address. </span></span></div><div style="text-align: left;"><span style="font-family: inherit;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman";">If you discover that your property
ownership has been fraudulently changed, contact an attorney. The county clerk
at the property recording office can also advise you on filing a notice
affidavit with the county court. </span><span style="font-size: xx-small;"> [where: 75230]</span></span></div><div class="blogger-post-footer">[where: 75230] [what: Dallas, Texas, Real Estate]
<script type="text/javascript" src="http://w.sharethis.com/widget/?tabs=web%2Cemail&charset=utf-8&style=default&publisher=04622363-6964-4e9c-ba4b-be5ae762c92b"></script></div>Lydia Blairhttp://www.blogger.com/profile/02407907329823751820noreply@blogger.com0tag:blogger.com,1999:blog-2248333113173237927.post-25743833557631806372020-12-27T12:59:00.005-06:002020-12-27T12:59:57.014-06:00When is Refinancing Worth It?<div>
<p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgpg8Mp4AkDcHdwkxm5XW_gSwZHTgGq76VLuX4XJTE2EWDzoT9cl92ZmxcMnLFg7IFWC0fWEtVyluy4tvsGQ9HI7EingiSYU0tzy9Q5BMFqMNP9zWCJ-LNHS_sHHfsmCG7H6tSB7DDeuqs/s640/Refinancing+costs.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="429" data-original-width="640" height="214" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgpg8Mp4AkDcHdwkxm5XW_gSwZHTgGq76VLuX4XJTE2EWDzoT9cl92ZmxcMnLFg7IFWC0fWEtVyluy4tvsGQ9HI7EingiSYU0tzy9Q5BMFqMNP9zWCJ-LNHS_sHHfsmCG7H6tSB7DDeuqs/w320-h214/Refinancing+costs.jpg" width="320" /></a></div><br />The refinance market is booming with homeowners taking
advantage of record low interest rates. However, millions of homeowners are
passing on the opportunity to save money by refinancing their current home
mortgage. Many of those mortgage holders are just not sure if refinancing is
worth it.<p></p>
<p><b>The Pros And Cons</b></p>
<p>Refinancing is replacing a current mortgage with a new one.
The new mortgage loan pays off the old one, and the homeowner is then
responsible for paying the new mortgage. There are significant time and costs
associated with refinancing. It can save a homeowner money or cost money.</p>
<p>“Any determination of whether a borrower should refinance is
dependent on whether or not the transaction creates a tangible benefit,” says
loan officer Alison Hannah, Vice President of IberiaBank.</p>
<p><b>Do The Math – Consider The Fees</b></p>
<p>Closing costs are an important factor in deciding whether to
refinance. Like an original mortgage, refinancing requires a title search,
credit report, appraisal, application fees, recording fees, tax certificate,
and title insurance. Costs can also include an origination fee, processing
fees, and more. Refinance fees and closing costs can add up depending on the
loan amount, discount points you may buy, and what the lender charges.</p>
<p>Total closing costs typically amount to 2 to 6% of
the new loan amount. According to Freddie Mac, the average closing costs on a
mortgage refinance are $5,000.</p>
<p>In December 2020, the Federal Housing Finance Agency plans
to add in a refinance fee of 0.5 percent of the loan amount to all refinance
loans sold to the government-supported entities Fannie Mae or Freddie Mac. That
accounts for about 70% of all U.S. mortgage loans.</p>
<p>A lower interest rate might not be worth it if your savings
are consumed by fees and closing costs. </p>
<p><b>How much should mortgage rates fall before you think of
refinancing?</b></p>
<p>Many experts recommend refinancing when it would reduce an
owner’s interest rate by 1 percent or more. Every refinance has a break-even
point. That is a point in time where your refinance pays for itself.</p>
<p>“The cost to refinance must be recovered via the reduced
payment in a short enough period of time so as to make sense with respect to the
borrower’s holding period,” advises Hannah.</p>
<p>To determine this, divide your mortgage closing costs by the
monthly savings of your new mortgage. If you are paying $5,000 in closing costs
and will save $200 per month because of refinancing, it will take 25 months to
break even.</p>
<p><b>Break-Even Period on a 30-Year Mortgage</b></p>
<p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEijfotYGcPc3hn_hX9GCodTt0-VDryx4tDGuTQXMpOV_7tIRZYlHGZviYjHemYpyuDf8LFMHHC0n-oO_FEwvQB3jCgjKN0Yke8oayq-DTc4ln5qYWz62DIR1Kqen3NaY-hBA-MNdE1BJgE/s922/break+even+period+on+a+mortgage.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="163" data-original-width="922" height="71" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEijfotYGcPc3hn_hX9GCodTt0-VDryx4tDGuTQXMpOV_7tIRZYlHGZviYjHemYpyuDf8LFMHHC0n-oO_FEwvQB3jCgjKN0Yke8oayq-DTc4ln5qYWz62DIR1Kqen3NaY-hBA-MNdE1BJgE/w400-h71/break+even+period+on+a+mortgage.png" width="400" /></a><br /></div><p></p>
<p>Use a mortgage refinance calculator to enter your current
interest rate, monthly payment, and your new loan terms and calculate how the
two mortgages would compare. If you do not plan to keep your home past the
break-even point, it does not make sense to refinance.</p>
<p>Every homeowner’s financial needs and goals are different. A
1 percent interest rate decrease may offer significant savings on a $1 million
mortgage but not make financial sense for a $100,000 mortgage.</p>
<p><b>Getting a Mortgage Can be Complicated</b></p>
<p>The refinance activity this fall has been a rollercoaster
pattern of increased refinance application volume followed by a dip in
requests. Forbes Advisor published a survey in October 2020 stating that about
32.4 million homeowners have a home loan with a 0.75 percent higher rate than
today’s average mortgage rate. That represents about three out of every four
mortgage holders with a 30-year mortgage.</p>
<p>Not all of those homeowners are eligible to refinance due to
their income, employment, credit scores or home value. However, there are
millions of qualified homeowners who could save hundreds of dollars a month on
their house payments. So why isn’t everyone doing it?</p>
<p>Many homeowners do not want to go through the hassle and the
paperwork that refinancing requires. The process can be daunting and not
everyone is prepared or willing to jump through the hoops. They forget that the
lender is handing over a big sum of money and even the most loyal clients carry
a risk for repayment. Be prepared for the significant time and effort involved
in refinancing.</p>
<p><b>Do Your Homework</b></p>
<p>When it comes to interest rates and closing costs, mortgage
lenders take into account credit score, income, assets, loan amount, and property
value.</p>
<p>Know your credit scores since they affect your interest
rate. The higher your credit score, the lower the interest rate. Many lenders
recommend a credit score of at least 720 to qualify for the most competitive
rates. Consider taking steps to improve your scores before refinancing.</p>
<p>If you are unsure about refinancing, choose a knowledgeable
mortgage lender who can help you decide. Know what costs to expect and whether
it makes financial sense for your situation. <span style="font-size: xx-small;">[where: 75230]</span></p></div><div class="blogger-post-footer">[where: 75230] [what: Dallas, Texas, Real Estate]
<script type="text/javascript" src="http://w.sharethis.com/widget/?tabs=web%2Cemail&charset=utf-8&style=default&publisher=04622363-6964-4e9c-ba4b-be5ae762c92b"></script></div>Lydia Blairhttp://www.blogger.com/profile/02407907329823751820noreply@blogger.com0tag:blogger.com,1999:blog-2248333113173237927.post-36299088802448581152020-11-27T06:00:00.000-06:002020-11-27T06:00:00.493-06:00Drawing the line - Texas Counties<div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEihfcuEttuugmWIntzc9fxqCrEFnodo0H-OUTL4IVzV6YoGgsEUtd7RdxL-1scnU7REv9xKF9MHGlo_KXjGnQu5RxC6UJFNr1nz-eZoozJPqKyg2sGuRuZFfznBIHL6MtyPNad1buZA5yI/s1024/Crossing+county+lines.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="511" data-original-width="1024" height="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEihfcuEttuugmWIntzc9fxqCrEFnodo0H-OUTL4IVzV6YoGgsEUtd7RdxL-1scnU7REv9xKF9MHGlo_KXjGnQu5RxC6UJFNr1nz-eZoozJPqKyg2sGuRuZFfznBIHL6MtyPNad1buZA5yI/w400-h200/Crossing+county+lines.jpg" width="400" /></a></div><br />One might think that a home in the city of Dallas would naturally also be located in Dallas County. And one would wrong. </div><div><br /></div><div>Your home may be located in Dallas and likewise in Collin, Dallas, Denton or Rockwall County.
For many people in Dallas-Fort Worth, their next-door neighbor could be in a different county. The folks across the street might be in a different school district as well. </div><div><br /></div><div>Convoluted boundaries can make for some interesting scenarios of where the kids go to school, who your elected officials are, which police department you call, and where you register your car.
Texas has 254 counties, more than any other state. We also have more incorporated cities and more school districts than any other state. </div><div><br /></div><div>Imagine a map of D-FW counties, overlaid with city borders, and then place the school districts on top of that. Try not to get cross-eyed.</div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiToL6mveRnLjgXQdKeMkwnnBSylrpf0nYKrIg3pLCiZcTYsJgdwEKIfC6l0PMc-s32khtqvw0xDMDml3GswXK91hGhZ2un5IKJgxULWR89AqhtrQK6pakr8RIDyaKcBYyXQKrZgJ7JoEQ/s879/County+lines.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="602" data-original-width="879" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiToL6mveRnLjgXQdKeMkwnnBSylrpf0nYKrIg3pLCiZcTYsJgdwEKIfC6l0PMc-s32khtqvw0xDMDml3GswXK91hGhZ2un5IKJgxULWR89AqhtrQK6pakr8RIDyaKcBYyXQKrZgJ7JoEQ/s320/County+lines.jpg" width="320" /></a></div><div><br /></div><div>There is a reason county, city, and school district boundaries don’t match up.
When the Republic of Texas was established, boundaries of counties were vague and not precise. Rivers or creeks often defined them. Eventually the Texas Constitution set out policies to establish more consistent size and shape for new counties. The rules evolved into county sizes of about 900 square miles with the goal to be as square as possible. Ideally, the county seat is located near the center of the county. </div><div><br /></div><div>When it comes to town and city limits, many area municipalities have consolidated or split over the years. Often the reasons are economic. Texas school districts are independent and do not necessarily follow city or county borders. Over time, some school districts might have merged into one, while others split into unique entities. These actions have resulted in boundaries that look like a jigsaw puzzle.</div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhq4aBBeAn0sXDKi6-RgmuIYy3X48iOSZ8SP0iOXpsu0aZPFicjFWQW3Q_cQCBO6zphIdyAMcrMdAuXcHHBxOZYfP4rEOUE3rKuncfAcVisdo6XGy0EGSCJLRUcPzgu_TcJ1YnilOEcso8/s592/County+lines+and+school+districts.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="451" data-original-width="592" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhq4aBBeAn0sXDKi6-RgmuIYy3X48iOSZ8SP0iOXpsu0aZPFicjFWQW3Q_cQCBO6zphIdyAMcrMdAuXcHHBxOZYfP4rEOUE3rKuncfAcVisdo6XGy0EGSCJLRUcPzgu_TcJ1YnilOEcso8/s320/County+lines+and+school+districts.jpg" width="320" /></a></div><div><br /></div><div>Several DFW subdivisions lie within two counties. When the neighborhood was developed from farm and ranch land, county representatives decided where to draw the lines between neighbors. They agreed on who would claim which homes – and who would tax them.</div><div><br /></div><div>Why does this matter?
While your county tax assessor may collect your property taxes, you actually are paying property taxes to your county, city, and school district. Often the county collects all of your property taxes, making it easier to pay with one payment. However, that is not the case in every county, city, or school district. </div><div><br /></div><div>Many Dallas area homeowners write two or more checks to different entities for their property taxes each year.
Your taxing authorities determine more than who collects your taxes, the location of your local library, or the identity of the local dogcatcher. The county that collects your taxes also maintains your property records. They record your deed and keep ownership records.</div><div><br /></div><div>Your county is where you look for information about a piece of real estate. When you need to know more, just follow the money. The sheriff may not pursue you past the county line, but the school, city, and county tax collectors will.</div><div><span style="font-size: xx-small;">[where: 75230]</span></div><div class="blogger-post-footer">[where: 75230] [what: Dallas, Texas, Real Estate]
<script type="text/javascript" src="http://w.sharethis.com/widget/?tabs=web%2Cemail&charset=utf-8&style=default&publisher=04622363-6964-4e9c-ba4b-be5ae762c92b"></script></div>Lydia Blairhttp://www.blogger.com/profile/02407907329823751820noreply@blogger.com0