Title Business

Buyers and Sellers, Contracts, Dallas real estate news, Escalation Clause, Lydia Blair, Texas Real Estate Commission, Texas Residential Real Estate Contract

10/22/19 9:30am

Title Tip: Common Mistakes in Contracts That Can Get You Sued

Let’s play a game I like to call “Don’t Get Sued.” We surveyed fewer than 100 escrow officers and asked them: “What is a common mistake you see on residential contracts?”

The top 8 answers are on the board. Ready with your buzzer? The survey says the 8 most common contract mistakes that could get you in trouble are:

Contract Addendums, Contracts, Don't Get Sued, Legal Issues, Lydia Blair, Surveys, Texas Real Estate Commission, title business, Title Tip

10/08/19 9:45am

Title Tip: Due and Payable — Time To Open Those Property Tax Bills

It’s that not-so-wonderful time of year when property tax bills start hitting our mailboxes. At the time of this writing, tax statements have been mailed in Dallas, Collin, and Tarrant Counties. Bills are being posted daily from other counties and from other taxing authorities including school districts, community colleges, cities, improvement districts, etc.

To get your statement before it arrives in the mail, simply go online and search for your county’s tax assessor. If you live in Dallas County, forget Dallascad.org. Go to the county tax assessor’s site to get an actual copy of your property tax statement.

Once the taxing authorities in your area have posted your tax bill, your taxes are considered due and payable. That typically happens in early October. In a few (but not all) areas, homeowners may get a discount for paying their taxes before the end of the year. Most homeowners actually pay their property taxes in December and January. Your 2019 property tax bill is considered delinquent if not paid by January 31, 2020. Hefty penalties and interest are charged after January 31st.

Collin County Tax, Dallas County tax, Lydia Blair, property tax bills, Property Taxes, Tarrant County Tax, Tax bills, Title Tip

09/17/19 9:30am

Title Tip: Sit Up And Take Notice of Paragraph 21

Please take notice of the Paragraph 21 notice that is about notices and that many people fail to notice. Call it a notice, a notification, disclosure … whatever. Just don’t ignore it.

Paragraph 21 of the Texas residential real estate contract reads:

“All notices from one party to the other must be in writing and are effective when mailed to, hand-delivered at, or transmitted by fax or electronic transmission as follows:”

There is space to add the buyer and seller names, addresses, phone, fax, and email.

This all-important paragraph is often neglected or overlooked to the detriment of all parties. I’d estimate about a third of residential contracts do not have contact information for both buyer and seller in this paragraph when they are submitted to the title company. That’s a lot of potential problems.

So, what’s the big deal? Why do the buyer and seller need to disclose their email addresses and phone numbers to each other and the title company? Should their agent protect their privacy by withholding this information? So glad you asked.

Closing Documents, Lydia Blair, Paragraph 21, Texas Real Estate Contract, Tile Business, Title Company, Title Tip

09/10/19 9:30am

Title Tip: How Does a Seller Lease Back Work?

How to make a buyer’s agent cringe: Ask for a 60 day seller lease back. While lease backs hold appeal for many sellers, it’s enough to make Realtors shudder at the thought of the problems that can accompany them.

A Sellers Temporary Lease allows the seller to continue living in the home after closing for a short time – anywhere from one to 90 days. It is designed to allow for delayed possession of the property by the buyer.

This temporary lease is used when a seller needs additional time after closing to relinquish the property. This may be for any number of reasons. The seller may be waiting for school to finish or need more time to move their possessions. Or they may just want to ensure the transaction actually closes and their funds are in the bank before moving out.

Dallas real estate news, Dallas Title Companies, Dallas Title Expert, Lydia Blair, PITI, Seller Lease Back, Seller's Temporary Residential Lease, Texas Real Estate Commission, Title Tip, TREC

09/03/19 9:30am

Title Tip: What’s The Difference Between a Condo And a Townhome?

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Many folks think condos and townhomes are like po-tay-toe and po-tah-toe. They’re pretty much the same. When actually, they’re more like potato and tomato.

Just because the property sits on the ground and looks like an attached house, doesn’t make it a townhouse. And a condominium doesn’t always look like an apartment. There are condos that look like townhomes and vice versa. The appearance or physical description is not a true verification of the type of property.

Townhouses and condominiums have subtle but distinct differences. The defining characteristic of a property type lies in the ownership, rather than the design. What you own, what you are responsible for maintaining, and what spaces you must share differentiates condos from townhomes.

Both types of properties are attached to another residence and are part of a larger property with shared or community spaces. They both have homeowners associations with dues assessed to owners. While there is a legal definition for each, allow me to add the stipulation that these characteristics are “typical and usual.” There are always a few communities that like to create their own unique ownership rules, restrictions, and covenants.

Condo, condominiums, Dallas real estate news, Lydia Blair, Title Tip, townhomes, townhouse

08/27/19 9:15am

Title Tip: What Happens When You Rescind an Offer to Purchase?

Shopping for a home is a bit like dating. Buyers, like daters, are looking for that perfect match. But just because you fall in love doesn’t mean they’ll love you back. Getting down the aisle to happily ever after can take some effort. And you may have to kiss a few frogs in search of the ideal mate.

So what happens when you need to jilt that potential lover – or seller — before your first real encounter? It’s not the love connection you thought it could be and you’ve changed your mind?

Buying a home, Deadline to Accept, Lydia Blair, Option Period, Rescind an Offer, title business, Title Tip

08/20/19 9:30am

Title Tip: Texas Title Insurance Rates Are Dropping

by Joanna England

Lower rates are coming to a title company near you! That’s big news in the real estate title business. Title insurance, like the housing market, doesn’t follow the laws of gravity. What goes up doesn’t always come down.

“This is a historic time for Texas title insurance,” Paul McNutt Vice President and General Counsel of Title Resources told a group of escrow officers last week. “Rates are going down effective for all policies after September 1. Overall, the rates are decreasing 4.9 percent.”

As a state-regulated industry, all title companies in Texas must charge the same for real estate title insurance. Every few years, the Texas Department of Insurance (TDI) reviews statistical data from title insurance agents and underwriters to see if a rate increase or decrease is warranted.

This rate reduction is due to several factors including the rise in real estate values, profits made over the last 5 to 10 years and increased efficiency. “It is in the best interest for every consumer to be charged reasonable rates,” McNutt explained. “This is a regulated environment with periodic review. The profits were good and therefore the rates should be decreased. This is in keeping with the regulatory terms.”

That explanation may help reduce the sting of what amounts to a pay cut to title agents.