We’ve all been in a transaction with a party that is not responding to us. This can be frustrating, especially when we have questions or need documents quickly. We bust our butts for our buyers and we expect everyone in the transaction to have a work ethic similar to ours, but that is not always the case.
This person better not be your title agent.
Title agents often get overlooked, even though they can be an excellent source of knowledge. Just like a real estate agent is the go-to person for showing houses and writing contracts, your title agent should be the go-to for anything title. (Uh, obviously!)…But there are some things you may not know that your title agent is licensed to understand and be able to communicate to buyers. If you hear your buyers ask any of these questions, point them in the direction of your title agent and save yourself some time and effort!
1. “Should I get Owner’s Title Insurance?”
Short answer: Yes.
Long Answer: It really is up to your buyer as it is their right to choose; but they need to make an informed decision and title agents are the only ones to give this information. Not only are we licensed appropriately, but most of us have a few examples of title claims and resources available to explain title insurance in a clever, user-friendly way. Believe me, most of us are not going to just say yes without explaining why. We do have your buyer’s best interests at heart.
Better Answer: Call Me and I’ll be happy to explain. 410-795-5105.
2. “What are transfer taxes and how are they calculated?”
When you get a pre-CD from a title company, they will usually quote the transfer and recordation taxes for you. A large part of our job is to verify taxes; including property, transfer, and recordation. We know how transfer taxes are calculated and we have systems that will double and triple check our calculations. We also call the appropriate county/city where the property is located to make sure they check our work. Since we are doing the legwork for this part of the process, let us take the reins in explaining the costs.
Insider Tip: We can also explain tax credits and their qualifications for each.
3. “Do I need a survey?”
There are plenty of times when a survey is recommended or needed. FindLaw has a great blog that explains some of those reasons. You can find that blog here.
A title agent asks the buyer whether or not they want a survey done.
A great title agent asks if a buyer wants a survey done and then proceeds to explain why this could be beneficial to them, or not necessary for their situation.
Usually the survey ordered for closing is a location drawing, which shows the location of the improvements on the property in relation to the apparent boundary lines of the property. This survey is only accurate within a few feet and costs a few hundred dollars. This type of survey is not intended for identifying property lines. If the buyer wishes to identify their exact property lines (especially if they wish to build a fence) they would want a boundary survey. A boundary survey is expensive and takes longer than a location drawing, so make sure this need is addressed as soon as possible. I recommend to my agents to ask this ahead of ordering title, that way your title agent knows as soon as possible to go over this with your buyer as soon as they receive the title order.
4. “How much do I need to bring to settlement?”
There are really two parts to this question.
- How much do I bring to settlement?
- How should I be bringing my funds to settlement?
The closing process has lots of moving parts. In the aftermath of TRID, lenders are responsible for disclosing costs three (business) days prior to settlement. These costs can still change after the closing disclosure goes out to the buyer. Some examples being: prorations, seller credits, and agent commissions. Make sure an accurate cash to close figure comes directly from your title agent so your buyer doesn’t bring the wrong amount to settlement.
The second part to this question refers to the way funds are brought. What I mean by that is in the form of a certified check, personal check, or wire. Each title company is different and some have strict guidelines on how they receive funds. Have your title agent be the one to tell your buyer the amount to bring to settlement and the form in which funds should be received. No one wants to deal with insufficient funds at the end of the month on a Friday evening closing.
At Advantage Title, we reach out to the buyers days ahead of settlement to open the opportunity for questions to be asked and prepare the buyer for what to expect at closing. We have found that this makes the settlement smooth and relaxing for everyone involved.
5. “Can I close on Friday at the end of the month?”
Of course you can….but did you consider Wednesday?
Everyone wants to settle on Friday and no one wants to settle on Wednesday. There is an 8:1 ratio when comparing Friday settlements to Wednesday settlements.
Insider tip: If you have a difficult settlement coming up or a buyer that wants a little extra TLC, close on a Wednesday when no one else wants to close. You will have the lender, closer, and office to yourself and everyone can take their time signing documents. This is especially beneficial for conditional transactions, such as a buyer purchasing a home directly after the sale of their home.
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Your title agent shouldn’t hide behind the real estate agent and lender, but should be an active participant in the process. If you are working with a title company that you feel isn’t communicating with your buyers or if you have any questions yourself, please feel free to contact me.
Also, don’t forget to subscribe to our weekly newsletter!
Jessica Patterson
Advantage Title Company
410-795-5105
jpatterson@advantitle.com
Advantage Title Company 