A Federal Tax Lien (herein after "FTL") is a lien filed by the Internal Revenue Service for unpaid taxes. Below are 10 fun facts for how an FTL can affect your closing.
Realtors are often asked by clients if they can deed a property they bought into a company or trust they own after closing. You should be aware that doing so may void their Owner’s Title Policy coverage.
There is a solution for your clients that want to transfer ownership and also extend their Owner’s Title Policy coverage to the new owner as long as certain parameters are met.
Last year TREC promulgated a new form that allows a buyer to alter the existing Third Party Financing Addendum. The Third Party Financing Addendum permits a buyer to cancel the contract up to 3 days prior to closing if the property does not appraise for the sales price. The new Addendum Concerning Right to Terminate Due to Lender’s Appraisal can be used to eliminate this cancellation contingency. This form should only be used if the Third Party Financing addendum is being used and it cannot be used on FHA or VA loans.
In earlier Closer’s Corners we’ve discussed the big change as to option fees in the new contracts: https://texasnationaltitle.com/article/option-money-and-contract-changes
Let’s now look at how HOA fees are handled in the new Addendum for Property Subject To Mandatory Membership In a Property Owner’s Association (Version 36-9).
In our February Closer’s Corner we talked about the big changes to the TREC contract, most specifically the change that now directs option money to be deposited with the title company.
The new TREC contracts have arrived!
AN UPDATED CONTRACT IS BEING INTRODUCED IN FEBRUARY 2021
During the November 2020 quarterly meeting of the Texas Real Estate Commission (TREC), several rule changes were proposed and form changes were adopted. See the meeting details at: www.trec.texas.gov/article/rules-and-contract-updates-november-commission-meeting
As the population of Austin continues to grow we are seeing more and more developers who want to maximize space on lots. A very popular way to do this is to tear down an existing single family residence and replace it with a two (or more) condominium project. You might also see someone that owns a duplex or other multi-family building convert these properties into condominiums.
Both of these options allow for the units to be sold separately to different buyers so that the seller can increase the number of units they have available to sell.
If you have clients that buy properties at a tax foreclosure there can be some hidden issues that they need to be aware of for their purchase.
Tax Foreclosure: A Timeline
Another Reduced Contact Closing Option
The COVID pandemic has affected how real estate transactions are handled and many of your clients want to have reduced contact closing options. We have been able to accomplish many of these closings by doing “curbside closings” or Remote Online Notary closings, but a Remote Online Notary (“RON”) can be complicated because (1) the lender must approve use of a Remote Online Notary, (2) your client needs to have certain technology acumen and hardware and (3) many RON vendors are overloaded due to demand.