TABLE                                            of contents01. QUICK REFERENCE PAGE                                      ...
YOUR ESCROW NUMBER                                         ~                 _                  YOUR NEW ADDRESS          ...
[ COUNT ON ]                                                                                       First American Title   ...
FOR SALE                                                                                                          [       ...
BUYER                                                                 SELLER       SELECTS A REALTOR                      ...
A home warranty is an insurance policy that covers a variety of mechanical, electrical,                                   ...
•        sta                     YOUR                  HOME            ors                      owTo make the best impress...
un de rsta nd in 9 TITLE INSURANCE     THE TITLE INDUSTRY IN BRIEF. Prior to the development of the title industry in the ...
SKFOROUR~~~                                                                                                               ...
THE ESCROW PROCESS AT FIRST AMERICAN TITLE     WHAT IS AN ESCROW? An escrow is a process wherein the buyer and     seller ...
TITLE COMMITMENT.       The escrow officer orders the title                                 commitment from our title depa...
AMORTIZED LOAN. A loan that is paid off-both           interest and principal-by   regular payments that are equal or near...
DEED OF TRUST. An instrument used in many states in place of a mortgage.DEED RESTRICTIONS. Limitations in the deed to a pr...
Owners title insurance premium                                                                                            ...
PLANNING               YOUR                                                         MOVEAB   UT   2 MONTHS      BEFORE YOU...
TO:      FIRST AMERICAN TITLE INSURANCE COMPANY                                                    ESCROW NUMBER          ...
NOTES---..-.- ..-.- ...._- -.-.- ----                                           I   First American Title   ID
NOTES                                       ----------------             ---------------------,                       ----...
Home Seller Guide
Home Seller Guide
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Home Seller Guide

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Home Seller Guide

  1. 1. TABLE of contents01. QUICK REFERENCE PAGE Search Properties Like .an Agent FREE! Goto. .02. FAST FACTS FOR SELLERS www.paUIMirador.Listingb~~~·~~e( COUNT ON FIRST AMERICAN Short Salo • Forilclosure - B03. BENEFITS FROM A PROFESSIONAL REALTOR® FOR SALE BY OWNER04. LIFE OF AN ESCROW05. A HOME WARRANTY PREPARING YOUR HOME FOR SALE06. STAGING YOUR HOME FOR SHOW THE APPRAISAL PROCESS07. UNDERSTANDING TITLE INSURANCE08. EAGLE POLICY09. THE ESCROW PROCESS11. TERMS YOU SHOULD KNOW13. WHO PAYS CLOSING COSTS CLOSING YOUR ESCROW14. PLANNING YOUR MOVE15. PERSONAL INFORMATION16. YOUR NOTES
  2. 2. YOUR ESCROW NUMBER ~ _ YOUR NEW ADDRESS _ quick reference CITY/STATE/ZIP _ ...................... _----- ---- Complete the following information as it becomes available. Utility companies may ask for your Escrow number and the name of your title company. IMPORTANT Do not cancel your home insurance or disconnect utilities prior to the close of escrow Name _ Phone L..J Assistant _ Cell L..J Company _ Pager L..J Address _ Fax L..J City/State/Zip _ Email .. __ ._-------------- ---_._---------- ----------------_. __ ._---- - ------------------_. __ ._- Email _ I Escrow Officer ~ Escrow Assistant _ Email _ Address _ Phone L..J City/State/Zip _ Fax L..J----r----------- ----------._---------------- -- i Agent _ Policy # STOP START DATE DATE Phone L..J New Agent _ Policy # -.-1-.-1_ -.-1-.-1_ Phone L..J New Gas Company _ -.-1-.-1_ -.-1-.-1_ New Cable Company -.-1_/_ -.-I-.J_ New Electric Company New Phone Company Long Distance Carrier, if different New FaxL..J -.-I-.J_ -.J-.J_ Your New Phone L..J Cell Phone Internet Service New Water Company _/-.-1_ .L.«: Newspapers Other Magazine -.-1-.-1 __ -.J-.-I_ Pest Control Lawn Service Post Office a .,.., ····°·1 @ First American Title
  3. 3. [ COUNT ON ] First American Title > FOR SELLERS> REALTOR.® AReilltor~ is a licensed real estate agent and a member [ CO U NT 0 NUS ] for service of the National Association of Realtors®, a real estate Your Realtor recommends First American with confidence, trade association. knowing each of our branches is staffed by professionals dedicated to closing your escrow. Realtors also belong to their state and local Boards of Each office can provide comprehensive title and settlement Realtors. They have a wealth of resources at their disposal, services for any real estate transaction associated with a purchase, construction, refinance or equity loan . . includinq the Multiple Listing Service and continuinq Backed by the assurance of First American Title, each transaction .education. All association members agree to abide by a. will be expertly completed in accordance with the state-specific 17 -article Code of Ethics and strive for the height of underwriting standards and regulatory requirements. professionalism. Our offices and agents utilize fully-trained staff to provide you with the most comprehensive insurance coverage and:> REAL ESTATEAGENT. professional service available in the industry today. A real estate agent is licensed by the state to represent parties in the transfer of property. every Realtor isa real estate agent, but not every real estate agent is a professional Realtor. [COUNT ON US] forstability> LISTING AGENT. First American Title is the principal subsidiary of A l.isting agent forms a legal relationship with th~.homeovJner The First American Corporation in Santa Ana, California, the largest supplier of real estate related services in the nation. to sell the property, and placesthe property in the Multiple Were backed by assets totaling over $3 billion Listing Service. and reserves of more than $300 million. First American is the leading title insurer in the state,), BUYERS AGENT. with roots dating back to 1892. A Buyers agent or Buyer broker is an agent hired by the Weve served California families for generations. Buyer. Generally, the Buyers broker is paid from the" commission fee aqreedto by the Seller.> REALTORS PREAMBLE. [ CO UN TON US] for convenience Excerpt from the Preamble to . Realtors codEtofEthic~: First American has a direct office or an agent office located near you. The term Realtcr®:has come to connote competency, We offer more convenient locations-over 150 offices throughout fairness, and high iAtegrityresulting from adherence California. First American has an extensive network of offices to a loftyidea] of moral conduct in business relations <: and agents throughout the United States, the Bahama Islands, . , ~ . Canada, Mexico, Puerto Rico, the U.S. Virgin Islands No inducement of profit and no instructionfrom clients Bermuda, Guam, and the United Kingdom. Our headquarters is located at ever can justify departure fromthis ideal. . 2 First American Way, Santa Ana, CA 92707. In the interpretation of this. ebliqation, Realtors can take no safer guide than that which has beenhanded down through the centuries; embodied in the GoldenRule: [COUNT ON US] for all of your needs "Whatsoever ye wouldthatothers should do to you., First American offers more than title insurance and escrow services: doye e~en so to them. Property research • Account servicing:> MULTIPLE IJSTINGSERVICE (MLS): Foreclosures • 1031 tax-deferred exchanges The fV1LSi5il database of.properties l.istedfor SOlie .. by Hazard Insurance • Home Warranty Realtorswho are members.of the 10c~1 Board of R.ealtors®. Homeowners Insurance • Trust and Investment Information on an MI;.Spraperty is available to thousands Credit Services • AppraisalsNaluations of Realtors. Analytics & Modeling • Technology Solutions I First American Title D
  4. 4. FOR SALE [ J BY OWNER l Many people believe they can save a considerable amount of money by selling their homes themselves. It may seem like a good idea at the time, but while you may be willing to take on .. . •• the task, are you qualified? Following are some questions to •• help you realistically assess whats involved: BE AWARE OF. DO you have the knowledge, patience, and sales skill needed to sell your home? IF your Buyer is aggressive, CAN you negotiate A Realtor® understands market conditions and has access a successful outcome for yourself? to information not available to the average homeowner; DO you know how to determine the current A Realtor can advertise effectively for the best results. market value of your home? A Realtor knows how to price your home realistically, to give ARE you aware of conditions in the marketplace today you the highest price possible within your time frame. that affect value and length of time to sell? A Realtor knows how to screen potential Buyers and eliminate DO you know how to determine whether or not those who cant qualify or-are looking for bargain-basement prices. a Buyer can qualify for a loan? A Realtor knows how to go toe-to-toein hegotiations. ARE you concerned about having strangers walking through your home? A Realtor is always" on-call" an ing the phone at all hours, and showing homes eveni s and weekends. DO you understand the steps of an escrow and whats required of you and the Buyer? A Realtor can remain objective when presenting offer and counter offers on your behalf ARE you familiar enough with real estate regulations to prepare a binding sales contract? Counter-offers? A Realtor can remain objective when presepting offers and counter-offers Of! your behalf ARE you aware that every time you leave your home, you are taking it off the market until you return? A Realtor maintains errors-and-omissionslnsurance. HAVE you made arrangements with an escrow and title A Realtor will listen to your needs, respect your options company, home warranty company, pest-control service and allow you to make your make own decisions. and lender to assist you with the transaction? h; Realtor can help protect your rights, particularly importantwith DO you need to hire a real estate attorney? If so, DO you the increasingly complicated real estate laws and regulations. know what the cost will be and how much liability they will assume in the transaction? , A Realtor is experienced with resolving problems to ensure a successful closing on your home. DO you know how to advertise effectively and what the costs will be? ARE you aware that prospective Buyers and bargain hunters will expect you to lower your cost because theres no Realtor® involved? DO you understand the various types of loans Buyers may choose and the advantages and disadvantages for the Seller? ARE you prepared to give up your evenings and weekends to show your home to potential Buyers and "just-looking" time wasters?a I First American Title
  5. 5. BUYER SELLER SELECTS A REALTOR ---THE LIFEOFAN~ SELECT A REALTOR ESCROW BUYER SELLER PRE-APPROVED BY LENDER PREPARES HOUSE FOR IF NEW LOAN NEEDED SHOWING & SELLING BUYER SELECTS HOME AND SUBMITS CONTRACT WITH LOAN ----I STATUS REPORT (LSR) SELLER BUYER REVIEWS & ACCEPTS CONTRACT VIEWS HOMES WITH REALTOR® •• FROM BUYER INSPECTION REPORTS SENT VARIOUS INSPECTIONS ESCROW OPENED &TO APPLICABLE PARTY & REVIEWED. ORDERED TITLE COMMITMENT ORDERED NOTIFICATION SENT BUYER TITLE COMMITMENT RECEIVED APPRAISAL ADVISES ESCROW & APPROVED BY BUYER ORDERED BY & COMPLETED FOR LENDER OF HOME INSURANCE COMPANY LOAN DOCUMENTS PREPARED BY BUYER CLOSING DOCUMENTS LENDER RECEIVES FINAL LOAN COMPILED & SENT TO ESCROW APPROVAL FROM LENDER SEPARATE APPOINTMENTS SET: LOAN DOCUMENTS BUYER & SELLER BUYER RETURNED SIGN DOCUMENTS DEPOSITS REQUIRED FUNDS TO LENDER FOR REVIEW LENDER "FUNDS LOAN" DOCUMENTS RECORDED ESCROW ENSURES ALL (SENDS FUNDS TO ESCROW) AND ESCROW CLOSED CONTRACT CONDITIONS MET AFTER RECORDING FINAL DOCUMENTS CONFIRMED UYER SENTTO ESCROW RECEIVES KEYS FROM REALTOR® INTERESTED PARTIES DISBURSES FUNDS I First American Title D
  6. 6. A home warranty is an insurance policy that covers a variety of mechanical, electrical, and plumbing items, as well as some appliances, inside the home. Optional coverage is available for more expensive systems such as air conditioners, refrigerators, pools and spas. The Seller may purchase a home warranty plan prior to selling to protect against repairs needed during the listing period, and the Buyer may be able to assume the policy at the close of escrow Or the Seller may offer to purchase a home warranty policy for the Buyer. Offering a home warranty plan may provide these benefits: > Increase the marketability of your home by reassuring potential Buyers. > Help sell your home faster and at a higher price. a home > Ward off potential disputes after the sale for repair and/or replacement of covered items.warrant Most home warranty plans can be paid for at the close of escrow A copy of the invoice is sent to escrow, and it becomes part of the Sellers closing costs. First American Home Buyers Protection offers comprehensive coverage through a variety of home warranty plans. First impressions have a major impact on potential Buyers. Try to imagine what a potential Buyer will see when theypreparing your home approach your house for the first time and walk through each room. Ask your Realtor® for advice; they know the marketplace and what helps a home sell. Here are some tips to present your home in a positive manner:,/ Mow and edge the lawn regularly, and trim the shrubs. ,/ Repair leaky faucets and caulking in bathtubs and showers.,/ Make your entry inviting: paint your front door and buy a new front ,/ If doors stick or squeak, fix them. door mat. ,/ Make sure toilet seats look new and are firmly attached.,/ Paint or replace the mailbox, if needed. ,/ Repair or replace loud ventilating fans.,/ If screens or windows are damaged, replace or repair them. ,/ Replace worn shower curtains.,/ Repair or replace worn shutters and other exterior trim. ,/ Rearrange furniture to make rooms appear larger If possible,,/ Make sure the front steps are clear and hazard-free. remove and/or store excess furniture.,/ Make sure the door bell works properly and has a pleasant sound. ,/ Remove clutter throughout the house. Organize and clean out closets and pantry.,/ Ensure that all exterior lights are working. ,/ Make sure all kitchen appliances are clean and work properly.,/ Check stucco walls for cracks and discoloration. ,/ Avoid extension cords in plain view.,/ Remove any oil and rust stains from the driveway and garage. ,/ Keep washer and dryer clean and empty.,/ Clean and organize the garage, and ensure the door is in good working order. ,/ Air conditioners/heaters, evaporative coolers, hot water heater should be clean, working and inspected if necessary.,/ Repair or replace loose knobs on doors and cabinets. Replace filters.,/ Shampoo carpeting or replace if very worn. Clean tile floors, ,/ Check the pool and/or spa equipment and pumps. Make sure all particularly the caulking. are working properly and that the pool and/or spa kept clean.,/ Brighten the appearance inside by painting walls, cleaning windows ,/ Inspect fences, gates and latches. Repair or replace as needed. and window coverings, and removing sunscreens.
  7. 7. • sta YOUR HOME ors owTo make the best impression, keep your home clean, neat, uncluttered and in good repair. Please review this list prior to each showing: Keep everything clean. A messy or dirty home will cause prospective buyers to notice every flaw. CD Clear all clutter from counter tops. Let the light in. Raise shades, open blinds, pull CD back the curtains and turn on the lights. Get rid of odors such as tobacco, pets, cooking, etc., but dont overdo air fresheners or potpourri. Fresh baked bread and cinnamon can make a positive impact. Send pets away or secure them away from ® the house, and be sure to clean up after them. @ Close the windows to eliminate street noise. If possible you, your pets, and your children should be gone while your home is being shown. ® Clean trash cans and put them out of sight. If you must be present while your home is shown, keep ® noise down. Turn off the TV and radio. Soft, instrumental music is fine, but avoid vocals. Keep the garage door closed and the driveway clear. Park autos and campers away from your home during showings. ® Hang clean attractive guest towels in the bathrooms. THE @ Check that sink and tub are scrubbed and unstained. APPRAISAL PROCESS @ Make beds with attractive spreads. @ Stash or throw out newspapers, magazines, junk mail. ~ ~l..g,t I First American Title D
  8. 8. un de rsta nd in 9 TITLE INSURANCE THE TITLE INDUSTRY IN BRIEF. Prior to the development of the title industry in the late 1800s, a homebuyer received a grantors warranty, attorneys title opinion, or abstractors certificate as assurance of home ownership. The buyer relied on the financial integrity of the grantor, attorney, or abstractor for protection. Today, title insurance companies are regulated by state statute. They are required to post financial guarantees to ensure that any claims will be paid in a timely fashion. They also must maintain their own "title plants" which house duplicates of recorded deeds, mortgages, plats, and other pertinent county property records. wh at IS TITLE INSURANCE? Title insurance provides coverage for certain losses due to defects in the title that occurred prior to your ownership. The seller can give only those rights that previously have been received with" good title." Title insurance protects against defects such as prior fraud or forgery that might go undetected until after closing and possibly jeopardize your ownership and investment. why TITLE INSURANCE IS NEEDED? Title insurance assures the new buyers that they are acquiring marketable title from the seller. It is designed to eliminate risk or loss caused by defects in title from the past. Title insurance protects the interest of the mortgage lender as well as the equity of the buyer for as long as they or their heirs have any interest in the property. w hen IS THE PREMIUM DUE? It is a one-time premium which is paid at the close of escrow. It is customary for the seller to pay for the Owners Policy. If there is a new loan, the buyer pays for the Lenders policy. The policy has a perpetual term and provides coverage for as long as you are in a position to suffer a loss. do ALL TITLE COMPANIES OFFER THE SAME PROTECTION? First American Title provides comprehensive title and settlement services for any real estate transaction associated with a purchase, construction, refinance or equity loan. First American offers exceptional service in every aspect of your transaction and has a strong reputation that stretches back over a century. First American provides the technology, expertise and comprehensive selection of title and settlement services to meet your needs. Drawing on more than a century of experience and innovation, First American is your single source for accurate, efficient and cost-effective title and settlement solutions.~~------------------------------_I-G I First American Title
  9. 9. SKFOROUR~~~ CLTA STANDARD --------------=-~~~~ Someone else owns an interest in your title A document is not properly signed---- 4. Forgery, fraud, duress, incompetency, incapacity or impersonation affects Defective recording of any document affects your title """,,",:+L~""", _,0,-_-10" __ ••••• _= # ••.••. 5. You have no legal access to "n,rl trArY> Restrictive covenants limit your use of the land A lien on your title of trust, (b) a judgment, tax, orspecialas~;e:~~~~~L~~~l!~~~!~:~~h~o~m~e~o~w~n~e~r~s~ a~s~s~o~c~ia~t~io~n~ ~ -=~~~-=~==~~~~~~~~~~ 8. Purchase, lease or loan refused because title is unmarketable 9. Unrecorded mechanics lienson 1nllr ritL"f,")( labor and materials Others have rights under unrecorded leases, contracts or options Someone has an unrecorded easement on your Forced removal of structure because it: (a) extends onto other land 12. (b) violates a restriction on schedule b, and/or (c)violates an existing zoning law 13. Cannot use land fQrsingle family dw~lling0r/esidence because use violates 14. 15. Plain lanouace 16. Forgery occurs after policy date 18. Adverse possession occurs after policy date 19. easement -Violation of regulation er.subdivision law causes: (a) refLisa of building permit, I ,(b)refusa I of purchase, lease or loan, "and/czr (c)forced correc;,t1~jo?!n;0:;::.r r;,;e~m~os;v;;;a~I.s0if;;,v~io~la:;;t~io;;h:;...,_.::..:..t;.~:":"~~~~~~~_""":_:":J Forced removal/correction of structure due to violation of building permit due to vrcnartrm.cir zoninolaw.or Forced removal of structure-includes your boundary wailifence-due to encroachment to neichborseacrcachinc ~ e:::~~~or.builds encroaching structure (excludes walilfEmce)after policy date Residence with address shown not located on land at policy date Map not consistent with legal description in to 150%NOTE, For residential property, 1 to 4 units, Coverages shown are subject to Exclusions, Conditions and Schedule B Items set forth policy Because of thenature or location of certain properties, an inspection of the property may be necessary to determine if additional exceptions from coverage need to be shownin Schedule B of the residential policy which will be noted in the preliminary report, The foregoing table is intended to highlight only some aspects ofcoverage and is not to be construed as expanding or limiting the coverage as set forth in the mentioned title policies, Copies of these policies are availableupon request Any decision on coverage should be made only after review of the policies themselves, I First American Title D
  10. 10. THE ESCROW PROCESS AT FIRST AMERICAN TITLE WHAT IS AN ESCROW? An escrow is a process wherein the buyer and seller deposit written instructions, documents, and funds with a neutral third AS PART OF OUR SERVICE, party until certain conditions are fulfilled. In a real estate transaction, the FIRST AMERICAN WILL: buyer does not pay the seller directly for the property. The buyer gives the funds to an escrow company who, acting as an intermediary, verifies that title to the property is clear and all written instructions in the contract have OPEN escrow and deposit your "good faith" been met. Then the company transfers the ownership of the property to the buyer through recordation and pays the seller. This process protects funds in a separate escrow account. all parties involved. CONDUCT a title search to determine ownership The state of California licenses and regulates all escrow companies. The and status of the subject property. Insurance Commissioner and the state banking department can inspect a companys records at any time, providing further oversight of the companys management and position as an impartial third party to the transaction. ISSUE a title commitment and begin the process to delete or record items to provide clear title to the property. Per contract, CONFIRM that the lender has determined you, the buyer, are qualified for a new loan. ASK you to complete a beneficiarys statement if you are assuming the sellers loan. MEET all deadlines as specified in the contract. REQUEST payoff information for the sellers loans, HOW IS AN ESCROW OPENED? Once you have completed the contract other liens, homeowners association fees, etc. (or Purchase Agreement) and the seller has accepted the offer, your Realtor will open the escrow. The earnest money deposit and the contract are placed in escrow. As a neutral party to the transaction, First American can PRORATE fees, such as property taxes, per the respond only to those written instructions agreed to mutually by all contract, and prepare the settlement statement. "interested" parties (seller and buyer); First American cannot otherwise alter the contract or create instructions, and that protects all interested parties. SET separate appointments: Seller will sign documents; you will sign documents and deposit funds. REVIEW documents ensuring all conditions and legal requirements are fulfilled; request funds from lender. When all funds are deposited, RECORD documents at the County recorder to transfer the subject property to you. After recordation is confirmed, CLOSE escrow and disburse funds, including sellers proceeds, loan payoffs, Realtors commissions, related fees for recording, etc. PREPARE and send final documents to parties involved.••_ ~ ~~t¥ I First American TItle
  11. 11. TITLE COMMITMENT. The escrow officer orders the title commitment from our title department. Upon receiving this request, an examination begins of all historical records pertaining to your property. Barring any unusual circum- stances, First American issues a commitment for title insurance indicating a clear title or items which must be cleared prior to closing. The Buyer receives a copy of the title commitment when we complete the title search.SELLER REQUIRED DISCLOSURE If directed by the contract,the seller will provide the following items which require aresponse from the Buyer. Your Realtor® can help you with these.a. Sellers property disclosure statement listing any existing prob- lems known to the Seller.b. Information pertaining to the Home Owners Association (HOA) or planned unit development (PUD), such as Covenants, Conditions and Restrictions (CC&Rs),if applicable.c. Flood hazard disclosure if the property is in a flood area. Independent inspections, such as termite and septic, and any repairs as required. CONSIDER THIS: One escrow transaction could involve over twenty individuals including Realtors, buyers, sellers, attorneys, escrow officer, escrow technician, title officer, loan officer, loan processor, loan underwriter, home inspector, termite inspector, insurance agent, home warranty represent tative, contractor, roofer, plumber, pool service, and so on. And often one transaction depends on another. When you consider the number of people involved, you can imagine the opportunities for delays and mishaps. So, much like an airline pilot cant prevent turbulence during a flight, your experienced Realtor and escrow team cant prevent unforeseen problems from arising. However, they can help smooth out the bumps and, whenever possible, get you safely through to a successful closing. I First American Title D
  12. 12. AMORTIZED LOAN. A loan that is paid off-both interest and principal-by regular payments that are equal or nearly equal. AMENDMENTS. A change-either to alter, add to, or correct-part of an agreement without changing the principal idea or essence. APPRAISAL. An estimate of value of property resulting from analysis of facts about the property; an opinion of value. ASSUMPTION. Taking over another persons financial obligation; taking title to a property with the Buyer assuming liability for paying an existing note secured by a deed of trust against the property. BENEFICIARY. The recipient of benefits, often from a deed of trust; usually the lender. CLOSE OF ESCROW. The date the documents are recorded and title passes from Seller to Buyer. On this date, the Buyer becomes the legal owner, and title insurance becomes effective. CLOUD ON TITLE. A claim, encumbrance, or condition that impairs the title to real property until disproved or eliminated through such means as a quitclaim deed or a quiet title legal action. COMPARABLE SALES. Salesthat have similar characteristics as the subject property, used for analysis in the appraisal. Commonly called "cornps." CONVEYANCE. An instrument in writing, such as a deed or trust deed, used to transfer (convey) title to property from one person to another.GI I First American TItle
  13. 13. DEED OF TRUST. An instrument used in many states in place of a mortgage.DEED RESTRICTIONS. Limitations in the deed to a property that dictate certain uses that mayor may not be made ofthe property.EARNEST MONEY DEPOSIT. Down payment made by a purchaser of real estate as evidence of good faith; a deposit orpartial payment.EASEMENT. A right, privilege or interest limited to a specific purpose that one party has in the land of another.HAZARD INSURANCE. Real estate insurance protecting against fire, some natural causes, vandalism, etc., depending uponthe policy. Buyer often adds liability insurance and extended-coverage for personal property.HOMESTEAD EXEMPTION. Automatic in California, it allows any resident of California, 18 years of age or older, to exempt fromattachment, execution or forced sale $100,000 of equity in a single dwelling unit. Exceptions include (1) process and sale of aconsensual lien, i.e. where a deed of trust or equity loan is foreclosed; (2) a forced sale resulting from a mechanics lien, and (3)any equity beyond the $100,000. (You should consult an attorney to determine if this exemption offers you protection in the eventof an attachment, execution or forced sale.)IMPOUNDS. A trust type of account established by lenders for the accumulation of borrowers funds to meet periodic paymentsof taxes, mortgage insurance premiums and/or future insurance policy premiums, required to protect their security.LEGAL DESCRIPTION. A description of land recognized by law, based on government surveys, spelling out the exact boundariesof the entire piece of land. It should so thoroughly identify a parcel of land that it cannot be confused with any other.LIEN. A form of encumbrance that usually makes a specific property the security for the payment of a debt or discharge of anobligation. For example, judgments, taxes, mortgages, deeds of trust.MORTGAGE. The instrument by which real property is pledged as security for repayment of a loan.PITI. A payment that combines Principal, Interest, Taxes and Insurance.POWER OF ATTORNEY. A written instrument whereby a principal gives authority to an agent. The agent acting under such agrant is sometimes called an "Attorney-in-Fact."PURCHASE AGREEMENT. The purchase contract between the Buyer and Seller. It is usually completed by the real estateagent and signed by the Buyer and Seller.QUITCLAIM DEED. A deed operating as a release, intending to pass any title, interest, or claim which the grantor may havein the property, but not containing any warranty of a valid interest or title by the grantor.RECORDING. Filing documents affecting real property with the County Recorder as a matter of public record.WARRANTY DEED. A real estate oriented document used to convey fee title to real property from the grantor (usually the Seller)to the grantee (usually the Buyer). I First American Title ID
  14. 14. Owners title insurance premium CLOSING • Realtors commission your escrow • Escrow fee, one half (except Seller pays all on VA) ~ D- the closing appointment. ---l • Any loan fees required by Buyers lender, i.e., FHA, VA ---l Your escrow officer or escrow technician will • All loans in Sellers name (unless Buyer assumes existing loan) contact you to schedule your closing appointment S • Interest accrued on loan being paid off, statement fees, The Buyer will sign separately from the Seller. recoveyance fees, prepayment penalties ~ ---l • « a::: Home warranty premium per contract W • Homeowners Association transfer fee dont forget your identification. Z • Homeowners Association disclosure fee You will need valid identification with your photo; W o • Any unpaid Homeowners Association dues a drivers license is preferred. This is necessary 0::: • Any judgements, tax liens, etc., against Seller so that your identity can be sworn to by a notary W public. Its a routine step, but its important for ..J ..J • Half of Recording charges your protection . W • Property taxes: pro-rated to the date the title is transferred ~ plus any delinquent taxes W I Any bonds or assessments per contract f- what happens next? • Courier fee, if applicable If the Buyer is obtaining a new loan, the Buyers Any repairs per contract signed loan documents will be returned to the lender for review. The escrow company will ensure that all contract conditions have been met and will ask the lender to "fund the loan." If the Buyers • Lenders title policy premium, if new loan loan documents are satisfactory, the lender will send the check directly to escrow, usually within 24 • Escrow fee, one half (except Seller pays all on VA) hours. When the loan funds are received, escrow s • Half of Recording charges All new loan charges (except those lender requires Seller to pay) will verify that all necessary funds are in. Then we will record the deed at the County Recorders ~ ---l Office and disburse escrow funds to the « a::: • Interest on new loan from date of funding to 30 days prior to first payment date Seller and other appropriate w Assumption/change of records fees for takeover of existing loan payees. The Realtor® Z will present w Beneficiary statement fee for assumption of existing loan the keys to o the property 0::: • Hazard insurance premium for first year to the Buyer. W >- • All prepaid items, such as interest, or funds for an escrow account ::l Courier fees, if applicable 1 a3 w • Professional home inspection I f-•• ~ I First American Title- ,,~{{%
  15. 15. PLANNING YOUR MOVEAB UT 2 MONTHS BEFORE YOU MOVE 1 WEEK LEFT Research your new city through the Chamber of Commerce o Get rid of all flammable products, paint, gasoline, etc. or, if a computer is available to you, through many of the online web sites. o Contact your local trash collector about proper disposal. Start cleaning closets and storage areas and decide what o Gather odds and ends: dry cleaning, safe deposit box items, goes with you, what goes to a charitable organization or prescriptions, anything youve loaned. garage sale, and what goes in the trash. o Return library books, rented videos, anything borrowed. Talk with your accountant or an IRS advisor about any moving expenses that might be tax deductible and require o Drain gas and oil from equipment youre shipping, such as records. lawn mowers, gas weed trimmers, etc. Contact moving companies (and the Better Business Bureau) for services and estimates. A COUPLE OF DAYS Start a list of everyone you want to notify about your move. Keep it handy because names will pop into your mind o Give away plants youre not taking. unexpectedly. Along with friends and relatives, include schools, doctors, dentists, creditors, attorney, accountant, o Defrost the refrigerator and freezer. broker, and any recurring services such as maid, lawn, Write out clear instructions - sketch a map, too, if you exterminator, water softener, diaper, internet provider, can - of your new home, and include your itinerary and magazine subscriptions, etc. emergency numbers. Keep a copy yourself, and give copies to the moving company and your family or friends.1 MONTH OUT o Complete packing. Be sure to set aside the items you want to take with you so the mover doesnt accidentally load them o Notify the post office of the move, and pick up a supply of onto the truck. change of address cards. o Pack local phone books. Youll be glad you did. If possible, open bank accounts at the new location now so your checks can be printed, and you wont have to rely on o Check with the utility companies to verify connect and temporary checks which are not accepted everywhere. disconnect dates after escrow closes. Get serious about cleaning out the house; start accumulate- o Contact your Realtor and verify when and where keys to your ing boxes and begin packing. Hold a garage sale. new home will be available. Contact your insurance companies (health, auto, o Pick up beverages and snacks for moving day. Disconnect homeowners, renters) and discuss coverage at the new major appliances. location. Contact utility companies and arrange to disconnect/ connect at your current home and at your new home. THE BIG DAY Driving? Flying? How will you, your family, your pets, your o If you cant be there when the movers arrive, arrange for plants, extra cars, get to the new city? Arrange for that now. someone to meet them. Take pets to your veterinarian for check up and regular o Check the movers bill of loading and inventory carefully immunizations before the trip. before signing. Keep papers with you in a safe place. o Make one last trip through the house, double-checking2 WEEKS BEFORE closets, drawers and cabinets. Lock the windows. Contact your bank about closing your existing accounts o Leave the garage remote control for the new owners. when you move. o Turn off all the lights, close and lock the door, and leave the If youre driving your car, have it serviced. keys as prearranged with your Realtor or new owner. Find out what you need to do to transfer records for doctors, dentists, veterinarians, etc. Be sure to get permanent records from schools, not copies. Get prescriptions for new pharmacies. GOOD LUCK, AND ENJOY YOUR NEW HOME! I First American TItle _
  16. 16. TO: FIRST AMERICAN TITLE INSURANCE COMPANY ESCROW NUMBER _ATTN: _ ESCROW OFFICERS NAME BRANCH FAX NUMBER 1 ----------------- J SELLERS CONFIDENTIAL INFORMATION FOR ESCROW This page requests information your Escrow Officer will need to complete the sale of your home. Please provide as much as you have available at this time. Please make a copy of the completed page, and mail or fax it to your Escrow Officer. SELLER(S) LOAN PAYOFF(S) SELLER 1 1ST LOAN NAME NAME ADDRESS ADDRESS CITY / STATE / ZIP CITY / STATE / ZIP HOME PHONE WK PHONE PHONE FAX FAX EMAIL LOAN NUMBER SOCIAL SECURITY NO. ESTIMATED BALANCE MARITAL STATUS DMARRIED DSINGLE DDIVORCED PREPAYMENT PENALTY DYES DNO D DONT KNOW SELLER 2 2ND LOAN I EQUITY NAME NAME ADDRESS ADDRESS CITY / STATE / ZIP CITY / STATE / ZIP HOME PHONE WK PHONE PHONE FAX FAX EMAIL LOAN NUMBER SOCIAL SECURITY NO. ESTIMATED BALANCE MARITAL STATUS DMARRIED DSINGLE DDIVORCED PREPAYMENT PENALTY DYES DNO D DONT KNOW PROPERTY HOMEOWNERS ASSOCIATION ADDRESS IF DIFFERENT FROM ABOVE _ NAME OF ASSOCIATION _ MANAGEMENTCOMPANY _ LEGAL DESCRIPTION _ CONTACT PERSON _ ADDRESS _ TAXPARCEL# _ CITY / STATE / ZIP _ LOT # MCR # _ PHONE FAX _ I First American TItle
  17. 17. NOTES---..-.- ..-.- ...._- -.-.- ---- I First American Title ID
  18. 18. NOTES ---------------- ---------------------, --------------------- -------------I First American Title

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