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We have compiled a key list of terms that you
should know. As always, we
thank you for your title
business.
Should you have any questions regarding any of
these terms or anything regarding our title
transactions, please do not hesitate to contact
us.
Our goal is your success. |
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Amendments |
A change—either to alter, add to, or
correct—part of an agreement without
changing the principal idea or
essence. |
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Appraisal |
An estimate of value of property
resulting from analysis of facts
about the property; an opinion of
value. |
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Assumption |
Taking over another person’s
financial obligation; taking title
to a parcel of real property with
the Buyer assuming liability for
paying an existing note secured by a
deed of trust against the real
property. |
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Beneficiary |
The recipient of benefits, often
from a deed of trust; usually the
lender. |
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Close of Escrow |
Generally 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. |
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Comparable Sales |
Sales that have similar
characteristics as the subject real
property, used for analysis in the
appraisal. Commonly called “comps.” |
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Deed of Trust |
An instrument used in many states in
place of a mortgage. |
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Deed Restrictions |
Limitations in the deed to a parcel
of real property that dictate
certain uses that may or may not be
made of the real property. |
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Earnest Money Deposit |
Down payment made by a purchaser of
real property as evidence of good
faith; a deposit or partial payment. |
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Easement |
A right, privilege or interest
limited to a specific purpose that
one party has in the land of
another. |
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Hazard Insurance |
Real estate insurance protecting
against fire, some natural causes,
vandalism, etc., depending upon the
policy. Buyer often adds liability
insurance and extended coverage for
personal property. |
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Impounds |
A trust type of account established
by lenders for the accumulation of
borrower’s funds to meet periodic
payments of taxes, mortgage
insurance premiums and/or future
insurance policy premiums, required
to protect their security. |
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Legal Description |
A description of land recognized by
law, based on government surveys,
spelling out the exact boundaries of
the entire parcel of land. It should
so thoroughly identify a parcel of
land that it cannot be confused with
any other. |
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Lien |
A form of encumbrance that usually
makes a specific parcel of real
property the security for the
payment of a debt or discharge of an
obligation. For example, judgments,
taxes, mortgages, deeds of trust. |
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Mortgage |
The instrument by which real
property is pledged as security for
repayment of a loan. |
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PITI |
A payment that combines Principal,
Interest, Taxes, and Insurance. |
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Power of Attorney |
A written instrument whereby a
principal gives authority to an
agent. The agent acting under such a
grant is sometimes called an
“Attorney-in-Fact.” |
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Purchase Agreement |
The purchase contract between the
Buyer and Seller. It is usually
completed by the real estate agent
and signed by the Buyer and Seller. |
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Quitclaim Deed |
A deed operating as a release,
intending to pass any title,
interest, or claim which the grantor
may have in the property, but not
containing any warranty of a valid
interest or title by the grantor. |
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Recording |
Filing documents affecting real
property with the County Recorder as
a matter of public record. |
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Why need home
warranties?
Q. What can you tell me about home warranties?
A. First of all, a home warranty is not the same
thing as homeowners insurance, nor is it a
replacement for homeowners insurance. Homeowners
insurance covers major perils such as fires,
hail, property crimes, water damage, etc. that
could affect the entire structure and/or the
homeowner's personal possessions. A home
warranty does not cover these perils. Rather, it
covers specific components of the home.
A home warranty provides for discounted repair
and replacement service on a home's major
components, such as the furnace, air
conditioning, plumbing and electrical system. It
may also cover major appliances such as washers,
dryers and refrigerators.
Home warranty companies have agreements with
approved local service providers. When something
breaks down, the home warranty company sends one
of its service providers to examine the problem.
If he determines that the needed repair is
covered by the warranty, he completes the work.
The homeowner pays a service fee.
A home warranty costs a few hundred dollars a
year, paid in advance and can vary according to
the type of residence covered, the state you're
in and the level of service desired. Often they
are offered by sellers as a buyer's incentive to
the sale of the home.
In addition to an annual premium, home
warranties charge a service call fee every time
the warranty holder requests that a service
provider come out to the house.
There are many companies that sell home
warranties and the specifics of the policies
they sell can vary greatly, so it pays to shop
around.
There is a lot
to think about and I'd be delighted to help in
any way I can and, of course, answer any other
questions you may have about real estate. Feel
free to call me. |
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Q. What does
the escrow company do with my earnest money
deposit check?
Ạ The check that you hand the broker or
escrow holder is deposited into the escrow
holders's trust account the same day it is
received by the escrow holder.
Q. Why do I have to complete a
Statement of Information form?
A. The information is needed by the title
insurance company to enable them to eliminate
those matters (judgements and liens) which may
appear on the County records against a person
having a similar name.
Q. What do I do about fire insurance?
A. You may obtain fire insurance from the
agent of your choice. Discuss with your agent
the coverage you want and have your agent call
us. Lenders generally require insurance in an
amount equal to the loan you are obtaining.
Q. When will I know how much money is
needed to close escrow? (Downpayment & closing
costs)
A. Escrow holder will not have all the
figures necessary to calculate the amount of
funds due until escrow holder receives the loan
documents from you lender. Approximately one
week prior to the close of escrow an appointment
will be set up at which time you will sign loan
documents and hand escrow holder the balance of
funds necessary to close escrow.
Q. What type of check do I need to
close escrow?
A. Funds delivered to the escrow holder must
be in the form of a cashier's check or savings
and loan check drawn on a bank in the State of
California. If funds are coming from out of
state, please make arrangements to have the
funds wired to the escrow company.
Q. When does escrow holder need my
money?
A. Normally you will bring your funds with
you when you sign your loan documents.
Q. Do I have to come in the day
escrow closes?
A. NO. All necessary documents will have
been signed and funds already deposited into
escrow.
Q. Who do I get the keys from for the
property?
A. Your Real Estate Agent.
Q. When do I get the Grant Deed to my
property?
A. You will receive your Deed in the mail
directly from the County Recorder's office
approximately 4 to 6 weeks after the close of
escrow.
Q. When can I move into the property'?
A. Coordinate moving with your Real Estate
Agent.
ESCROW'S FUNCTION:
Our responsibility is to act as a neutral
third party and carry out the mutual written
instructions of the Buyer and Seller
Escrow is to receive documents, lender's
instructions, title reports and act as a
depository for money.
When all documents required by written
instructions are received by the escrow holder,
all written instructions have been complied
with, and all funds have been deposited into
escrow, we will "close" the escrow and prepare
closing statements showing all disbursements and
charges.
BY KNOWING YOUR ESCROW OFFICER'S NAME AND ESCROW
NUMBER YOU CAN HELP US HANDLE YOUR ESCROW AS
EFFICIENTLY AS POSSIBLE.
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MOVING CHECKLIST
You've found that dream home and ...
FIRST THINGS FIRST-
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Make reservations with a moving company or truck
rental company.
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Hold a garage sale - sort through your
"treasures" hidden in the garage, closets, etc.
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Make any necessary repairs; arrange for any
necessary cleaning services
THE PAPERWORK-
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Get a Change Of Address kit from the Post Office
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Open necessary bank accounts at your new
location and transfer funds
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Make arrangements to transfer your insurance
coverage - Auto, Fire, Health & Life
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Obtain copies of medical records from-your
doctor and dentist; transfer prescriptions.
•
Contact Vital Records and get copies of birth
certificates, marriage certificates, etc.
•
Contact the utility companies (Gas, Electric,
Water, Cable, Trash Disposal) and advise them of
your moving, a date to arrange cancellation of
service.
•
Cancel or transfer your newspaper subscriptions.
THE KIDS-
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Contact your pediatrician for all of your
children's medical records including
immunization records.
•
Obtain copies of your children's school records
and transfer to new school district.
El Let them have some special time with their
friends - this will help them adjust better
THE PETS-
•
Make necessary arrangements for moving your
pets; obtain medical records from your
Veterinarian.
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Find out about licensing requirements for your
new location.
A FEW DAYS BEFORE YOU MOVE-
•
Defrost and empty the freezer and refrigerator.
Store food in cooler or give to family or
neighbors, if necessary.
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Arrange to have cash or traveler's checks until
you can open a bank account at your new
location; store jewelry and other valuables in a
safe place to take with you.
•
Pack an overnight bag with your personal items
and clothing.
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Take care of those last few loads of laundry and
any dry cleaning necessary.
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Pack your "first day" box and include towels,
personal items, dish soap/cleaning supplies,
utility knife, paper products, coffee, and all
those "can't live without" items.
MOVING DAY-
•
Do your final walk through; double check
closets, drawers, and shelves. Inspect the
basement, attic and garage for anything you may
have forgotten to pack.
•
Turn off the water; lock all the doors and
windows.
•
Leave the keys with a neighbor or your Real
Estate agent.
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Superior Real Estate Group
13833 Beach Boulevard
Westminster, CA 92683 |
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