Home > Blogs > Bobby Lehmkuhl & Danielle Dutcher's Blog
128,702 views

Bobby Lehmkuhl & Danielle Dutcher's Blog

By Bobby LehmKuhl | Broker in 90265
  • What Are Mortgage Impounds? - www.4Malibu.com

    Posted Under: Property Q&A in Los Angeles County  |  October 7, 2010 11:28 AM  |  835 views  |  No comments

     

    What Are Mortgage Impounds?
     
    Impounds are a collection of your money, like a mandatory savings, for the payment of your future property taxes and hazard insurance.  Each month, along with your mortgage payment, the lender will collect and hold money that they set aside in an impound account, also known as an escrow account.  These funds belong to you and they are disbursed by the lender when your property taxes and hazard insurance are due.  When you purchase a home, if you make a minimum down payment, usually 10% or less, the lender may require you to deposit funds into an impound account.  With other programs, impounds may be required no matter what.  If impounds are not required by the lender, borrowers can request an impound account voluntarily.  Lenders will sometimes give a small discount on their interest rate if you agree to set up an impound account before a loan closes.  Having an impound account can be beneficial.  Many people have a hard time saving for these large, semi annual or annual property tax and insurance payments.  For some, its easier to give the money to the lender in smaller monthly payments; its one less thing to worry about.
     
    The lender must always keep sufficient funds to pay your property tax and insurance bills as they come due.  They are allowed to have two months reserves of impound payments in your account.  Lenders earn interest on the money whether or not they are required to pay any interest to you.  Some States do require lenders to pay interest but it is a small amount, such as 2%.
     
    Although it is a small percentage of cases, lenders have been known to be late with payments.  If you decide to let the mortgage company pay your bills, keep an eye out.  In many counties, you can look online to see if your property taxes were paid timely, and you can always request notification from your insurance company when the premium is paid.  You can also figure out when the due dates are and compare the figures on your impound statements.  Otherwise, if one of your bills is not paid, you may not know until it is too late.  If that should occur, the lender should pay any penalty and rectify the matter.
     
    Whatever you decide about impounds, remember that no matter who pays the bills, your property taxes and hazard insurance are your responsibility.

     
  • Help your Septic System with these SIMPLE suggestions - www.4Malibu.com

    Posted Under: Property Q&A in Malibu  |  May 19, 2010 12:51 PM  |  914 views  |  No comments

     

     Malibu Reall Estate




    The Malibu Real Estate Resource Guide

    Malibu California Real Estate ×€ Malibu Homes for Sale & Lease ×€ Malibu Land


    Help your Septic System with these SIMPLE suggestions

    In Malibu, many homes use septic systems to dispose of wastewater.

    Wastewater can include water from sinks, showers, washers, and toilets.

    1) Try to reduce the amount of water you use. This will reduce the amount the system has to treat,the ground has to absorb, and you have to pay for.

    2) DO NOT put OILS, GREASE, or FATS down the drain! These are VERY BAD for your septic system's life and efficiency. Minimize using the garbage disposal, and use the trash can instead.

    3) DO NOT put PAINTS, ANTIFREEZE, or PESTICIDES down the drain.

    4) DOT NOT put BABY WIPES, SANITARY NAPKINS, CIGARETTES, DISPOSABLE DIAPERS, or other inorganic items down the drain or toilet

    5) Fix toilets which may be "running" or leaking water through the bowl. Running toilets are one of the largest wasters of water and put a strain on your septic system. This also applies to leaking faucets.

    6) Use septic friendly detergent, preferably a liquid. Sometimes powders are not as easy to process.

    7) BLEACH is NOT good for the system. There are bacteria in your system that are working hard to break down all you flush into it. Other products which can kill the "good" bacteria resulting in a less efficient system include some antibacterial products, liquid drain cleaners, and those flush toilet bowl cleaners which contain bleach.

    8) Have your system maintained. Simple, routine maintenance can extend the life of the system and prevent costly problems.

    A) Do you know where the system and components are?

    B) When was the last time an inspection was performed to check the operation?

    Just because you do not see the system does not mean it doesn't need special care. Space out the volume of water you put in the system. A slower flow is easier for the system than if all water uses are in action at the same time. The bacteria have time to work rather than being deluged all at once.

    9) The City of Malibu's web site is www.ci.malibu.ca.us. City Departments, Environmental and Community Development, Environmental and Building Safety Division, Wastewater Management (Septic Systems),have additional information for your use online. In addition, the Environmental Health Office can be contacted at 3104562489. There are a variety of septic, and/or Onsite Wastewater Treatment Systems (OWTS), some are very basic in concept and some are much more technologically advanced. Should you have any concerns or questions, please check with a qualified service professional or the City of Malibu. Septic tips and/or brochures are available upon request at the City of Malibu.



    Bobby Lehmkuhl ×€ Bobby@4Malibu.com ×€ 310.365.7696 ×€ Broker Lic. #01457517

    Danielle Dutcher ×€ Danielle@4Malibu.com ×€ 805.341.8769 ×€ Broker Lic. #01463653



    Material discussed is meant for general illustration and/or informational purposes only and it is not to be construed as tax, legal, or investment advice. Although information has been gathered from sources believed to be reliable, please note that individual situations can vary, therefore, please consult a professional for specific advice.


    Follow 4Malibu.com on Twitter & Facebook

  • When do you need a permit? - 4Malibu.com

    Posted Under: Property Q&A in Los Angeles County  |  March 9, 2010 3:56 PM  |  876 views  |  No comments

    Malibu Real Estate


    The Malibu Real Estate Resource Guide

    Malibu California Real Estate ×€ Malibu Homes for Sale & Lease ×€ Malibu Land


    When Do you Need A Permit?
     
    Thinking of adding a room? How about putting a pool in the backyard, or re-wiring the electrical? Its true that homeownership comes with a continuous list of to dos, and its important to plan and budget accordingly. It is equally important to know whether or not you will need a permit. Here is some general information you can use as a guideline.
     
    A permit is defined as a legal document granting you permission to build. It protects the safety and health of you and your community and it ensures all construction meets safety standards. Permits are needed if you are planning any renovating, alterations, or new construction. In addition to permits for structures, you will also need to get permits for electrical, plumbing and mechanical jobs. A visit to the Planning and Developing Department at City Hall is necessary to get you to the right people who can answer your questions and help get you started. If you plan to add a room, remember that with new construction you will eventually get a supplemental property tax assessment upon completion. The amount will be based on the amount of square footage you are adding, multiplied by the market value per square foot. For instance, lets say you add on a 500 square foot room and values are $100 per square foot. The addition would add $50,000 of value to your home. This equates to approximately $500 more in property taxes per year, using a 1% tax rate. Tax rates will vary depending on county and state.
     
    Other examples of projects requiring permits are demolitions, repairing foundations, installing appliances that burn fuel- such as a wood-burning stove, punching in a new window or door, altering the roofline, moving a sink, or adding a deck, swimming pool or storage shed. Some things that do not usually require one are installing new floors, faucets or countertops, putting on new stucco or siding, replacing doors or windows, laying a new roof, and constructing fences.
     
    This all makes sense, but are permits absolutely necessary? Lets consider the consequences. If you dont get a permit, most likely you will not know the code requirements. Granted, it may not be an issue, but if it is, it could result in costly repairs. You may have to remove your work and start from scratch, paying double fees. It is also possible to have insurance coverage and claims denied. In the event you want to sell your home, you are obligated to disclose to your potential buyer that you have completed the work without a permit. If it is not up to code, your buyer may require you to bring it up to code, or worse, withdraw their offer to buy your home. When you think about it, obtaining a permit may be well worth the time and effort.




    Bobby Lehmkuhl ×€ Bobby@4Malibu.com ×€ 310.365.7696 ×€ Broker Lic. #01457517

    Danielle Dutcher ×€ Danielle@4Malibu.com ×€ 805.341.8769 ×€ Broker Lic. #01463653



    Material discussed is meant for general illustration and/or informational purposes only and it is not to be construed as tax, legal, or investment advice. Although information has been gathered from sources believed to be reliable, please note that individual situations can vary, therefore, please consult a professional for specific advice.



    Follow 4Malibu.com on Twitter & Facebook.

  • Are there any demands that a short sale seller can make from a buyer?

    Posted Under: Property Q&A in Los Angeles County  |  February 3, 2010 1:22 PM  |  1,029 views  |  No comments



    The Malibu Real Estate Resource Guide

    Malibu California Real Estate ×€ Malibu Homes for Sale & Lease ×€ Malibu Land


    Are there any demands that a short sale seller can make from a buyer?

    Many people who attempt to sell their homes in a short sale begin making demands on the buyer. They may ask for additional time in their home, or to utilize a portion of the property and to store their things while they look for new accommodations. In most cases these demands are unreasonable, can lead to a cancellation of the sale, and may compound the financial problems of the seller.

    Once you have entered into a purchase contract to sell your home, you have legal obligations to perform under that contract. When escrow is opened on your property, the buyer deposits money and escrow charges begin accruing. If the sale falls through because you fail to meet your legal requirements under the purchase agreement, the buyer could wind up having to pay escrow fees that range from a few hundred to several thousand dollars. The buyer would be entitled to sue you to recover those charges.

    Furthermore, if the agreement falls through because you failed to adhere to the terms of the purchase agreement, there is a reasonable chance that your lender will foreclose on the property and any agreement not to sue you will become null and void.

    It is in your best interest to ensure that the sale goes smoothly.

    Read more about short sales in the Short Sale & Foreclosure Guide.



    Bobby Lehmkuhl ×€ Bobby@4Malibu.com ×€ 310.365.7696 ×€ Broker Lic. #01457517

    Danielle Dutcher ×€ Danielle@4Malibu.com ×€ 805.341.8769 ×€ Broker Lic. #01463653


    Material discussed is meant for general illustration and/or informational purposes only and it is not to be construed as tax, legal, or investment advice. Although information has been gathered from sources believed to be reliable, please note that individual situations can vary, therefore, please consult a professional for specific advice.


    Follow 4Malibu.com on Twitter & Facebook.

  • Encroachments v. Easements

    Posted Under: Property Q&A in Los Angeles County  |  February 3, 2010 11:44 AM  |  1,102 views  |  No comments
     

    The Malibu Real Estate Resource Guide

    Malibu California Real Estate ×€ Malibu Homes for Sale & Lease ×€ Malibu Land


    Encroachments v. Easements


    An encroachment is an unauthorized entry upon land of another, whether or not an obstruction is placed on the land. An easement is the right of a non-owner to use your land for a particular purpose. Here are some examples:
     
    Lets say your neighbor has a small storage barn located at the back of his property close to yours. The roof of this barn hangs over the structure by several feet and subsequently hangs over his property line onto your property. Your neighbor would be encroaching onto your property. You may have a great relationship with him or her, but it is important to acknowledge the encroachment just the same. Why? Because there could be liability issues. It is possible that you and your neighbor may have been unaware of the exact boundary lines of both properties. If this is the case, get a title policy with extended coverage to determine where the boundary lines are. The title company may have to hire an outside service to look specifically for these types of issues. In some cases, there may be a recorded survey detailing the encroachment. If not, you can prepare a Letter of Awareness. In this letter, the owner agrees to maintain the encroachment (in this case, the storage barn and roof) and holds you harmless from any damage that may be caused by it. In turn, his neighbor, (that would be you) confirms there are no claims on his property and agrees that the encroachment can remain where it is. This contract must be signed by both parties and recorded in land court or the regular court system. It is intended to be a permanent remedy and is binding to future owners.
     
    Regarding easements, they are mostly commonly used for the benefit of others and are usually unavoidable. For example, you may own a home located on the beach, and it would be necessary to have an easement through your property for the general public to access the beach. Another example would be having a neighbor that needs to use part of your driveway to get to their home. The shared use of the driveway would require an easement through your property. Easements can be underground, overhead, permanent or temporary.



    Bobby Lehmkuhl ×€ Bobby@4Malibu.com ×€ 310.365.7696 ×€ Broker Lic. #01457517

    Danielle Dutcher ×€ Danielle@4Malibu.com ×€ 805.341.8769 ×€ Broker Lic. #01463653



    Material discussed is meant for general illustration and/or informational purposes only and it is not to be construed as tax, legal, or investment advice. Although information has been gathered from sources believed to be reliable, please note that individual situations can vary, therefore, please consult a professional for specific advice.



    Follow 4Malibu.com on Twitter & Facebook.

  • Title Insurance: Where does your dollar go? - Malibu California Real Estate

    Posted Under: Property Q&A in Los Angeles County  |  December 19, 2009 1:31 PM  |  915 views  |  No comments

    Malibu, CA Real Estate

    The Malibu Real Estate Resource Guide

    Malibu California Real Estate ×€ Malibu Homes ×€ Malibu Homes for Sale


    Title Insurance: Where Does Your Dollar Go?

    Information from Equity Title Company


    Title Insurance: As a homebuyer, the term is probably familiar - but is it understood? What is your dollar actually paying for when you purchase a title policy?

    Title insurers, unlike property or casualty insurance companies, operate under the theory of risk elimination. Title companies spend a high percentage of their operating income each year collecting, storing, maintaining and analyzing official records for information that affects title to real property. Their technical experts are trained to identify the rights others may have in your property, such as recorded liens, legal actions, disputed interests, rights of way or other encumbrances on your title. Before closing your transaction, the title company will proceed to "clear" those encumbrances which you do not wish to assume.

    This theory is different from that of most other insurance where, for example, rates and anticipated losses are based on actuarial studies and premiums are pooled on the assumption that a certain number of claims will be made. The distinction is important: title insurance premiums are paid to identify and eliminate potential risks and claims before they happen. Medical and casualty insurance premiums, for example, are paid to insure against an unpredictable future event, knowing that risks exist and claims will occur. Furthermore, title insurance involves a one-time premium paid when you close the real estate transaction, while property, casualty and medical insurance require regular renewal premiums.

    The goal of title companies is to conduct such a thorough search and evaluation of public records that no claims will ever arise. Of course, this is impossible - we live in an imperfect world, where human error and changing legal interpretations make 100 percent risk elimination impossible. When claims arise, professional claims personnel are assigned to handle them according to the terms of the title insurance policy.

    Title companies' rates are filed with the California Department of Insurance, and each company is required to publicly post its schedule of fees. As in all competitive business environments, rates vary from company to company, so you should make comparisons before deciding on a particular title company. Your real estate professional can help you do this. In addition, there are many helpful customer services provided by title companies which you and your real estate professional may find helpful to your transaction.

    The issuance of a title insurance policy is highly labor-intensive. It is based upon the maintenance of a title "plant," or library of title records, in many cases dating back over a hundred years. Each day, recorded documents affecting real property and property owners are posted to these title plants so that when a title search on a particular parcel is requested, the information is already organized for rapid and accurate retrieval. In California, most of the large counties have been converted to computer-based title plant systems which provide retrieval from remote locations, further speeding the process of delivering the title search for the customer. This investment in skilled personnel and advanced data processing represents a major part of the title insurance premium dollar.

    Property title plant maintenance, research, evaluation, and legal interpretation are the foundations upon which a title policy rests. That is where most of your dollar goes, and that is the source of your protection and peace of mind as a homeowner in California.

    Information deemed reliable, though not guaranteed.


    Bobby Lehmkuhl ×€ Bobby@4Malibu.com ×€ 310.365.7696 ×€ Broker Lic. #01457517

    Danielle Dutcher ×€ Danielle@4Malibu.com ×€ 805.341.8769 ×€ Broker Lic. #01463653


     Follow 4Malibu.com on Twitter. 4Malibu.com's Twitter Page

  • Title Insurance FAQs - 21 Common Title Insurance Questions Answered

    Posted Under: Property Q&A in Los Angeles County  |  December 18, 2009 9:46 AM  |  1,060 views  |  No comments

    The Malibu Real Estate Resource Guide

    Malibu California Real Estate ×€ Malibu Homes ×€ Malibu Homes for Sale


    TITLE FAQs (For more information on Title related matters, click here.)

    1. What is Title Insurance?

    2. Do I Have to Purchase Title Insurance?

    3. What are Title Hazards?

    4. How Can I Protect My Investment?
    5. What Services are Included in Closing Costs?
    6. How Much Should I Pay in Closing Costs?
    7. How Do I Pay My Closing Costs?
    8. How Much is Title Insurance?
    9. Who Pays for Title Insurance?
    10. Why Do I Need Two Policies?
    11. What am I Paying For?
    12. What is a Title Search?
    13. What About an Attorney Search?
    14. What is Preliminary Report?
    15. What Role Does the Preliminary Report Play?
    16. When & How is the Preliminary Report Produced?
    17. What Should I Look for in the Preliminary Report?
    18. What Will the Report Disclose?
    19. How Can I Clear Liens & Encumbrances?
    20. Is the Preliminary Report the same as Title Insurance?
    21. What if I have more questions?

    1. What is Title Insurance?
    In real estate, "title" means a right to ownership, or a document stating a right to ownership. If you have clear title to a house or property, it means that you own it free and clear. The document stating your right to a property is also called a title.
     
    2. Do I have to Purchase Title Insurance?
    No. However, virtually all lenders require title insurance for the face amount of their deed of trust, whether purchase or refinance. Prudent owners also value the protection afforded by the payment of the one time title insurance premium.
     
    3. What are Title Hazards?
    Various kinds of claims can exist to "cloud" a title. Some examples are:
    • Long lost relatives or past owners could show up, sometimes from long ago, with a claim to the property that supersedes yours.
    • Sometimes people fraudulently sell houses that don't belong to them. For example, the husband of a divorcing couple could forge the signature of his wife, and take off with the proceeds of the sale. In a court of law, the rights of the wife could be upheld and the property could go to her, no matter how much money unsuspecting purchaser had placed in the house.
    • To get loans, people often use property as collateral (security against nonpayment). If someone defaults (doesn't pay back) their loan, the lender has a legal right to sell off the property to get their money back - even if the house has since so1d to a new owner. This is because the lien (claim to a property as payment on a debt) is on the house. Unless the debt is paid off, the lien stays with the house even when it changes ownership.
    • An easement is a right to use the land of another for a special purpose. For example, the city may have plans to build a sewer line sometime in the future. If the sewer lines run through the back of your yard, and if the city has an easement on the underground portion of your property, this might cause your prize roses to be dug up, or prevent you from building a pool in your back yard.
    • If a homeowner fails to pay their taxes, the IRS can obtain a lien (a claim to a property in case of nonpayment of debt) on the home. If the homeowner sells their home, without settling the tax lien, the IRS can legally get the new homeowner to pay the original homeowner's back taxes. And if the new homeowner fails to comply, they can lose their new home.
     4. How can I Protect My Investment?
    When buying a property, the best way to protect your investment is to obtain the services of a reputable Title Company to do a thorough title search, and insure you against the chance of some lien or claim being overlooked. 5. What Services are Included in Closing Costs?
    You will usually be paying for such things as real estate commissions, appraisal fees, loans fees, escrow charges, advance payments such as property taxes and homeowner's insurance, title insurance premiums, pest inspections and the like. 6. How Much Should I Pay in Closing Costs?
    The amount you pay for closing costs will vary: however, when buying your home and obtaining a new loan, an estimate of your closing costs will be provided to you pursuant to the Real Estate Settlement Procedures Act after you submit your loan application. This disclosure provides you with a good faith estimate of what your closing costs will be in the real estate process. An itemized list of charges will be prepared when you close your transaction and take title to your new property. 7. How do I Pay my Closing Costs?
    Your closing funds should be in the form of a cashier's check, issued by a California institution, made payable to the title company or escrow office in the amount requested. A personal check may delay the closing or may be unacceptable to the title or escrow company. An out of-state check could also cause a delay in your closing due to possible delays in clearing the check. 8. How much is Title Insurance?
    This point is often misunderstood. Although the title company or escrow office usually serves as a meeting ground for closing the sale, only a small percentage of total closing fees are actually for title insurance protection. Your title insurance premium may actually amount to less than 1 percent of the purchase price of your home, and less than 10 percent of your total closing costs. The title policy is good for as long as you own the property with the payment of only one premium.

    9. Who Pays for Title Insurance?
    Surprisingly, "who pays" is not uniform from county to county in California. In some counties the buyer will pay while in others the seller will pay. In other counties the seller will pay for the lender's title policy and the buyer will pay for the owner's policy. But, in every case the questions of who pays closing costs is a matter of agreement between the buyer and seller. Usually this agreement is based on the customary practice in your county.
    10. Why do I need Two Policies?
    Both you and your lender will want the security offered by title insurance. Your home is an important purchase, and you will want to be certain your home is yours, all yours. Title insurance companies insure your rights and interests in order to protect you against claims. Your lender is looking to insure the enforceability of their lien on your property and marketability. What is meant by "marketability"? Well, we in California have long been importers of mortgage money. Local lenders will "originate" a loan here and, often, sell it to an out-of-state investor. This investor, who may never see the property, needs to know that they have a valid and enforceable lien. Title insurance is the way of making certain. Without a current title policy, the loan is essentially unmarketable.
     
    11. What am I Paying For?
    Title insurers, unlike property or casualty insurance companies, operate under the theory of "risk elimination." Risk elimination can only be accomplished after an intensive period of risk identification. Title companies spend a high percentage of their operating revenue each year collecting, storing, maintaining and analyzing official records for information that affects title to real property. The issuance of a title insurance policy is highly labor-intensive. It is based upon the maintenance of a title "plant" or library of title records, in many cases dating back over a hundred years. Each day, recorded documents affecting real property are posted to these plants so that when a title search on a particular parcel is requested, the information is already organized for rapid and accurate retrieval. Trained title experts are able, with the aid of their extensive title plants, to identify the rights others may have in your property, such as recorded liens, legal actions, disputed interests, rights of way or other encumbrances on your title. Before closing your transaction, you can seek to "clear" those encumbrances, which you do not wish to assume. The goal of title companies is to conduct such a thorough search and evaluation of public records that no claims will ever arise. Of course, this is impossible we live in an imperfect world, where human error and changing legal interpretations with 100 percent risk elimination impossible. When claims arise, title insurance companies have professional claims personnel to make sure that your property rights are protected pursuant to the terms of your policy. To conclude, when you pay for a title insurance policy, you are paying for a team of professionals who have worked together to deliver you a title insurance policy which represents protection for your ownership of real property.
     
    12. What is a Title Search?
    Trained personnel investigate public records to determine the "chain of title," which is the history of the ownership and claims upon a piece of land.
    By law, county records have to be kept on all property transfers, wills, liens, tax matters, etc., and these are the types of records searched in order to determine a "chain of title."
    The end product of a search is knowledge of potential and actual encumbrances upon a title. Obviously, liens on a property need to be paid off or knowingly assumed by the new owner-before transfer of title can occur. A Title Company will make sure that this happens. Easements and other factors need to be known by a potential owner. They can either accept them, or look elsewhere if a sewer easement, for example, will prevent them from building his dream pool.
    Last, but not least, it has to be determined whether the seller of a property actually has the right to sell that property, so the ACTUAL owners or co-owners don't turn up in the future to repossess what is legally theirs.
     
    13. What About an Attorney Search?
    Title insurance should always be obtained even if you hire an attorney to do an independent title search. There are several reasons for this:
    • There could be hidden title risks not revealed in the records; an attorney would not be responsible for this kind of hazard if it showed up later.
    • An attorney would not be responsible for the fraud or forgery of a seller.
    • Usually, an attorney is only liable if he/she is negligent in the search or examination-something that is very difficult to establish in a legal proceeding.
    • Recovering on a title loss may involve the cost and complexities of bringing suit against the attorney or seller.
    14. What is a Preliminary Report?
    A preliminary report contains the conditions under which the title company will issue a particular type of title insurance policy. 15. What Roles Does the Preliminary Report Play?
    The preliminary report lists, in advance of purchase, title defects, liens and encumbrances which would be excluded from coverage if the requested title insurance policy were to be issued as of the date of the preliminary report. The report may then be reviewed and discussed by the parties to a real estate transaction and their agents. Thus, a preliminary report provides the opportunity to seek the removal of items referenced in the report which are objectionable to the buyer prior to purchase. 16. When & How is the Preliminary Report Produced?
    Shortly after escrow is opened, an order will be placed and the title company will begin the process involved in producing the report. This process calls for the assembly and review of certain records matters relative to both the property and the parties to the transaction. Examples of recorded matters include a deed of trust recorded against the property or a lien recorded against the buyer or seller for an unpaid court award or unpaid taxes. These recorded matters are listed numerically as "exceptions" in the preliminary report. They will remain exceptions from title insurance coverage unless eliminated or released prior to the transfer of title.

     
    17. What Should I Look for in the Preliminary Report?
    You will be interested, primarily, in the extent of your ownership rights. This means you will want to review the ownership interest in the property you will be buying as well as any claims, restrictions or interests of other people involving the property. The report will note in a statement of vesting the degree, quality, nature and extent of the owner's interest in the real property. This most common form of interest is "fee simple" or "fee" which is the highest type of interest an owner can have in land. Liens, restrictions and interests of others, which are being excluded from coverage, will be listed numerically as "exceptions" in the preliminary report. These may be claims by creditors who have liens or liens for payment of taxes or assessments. There may also be recorded restrictions, which have been placed in a prior deed or contained in what are termed CC&R's-covenants, conditions and restrictions. Finally, interests of third parties are not uncommon and may include easements given by a prior owner which limit your use of the property. When you buy property you may not wish to have these claims or restrictions on your property. Instead, you may want to clear the unwanted items prior to purchase. In addition to the limitations noted above, a printed list of standard exceptions and exclusions listed items not covered by your title insurance policy may be attached as an exhibit item to your report. Unlike the numbered exclusions, which are specific to the property you are buying, these are standard exceptions and exclusions appearing in title insurance policies. The review of this section is important, as it sets forth matters which will not be covered under your title insurance policy, but which you may wish to investigate, such as governmental laws or regulations governing building and zoning.
     
    18. Will the Preliminary Report Disclose the Complete Condition of the Title to a Property?
    No. The report does not show the condition of title, but merely reports the current ownership and matters that the title company will exclude from coverage if a title insurance policy should later be issued.
     
    19. How Can I Clear Liens & Encumbrances?
    You will wish to carefully review the preliminary report. Should the title to the property be clouded, you and your agents will work with the seller and the seller's agents to clear the unwanted liens and encumbrances prior to taking title.
     
    20. Is the Preliminary Report the Same as Title Insurance?
    Definitely not. A preliminary report is an offer to insure, it is not a report of a complete history of recorded documents relating to the property. A preliminary report is a statement of terms and conditions of the offer to issue a title insurance policy, not a representation as to the condition of title. These distinctions are important for the following reasons: first, no contract or liability exists until the title insurance policy is issued: second, the title insurance policy is issued to a particular insured person and others cannot claim the benefit of the policy.
     
    21. What if I Have More Questions? 
    Title or escrow company personnel are available to review and explain your title policy and your closing statement. Should you still have further questions or need legal or tax advice, your title or escrow officer can help by referring you to the proper source for your answer. Remember the title or escrow officer is not a legal counsel and cannot give you legal advice. It is their responsibility to give impartial service to all customers.
     

     Information gathered from Fidelitytitle.net (Jessica Soltan). Information deemed reliable, though not guaranteed.


    Bobby Lehmkuhl ×€ Bobby@4Malibu.com ×€ 310.365.7696 ×€ Broker Lic. #01457517

    Danielle Dutcher ×€ Danielle@4Malibu.com ×€ 805.341.8769 ×€ Broker Lic. #01463653

     
« Read older posts
Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer