1) What is title insurance? How much? Should I buy it?
Homeowner’s title insurance protects a property buyer against undiscovered ties or defects in title prior to the time of purchase. Title insurance secures the registration title and protects the property owner from losses arising from defects that occur before the policy date. Therefore, it differs from other types of insurance because it is retrospective in nature. It also differs from other types of insurance in that there is only a one-time premium charge for title insurance, but the protection lasts as long as you own the property. There are different title insurance policies that protect both homeowners and lenders. Lender’s title insurance serves the same purpose, but only for the lender in one transaction. The fee is typically about $ 2.50 per $ 1,000 for Lender’s coverage and $ 3.50 per $ 1,000 for Homeowner’s coverage. Lender’s insurance is required and you are strongly encouraged to purchase homeowners insurance for a number of reasons. If you have any questions about this or have been informed that homeowner’s insurance is not necessary, contact one of our attorneys to make an informed decision.
Since one’s home is often the largest financial investment, it is very prudent and prudent for a homeowner to want to protect that investment and enjoy the benefits of home ownership. An owner’s title policy is that protection.
2) What types of claims does homeowner’s title insurance cover?
The owner’s title policy insures against loss or damage suffered by the owner due to historical discrepancies such as forgery, undisclosed but recorded prior mortgages, bankruptcies, ties or divorces, deeds not properly recorded, missing wills or heirs, and inappropriate property descriptions.
3) Why do I need a lawyer for a closing?
An attorney should always be present at a closing to answer legal questions and resolve disputes. Most lenders require the presence of an attorney at all closings. At our firm, all closings are always performed by an attorney. In Rhode Island, the buyer has the right to choose the attorney to handle the title search. You should always insist on an attorney rather than a title company, as we will help you resolve issues that arise and will not limit our scope to simply searching for the title.
4) When do I get my earnings as a seller?
The seller will receive the proceeds of the sale after the deed has been recorded. In our office, we always register the documents the same day if the closing takes place before noon, and within 24 hours after the closing in any case, except weekends and holidays.
5) What if the house is not ready for me to move in on closing day?
If the house is not in adequate condition to move in at closing, you will need to consult an attorney. At our firm, if we are handling the closing, we will always endeavor to help the buyer with the situation. Options include postponing the time of closing, granting credit to the buyer, or depositing funds in the seller’s custody until the property is in proper condition.
6) Where does the closing take place?
The closing will occur at the buyer’s attorney’s office. Occasionally, closing can occur at the lender’s office or at a real estate agency, but the vast majority close at the attorney’s office.
7) What kind of money should I bring to the closing?
Buyers must bring a cashier’s check or certified funds at closing. If one of these options is not available, buyers must arrange to transfer funds directly to the closing attorney at least one business day prior to the closing day. If there are no verifiable funds at closing, the recording of the documents will be delayed and the buyer may not be able to move into the new home. Personal checks or cash are accepted in nominal amounts up to a maximum of $ 1000.
8) What other obligations do you have as a seller of a property?
Seller is required to present a smoke detector and carbon monoxide detector certificate at closing. To obtain a certificate, the seller or their agent must contact the fire department of the municipality in which the property is located to conduct the inspection.
9) Will I receive a survey of the property at closing?
No. In Rhode Island, lenders do not require surveys. Unless the buyer requests a survey, no one will physically check the property boundaries. In Massachusetts, a lender may require a property parcel plan that does not formally locate all the property boundaries, but does locate the home in a particular neighborhood within the border lines.
10) Will I receive a property appraisal at closing?
You are always entitled to a copy of the lender’s appraisal if there is a lender involved on your behalf as a buyer. The appraisal is often presented at closing or can be requested in writing.
11) What if my property is in a flood zone?
If the property you are buying is in a flood zone as shown on government maps, the lender will ask you to obtain flood insurance. You should be careful of this whenever the property is near water, as flood insurance is usually quite expensive.
12) Does Title Search or Title Insurance Cover Zoning Issues?
No. Zoning determinations are completely separate from property title. If you want an attorney to verify the zoning for you, an additional fee will be required.