Closer's Corner
Closer's Corner
PRIVATE TRANSFER FEE: A NEGATIVE SURPRISE FOR CLOSING
PRIVATE TRANSFER FEE: WHAT IS IT?
A private transfer fee is a fee that must be paid each time a property is sold. In general there can be two types of transfer fees assessed. The most common fee is the transfer fee that the homeowner’s association management company charges to handle the transfer from the seller to the buyer. That is not the fee type discussed below.
RIGHT OF FIRST REFUSAL: A NEGATIVE SURPRISE FOR CLOSING!
RIGHT OF FIRST REFUSAL: WHAT IS IT?
A right of first refusal (ROFR) is a contract that gives one party (we’ll call them the “ROFR holder”) the right to be the first allowed to purchase a specific property if it is offered for sale before that property can be sold to anyone else. There can be different styles of ROFR but the most important thing to note is that a seller may not sell their property on the open market without addressing the ROFR.
Frequently Asked Realtor Questions
This month we wanted to focus on answering more questions that we are frequently asked. Below are a few of the most popular ones we’ve received recently.
WHAT IS THE EFFECTIVE DATE AND WHAT DATE SHOULD I PUT FOR THE EFFECTIVE DATE ON MY CONTRACT?
In a TREC contract the effective date is determined by the final date of acceptance by all parties. This date, when all parties have come to agreement and signed the contract, is when the contract becomes binding between the parties. To have final acceptance we must have four items:
What A Realtor Should Know About Divorce And Title Insurance
If you’ve ever received a title commitment back from your title company showing a requirement related to a divorce for your client you’ve likely wondered why there are additional requirements being made on your Schedule C. In order for a title company to rely on a client’s divorce decree the decree itself must contain some very important language. If the decree is incomplete a warranty deed from the ex-spouse can be required which often results in an unhappy experience for your clients. The article below discusses a few scenarios that can create delays in getting to closing.
Frequently Asked Questions: Contracts
This month we wanted to focus on answering the questions that we get asked often.
How Industry Professionals can Avoid and Respond to Wire Fraud
Wire fraud has become rampant in our industry. According to the Financial Crimes Enforcement Network (FinCEN) there have been 78,000 cases of reported wire fraud involving losses of over $12.5 billion dollars since 2013.
What is Title Insurance? Why would someone need it?
One of the single most expensive transactions someone may enter into in their personal lives is often the purchase of real estate. Because of the significant investment involved in a real estate transaction, purchasers and their lenders want to know their investment is safe when it comes to the title of the property or their lien priority. The buyers want to be sure that the correct seller is selling to them. The lenders want to be sure that there are no liens that have a superior interest to their interest. These are the matters that title insurance was designed to be used for. While
Power of Attorney: What does a realtor need to know about Power of Attorney Use?
What is a Power of Attorney?
A Power of Attorney (hereinafter “POA”) gives another person the authority to make personal and financial decisions on the principal’s behalf. A POA can cover all aspects of the principal’s personal and financial affairs, or may be limited to specific situations and activities. In short, in a POA the principal (think seller or buyer) gives the attorney-in-fact (now referred to as the “agent” as in “agent acting for the principal”) the right to close the real estate deal on the principal’s behalf and with the principal’s full consent.
PROPERTY TAXES: What should an agent be concerned about?
THE BASICS
Taxation of real property in Texas is controlled by provisions found in the Texas Constitution and the Texas Tax Code. Because taxes are based on the assessed value of the property, property taxes are commonly referred to as “ad valorem” taxes.
Guardianship: What is it and how does it affect your real estate closing?
The need for a guardianship in a real estate transaction can arise in several ways. If someone in title is a minor child (likely through inheritance) a type of guardianship is needed. We may also need a guardianship if there is a mental competency issue with a seller.
DEFINITIONS
A guardianship is a court proceeding to protect the interest of someone who is not legally or mentally capable of conducting his/her own affairs. This is the process where a guardian is appointed for another person to handle the ward’s personal or business affairs.
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