Advantage Title, LLC.
Frequently Asked Questions
Our Most Common Asked Questions, Answered.
The letter is from the underwriter to the lender stating the underwriter will insure the lender against any title claims arising due to the title agent’s non-compliance with the lender’s loan instructions. The premium, if any, is paid directly to the insuring title underwriter.
In other words, prior to the lender’s instructions being issued, the title agent provides to the lender a letter stating the underwriter for the title agent will insure any title-related issues arising out of the settlement that directly affects the loan as a lien against the property being used as collateral for the loan.
(There are some exceptions, i.e. perpetration of fraud, certain lender instructions directing the agent to change terms in the policy, etc.)
As the lender must make sure the closing agent is insured and able to provide title insurance for the loan, this letter must be sent to the lender prior to issuance of the lender’s closing package.
Once the letter is issued and the loan is ready to be closed, the lender provides instructions to the title agent along with the documents for the borrower to sign. This letter does not protect the title agent from recourse – it gives the lender another avenue to recover for any claims arising from the title agent’s action or inaction.
First of all, it’s called a quitclaim deed, not a quick claim deed. You’re welcome.
A quitclaim deed is an instrument that transfers any interest the grantor has in the property to a recipient.
A Warranty Deed is an instrument that transfers real property from one person to another and in which the grantor promises that the title is good and clear of any claims and promises to defend the title against all claim made by anyone.
Special Warranty Deed
A Special Warranty Deed is an instrument that conveys real property in which the grantor (original owner) only covenants to warrant and defend that neither he nor anyone claiming under his has encumbered the property and that he will defend the title against defects arising under and through him, but no others.
A Marital Deed can be any of the above types of deeds, is normally used in a divorce or separation issue and usually contains specific language referring to any division of the property or settlement agreement issues still outstanding. This deed transfers from one spouse to another.
For multiple ownership, there are three basic ways in which title can be taken. This may vary slightly from state to state. Vesting decisions should always be made with the help of a real estate lawyer.
For a Lender, vesting is very important. The vesting, or how the names are shown on the deed, is how the mortgage must be also vested. If the names or tenancy is not exactly the same, this can cause a default in the security and foreclosure might be impossible.
Joint tenants all own equal interest in a property and have equal rights of possession, and if any joint tenant dies, that tenant’s share is automatically transferred to the surviving tenants. Thus, a joint tenant’s share cannot be inherited. Joint tenants must all take title on the same deed at the same time.
Tenancy in Common
Tenants in common may have different interests (i. e. 30% and 70%, etc.), different rights of possession, and may take title at different times. They may will their share of the property to their heirs.
If a joint tenant sells his share of a property, the new tenant usually takes title as a tenant in common, unless all the previous tenants renew the title with the new tenant as joint tenants. The new tenant in common may will his interest in the property to his heirs.
Unless married persons specify otherwise, it is usually assumed that they take title as community property, whether it is stated on the deed or not. A married person may specify on the deed that he or she owns the property sole and separate in order to circumvent this.
Characteristics of community property vary from state to state. Sometimes there is a right of survivorship, as in joint tenancy, and sometimes there isn’t. Some married couples choose to take title as joint tenants in order to preserve the right of survivorship.
Right of Survivorship
Only offered in a select number of states, such as California, Nevada, North Carolina, Arizona, Alaska, Texas and Wisconsin. In the event of the death of one spouse, Right of Survivorship transfers the property automatically to the surviving spouse.
Probate Required – In all other states that do not offer “Right of Survivorship”, the property must go through a probate process in the event of the death of a spouse.
A living trust is a set of instructions that outlines what to do in the event of the death of the vested owner. It is part of your living trust estate planning tool that outlines instructions and bypasses the probate process. The property must be transferred into a living trust in order for this benefit to take effect.
For Refinance purposes, the underwriter may require the property be transferred from the Living Trust into the individual owner’s names. The Owner’s may then transfer the property back to the Trust post-closing.
With Advantage Title you know your loan is in good hands, with Fidelity National Title and Old Republic as our underwriters we are able to service and issue title policies in all states except WA and IA. With over 20 years of experience you can guarantee that with our level of experience, compliance certificates and technology that our service won’t be beat.