With the Abstract of Judgment, the skeletons of a property’s title may come out of the closet.

By Lydia Blair
Special Contributor

Judgment Day in the title business is when the title search comes in and the skeletons in the closet come out. These types of skeletons often come in the form of an Abstract of Judgment. Most law abiding folks aren’t familiar with an abstract of judgment or how it affects real estate. But we see it in the title business regularly.

In Texas, an Abstract of Judgement (AJ) is basically a lien that is filed on a property for an unpaid debt. First a judgment for debt is rendered and then the creditor may file an Abstract of Judgment on the debtor’s property. It is designed to prevent the transfer of that property until the judgment has been paid.

(more…)

By Lydia Blair
Special Contributor

Well butter my butt and call me a biscuit. Grab a seat fellow Texans. You may need it when you hear about the way they finalize real estate sales in some of our fellow united states. Let’s start with a peculiar Yankee custom that’s a changin’.

A recent revision to New York property transactions stipulates that it is no longer allowable for buyers or sellers to tip to the title closer. Yes, you heard that right. The long-held tradition in the Northeast of buyers tipping the real estate closer with cash, gifts, tickets, etc., has been squashed by the New York Department of Financial Services. Anyone else getting a chuckle out of the mere thought of tipping your closer?

(more…)

By Lydia Blair
Special Contributor
 
Title companies are like the private detectives of real estate. That’s right. We’re like a combination of Sherlock Holmes and James Bond. Only without the guns and fast cars. Well, maybe we’re closer to a mixture of Nancy Drew and the tech nerd in the back of your office. But we still help save you from real estate disaster.  

One of the reasons title companies are so essential is the title search they perform. A real estate title search involves collecting documents and evidence of the history of a property. The purpose is to ensure the title is clear and valid, and to answer questions regarding a particular piece of real estate prior to the transfer of the title.

(more…)

By Lydia Blair
Special Contributor

One of the quirks of the title industry is the roller-coaster pace of business. A week day in mid-January can be as boring as watching paint dry. The last Friday of the month in the summer feels like bungee jumping into fire.

While title companies are generally glad to close a transaction, some days are a lot more welcome than others. The last day of the month is usually the busiest time for title companies and lenders. Fridays are the fullest days of the week.

I’ve suspected that mortgage companies were pushing for these days to close out their month or week with more business. But that is probably not correct.

(more…)

By Lydia Blair
Special Contributor

The Texas Real Estate Commission (TREC) recently updated the standard residential contracts to now address policies regarding deposits of earnest monies. These changes become mandatory May 15, 2018.

On the first page of the newly updated Texas contracts, it states that “Within 3 days after the Effective Date, Buyer must deliver $___ earnest money to ___, as escrow agent, at ____.”  Previous TREC contracts did not have a deadline for delivering earnest money except to say it was due “upon execution of this contract.” Simultaneous delivery of the contract and earnest money didn’t always happen. Now it is clear.

(more…)

By Lydia Blair
Special Contributor

Dear Diary,

OMG. My HOA is sooooo horrible. They’re, like, the worst ever. I mean, it’s like the mean girls of the school. I can’t even. They’re just trashing my entire experience. Like, totally! Turns out my condo isn’t warrantable. As if. And that rush fee they charged ate my swag money. Hashtag whatever.

Signed,

Throwin’ Shade Gal

Hey girl. I hear ya. But you might as well chillax, ’cause all HOAs (Home Owner Associations) are typically a hassle when you’re buying or selling a property. Seriously.

A property with mandatory HOA always adds another pile of paperwork to the transaction. And additional costs. Some more than others. You may be dealing with a Home Owners Association that governs the neighborhood where you live. Or you may be in a condominium under HOA management. These associations enforce restrictions, oversee common areas, supervise maintenance and repairs, … and generally ensure everyone follows the rules they’ve all agreed to.

(more…)

Title

Every home sale requires a new title policy, Lydia Blair explains.

By Lydia Blair
Special Contributor

When it comes to title insurance policies, there are no hand-me-downs. No recycling. There are no “slightly used” policies available. It doesn’t matter if a property has been owned a year, a month or a week. When a property is sold from one person to the next, a brand-new title insurance policy is issued. Every time.

One might think it’s an unnecessary task and expense when a home may be changing hands after only a year or so of ownership. Why get a new a new title insurance policy when a title search was done so recently? (more…)

Why are title companies closed on weekends? Title expert Lydia Blair explains.

By Lydia Blair
Special Contributor

Realtors work weekends. It’s just part of the business. The real estate industry operates seven days a week, with agents showing homes and submitting contracts any day of the week. To be successful, there isn’t an easy way around it.

So why aren’t title companies open on weekends as well? After all, the title industry revolves around real estate agents and the business they bring the title companies.

(more…)