In an effort to keep Hampton Roads Realtors®, agents, brokers and lenders up to date on title and closing issues, Reliant Title publishes a bi-weekly email. Our mission is to provide the very best settlement service, client support and training. Professional knowledge helps us all be more successful.
Name Game — When a new sales contract or refinance order is received, Reliant Title proceeds with the title search/ file processing based on the names provided. For refinances/ sellers, we often see, once we have been to the court house to research the title to the property, that the names on title do not match the names on the order. With the buyers, we do not have any way of determining if the buyer shown on the sales contract is the only one wishing to gain an interest in the property.
Hampton Roads is a rather transient region. Quite often only one spouse will come to the area to buy a home. The other spouse stays behind preparing for the move; while the other submits the contract. As your settlement agent, Reliant Title proceeds per the contract with one name on title, conducting the title search, preparing all documents, and issuing the title insurance binder, solely in that person’s name. Too often, we are surprised when both husband AND wife arrive for closing expecting to sign, and take title in both names. Although Reliant Title would like to be most accommodating, it is not as simple as merely adding the second spouse to the documents right there on the spot. If we merely add the name, we assume liability for any IRS liens against the spouse that may be of record. When a title search is done, the buyer’s name(s) are also checked for IRS and other liens. An IRS lien takes precedence over a purchase money deed of trust. We are required to guarantee to the mortgage company that their loan is in first lien position. To do that, Reliant Title must check all buyers/ title holders for IRS and other liens. Only in Virginia Beach and Norfolk, can we do this in the office on-line. For other Cities we must go to the courthouse to research the land records. We must also notify the lender. To “add” a spouse/ another individual at the last minute has the potential for delaying closing.
Bottom line: If you know that both spouses intend to be on title, be proactive by having both sign all required contractual documents.
Please call us at 493-7600 if you have any questions.
If you no longer wish to receive these emails, please click here: unsubscribe.
-###-
|
