CLAIM TRENDS IN TITLE INSURANCE (4 of 4)

With a tremendous number of Commercial and Industrial properties in foreclosure and default, in the State of Georgia, there are a great deal of title issues that must be cleared prior to the subsequent resale or re-finance of these properties. Some of these issues will result in title insurance claims and following is the fourth most common error that continues to cause increased claims:

Judgment/Lien/Tax Problems - Another group of claims that we see with great regularity relate to tax issues. If the property is subject to a reassessment or the taxes are under appeal, you need to make the appropriate exception in the title insurance policy. Additionally, we would strongly recommend that you get a tax report for your transaction and that you do not rely on the county website to verify taxes. With regard to judgment liens, please make sure that all necessary names are searched in the lien indexes. Further, if a party is added to a transaction after your initial examination, please remember to run a judgment search on them prior to closing.

If you have any questions, or need help with your title insurance needs, please do not hesitate to contact Paxin Closing and Escrow, LLC, at  866-752-4445.

CLAIM TRENDS IN TITLE INSURANCE (3 of 4)

As previously stated, with numerous Commercial and Industrial properties in foreclosure and default, in the State of Georgia, there are a great number of title issues that must be cleared prior to the subsequent resale or re-finance of these properties. Some of these issues will result in title insurance claims and following is the third most common error that continues to cause increased claims:

Missing Interest Issues – These types of claims generally involve a situation where the commercial and/or industrial property is owned by two entities but only one of them signed the necessary documents. The most common type of claim associated with this error is a missing party on a Security Deed and it generally arises at the pre-foreclosure stage. Please make sure to compare the parties on your Security Deed to the parties shown on your vesting deed or deeds. If the lender’s closing instructions require that only one party sign the loan documents, you either need to require a deed from the non-borrowing entity to vest title solely in the borrower, or mandate that the non-borrowing entity execute all of the documents.

If you have any questions, or need help with your title insurance needs, please do not hesitate to contact Paxin Closing and Escrow, LLC, at  866-752-4445.

CLAIM TRENDS IN COMMERCIAL AND INDUSTRIAL TITLE INSURANCE (2 of 4)

As previously stated, with thousands of Commercial and Industrial properties in foreclosure and default, in the State of Georgia, there are a tremendous number of title issues that must be cleared prior to the subsequent resale or re-finance of these properties. Some of these issues will result in title insurance claims and following is the second most common error that continue to cause increased claims:

Open Business Equity Lines of Credit – One of the most common causes of these claims is the failure to close the equity line. Many closing attorneys will pay off the outstanding balance at their closing but forget to send a close out letter to the equity line lender. If this is not done, some borrowers will take advantage of the additional funds available to them and “run” the equity line balance back up. You must obtain a close out letter signed by the borrower and send it along with your payoff check. If you are wiring funds, you must fax and FedEx the close out letter so you have a record of it. Finally, you must follow up to make sure that the equity line gets cancelled of record.

If you have any questions, or need help with your title insurance needs, please do not hesitate to contact Paxin Closing and Escrow, LLC, at  866-752-4445.

CLAIM TRENDS IN COMMERCIAL AND INDUSTRIAL TITLE INSURANCE (1 of 4)

With thousands of Commercial and Industrial properties in default and foreclosure in the State of Georgia, there are a tremendous number of title issues that must be cleared prior to the subsequent resale, or re-finance of these properties. Some of these issues will result in title insurance claims and following is the most common error that continues to cause increased claims:

Legal Description Errors – We are still seeing great number of claims relating to legal description errors including missing, incomplete, and entirely incorrect legal descriptions, also including less and excepted parcels. With technology, it is extremely easy to cut and paste the legal description from one part of the file to another, but it is also extremely easy to forget to cut and paste that same legal description. You must always compare the legal description on your current documents to the vesting deed. If the owning entity acquired the property in multiple transactions, you must make sure that you are conveying or encumbering ALL of the subject property.

If you have any questions, or need help with your title insurance needs, please do not hesitate to contact Paxin Closing and Escrow, LLC, at  866-752-4445.

FRAUDULENT E-MAILS CLAIMING TO BE FROM THE FDIC

The Federal Deposit Insurance Corporation (FDIC) has received numerous reports of fraudulent e-mails that have the appearance of being from the FDIC.   The e-mails appear to be sent from various "@fdic.gov" e-mail addresses, such as "subscriptions@fdic.gov," or "alert@fdic.gov”.   They have subject lines that read: "FDIC: Your business account" or "FDIC: About Your Business Account."    The e-mails are addressed to "Business Customer" or "Business Owner" and state "We have important information about your bank" or "financial institution." They then ask recipients to "Please click here to find details."

They conclude with, "This includes information on the acquiring bank (if applicable), how your accounts and loans are affected, and how vendors can file claims against the receivership."
These e-mails and the link included are fraudulent and were not sent by the FDIC. Recipients should consider the intent of these e-mails as an attempt to collect personal or confidential information, or to load malicious software onto end users' computers. Recipients should NOT access the link provided within the body of the e-mails and should NOT, under any circumstances, provide any personal financial information through this media.
Financial institutions and consumers should be aware that other subject lines and modifications to the e-mails may occur over time. The FDIC does not directly contact consumers in this manner nor does the FDIC request personal financial information from consumers.
For your reference, FDIC Special Alerts may be accessed from the FDIC's Website at http://www.fdic.gov/news/news/SpecialAlert/2011/index.html. To learn how to automatically receive FDIC Special Alerts through email, please visit www.fdic.gov/about/subscriptions/index.html.
Questions related to federal deposit insurance or consumer issues should be submitted to the FDIC using an online form that can be accessed at http://www2.fdic.gov/starsmail/index.asp.

If you have any questions, or need help with your title insurance needs, please do not hesitate to contact Paxin Closing and Escrow, LLC, at  866-752-4445.

CLOSING THE SALE TRANSACTION AND DIVISION OF CHARGES

Closing

Once all the terms and conditions of the instructions of both parties have been fulfilled, and all closing conditions satisfied, the escrow is closed and the safe and accurate transfer of property and money has been accomplished.

Division of Charges The method of dividing the charges for the services performed through the settlement process or as a result of escrow varies from place to place. The fees and service charges to be divided might include, for example, the title insurance policy premium, escrow settlement fee, any transfer taxes, recordation fees and cost in connection with any loan being obtained. Unless there is some special agreement between the buyer and seller as to how these charges are to be paid, local custom will generally be followed in drafting the instructions to the settlement agent as to how they are to be divided.

The escrow settlement agent will allocate between seller and buyer their proportionate share of an obligation paid or due. For example, a pro-rata share of real property taxes or  association dues are charged to the buyer and credited to the seller if they are prepaid at time of closing. The amounts prepaid are calculated per day from the date of closing to the date that they are paid.

If you have any questions, or need help with your title insurance needs, please do not hesitate to contact Paxin Closing and Escrow, LLC, at  866-752-4445.

WHAT EACH PARTY DOES IN ESCROW

Settlement Agents work from specific instructions provided by buyer and seller. Throughout the country, the settlement process differs, but the role of the settlement agent remains the same. Depending on local custom, the escrow settlement agent may work from the purchase and sale agreement and any loan escrow instructions provided, and/or separate escrow instructions prepared at the direction of the principals to the transaction.

Instructions are written documents, signed by the parties giving them, which direct the settlement agent in the specific particulars of the transaction. The settlement agent follows those to insure the proper steps are completed so the escrow can be closed.

The role of the parties, in escrow, is simple:
  • Instructions must dictate the method by which the settlement agent is to receive and hold the purchase price to be paid by the buyer.
  • The conditions under which a lapse of time or breach of purchase contract provision will terminate the escrow without a closing.
  • The instruction and authorization to the settlement agent to disburse funds for recording fees, title insurance policy, real estate commissions, and any other closing costs incurred through escrow.
  • Instructions as to the proration of taxes, rents or association dues, as applicable.
  • Instructions on the payment of prior liens and charges against the property and distribution of the net sale proceeds.
  • Most parties have their own counsel (Attorney representative), which Paxin Closing and Escrow, LLC works hand in hand with.
Since the settlement agent can only follow the instructions, as stated, and may not exceed them, it is extremely important that the instructions be stated clearly and be complete in all details.

If you have any questions, or need help with your title insurance needs, please do not hesitate to contact Paxin Closing and Escrow, LLC, at  866-752-4445.

WHO MAY HANDLE ESCROW SETTLEMENT?

 

The short answer is either a reputable title insurance company, or an Attorney, specializing in Commercial and Industrial Real Estate and title related services.    Paxin Closing and Escrow, LLC provides professional services tailored to all buyer and seller needs, as they relate to the purchase and sale of Commercial and Industrial Real Estate.    An escrow is an arrangement in which a disinterested third party, called an escrow agent or settlement agent, holds legal documents and funds, for Commercial and Industrial properties, on behalf of a buyer and seller, and distributes them according to the buyer's and seller's instructions.

Entities buying and selling Commercial and Industrial Real Estate often open a sale transaction with the settlement agent for their protection and convenience. The purchasing entity can instruct the settlement agent to disburse the purchase price only upon the satisfaction of certain prerequisites and conditions. The selling entity can instruct the settlement agent to retain possession of the deed to the buyer until the seller's requirements, including receipt of the purchase price, are met. Both rely on the settlement agent to carry out faithfully their mutually consistent instructions relating to the transaction and to advise them if any of their instructions are not mutually consistent or cannot be carried out.
Paxin Closing and Escrow, LLC provides professional escrow settlement services that are a convenience for the buyer and seller because both can move forward separately but simultaneously in providing inspections, reports, loan commitments and funds, deeds and many other items, using settlement as the central depositing point.   Provided the instructions from all parties to the transaction are clearly drafted, fully detailed and mutually consistent, the settlement agent can take many actions on their behalf without further consultation.    This saves time and facilitates the closing of the transaction.
The settlement process was developed to help facilitate the sale or purchase of your Commercial and/or Industrial Real property. The settlement agent accomplishes this by:
  • Acting as the impartial, neutral, third party of documents and funds
  • Processing and coordinating the flow of documents and funds
  • Keeping all parties informed of progress on the escrow
  • Responding to the lender's requirements
  • Securing a title insurance policy
  • Obtaining approvals of reports and documents from the parties as required
  • Prorating and adjusting insurance, taxes, rents, etc.
  • Recording the deed and loan documents
  • Maintaining security and accountability of monies owed and owing.

If you have any questions, or need help with your title insurance needs, please do not hesitate to contact Paxin Closing and Escrow, LLC, at  866-752-4445.

WHAT HAPPENS IN ESCROW SETTLEMENT?

An escrow is an arrangement in which a disinterested third party, called an escrow holder or settlement agent, holds legal documents and funds, for Commercial and Industrial properties, on behalf of a buyer and seller, and distributes them according to the buyer's and seller's instructions.

Entities buying and selling Commercial and Industrial real estate often open a sale transaction with the settlement agent for their protection and convenience. The purchasing entity can instruct the settlement agent to disburse the purchase price only upon the satisfaction of certain prerequisites and conditions. The selling entity can instruct the settlement agent to retain possession of the deed to the buyer until the seller's requirements, including receipt of the purchase price, are met. Both rely on the settlement agent to carry out faithfully their mutually consistent instructions relating to the transaction and to advise them if any of their instructions are not mutually consistent or cannot be carried out.
Paxin Closing and Escrow, LLC provides professional escrow settlement services that are a convenience for the buyer and seller because both can move forward separately but simultaneously in providing inspections, reports, loan commitments and funds, deeds and many other items, using settlement as the central depositing point. If the instructions from all parties to the transaction are clearly drafted, fully detailed and mutually consistent, the settlement agent can take many actions on their behalf without further consultation. This saves time and facilitates the closing of the transaction.
The settlement process was developed to help facilitate the sale or purchase of your Commercial and/or Industrial Real property. The settlement agent accomplishes this by:
  • Acting as the impartial "stake-holder," or depository of documents and funds
  • Processing and coordinating the flow of documents and funds
  • Keeping all parties informed of progress on the escrow
  • Responding to the lender's requirements
  • Securing a title insurance policy
  • Obtaining approvals of reports and documents from the parties as required
  • Prorating and adjusting insurance, taxes, rents, etc.
  • Recording the deed and loan documents
  • Maintaining security and accountability of monies owed and owing.

If you have any questions, or need help with your title insurance needs, please do not hesitate to contact Paxin Closing and Escrow, LLC, at  866-752-4445.

INSTRUCTIONS TO THE SETTLEMENT AGENT

Settlement Agents work from specific instructions provided by buyer and seller. Throughout the country the settlement process differs, but the role of the settlement agent remains the same. Depending on local custom, the escrow settlement agent may work from the purchase and sale agreement and any loan escrow instructions provided and/or separate escrow instructions prepared at the direction of the principals to the transaction.

Instructions are written documents, signed by the parties giving them, which direct the settlement agent in the specific particulars of the transaction. The settlement agent follows those to insure the proper steps are completed so the escrow can be closed.
Typical instructions include:
  • The method by which the settlement agent is to receive and hold the purchase price to be paid by the buyer.
  • The conditions under which a lapse of time or breach of purchase contract provision will terminate the escrow without a closing.
  • The instruction and authorization to the settlement agent to disburse funds for recording fees, title insurance policy, real estate commissions, and any other closing costs incurred through escrow.
  • Instructions as to the proration of taxes, rents or association dues, as applicable.
  • Instructions on the payment of prior liens and charges against the property and distribution of the net sale proceeds.
Since the settlement agent can only follow the instructions as stated, and may not exceed them, it is extremely important that the instructions be stated clearly and be complete in all details.

If you have any questions, or need help with your title insurance needs, please do not hesitate to contact Paxin Closing and Escrow, LLC, at  866-752-4445.