Real Estate

Title Insurance. What it is and why you NEED it.

As the attorney was going over the settlement charges with the buyer in one of today’s closings, he came across the line item for title insurance. I asked him if he ever had anyone turn down the option for this coverage and the answer was yes. Can you say, “MISTAKE”?

Title insurance protects you against financial loss due to defects in title.

Unlike life, auto, health, or homeowners insurance; title insurance coverage ends on the day of issuance and extends backwards.

More than likely your property underwent many changes in ownership prior to you contracting to purchase. Title insurance ensures that should a dispute ever arise, your equity is protected. (e.g.: forged deeds, inadequate legal descriptions, improperly recorded legal documents, defective acknowledgements, ECT.)

Although your closing attorney will search your title before closing, (typically the search is 40 years for residential and 60 years for commercial) disputes can still arise. No search is altogether dependable. This is why lenders require a lender’s policy. They want their interest protected!

While the lender will require a policy to protect their interest, this does not protect your interest. You will need an owner’s policy to accomplish this.

Once you purchase your owner’s title insurance policy, your interest is protected indefinitely. There are no further premiums. If you decide to refinance at a later date, the lender will require a new lender’s policy be purchased. This is because their policy terminates once you pay off the old mortgage. The owner’s policy remains in place.

Title insurance is relatively inexpensive. Purchasing an owner’s title insurance policy is a wise decision and one that you will surely never regret. It is amazing how a few hundred dollars can save you hundreds of thousands.

Don’t risk financial loss. PROTECT YOURSELF!

 

 

Real Estate

Rollback Taxes?

Reason #5,683 why you need an EXPERIENCED buyer’s agent!!!

When purchasing land that you will use as a residence from a larger tract of land and where the seller has been taking the agricultural tax break, the land being purchased will be subject to what is known as rollback taxes. This amount is up to five years of the difference between what the taxes would have been at the non agricultural rate and the amount of the agricultural rate. As you can imagine, this amount can be HUGE! Just like anything else in a real estate contract, this CAN be negotiated… that is, IF you know it exists. The land you thought was a such a good deal may not be once you are hit with the rollback taxes.

 

 

 

 

 

 

 

 

 

 

 

Real Estate

A few weeks ago while showing houses on Lake Murray, and after the last scheduled showing, my buyers informed me of a house they saw that was For Sale By Owner just around the corner. I offered to follow them (and did) so that I could jot the phone number down to call the owner later, but was pleasantly surprised to see him standing in the yard.

I asked him (through my car window) basic questions about the home and he was accommodating, so I asked if he would mind if we peeked inside. He obliged.

He rattled on about the home’s history and I couldn’t get a word in edgewise, so I just listened. Just before he cracked the door open, he said, “Yeah. I’m selling it myself. I don’t need no realtor. I’m not using no realtor and I ain’t paying no realtor”. I thought it only appropriate that if I wasn’t able to speak, that I at least hand him a business card, so I did. He looked me square in the eyes and said, “I can sell titties to a cow”!!! I thought I’d die! If that wasn’t funny enough, my buyer nudged me and said, “Hope, you should have that placed on your business cards”! She was kidding of course.

I didn’t expect the comical older gentleman to “sell titties to a cow”, just his home to my clients. Overpriced and out of touch. I put forth a very strong offer the following day in which he, (being the “tittie seller” that he is), rejected. His home remains on the market and my clients are scheduled to close on their Lake Murray home in just a few short weeks. We found the home they contracted on in the Multiple Listing Service. It was priced appropriately and show ready.

I could write a book on why you shouldn’t attempt selling your property without a Realtor, but I will simply close with this, the longer you sit on it, the more money you lose. Be nice to Real Estate Sales Professionals. Even if you choose to sell your property yourself, it highly likely that your buyer will bring their own Realtor to the table. Price it right. No one is going to pay more than a property is worth, and by all means DO NOT tell your potential buyer that you can “sell titties to a cow”! 😀

If you are in the market to buy or sell residential property or buy, sell, or lease commercial property in the Midlands of South Carolina, please give me a call at:          (803)-944-9544 or contact me by email at: hope.dorn@era.com. I would love the opportunity to handle your real estate needs. -Hope

He Said He Can Sell “Titties to A Cow”