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How Real Title Services Could Factor Into Your Insurance Policy

How Real Title Services Could Factor Into Your Insurance Policy

When buying commercial real estate, there is no such thing as being too thorough. You must take everything into consideration because you are willing to invest a sizable sum of money. The location matters. Taxes matter. Both the property’s appearance and the cost of maintenance are important. The price matters most of all.

If any of the above doesn’t sit well with you, you might decide to back out of the deal or keep negotiating. Even if all of your boxes are checked, a title search is still necessary.

In particular, if you recently bought a house, you might be familiar with title searches. On the surface, title searches for commercial and residential properties are similar because they both aim to establish who owns the property. In a way, the process consists of three steps: the search, the report, and the insurance.

However, because commercial title searches involve businesses rather than individuals, they are much more complicated and involve a much larger number of documents. Your real estate purchase could succeed or fail based on the results of a commercial title search.

Here’s what you need to know.

 

The Importance of a Commercial Title Search

A commercial title search is crucial because, as with any purchase, you must be certain of what you’re getting. The stakes and risks are much higher when hundreds of thousands, and possibly millions, of dollars are at stake. The property’s past can ease your worries or give you an advantage in negotiations if the search turns up title problems.

 

How Do Commercial Title Searches Work?

A simple way to describe the process is that a commercial title search looks for both historical and current documents that have been recorded against a property, such as liens, mortgages, and easements.

In contrast to residential cases, commercial documents are indexed by name rather than by address. For various properties, businesses may have multiple documents, in addition to additional filings for things like employment and civil records.

The search is more challenging if that business changed names or filed its name inconsistently—remember, just because you couldn’t find a lien doesn’t make it invalid.

You must work with a reputable title company that is qualified and meticulous. Otherwise, your purchase could come with unnecessary risk.

 

How Can Real Title Services Help Your Title Insurance?

We can do a thorough investigation of the public records, and preset you or your title insurance agent with our finding. The outcomes of the commercial title search are effectively guaranteed by title insurance, which also provides ongoing protection for the parties involved.

In addition to title defects, the majority of policies also cover boundary disputes, environmental impact issues, and zoning conflicts. The policies come in two flavors: lender’s and owner’s, just like in residential title insurance.

In the event of a future title dispute, a lender’s policy safeguards the bank’s investment, whereas an owner’s policy safeguards the buyer.

The method for buying title insurance policies varies from location to location. But it’s frequently included in the closing costs.

Although the process from conducting a commercial title search to finalizing a real estate transaction may seem tedious and difficult, you’ll be glad it is. After all, running a business will be enough to worry about. Your title should not be one of those worries.

 

 

Are you looking for a reputable title search company to provide a title search for a property you’re interested in? Contact Real Title Services today to let us help you by expediently conducting a thorough investigation of the public records and presenting you with our findings.

5 Common Title Problems You Might Face

5 Common Title Problems You Might Face

Commercial and industrial real estate transactions are typically more complex than residential transactions. You need to watch out for title problems that could potentially impair your ownership rights. If this happens, it would also be challenging to sell or transfer the property. That is why it’s essential to employ a title search company to make the process smooth and hassle-free. Read on to know more about the title problems you might face while dealing with a property.

 

1.   Undocumented Title

There may be errors in the records or paperwork related to the property. The title to a property is one of the most important legal documents one will ever own. It’s an official declaration that they have ownership of the property, allowing them to sell, mortgage, or transfer the title to another person. So it should be handled and taken into consideration very carefully.

 

2.   Missing Heirs

When a person dies, their heirs or those mentioned may inherit the property. However, you may have to deal with missing heirs in rare instances. Family members may sometimes fight the will to protect their property rights. Making sure that all the heirs are mentioned and listed is crucial as it can bring trouble to the property later.

 

3.   Forgeries

Forged or fraudulent papers affecting property ownership are often lodged in public records, with false information on who the true owner of the property is. When these forgeries are discovered, the rights to the property may be jeopardized. The documents may contain incorrect information on the title itself, such as incorrect names or incorrect dates. Experts who specialize in title searches can identify these issues and bring them to your notice.

 

4.   Unknown Liens

Lien issues, such as unpaid taxes or other payments owed to a governmental organization that show on the title, can become a problem. Even though the past debt was not yours, banks or other financing organizations can place liens on your property. This is especially concerning with dilapidated buildings.

 

5.   Survey Disputes

An incorrect boundary description can lead to disputes with a neighbor or other party who will be able to claim ownership of a piece of your property. One property owner’s documents may depict a plot of land differently than another’s. A survey disagreement between owners might impair your capacity to move forward with the property.

Title problems are common and unfortunate. They can happen for several reasons and may be challenging to detect. It’s vital to employ proper care when dealing with real estate transactions, as they are complex and you want to avoid the pitfalls.

 

Real Title Services is here to help you! Reach out to us today to keep your clients happy and get them the property of their dreams. We can act as your guide to detect and clear all the title problems that one might face. Contact us right away to learn more.

How Title Search Companies Can Help at Every Stage of the Title Search Process

How Title Search Companies Can Help at Every Stage of the Title Search Process

As a mortgage lender, you’re probably aware of the importance of accurate title searches in the loan approval process. They provide you with information about who owns the property, what encumbrances exist, and whether there are any liens on the title.

Title searches can also alert you to potential problems, such as pre-existing arrangements or debts, that would impact the closing of the mortgage loan. Keep reading to learn more about the steps involved in a title search and how a reputable title search company can help at each stage, so you can discover all the potential issues before you approve a mortgage request.

 

Identifying the Property and Locating the Deed

When performing a title search, you first need to find as much information as possible about the property and its current owner. One way to do this is by going through the property’s current and previous deeds, surveys, and official records of ownership.

Though this information can usually be accessed from a local government office, you may not have the time, resources, or expertise to carry out an accurate and thorough title search. This is where a title search company, like Real Title Services, can help you.

We specialize in reviewing the necessary documents and providing you with accurate information, including establishing current and previous owners, the boundaries of the property, and if there are any limitations or liens on the property. We will also provide you with a “title abstract” report which will contain all the necessary information you need to successfully close the deal.

 

Establishing a Clear Chain of Title

An important part of the title search process is verifying the current and previous property owners, all the way back to the original owner sometimes, establishing a clear chain of title. Properties with a break in the chain of title can pose risks in the future.

This is why you need the expertise of a professional title search company to get a clearer picture of whether there are any gaps or discrepancies in the chain of title, which could potentially impact the current owner’s right to sell the property.

 

Looking up Tax Records

Tax records can offer a better picture of the property and ensure there are no unpaid or overdue taxes. Unpaid taxes can lead to a lien being placed on the property, which means that the government can put it up for sale at any time. Moreover, tax histories can provide an accurate evaluation of the property’s value over time, helping you determine the property’s current fair market value. The Real Title Services team has the resources and expertise needed to analyze property tax records and verify that there are no liens on the property you’re investing in.

 

Hire a Professional Title Search Company

Compiling your own title search can be a complicated process. Moreover, mistakes in the title search process can result in expensive losses down the road. By outsourcing your mortgage title search services to a professional title search company, like Real Title Services, you can avoid major pitfalls and save time and money.

 

Get in touch with us today at 213-212-2161 or contact us via our website to learn more about how we can help you with the title search process.

Things Mortgage Lenders Need to Look Out for During the Title Search Process

Things Mortgage Lenders Need to Look Out for During the Title Search Process

The decision to accept a borrower’s mortgage application is crucial since it involves a lot of risks. Incorrect property titles constitute a significant risk that can even result in the buyer losing their rights to the property and the lender losing their investment. This is why many mortgage lenders rely on title searches to make sure that the loan applicant will be the sole owner of the property after the transaction.

Title search professionals are trained to spot defects in the title that can affect mortgage transactions. Knowing what to look for in this process is essential for lenders looking to minimize their risk of loss and liability when lending money on properties.

 

Chain of Title and Establishing Previous Owners

The chain of title or the sequence of title contains details pertaining to the history of the property, including all the property owners, right from its present owner to the original one. If the chain of title seems to be missing information, the potential claimants must establish their rights to the property in court. Failing to do so can result in them losing all claims to it in the future. This information can be accessed from the public record in the County Recorder’s office or County Clerk or from private-owned title companies.

 

Property Restrictions

You should be aware of the property restrictions on any property you are going to buy. There are times when a property owner has been granted permission by an entity to use or alter a piece of land, but they can’t because of these restrictions. This can even prevent a purchase or sale from going through if it does not fall in line with the restrictions.

For example, if there is a prohibition against developing on your property unless you have received approval from the local municipality, this would constitute a restriction on your title. If these restrictions are not followed, then it could be considered a fraud.

The federal government has a list of properties where there may be such restrictions, but many states do not have a mechanism for tracking them down. A reputable title search company will be able to determine if there are any property restrictions you should be aware of.

 

Mistakes in the Title

Errors in the legal description of a property can lead to problems later on in the transaction. So you need to ensure there’s a clear title so that no other claims can be made against it. If there are errors in the legal description of land or buildings on it (for example, if someone built an addition with their own money twenty years ago), then this could create problems when transferring ownership because the added structure was never part of the original deed given by its original owners or builders. In such cases, there may be lawsuits pending against them (for example: if they’ve been accused of building something illegal).

 

Tax Liens

A tax lien would mean that one of the previous owners didn’t pay off their taxes before selling their house. In this case, the government could potentially put up the property for sale to recover overdue taxes. Remember, unpaid taxes, liens, and judgments always take precedence over a lender’s or buyer’s right to the property. If outstanding liens are discovered in the earlier stages of the transaction, then actions can be taken to solve the issue before the title is transferred.

 

If you’re looking for a reliable title search company to assist with mortgage title services, call Real Title Services today at 213-212-2161 or contact us via our website to get started.

Why Should Lenders Outsource Mortgage Title Services?

Why Should Lenders Outsource Mortgage Title Services?

With regulations constantly changing, it can be hard for mortgage lenders to keep up with the changes. In addition, there are several other things that can go wrong and interfere with the loan closing process, especially with respect to title searches.

However, outsourcing your title search to a professional title search company, like Real Title Services, can help lenders avoid crucial errors and save time and money. A title search company can provide the needed information in order to help banks and lenders review the title chain to ensure a smooth closing of the loan. Keep reading to learn more about how third-party mortgage title service companies can help make the lending process easier.

 

Researching and Ordering Title

Based on the lender’s requirements, a title search company can conduct title searches within a specific city or area. Apart from confirming the property’s rightful legal owner, a title search will also shed light on the boundaries of the property and if there are any restrictions on it. This information is especially important if you’re planning on developing the property later.

After the title search is done, the title search company will provide your title insurance company with a “title abstract” report, otherwise called a “title search.” In most counties, a title search is required to close on a property. So your title insurance company will hire a company like Real Title Services to perform arguably the most important part of the title insurance process.

 

Fixing Any Errors in the Title

A title search will be used by your title insurer to reveal any errors in the legal description of the property, which can cause problems later on in the transaction if left uncorrected. A reputable title search company will provide this title search to a title insurance company, and the tile insurance company will get started on fixing any errors they find to ensure that that home is not owned by third-party, and that everything is on track for closing the deal.

 

Creating a Commitment Report

A commitment report details information about the title insurance and the circumstances that led to the title commitment phase. This phase is when all the errors and anomalies found in the title are fixed, which in turn ensures a smooth closing process for the lender.

As the entire title search process can be quite complicated, an experienced title search team—title searcher and title insurer—will be able to make sure that all regulations are met. The accuracy of title search process will provide lenders the security to make the loan.

 

The Closing Stage

As mentioned above, a title team will be able to ensure that the entire loan process is smooth—and this includes the closing stage. Once everything is finalized and the borrower is ready to seal the deal, the title insurance company will make sure to review all the necessary documents and finalize the deed and title exchange as per the state laws.

 

Recording of Mortgage

At the end of the whole process, the title insurance company will send the mortgage to the local records office, where the county authorities will make a note of all the information.

As seen above, hiring a reliable title search company like Real Title Services can make things so much easier for lenders. So if you are a lender, a title insurance agent, a real estate investor, or a concerned homeowner get in touch with us today at (213) 375-1726 or contact us via our website to get started!

What You Need to Know About UCC Filings and Searches

What You Need to Know About UCC Filings and Searches

Whether it’s putting up some of your assets as collateral to take out a business loan or entering into a financial agreement with a third-party organization, running a business is filled with major financial decisions and risks.

In this situation, lenders also need to be confident in the borrowers’ ability to repay the loan before signing off on the loan approval. This is where UCC filings come in—they are a standard part of the loan application process for small businesses. Keep reading to learn more about UCC filings and searches and why they are necessary.

What Is the Uniform Commercial Code (UCC)?

Adopted by almost all the states in the U.S., the Uniform Commercial Code or the UCC is a standardized set of rules and regulations that govern interstate business transactions. It was primarily established to eliminate any potential confusion caused by the varying legal and contractual principles in the different states.

The nine articles in the UCC provide guidance for different types of business transactions and allows businesses to place a lien against another enterprise or individual.

How Do UCC Filings Work?

A UCC filing or a UCC-1 Financial Statement is a legal document that allows debtors to claim a lien on your property, which then effectively serves as your collateral. A UCC filing can be used in several scenarios. These include:

  • Taking out loans for small businesses.
  • Leasing business equipment or vehicles.
  • Investments from a venture capital firm.
  • Bulk or warehouse sales and auctions.
  • Contractual agreements between parties.
  • Letters of credit.
  • Depositing funds into a collection account.

In each of these instances, once a creditor issues a UCC lien on your property, they have legal authorization to seize the property if you default on your loans or claim for bankruptcy. Moreover, the collateral for the UCC can vary based on the situation. For example, if you’re leasing a piece of equipment, the collateral for that UCC filing will most likely be the equipment itself.

Though UCC filings don’t really affect your business’s day-to-day operations, they can still impact your funding and asset selling abilities. So if you’ve provided collateral for a loan, it is always safe to conduct a UCC search and check if your creditor has filed a UCC against your company.

What Is a UCC Search?

UCC searches are conducted to figure out if your business assets are already owed as collateral for a previous debt. This prevents the same assets from being used as collateral for multiple debts.  You can access all your UCC information by contacting the secretary of state for the state in which your business is registered or through an online database.

What to Look for When Conducting UCC Searches

The UCC search process can often be quite complicated. Always search using the debtor’s correct legal name to avoid confusion. Also, make sure to search under any former names the debtor might have used since there might still be active filings under that name, even if it’s no longer in use.

To be more thorough, it’s also advisable to conduct searches for additional types of liens other than UCC, including federal tax liens, judgment liens, state tax liens, and litigation searches.

 

Even the simplest of UCC searches and filing requires due diligence and attention to the smallest of details, which is exactly what we offer at Real Title Services. Call us today at 213-212-2161 or contact us via our website to get started.

The Importance of Open Mortgage Searches When Buying a Home

The Importance of Open Mortgage Searches When Buying a Home

An important part of each title search consists of an open mortgage search. Ideally, when one homeowner sells to another individual, everything goes perfectly, and the seller’s mortgage gets paid in full while the buyer’s mortgage begins.

That doesn’t always happen, though. Sometimes, either due to an error in titling, or due to a bank error, the previous homeowner’s mortgage continues to appear on the title, creating what we call a cloud on the title. That cloud functions just the same way a lien on the property would.

Why the Cloud Matters

Every lien, loan, or easement listed on the title provides that organization or individual a right to the property. The seller of the property needs to show unfettered ownership of the property for the sale to go through.

When the current owner tries to sell their home, the appearance of no clear title can stop their sale. Thus, one of the most important processes Real Title Services does during a title search consists of an extensive open mortgage search.

If the sale of a property with a cloud on the title does go through, the buyer of the home also purchases all debts and liens on the property. In the case of an open mortgage, they’d take on an extra home loan! The bank or other financial institution that issued it could attempt to collect the money still owed on the property.

How the Homeowner Can Fix the Problem

The homeowner has recourse via their title insurance. They have two options available to them:

  1. Contact the previous owner’s mortgage company. Since they secured the loan, they can rectify the problem. Request a full reconveyance of the prior owner’s mortgage to record on the property. When the company complies and records the full reconveyance, the cloud clears.
  2. Contact the title insurers. The homeowner needs to contact both their title insurance company and their lender’s title company. Explain that the previous owner’s mortgage appears on the title search for the home. The homeowner files a claim on their insurance. It becomes the duty of the title insurance company to remove the previous owner’s mortgage.

Sometimes, the title insurance company refuses to clear the title cloud by the needed date. At this point, the homeowner will need to consult with an attorney specializing in real estate. Occasionally, a homeowner must file a lawsuit against the title insurers to get the old mortgage removed.

Contact Us

At Real Title Services, we specialize in efficient, error-free, nationwide title searches for title agencies that let home sellers and homebuyers feel at ease and close on their homes stress-free. Let us help you enjoy a worry-free real estate purchase. Contact us for a title search for yourself or your clients.

Why You Should Work With Real Title Services

Why You Should Work With Real Title Services

Are you a huge title insurance underwriter doing millions of dollars a year in searches?  Or are you a local title insurance office serving only one county?  Or are you an investor looking to make an offer on a property?  Doesn’t matter!  Big or small, we can help you!

The home-buying process is exciting for homeowners and anyone involved with the process—insurance companies, title agencies, mortgage bankers, and real estate attorneys included.

The role of Real Title Services is to be responsible for the title search that is part of a real estate purchase, ensuring that everyone involved knows if there are any liens, debts, or other issues with a property.

Each party plays an essential role in the process, and the outcome is a happy homeowner in their new space. Title searches are necessary part of the process, which is why your company should work with a professional team like ours at Real Title Services.

We’ve helped search for over 130,000 titles and counting, and we’d love to partner with you to support the end-user—the home buyer, with their goals and dreams.

Here are a few reasons why you should work with us.

We’re Experienced and Passionate

We would love to be part of your abstractor vendor complement if you are looking for title searches or document retrieval.

Our services range from current owner title searches, to mortgage and deed searches, to retrieval of specific records and certificates—we can do a full range of title searches or retrieve any document. Our full glossary of what we can do is here, and even if you can’t find what you’re looking for on this list, we can likely help you with it if it’s related to land, homes, and property.

Our reports will arrive at your inbox in an easy-to-understand manner.

Searches range from small lots like cell towers, to multi-million-dollar industrial projects.

Our combined decades of know-how will be an asset to you on every level.

We’re Flexible and Far-Reaching

Please let us know if there is anything we can do to accommodate your needs, as we are very flexible when it comes to doing what is necessary to provide excellent service.

We can deploy a team to virtually any county in the country. Utilizing our extensive abstractor network, we can always locate an expert in any county.

We Care About Every Last Detail

We dot every “I” and cross every “T” when we provide reports to you, whether required for insurance, legal, or property-related purposes.

We provide document retrieval, settlement products, and mortgage-related services as a comprehensive title search provider.

There are a variety of products in this category designed for mortgage banking and real estate firms alike, as well as title insurance providers.

We would be honored to help your business every step of the way. Get in touch with our team, and let’s start working together today.

New-Age Investors Are Leveraging Cryptocurrency to Buy Their Dream Home in 2022

New-Age Investors Are Leveraging Cryptocurrency to Buy Their Dream Home in 2022

Homeownership is a dream cherished by millions of Americans. A survey by LendingTree revealed that over 40% of Americans aim to move to a new home in 2022, and nearly half of this group (46%) are hoping to buy a new home.

In 2021, the rate of homeownership grew to 65.5%, after reaching its peak of 69.9 % in 2004 before the crash of 2008. For corporates who work with homeowners, here’s what you need to know about the current consumer trends around homeownership.

Rise of Crypto Ownership

Owning a home is an essential aspect of wealth creation that helps build generational wealth that can be passed on. Besides saving every month, investing smartly and consistently creates an opportunity for investments to compound over time. Savvy investors leverage their earnings and make wise investments to buy homes. One investment mode that is attracting new investors, every day is cryptocurrency. As of 2021, crypto ownership spanned 300 million crypto users worldwide, and over 18,000 businesses accept payments in cryptocurrency.

Homeownership Goals

Investments aim to meet long-term and short-term life goals. This can include building a corpus for a comfortable retirement, planning for going back to school or a child’s education, taking a world trip, or owning assets such as real estate.

According to a survey, in 2021, 12% of first-time homebuyers leveraged their crypto earnings to save for a down payment. In the third quarter of 2019, this figure stood at just 4.6%. In the case of lenders and mortgage bankers, it’s important to know how much of your client’s finances are from cryptocurrency in order to leverage trust.

Cashing Out

Like the stock market, cryptocurrency empowers retail investors to build wealth at a faster rate. Although it comes with its risks, investors with a time horizon of 2 to 10 years and beyond can capitalize on crypto opportunities through consistent investing. Popular cryptocurrencies include Bitcoin, Ethereum, Dogecoin, and Shiba Inu.

However, it is to be noted that investors will need to cash out their earnings into a bank account to be able to use them to make transactions since the real estate ecosystem does not currently accept payments in cryptocurrency.

Making a Higher Down Payment

Most consumers do not have the funds to buy a home upfront. In all probability, they will be taking a loan, making a down payment, and then paying monthly payments for several years. According to most personal finance experts, it is advisable to make a down payment of at least 20% when you plan to take a loan to buy a home. The higher the down payment, the less funding required, resulting in fewer installments and a lower rate of interest.

Since cryptocurrency is taking off, more people will likely be able to afford a higher down payment straight off the bat.

The Takeaway

Buying a home is a huge task for any American, and crypto and other wealth-creation instruments are soon becoming instrumental in defining the homeowner journey. This means an increased need for title insurance companies, mortgage bankers, real estate attorneys, and more to perform title searches and other due diligence.

At Real Title Services, we pride ourselves on quick, error-free, and nationwide title searches. To learn more, contact us today!

Understanding DOJ Title Standards

Understanding DOJ Title Standards

Have you seen the Department of Justice Title Standards? If you haven’t, many of the questions you have can be answered in the 74-page pdf from the Regulations of the Attorney General Governing the Review and Approval of Title for Federal Land Acquisitions (2016). A few specific points that you can learn from the article include:

  • Who is qualified to provide title evidence?
  • How do you pick a suitable title examiner?
  • What is the required time frame for the search?
  • What is an examination?
  • Definition of an abstract of title.
  • Explains what must be contained in the abstract.
  • Guidance for examining attorneys.

Honestly the regulations are a little dry as far as reading goes, but they do set the standard for our industry.  It’s a good document to download and save if you are a title professional.  Click here for your copy of the Attorney General’s Title Regulations.

We want to ensure your real estate purchase runs smoothly.  Real Title Services specializes in quick, nationwide title searches without errors, so you feel at ease and close on your home without worry.

If you are a title professional, or if you need a title search for a home you’re looking to sell or purchase, call us today at (213) 375-1726 or contact us on our website.