Title Questions

How do I read a HUD?

By | 2015-04-15T21:53:24-06:00 April 15th, 2015|Title Questions|

Answer: As of 8/1/2015, the HUD-1 has been replaced with the Closing Disclosure. It is a summary of all the costs involved in the purchase of a property. A HUD-1 is rarely used now, except for some cash sales and reverse mortgages. Click here for an example of a Closing Disclosure form. Click here for a

How do I read a land survey?

By | 2015-04-15T21:43:05-06:00 April 15th, 2015|Title Questions|

Answer: A land survey is a detailed record of the features, orientation, dimensions, boundaries and overall layout of a given piece of property, all drawn on a two dimensional map. It is based on exact measurements taken by a surveyor and creates a legal description of the land. A survey can tell you if the

What is closing?

By | 2015-04-15T21:33:07-06:00 April 15th, 2015|Title Questions|

Answer: Closing day (AKA settlement) is the day on which the property legally changes hands. The certificate, title deed and abstract will be prepared in advance by the title company or attorney handling the closing. At closing, the contract will be signed by both parties, all funds will be distributed, the deed will be signed

What Does Cloud on Title Mean?

By | 2015-04-15T21:22:55-06:00 April 15th, 2015|Title Questions|

Answer: The term "cloud on title" means that there appears to be an outstanding claim or lien which adversely affects the marketability of said title. In other words, a third party has some form of interest in the property which reduces the value and hampers the sale. A cloud on title can be as simple

What is earnest money?

By | 2015-04-15T21:15:13-06:00 April 15th, 2015|Title Questions|

Answer: Earnest money is a good faith deposit on the property that a buyer wants to purchase. Earnest money is typically between 1/2 to 1% of the offer price of the home (usually 1%). It's used to pay closing costs as well as the down payment. Earnest money is held in a non-interest bearing account

What is a Certificate of Title?

By | 2015-04-15T21:05:17-06:00 April 15th, 2015|Title Questions|

Answer: A certificate of title is issued by a title company and states that the seller has a clear, marketable and insurable title on the property. Basically, it's a form of documentation that proves a given seller actually owns the property that they have listed for sale. A certificate of title offers some measure of