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FAQS
What can I expect to happen at a signing?
On average a signing is 30 to 45 minutes. If you are the seller on a home your appointment will take less time than if you are a buyer/borrower who needs to sign a loan package. It is always important to remember your photo identification.
What are my options if I am out of the area when it is time for me to sign papers?
One option is that we would overnight documents to you. These would need to be signed and notarized where necessary. You would then overnight the originals back to us and we could proceed. Another option is that you could appoint someone to sign on your behalf by recording an approved power of attorney with the County Courthouse.
Who pays for Title Insurance?
By custom (not law), title insurance is paid for by the seller. The seller and buyer may agree between themselves who will pay. Again, by custom, the purchaser of a piece of property who is getting financing pays for the title insurance required by the lender to insure their loan.
Is Title Insurance Required?
Title insurance is not required by the state to transfer title to real property, it will be required by lenders to protect against possible loss. Attorneys will not require title insurance to close a transaction, however, they will recommend it and usually require that a waiver and/or acknowledgment that they were advised about title insurance be signed. If there is then a future loss the attorney could not be held liable.
How Long Does Title Insurance Last?
Title insurance lasts as long as the individual owns that particular property. The lending institution that has had its loan insured by the title company is insured for the duration of the loan. If the loan is assumed by a new owner, the original loan remains insured.
What type of policy do I need?
Owners policies are issued to all real estate purchasers.
Lender policies (either Standard or Extended) protect the lender only, not the purchaser. If a lender is involved in a real estate transaction, they will normally order policies for themselves and the owner simultaneously. Deeds of Trust carried by the seller can be insured by a lender's policy. Other types of reports and policies are also available. Please consult with one of our title officers if you think you may need a different type of policy or report.
What is Escrow?
An escrow is the method of closing in which a neutral/unbiased third party (who does not represent anyone in the transaction) is authorized to act as escrow agent and coordinate the closing activities. The Purchase and Sale Agreement serves as the primary escrow instructions for both the seller and the buyer. It should contain all the agreements of the parties. The escrow agent holds monies and legal documents on behalf of the buyer and seller and handles them according to their mutually agreed upon instructions. Escrow cannot be unilaterally revoked. In the event of a disagreement the escrow can only be amended, changed or revoked by mutual agreement of the parties to the escrow. The escrow agent is not authorized to comply with any instructions or demands of any third person who is not a party to the escrow.
How does Title Insurance differ from other types of insurance?
Title insurance is different from other types of insurance in that it protects you, the insured, from a loss that may occur from matters or faults from the past. Other types of insurance such as auto, life or health cover you against losses that may occur in the future. Title insurance does not protect against any future faults.
Another difference with title insurance is that the insured pays a one-time premium instead of ongoing premiums as with other types of insurance.
Unlike other forms of insurance, the majority of the title insurance premium is actually expenses incurred prior to the policy being issued, such as title commitment, title searching costs and the costs of the title clearing
Why do I need Title Insurance?
Owning real estate is one of the most precious values of freedom. When you buy a home, you want to be sure the property is properly conveyed and free from unexpected adverse interests. Once title insurance is purchased, it remains in effect for as long as you own your home. Title insurance adds security and peace of mind to home ownership.
What is an Owneris Policy and why do I need one?
An Ownerís Policy protects you, the purchaser, against a loss that may occur from a fault in your ownership or interest you have in the property. You should protect the equity in your new home with a title policy.
It offers:
Protection from financial loss due to covered claims that may be asserted against the title to your home up to the face amount of the title policy.
Payment of legal costs if the title insurer has to defend your title against a covered claim.
Payment of successful claims against the title to your home covered by the policy up to the face amount of the policy.
What are some hidden risks protected under a Title Insurance Policy?
The following matters are examples of why you need a Title Insurance policy. Remember that the best title examination or search cannot protect your equity and home from matters not appearing in the public records. However, a Stewart Title policy* can protect you from:
* Documents executed under false, revoked or expired powers of attorney
* False impersonation of the true landowner
* Undisclosed heirs
* Improperly recorded legal documents
* Prescriptive rights in another ñ not appearing of record and not disclosed by survey
* Failure to include necessary parties to certain judicial proceedings
* Defective acknowledgements due to improper or expired notarization
* Corporate franchise taxes as liens on corporate real estate assets
* Gaps in the chain of title
* Mistakes and omissions resulting in improper abstracting
* Forged deeds, mortgages, wills, releases of mortgages and other instruments
* Deeds by minors
* Deeds which appear absolute, but, which are held to be equitable mortgages
* Conveyances by an heir, devisee or survivor of a joint estate who attempts to attain title be ill-gotten means
* Inadequate legal descriptions
* Conveyances by undisclosed divorced spouses
* Duress in execution of wills, deeds and instruments conveying or establishing title
* Issues involving delivery of conveyancing instruments
* Deeds and wills by persons lacking legal capacity
* State inheritance and gift tax liens
* Errors in tax records
* Demolition and substandard building liens
* Administration of estates and probate of wills of missing persons who are presumed deceased
* Issues of rightful possession of land
* Issues concerning the rightful conveyances by corporate entities
* Deeds and mortgages by foreigners who may lack legal capacity to hold title
* Legal capacity of foreign personal representatives and trustees
* Issues involving improper marital status
* Improper modification of documents
* Rights of divorced parties
* Conveyances in violation of public policy
* Misinterpretation of wills and ancillary instruments
* Deeds by persons falsely representing their marital status
* Claims by creditors of decedent against property improperly conveyed by heirs and devisees
* Issues concerning unlawful takings by eminent domain or condemnation
* Special tax assessments
* Real estate homestead exceptions
* Forfeitures of real property due to criminal acts
* Issues concerning adoption of children
* Conveyances and proceedings affecting rights of military personnel protected by the Soldiersí and Sailorsí Civil Relief Act
* Issues concerning interests noted in financial statements filed under Uniform Commercial Code
* Interests arising by deeds of fictitious parties
* Adverse possession
* Lack of jurisdiction or competency of persons in judicial proceedings
* Community property issues
* Utility easements
* False affidavits of death or heirship
* Interstate estates
* Probate matters
* Federal estate and gift tax liens
What should I know about property taxes?
In Washington property taxes are due by April 30th for the first half of the year and October 31st for the second half. Taxes will be prorated accordingly based on the closing date.
How is title held or going to be held?
Remember, if you are selling your property and you hold the real estate in an entity name, there may be additional requirements that must be complied with before closing. Similarly, if you are acquiring real estate and wish to hold title in an entity name, there also may be additional requirements that must be complied with before closing. Please contact our title department with any questions at 509-665-9800, or your attorney.
What is Power of Attorney?
Power of attorney is a written instrument by which a person (the principal) appoints another agent (the attorney in fact) and confers upon the agent the power to perform certain specified acts on behalf of the principal.
Power of Attorney: Creates an agency relationship, with the giver of the power of attorney remaining the legal owner of any property involved.
If a Power of attorney is to be used when dealing with Central Washington Title Services, it must be pre-approved by us.
Buyer FAQs
What is the Buyer required to do as part of the escrow transaction?
1. Deposit any funds required to pay the purchase price.
2. Deposit funds required to pay for the hazard/fire insurance and title insurance.
3. Ensure we have received borrowed funds for down payment, if applicable.
4. Approve any inspection report, title insurance commitment, and other reports specified in the purchase and sale agreement.
5. Fulfill all conditions of the purchase and sale agreement.
I have a question about the purchase. Who should I contact?
Contact your real estate agent if you have a question about the Purchase and Sale Agreement. Call your loan officer about the status, or terms and condition or status of your loan. Call Professional Escrow Services with any other questions.
When should we sign our papers?
We will set up a time for you to sign, at least two days prior to the official closing date. After you sign, the documents must be recorded and the funds disbursed at which time your file is considered closed.
What if neither I nor my spouse can be present for the signing?
A signed, notarized "power of attorney" enables someone you designate to sign on your behalf. Ask your closer for more details.
How much money should I bring in?
We will notify you of the amount after we receive the loan documents, set a signing date and confirm the closing date.
What else should I bring to the signing?
Picture I.D. (valid drivers license, passport, or birth certificate)
Do you accept personal checks?
We do not accept personal checks. We accept cashiers checks or can arrange for a wire transfer.
When do I get keys to my new home?
Ask your real estate agent for the keys, which should be available the day your transaction closes.
Why do I have to pay for Title Insurance?
Title Insurance guarantees that the sellers have clear title to the property being sold.
Where to I obtain a copy of my house appraisal?
Call your loan officer for a copy.
Seller FAQs
What is the Seller required to do as part of the escrow transaction?
1. Provide evidence of any required repair work.
2. Provide contact information for escrow closer on home you are currently purchasing, if applicable.
3. Provide requisite documents for clearing preliminary title, if required.
4. Fulfill all conditions of the purchase and sale agreement.
I have a question about the sale. Who should I contact?
Contact your real estate agent if you have a question about the Purchase and Sale Agreement. Call your loan officer about the status, or terms and condition or status of your loan.
When should we sign our papers?
We will set up a time for you to sign, at least two days prior to the official closing date. After you sign, the documents must be recorded and the funds disbursed at which time your file is considered closed.
What if neither I nor my spouse can be present for the signing?
A signed, notarized "power of attorney" enables someone you designate to sign on your behalf. Ask your closer for more details.
What compensation can I expect after the closing?
You will receive the selling price less your existing mortgage balance, excise (transfer) tax, the title insurance premium, the escrow fee, the real estate agent commission, and any other liens to be paid off as specified in the Purchase and Sale Agreement.
When will I receive net payment?
Your net proceeds from the sale will be available on the day your documents are recorded (the closing date) or on the following business day. You may opt to receive your funds via wire transfer, direct deposit, by mail or in person.
Can you transfer the sale proceeds to the purchase of a new home?
Yes, if the purchase closes after the sale we can coordinate the fund transfer with your other escrow agent. The optimal solution is to have Professional Escrow Services act as escrow agent on both transactions, which expedites the closing process.
What else should I bring to the signing?
Picture I.D. (valid drivers license, passport, or birth certificate)
When do I give the keys to the buyer?
Ask your real estate agent, who will likely present the keys to the buyer on the date of closing.
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| Central Washington Title Services |
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1205 N. Wenatchee Avenue
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Wenatchee, Washington, 98801
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(509) 665-9800
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Fax: (509) 667-8400
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E-mail: steve@cwtitle.com
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© 2010 Central Washington Title Services - All Rights Reserved.
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