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Closing 101:
Everything you need to know from Contract to Close
T F A R D
Earning Your Trust Since 1907
ABOUT OLD REPUBLIC TITLE Founded in 1907, Old Republic Title has been protecting residential and commercial property owners with title insurance, real estate settlement products and related services for over a century. The Company is one of the largest title insurance companies in the nation, offering title insurance policies in 49 states, plus the District of Columbia. Backed by Old Republic International Corporation, a Fortune 500 corporation, the Company has a reputation for exceptional service, financial strength and stability. Since 1992, no other title insurer has had higher overall financial strength ratings than Old Republic Title.
PRODUCTS & SERVICES Old Republic Title® has the knowledge, experience and depth of resources to handle your title insurance and real estate settlement transaction from start to finish. Whether you are looking for a single product or service, or a bundled offering, you can find it with Old Republic Title. Along with exceptional customer service, we offer the following products and services: }} Title Insurance
}} Automated Valuation Models
}} Real Estate and Mortgage Loan Settlement Services
}} Flood Reports
}} Mortgage Servicer Solutions
}} Home Warranty
}} Default Management Services
}} Notary Services
}} Real Estate Information Services
}} Relocation Services
}} Real Estate Appraisals
}} Section 1031 Exchanges
}} Document Recording
}} Commercial Real Estate Site Management }} Timeshare/Fractional Interest Services }} National Commercial Title Services }} Residential Information Services
OLD REPUBLIC TITLE QUICK FACTS CORPORATE HEADQUARTERS:
Tampa, Florida
NUMBER OF EMPLOYEES
Approximately 4,500
STATES SERVED:
49, plus the District of Columbia
FOUNDED:
1907
NUMBER OF AGENTS:
Approximately 8,000
PARENT CORPORATION:
Old Republic International Corporation, Chicago, Illinois (NYSE: ORI)
Useful Resources for You
FRED™ by ORT HOUSTON FRED™ (For Real Estate Deals) is the official mobile app of Old Republic Title® in Houston. It’s designed to assist real estate professionals in working with residential and commercial customers anytime, anywhere. Search keywords “FRED by ORT – Houston” on the App Store or Google Play to get started.
THE POWER OF PUBLIC RECORDS TOUCHING P OT EN T I AL B UYER S & SELL E RS OR TOUCH FEATURES: }} “Use My Location” a GPS locator feature }} Use camera view }} Search by Address/Owner/APN/ TMS/PIN }} Select neighborhood }} Generate a mailing list }} Walk the FARM and track/manage your neighborhood
}} Instantly pull a property profile }} Quickly compute a mortgage payment including Principal, Interest, Homeowners Insurance, Mortgage Insurance }} Update and Retrieve Contact Information, Login info, Customer Service Help Desk
AVAILABLE FOR: iPhone/iPad & Android
Profiles
FRED by ORT Dallas-Fort Worth
OR Touch
What is Title Insurance and How Does It Work?
To put it simply, title insurance is a way to protect yourself from financial loss and related legal expenses in the event there is a defect in title to your property that is covered by the policy. Title insurance differs from other types of insurance in that it focuses on risk prevention, rather than risk assumption. With title insurance, title examiners review the history of your property and seek to eliminate title issues before the purchase occurs. Title insurance also differs in that it comes with no monthly payment. It’s just a one-time premium paid at closing.
Do I need Title Insurance? Absolutely. Title insurance is a way to protect what is likely your largest investment—your home. An Owner’s Policy provides peace of mind that your title company will stand behind you if a covered title issue or defect arises after you have bought your home.
What Does Title Insurance Cover? Any number of title issues may arise, even after the most meticulous search of public records. These hidden defects are dangerous because you might not learn about them for months, or even years, after purchase. Some common examples of risks covered by your Owner’s Policy include defects in title caused by: }} Improper execution of documents }} Mistakes in recording or indexing legal documents }} Forgeries and fraud }} Undisclosed or missing heirs }} Unpaid taxes and assessments }} Unpaid judgments and liens }} Unreleased mortgages }} Mental incompetence of grantors on the deed }} Impersonation of the true owners of the land by fraudulent persons }} Refusal of a potential purchaser to accept title based on the condition of the title
How Much Does Title Insurance Cost? The one-time premium that you’ll pay for a title insurance policy varies by state, but generally is related to the value of your property. You can use our Rate Calculator to estimate how much your title insurance policy may cost.
What’s Owner’s Title Insurance? An Owner’s Policy is designed to protect you from covered title defects that existed prior to the issue date of your policy. If a valid claim is filed, your Owner’s Policy, subject to its terms and conditions, will cover financial loss up to the face amount of your policy.
What’s Lender’s Title Insurance? A Lender’s Policy provides no coverage to the homeowner. A Lender’s Policy insures that your lender has a valid, enforceable lien on your property. Most lenders require borrowers to purchase this type of insurance policy to protect their investment.
The Importance of an Owner’s Title Insurance Policy
Do I need an Owner's Title Insurance Policy? Most definitely! Title Insurance is a means of protecting yourself from financial loss in the event that problems develop regarding the rights to ownership of your property. There may be hidden title defects that even the most careful title search will not reveal. In addition to protection from financial loss, Title Insurance pays the cost of defending against any covered claim. }} Improper execution of documents
}} Unreleased mortgages
}} Mistakes in recording or indexing of legal documents
}} Mental incompetence of grantors on the deed
}} Forgeries and fraud
}} Impersonation of the true owners of the land by fraudulent persons
}} Undisclosed or missing heirs }} Unpaid taxes and assessments }} Unpaid judgments and liens
}} Refusal of potential purchaser to accept title based upon condition of title
How will Owner’s Title Insurance protect me? Some common examples of problems covered by an Owner’s Title Insurance Policy include:
What can make the Title to my home defective? When you purchase your home, you take “title” to your property. Any number of problems that remain undisclosed after even the most meticulous search of public records can make a title defective. These hidden "defects" are dangerous indeed because you may not learn of them for many months or years. Yet they could force you to spend substantial sums on a legal defense and still result in the loss of your property.
Won’t the Lender’s Title Insurance Policy protect me? No, there are two types of Title Insurance. Your lender likely will require that you purchase a Lender's Title Insurance Policy. This policy only insures that the lender has a valid, enforceable lien on the property. Most lenders require this type of insurance, and typically require the borrower to pay for it. An Owner’s Title Insurance Policy, on the other hand, is designed to protect you from title defects that existed prior to the issue date of your policy. Title troubles, such as improper estate proceedings or pending legal action, could put your equity at serious risk. If a valid claim is filed, in addition to financial loss up to the face amount of the policy, your Owner's Title Insurance Policy covers the full cost of any legal defense of your title.
How much does Title Insurance cost? The one-time premium is directly related to the value of your home. Typically, it is less expensive than your annual auto insurance. It is a one-time only expense, paid when you purchase your home. Yet it continues to provide complete coverage for as long as you or your heirs own the property.
Texas Enhanced Owner’s Coverage (Residential)
For most people, your home is the single largest financial investment you will ever make. Obtaining a Residential Owner’s Policy of Title Insurance (Residential Owner’s Policy) protects that investment. At Old Republic National Title Insurance Company, we strive to provide our customers with the information necessary to make informed decisions about their Residential Owner’s Policy. When you received your Commitment for Title Insurance, you also received a form asking if you would like to purchase additional coverages that enhance the standard coverage of your Residential Owner’s Policy. The enhanced coverages for Texas are explained in more detail below.
AMENDMENT OF EXCEPTION TO AREA & BOUNDARIES* Your standard Residential Owner’s Policy will contain the following exception to coverage: “Any discrepancies, conflicts, or shortages in area or boundary lines, or any encroachments or protrusions, or any overlapping of improvements.” If you purchase this enhanced coverage, that means the paragraph above will be amended to read: “Shortages in area.” You will be insured for loss, costs, and attorney’s fees and expenses resulting from discrepancies, conflicts in boundary lines, encroachment, protrusions, or overlapping of improvements not shown on your survey and not known at the time of closing.
RESTRICTIONS, ENCROACHMENTS, MINERALS ENDORSEMENT (T-19.1)* If you purchase this enhanced coverage, the T-19.1 endorsement will be attached to, and become part of, your Residential Owner’s Policy. Amongst other covered matters, and unless otherwise deleted, the T-19.1 endorsement provides additional coverage for the following: Restrictions: Unknown violations of enforceable restrictive covenants existing as of the date of your Residential Owner’s Policy.
Texas Enhanced Owner’s Coverage (Residential)
Encroachments: Encroachments of your improvements onto neighboring land or your neighbor’s improvements encroaching onto your land which are not shown on your survey. Minerals: Certain damages to the surface of your land resulting from the extraction or development of minerals.
HOW MUCH DOES IT COST? The Amendment of Exception to Area & Boundaries is 5% of your basic title insurance premium, but not less than $50. The Restrictions, Encroachments and Minerals Endorsement (T-19.1) is 10% of your basic title insurance premium if purchased alone, but not less than $50. If BOTH coverages are purchased, then the cost of the Restrictions, Encroachments and Minerals Endorsement is reduced to only 5% of your basic title insurance premium. That means you receive both coverages for the price of one. Remember, the charges for enhanced coverages are one-timeonly fees collected at closing. If purchased, the enhanced coverages last for as long as you or your heirs own your home – whether that is five years or 105 years! Whether you are buying your first home or your fifth, we understand the closing process can be stressful. If there is anything we can do to make the process easier, please do not hesitate to contact your escrow officer.
*Don’t Forget: A satisfactory survey of the property is necessary to obtain the enhanced coverages discussed above. After receipt of the survey, Old Republic Title may make specific exceptions in your Residential Owner’s Policy to matters shown on the survey or delete certain provisions of the T-19.1 endorsement. Consequently, it is important to understand that you will not have coverages for matters reflected on your current survey or matters known at the time of closing.
Top 10 Reminders for Title Insurance in Texas
IN TEXAS, TITLE INSURANCE IS REGULATED BY THE TEXAS DEPARTMENT OF INSURANCE (TDI). Below are key facts regarding title insurance.
1
All rates and forms are promulgated by the TDI. Consequently, title companies compete on service, quality and financial strength – not on price.
2
A title policy is Old Republic Title’s insuring product; it is not a guarantee or representation as to the status of title.
3
A title policy is simply a contract of indemnity. Indemnity means reimbursement for actual loss or damage.
4
The escrow officer is a neutral third party in the transaction.
5
Under current case law, the escrow officer owes a fiduciary duty to the buyer, seller and lender in the transaction. One party cannot be favored over another.
6
The Commitment is prepared for the benefit of the underwriter, not the parties to the transaction. However, the Commitment should always be circulated to all parties (including after any revisions).
7
Removing an exception from the Commitment or policy does not make the matter go away. It simply provides coverage under the terms of the policy for any alleged loss related to that matter.
8
When a seller warrants title to the property, he or she retains certain obligations after closing.
9
The owner’s policy insures good and indefeasible title to the land described in Schedule A, which interest is equally subject to the Exceptions, Exclusions and Conditions.
10 BONUS:
The loan policy insures the validity, enforceability and priority of the subject deed of trust, which is subject to the Exceptions, Exclusions and Conditions.
Under a title policy, the insurer (Old Republic Title) owes both a duty to indemnify the insured and a duty to defend the insured, but only in those cases within the policy’s coverage.
Steps of the Closing Process From Contract to Keys
CONTRACT
A loan application includes: verification of the buyer’s income stability, credit, debts and confirmation of the property’s value.
MORTGAGE COMPANY
OLD REPUBLIC TITLE
The loan application process begins.
Old Republic Title receives a contract.
The property’s appraisal value and the buyer’s credit history, employment status and sufficient funds to close are verified.
Title work begins. Tax information is ordered and the transaction team begins a file. An examiner reviews title work.
Information is gathered and packaged for underwriting.
A commitment to issue title insurance is forwarded to all parties.
The buyer is submitted for loan approval.
The escrow officer and assistant work on pre-closing issues.
The mortgage company sends closing instructions and final loan closing costs to Old Republic Title.
Legal and final documents are received, and all parties are advised of a closing time at Old Republic Title. Closing and funding occur. Legal documents are recorded, and title insurance policies are issued.
GET THE KEYS. WELCOME HOME!
An abstractor begins a title search. A title search includes: history of property, owners of record and liens of record on title.
Earnest Money Delivery Deadline-TX
As of May 15, 2018, the One to Four Family Residential Contract (Resale) requires the earnest money to be delivered within 3 DAYS of the Effective Date. If the 3rd day falls on a Saturday, Sunday or legal holiday, the earnest money is due on the next day that is not a Saturday, Sunday or legal holiday. This amendment allows the seller to terminate the contract if the buyer fails to timely deliver the Earnest Money, making time of the essence to deliver the earnest money before the deadline. Sunday EXAMPLE 1:
No Weekends or Holidays Fall on Third Day
Monday Contract Effective Date
Tuesday
Deadline Extended to Next Business Day.
Legal Holiday Deadline Extended to Next Business Day.
Deadline Extended to Next Business Day.
Day 3
Earnest Money Due
Friday
Saturday
Day 2
Day 3
EXAMPLE 2:
Contract Effective Date
Day 1
Day 2
Weekend
EXAMPLE 3:
Contract Effective Date
Day 1: Legal Holiday
Day 2: Weekend
Earnest Money Due
Deadline Extended to Next Business Day.
Day 3
Earnest Money Due
Legal Holiday and Weekends on Day 1 and 2 do not Extend the Deadline
Weekend
Thursday
Day 1
Weekend and Legal Holiday Fall on Third Day
Weekend
Wednesday
Legal Holiday Counts as Day 1, since not on Day 3
Weekend Counts as Day 2, since not on Day 3
Key Closing Information: Texas
Conducting your home closing with the utmost care and attention to detail is a responsibility that Old Republic Title® takes very seriously. To facilitate a smooth closing, here is some key information that you should generally expect to provide to your escrow officer.
SELLERS }} Your marital and homestead status. This information is necessary to comply with homestead and community property laws. }} Are you a widow or widower? Did you own your home as joint tenants with right of survivorship or as tenants in common? If you owned your home as tenants in common, is there a will? If yes, has the will been probated? If there is not a will, are there any heirs? If so, are they minors? }} Has a divorce occurred? If yes, is it pending or final? }} Do you have a loan on your home? If yes, provide a recent mortgage statement of account that shows your loan number, the contact information for your mortgage company and the date of your last mortgage payment to facilitate a payoff of your loan. Let your escrow officer know if you intend to make any additional payments prior to the day of closing. }} Your social security number or other taxpayer identification number. This information is required for tax reporting and may be necessary to obtain a loan payoff. In addition, oftentimes liens, judgments or lawsuits are filed against someone with the same or similar name as the seller’s name. This information may assist us in determining whether a lien, judgment or lawsuit affects the seller’s interest in the property.
}} Is there a homeowners association? If so, provide the management company’s name and contact information as soon as possible. Homeowners associations can be slow in their response time, and this information is necessary to obtain a resale certificate. }} How would you like to receive your proceeds? If you prefer wire transfer, you must provide the bank’s name, ABA number, name on the account and account number. If you owe money at closing, any amount over $1,499.99 must be paid in the form of a certified or cashier’s check. }} Will you attend the closing? Special preparations must be made in advance if you cannot attend. Call your escrow officer as soon as possible to avoid a delay in your closing.
BUYERS }} Your lender’s name and contact information. }} Your homeowner’s insurance company and contact information, once chosen. }} Your home warranty company and contact information, once chosen.
The ABC’s of Title Commitment Texas
The Commitment for Title Insurance (“Commitment”) is an important part of the home selling process. The Texas Real Estate Commission’s One-to-Four Family Residential Contract (“Contract”) requires the seller to furnish a Commitment to the buyer within 20 days of the title company receiving an executed Contract. The Commitment is the title company’s promise to issue a title insurance policy to the buyer or lender once the requirements listed in the Commitment are satisfied, and closing and funding have occured. It shows what the title company found of record after searching the chain of title on the subject property. There are four schedules to a Commitment – A, B, C and D.
A
SCHEDULE A includes: the effective date of the Commitment, proposed amount of insurance, type of policy(ies) to be issued, the name of the proposed insured(s), the estate or interest in land to be covered, the party with whom title is currently vested, and the legal description of the property to be insured.
B
SCHEDULE B of the Commitment sets out the proposed exceptions from coverage. There are two types of exceptions – standard exceptions and special exceptions. Standard exceptions appear in every Commitment, because they are part of the form promulgated by the Texas Department of Insurance. Special exceptions appear in Commitments on an individual basis, indicating specific matters that affect the particular property. Standard exceptions, shown below, include: B-1: Restrictive Covenants B-2: Area and Boundaries B-3: Community Property B-4: Water Rights B-5: Ad Valorem Taxes B-6: Terms and conditions of the documents creating the insured’s interest in the land B-7: Homestead Construction B-8: Subordinate Liens & Leases B-9: Exceptions applicable to Short Form Mortgagee policy
Schedule B, Item 10, sets out the exceptions from coverage that are specific to the proposed transaction. Some of these items may be fixable (e.g., certain easements, encroachments) and with proper documentation, removed from the Commitment, and ultimately, the policy.
C
SCHEDULE C outlines requirements that must be cleared, prior to closing, in order for the title agent to issue the title policy(ies). There are two types of requirements – standard requirements that are a part of the policy promulgated by the Texas Department of Insurance, and any additional requirements specifically added by the title company in order to insure the transaction.
D
SCHEDULE D is for disclosure purposes. It lists title company officers, and shows the estimated title premium as of the date of the Commitment:
}} Disclosure of ownership and officers of the underwriter and agent }} Disclosure of the estimated premium charges }} Disclosure of any party receiving a portion of the premium for furnishing title evidence, examination and/or closing the transaction
Commitment for Title Insurance
COMMITMENT FOR TITLE INSURANCE T-7 Issued by OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY
THE FOLLOWING COMMITMENT FOR TITLE INSURANCE IS NOT VALID UNLESS YOUR NAME AND THE POLICY AMOUNT ARE SHOWN IN SCHEDULE A, AND OUR AUTHORIZED REPRESENTATIVE HAS COUNTERSIGNED BELOW.
We (Old Republic National Title Insurance Company) will issue our title insurance policy or policies (the Policy) to You (the proposed insured) upon payment of the premium and other charges due, and compliance with the requirements in Schedule C. Our Policy will be in the form approved by the Texas Department of Insurance at the date of issuance, and will insure your interest in the land described in Schedule A. The estimated premium for our Policy and applicable endorsements is shown on Schedule D. There may be additional charges such as recording fees, and expedited delivery expenses. This Commitment ends ninety (90) days from the effective date, unless the Policy is issued sooner, or failure to issue the Policy is our fault. Our liability and obligations to you are under the express terms of this Commitment and end when this Commitment expires. Issued through the Office of: Old Republic National Title Insurance Company 12505 Memorial Drive, Suite 200 Houston, TX 77024 Phone: 713-465-1137
Commitment for Title Insurance TEXAS TITLE INSURANCE INFORMATION Title insurance insures you against loss resulting from certain risks to your title. The Commitment for Title Insurance is the title insurance company's promise to issue the title insurance policy. The commitment is a legal document. You should review it carefully to completely understand it before your closing date.
El seguro de titulo le asegura en relacion a perdidas resultantes de ciertos riesgos que pueden afectar el titulo de su propiedad. El Compromiso para Seguro de Titulo es la promesa de la compania aseguradora de titulos de emitir la poliza de seguro de titulo. El Compromiso es un documento legal. Usted debe leerlo cuidadosamente y entenderlo completamente antes de la fecha para finalizar su transaccion.
Your Commitment for Title Insurance is a legal contract between you and us. The Commitment is not an opinion or report of your title. It is a contract to issue you a policy subject to the Commitment's terms and requirements. Before issuing a Commitment for Title Insurance (the Commitment) or a Title Insurance Policy (the Policy), the Title Insurance Company (the Company) determines whether the title is insurable. This determination has already been made. Part of that determination involves the Company's decision to insure the title except for certain risks that will not be covered by the Policy. Some of these risks are listed in Schedule B of the attached Commitment as Exceptions. Other risks are stated in the Policy as Exclusions. These risks will not be covered by the Policy. The Policy is not an abstract of title nor does a Company have an obligation to determine the ownership of any mineral interest. -MINERALS AND MINERAL RIGHTS may not be covered by the Policy. The Company may be unwilling to insure title unless there is an exclusion or an exception as to Minerals and Mineral Rights in the Policy. Optional endorsements insuring certain risks involving minerals, and the use of improvements (excluding lawns, shrubbery and trees) and permanent buildings may be available for purchase. If the title insurer issues the title policy with an exclusion or exception to the minerals and mineral rights, neither this Policy, nor the optional endorsements, ensure that the purchaser has title to the mineral rights related to the surface estate. Another part of the determination involves whether the promise to insure is conditioned upon certain requirements being met. Schedule C of the Commitment lists these requirements that must be satisfied or the Company will refuse to cover them. You may want to discuss any matters shown in Schedules B and C of the Commitment with an attorney. These matters will affect your title and your use of the land. When your Policy is issued, the coverage will be limited by the Policy's Exceptions, Exclusions and Conditions, defined below. - EXCEPTIONS are title risks that a Policy generally covers but does not cover in a particular instance. Exceptions are shown on Schedule B or discussed in Schedule C of the Commitment. They can also be added if you do not comply with the Conditions section of the Commitment. When the Policy is issued, all Exceptions will be on Schedule B of the Policy. - EXCLUSIONS are title risks that a Policy generally does not cover. Exclusions are contained in the Policy but not shown or discussed in the Commitment. - CONDITIONS are additional provisions that quality or limit your coverage. Conditions include your responsibilities and those of the Company. They are contained in the Policy but not shown or discussed in the Commitment. The Policy Conditions are not the same as the Commitment Conditions. You can get a copy of the policy form approved by the Texas Department of Insurance by calling the Title Insurance Company at 1-888-678-1170 or by calling the title insurance agent that issued the Commitment. The Texas Department of Insurance may revise the policy form from time to time. You can also get a brochure that explains the policy from the Texas Department of Insurance by calling 1-800-252-3439. Before the Policy is issued, you may request changes in the policy. Some of the changes to consider are: - Request amendment of the "area and boundary" exception (Schedule B, paragraph 2). To get this amendment, you must furnish a survey and comply with other requirements of the Company. On the Owner’s Policy, you must pay an additional Old Republic National Title Insurance Company
Commitment for Title Insurance G.F. No.: 99009999 premium for the amendment. If the survey is acceptable to the Company and if the Company’s other requirements are met, your Policy will insure you against loss because of discrepancies or conflicts in boundary lines, encroachments or protrusions, or overlapping of improvements. The Company may then decide not to insure against specific boundary or survey problems by making special exceptions in the Policy. Whether or not you request amendment of the “area and boundary” exception, you should determine whether you want to purchase and review a survey if a survey is not being provided to you. - Allow the Company to add an exception to "rights of parties in possession." If you refuse this exception, the Company or the title insurance agent may inspect the property. The Company may except to and not insure you against the rights of specific persons, such as renters, adverse owners or easement holders who occupy the land. The Company may charge you for the inspection. If you want to make your own inspection, you must sign a Waiver of Inspection form and allow the Company to add this exception to your Policy. The entire premium for a Policy must be paid when the Policy is issued. You will not owe any additional premiums unless you want to increase your coverage at a later date and the Company agrees to add an Increased Value Endorsement. CONDITIONS AND STIPULATIONS 1.
If you have actual knowledge of any matter which may affect the title or mortgage covered by this Commitment, that is not shown in Schedule B, you must notify us in writing. If you do not notify us in writing, our liability to you is ended or reduced to the extent that your failure to notify us affects our liability. If you do notify us, or we learn of such matter, we may amend Schedule B, but we will not be relieved of liability already incurred.
2.
Our liability is only to you, and others who are included in the definition of Insured in the Policy to be issued. Our liability is only for actual loss incurred in your reliance on this Commitment to comply with its requirements or to acquire the interest in the land. Our liability is limited to the amount shown in Schedule A of this Commitment and will be subject to the following terms of the Policy: Insuring Provisions, Conditions and Stipulations and Exclusions.
Old Republic National Title Insurance Company
Commitment for Title Insurance COMMITMENT FOR TITLE INSURANCE
G.F. No.: 99009999
SCHEDULE A Effective Date: April 2, 2018,
G.F. No. or File No. 99009999
Commitment No. _______________________ issued: March 27, 2018, (if applicable) 1.
The policy or policies to be issued are: (a)
(b)
(c)
OWNER'S POLICY OF TITLE INSURANCE (Form T-1) (Not applicable for improved one-to-four family residential real estate) Policy Amount: PROPOSED INSURED: TEXAS RESIDENTIAL OWNER'S POLICY OF TITLE INSURANCE ONE-TO-FOUR FAMILY RESIDENCES (Form T-1R) Policy Amount: $293,000.00 PROPOSED INSURED: John L Homebuyer and Jane F Homebuyer LOAN POLICY OF TITLE INSURANCE (Form T-2) Policy Amount: $278,350.00 PROPOSED INSURED: Home Lender Inc. and/or Mortgage Electronic Registration Systems, Inc., soley as nominee for Lender, as their interest may appear and each successor in ownership of the indebtedness secured by the insured mortgage, except a successor who is an obligor under the provisions of Section 12(c) of the conditions.
Proposed Borrower: John L Homebuyer and Jane F Homebuyer TEXAS SHORT FORM RESIDENTIAL LOAN POLICY OF TITLE INSURANCE (Form T-2R) Policy Amount: PROPOSED INSURED: Proposed Borrower: (e) LOAN TITLE POLICY BINDER ON INTERIM CONSTRUCTION LOAN (Form T-13) Binder Amount: PROPOSED INSURED: Proposed Borrower: (f) OTHER Policy Amount: PROPOSED INSURED: The interest in the land covered by this Commitment is: Fee Simple (d)
2. 3.
Record title to the land on the Effective Date appears to be vested in: JAMES HOMESELLER and wife, JULIE HOMESELLER
4.
Legal description of the land: Lot 99, in Block 9, of SUBDIVISION, SEC. 9, a subdivision in Harris County, Texas, according to the map or plat thereof recorded under Film Code No. 544146 of the Map Records of Harris County, Texas.
Old Republic National Title Insurance Company
Commitment for Title Insurance COMMITMENT FOR TITLE INSURANCE
G.F. No.: 99009999
SCHEDULE B EXCEPTIONS FROM COVERAGE In addition to the Exclusions and Conditions and Stipulations, your Policy will not cover loss, costs, attorneys' fees, and expenses resulting from: 1.
The following restrictive covenants of record itemized below (We must either insert specific recording data or delete this exception): As set forth on the map or plat recorded under Film Code No. 544146 of the Map Records of Harris County, Texas, and by instrument(s) filed for record under Harris County Clerk's File No(s). X256921, Y581323, Y954444, 20070319498, 20080101281, 20110429087, 20110467523, 20110548281, 20140217432, 20160006276, RP-2016-219578, RP-2016-497195, RP-2017-278136, RP-2017-400404, RP-2017-494860, and RP-2018-118614. BUT OMITTING ANY COVENANT OR RESTRICTION BASED ON RACE, COLOR, RELIGION, SEX, HANDICAP, FAMILIAL STATUS, OR NATIONAL ORIGIN.
2.
Any discrepancies, conflicts, or shortages in area or boundary lines, or any encroachments or protrusions, or any overlapping of improvements.
3.
Homestead or community property or survivorship rights, if any, of any spouse of any insured. (Applies to the Owner’s Policy only).
4.
Any titles or rights asserted by anyone, including, but not limited to, persons, the public, corporations, governments or other entities, a.
to tidelands, or lands comprising the shores or beds of navigable or perennial rivers and streams, lakes, bays, gulfs or oceans, or
b.
to lands beyond the line of harbor or bulkhead lines as established or changed by any government, or
c.
to filled-in lands, or artificial islands, or
d.
to statutory water rights, including riparian rights, or
e.
to the area extending from the line of mean low tide to the line of vegetation, or the rights of access to that area or easement along and across that area.
(Applies to the Owner’s Policy only.) 5.
Standby fees, taxes and assessments by any taxing authority for the year 2018, and subsequent years; and subsequent taxes and assessments by any taxing authority for prior years due to change in land usage or ownership, but not those taxes or assessments for prior years because of an exemption granted to a previous owner of the property under Section 11.13, Texas Tax Code, or because of improvements not assessed for a previous tax year. (If Texas Short Form Residential Loan Policy of Title Insurance (T-2R) is issued, that policy will substitute "which become due and payable subsequent to Date of Policy" in lieu of "for the year 2018 and subsequent years.")
6.
The terms and conditions of the documents creating your interest in the land.
7.
Materials furnished or labor performed in connection with planned construction before signing and delivering the lien document described in Schedule A, if the land is part of the homestead of the owner. (Applies to the Loan Title Policy Binder on Interim Construction Loan only, and may be deleted if satisfactory evidence is furnished to us before a binder is issued.)
8.
Liens and leases that affect the title to the land, but that are subordinate to the lien of the insured mortgage. (Applies to Loan Policy (T-2) only.) Old Republic National Title Insurance Company
Commitment for Title Insurance G.F. No.: 99009999
9.
The Exceptions from Coverage and Express Insurance in Schedule B of the Texas Short Form Residential Loan Policy of Title Insurance (T-2R). (Applies to Texas Short Form Residential Loan Policy of Title Insurance (T-2R) only.) Separate exceptions 1 through 8 of this Schedule B do not apply to the Texas Short Form Residential Loan Policy of Title Insurance (T-2R).
10.
The following matters and all terms of the documents creating or offering evidence of the matters (We must insert matters or delete this exception.):
a. Rights of parties in possession. (This exception may be modified or deleted upon physical inspection of the property by a member of the title company.) (Owner's Policy Only) b.
Terms and provisions of any and all leases, together with rights of Lessees thereunder.
c. Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land. The term “encroachment” includes encroachments of existing improvements located on the Land onto adjoining land, and encroachments onto the Land of existing improvements located on adjoining land. (This exception will be deleted upon receipt and review of a satisfactory qualifying survey. The Company expressly reserves the right to take specific exception to any adverse matters reflected thereon.) d. The following matters reflected on the map or plat recorded under Film Code No. 544146 of the Map Records of Harris County, Texas: Easement for drainage purposes extending 15 feet on each side of the centerline of all natural drainage courses. Utility easement 10 feet in width along the front property line. Building set back line 20 feet in width along the front property line. e. No building, structure, or other improvement shall be located on any Lot nearer than 10 feet to any side street line. No building shall be located nearer than 5 feet to any interior Lot line with the exception of detached garages that, where allowed, may have a 3 foot side-yard building line. No Lake, Reserve or Golf Course Lot shall have any improvements within 20 feet of the Lot line adjacent to the Lake, Golf Course or Reserve, as set forth in instrument filed for record under Harris County Clerk's File No. X256921 f. Terms and provisions of that certain Agreement for Underground Electric Service with CenterPoint Energy Houston Electric, LLC, filed for record under Harris County Clerk’s File No. X345724. g. 1/16th royalty interest in all of the oil, gas and other minerals in and under the herein described property, as reserved in instrument filed for record under Harris County Clerk's File No(s). C324122, C324123 and C324124. (Said interest not investigated subsequent to date of reservation or conveyance.) h. All leases, grants, exceptions or reservations of coal, lignite, oil, gas and other minerals, together with all rights, privileges, and immunities relating thereto, appearing in the Public Records whether listed in Schedule B or not. There may be leases, grants, exceptions or reservations of mineral interest that are not listed. (Pursuant to Procedural Rule P-50.1 the above exception must appear on any corresponding policy issued if a T-19.2 or T-19.3 endorsement that meets underwriting standards is requested by the proposed insured.) i. Maintenance charge including special assessments for capital improvements, secured by a vendor's lien as set forth in instrument filed for record under Harris County Clerk's File No. X256921, payable to S-G Owners Association, Inc. Said lien being subordinated to purchase money and/or improvement liens therein. j. Restrictions on subject property require that a Covenant Compliance Inspection be obtained at time of transfer of ownership on houses within the Association, set forth in instrument(s) filed for record under Harris County Clerk's File No(s). 20140217432.
Old Republic National Title Insurance Company
Commitment for Title Insurance G.F. No.: 99009999 k. We have been furnished with a plat of survey made by MATTHEW J. PROBSTFELD, Professional Land Surveyor No. 4985, dated July 14, 2004. Said survey reflects the following matters: Concrete encroaches over 10 foot Utility Easement along the front property line. Upon request and payment of applicable premium, T19 coverage is available as to this matter without deletion or exception to this matter on any Loan Policy issued. T-19.1 coverage is not available as to this exception only. Paragraph No(s) 4.c is/are hereby deleted from any T19.1 Endorsement, as to this exception only.
Old Republic National Title Insurance Company
Commitment for Title Insurance COMMITMENT FOR TITLE INSURANCE
G.F. No.: 99009999
SCHEDULE C Your Policy will not cover loss, costs, attorneys' fees, and expenses resulting from the following requirements that will appear as Exceptions in Schedule B of the Policy, unless you dispose of these matters to our satisfaction, before the date the Policy is issued: 1.
Documents creating your title or interest must be approved by us and must be signed, notarized and filed for record.
2.
Satisfactory evidence must be provided that: a.
no person occupying the land claims any interest in that land against the persons named in paragraph 3 of Schedule A,
b.
all standby fees, taxes, assessments and charges against the property have been paid,
c.
all improvements or repairs to the property are completed and accepted by the owner, and that all contractors, subcontractors, laborers and suppliers have been fully paid, and that no mechanic's, laborer's or materialmen's liens have attached to the property,
d.
there is legal right of access to and from the land,
e.
(on a Loan Policy only) restrictions have not been and will not be violated that affect the validity and priority of the insured mortgage.
3.
You must pay the seller or borrower the agreed amount for your property or interest.
4.
Any defect, lien or other matter that may affect title to the land or interest insured, that arises or is filed after the effective date of this Commitment.
5. Deed of Trust dated March 4, 2015, filed for record on March 10, 2015, under Harris County Clerk's File No. 201500999999, executed by JAMES HOMESELLER and JULIE HOMESELLER, to THOMAS E. BLACK, JR., Trustee(s), to secure the payment of one note in the principal sum of $270,319.00, payable to the order of ANOTHER MORTGAGE, INC. (MERS), and subject to all of the terms, conditions and stipulations contained therein, including but not limited to any other and future indebtedness also secured by this lien. 6. The record reveals the following Abstract(s) of Judgment and/or Tax lien(s) and/or Bankruptcy Proceeding(s) against names similar to that of JAMES HOMESELLER. Secure and record release(s) and/or satisfactory disposition of the same; unless it is shown that they are not one and the same person. Harris County Clerk's File No(s). 2010009999, 201009999, 201409999999 7. NOTE: This Commitment for Title Insurance (Form T-7) was prepared on the basis of an ordinary sales transaction. Should the transaction change, in any manner, including but not limited to a construction loan or a pass through transaction, the Company's examination personnel must be notified and the commitment amended accordingly. 8. The purchaser(s) in this transaction, JOHN L. HOMEBUYER and JANE HOMEBUYER, has/have ONLY been checked for the existence of a TEXAS WORKFORCE COMMISSION LIEN and FEDERAL JUDGMENT LIENS IN FAVOR OF THE UNITED STATES OR AN AGENT THEREOF and U.S. BANKRUPTCY PROCEEDINGS, they have not been checked for other Abstracts of Judgment, Federal Tax Liens or any other adverse matter. Said purchaser(s) may be checked for other Abstracts of Judgment, Federal Tax Liens or any other adverse matter if requested. In the event said purchasers should undertake to convey, mortgage, or otherwise hypothecate said interest being acquired by them, this file is to be returned to the examination staff for possible additional requirements. 9. The Restrictions on subject property require that a Covenant Compliance Inspection be obtained at time of transfer of ownership on houses within the Association. Failure to obtain such Covenant Compliance Inspection might subject Buyer and/or Seller to remedy such violation or the cost thereof. If such Covenant Compliance Inspection has not been obtained, the Buyer and Seller must acknowledge such fact and accept any responsibility for such and agree to hold Old Republic National Old Republic National Title Insurance Company
Commitment for Title Insurance G.F. No.: 99009999 Title Insurance Company from any liability as a result therefrom, as set forth in instrument(s) filed for record under Harris County Clerk's File No(s). 20140217432. 10. The subject property is in the Remington Municipal Utility District No. 1. Obtain at closing and file for record the prescribed notice under V.T.C.A. Water Code, Section 49.452, signed by all parties to the contract, disclosing to the Purchaser the existence of the Remington Municipal Utility District No. 1, its indebtedness, taxes and fees. 11. Ordinance No. 89-1312 by the City of Houston, a certified copy of which is recorded under Harris County Clerk's File No. M337573, relating to the giving of a notice regarding Deed Restrictions to buyers of restricted property. 12. Ordinance No. 1999-262 by the City of Houston relating to rules, regulations, procedures and design standards for development and platting and providing for the establishing of building setback lines. (FOR INFORMATION PURPOSES ONLY) 13. Ordinance No. 91-1701 by the City of Houston, regarding the planting, preservation and maintenance of trees and decorative landscaping, a certified copy of which is filed under Harris County Clerk's File No. N556388. (FOR INFORMATION PURPOSES ONLY) 14.
FOR INFORMATIONAL PURPOSES ONLY: The following recorded conveyances affect the subject property and have been recorded in the Real Property Records of Harris County within the past 24 months: none. NOTE: We find title vested in record owner(s) by virtue of Deed filed under Harris County Clerk's File No. 20140999999.
Company has approved the current land title survey and upon request, and payment of any promulgated premium, Schedule B Item 2 will be amended in the policy(ies) to be issued to read: 'shortages in area'.
NOTE TO ALL BUYERS, SELLERS BORROWERS, LENDERS AND ALL PARTIES INTERESTED IN THE TRANSACTION COVERED BY THE COMMITMENT. THE FOLLOWING CONSTITUES A MAJOR CHANGE IN THE PROCEDURES AND REQUIREMENTS FOR DISBURSEMENT OF FUNDS BY THE TITLE AGENT. THE STATE BOARD OF INSURANCE HAS ADOPTED PROCEDURAL RULE P-27 WHICH WILL REQUIRE THAT "GOOD FUNDS" BE RECEIVED AND DEPOSTED BEFORE A TITLE AGENT MAY DISBURSE FROM ITS TRUST FUNDS ACCOUNT. "GOOD FUNDS" IS DEFINED AS: a. Cash or wire transfers; b. Cashier’s check. For purposes of this Rule, a cashier’s check is defined to mean a check that is (1) drawn on a financial institution; (2) signed by an officer or employee of the financial institution on behalf of the financial institution as drawer; (3) a direct obligation of the financial institution; and (4) provided to a customer of the financial institution or acquired from the financial institution for remittance purposes. c. Certified check. For purposes of this Rule, a certified check is defined to mean a check with respect to which the drawee financial institution certifies by signature on the check of an officer or other authorized employee of the financial institution that: (1) the signature of the drawer on the check is genuine; (2) the financial institution has set aside funds that are equal to the amount of the check and will be used to pay the check; or (3) the financial institution will pay the check upon presentment. d. Teller’s check. For purposes of this Rule, a teller’s check is defined to mean a check (1) provided to a customer of a financial institution or acquired from a financial institution for remittance purposes, (2) that is drawn by the financial institution, and (3) is drawn on another financial institution or payable through or at a financial institution. e. Any other instrument that has been determined by the Board of Governors of the Federal Reserve System to be the functional equivalent of a cashier’s, certified or teller’s check. f Uncertified funds in amounts less than $1,500, including checks, traveler's checks, money orders, and negotiable orders of withdrawal; provided multiple items shall not be used to avoid the $1,500 limitation; g. Uncertified funds in amounts of $1,500 or more, drafts, and any other items when collected by the financial institution; Old Republic National Title Insurance Company
Commitment for Title Insurance h. i. j.
k.
G.F. No.: 99009999 State of Texas Warrants; United States Treasury Checks; Checks drawn on an insured financial institution and for which a transaction code has been issued pursuant to, and in compliance with, a fully executed Immediately Available Funds Procedure Agreement or a fully executed Immediately Available Funds Procedure Agreement (Agent Designation for Federally-insured Lender) with such financial institution; Checks by city and county governments located in the State of Texas.
Countersigned:
Old Republic National Title Insurance Company
Commitment for Title Insurance G.F. No.: 99009999
COMMITMENT FOR TITLE INSURANCE
SCHEDULE D
G.F. No. or File No. 99009999 Effective Date: April 2, 2018, Pursuant to the requirements of Rule P-21, Basic Manual of Rules, Rates and Forms for the writing of Title Insurance in the State of Texas, the following disclosures are made: 1.
The following individuals are directors and/or officers, as indicated, of the Title Insurance Company issuing this Commitment DIRECTORS OF OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY
HARRINGTON BISCHOF JAMES HELLAUER DENNIS P. VAN MIEGHEM RANDE K. YEAGER STEVEN J. BATEMAN
JOHN M. DIXON ARNOLD L. STEINER JIMMY A. DEW CHARLES F. TITTERTON GLENN W. REED
STEVE R. WALKER A. C. ZUCARO FREDERICKA TAUBITZ SPENCER LEROY, III
OFFICERS OF OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY MARK A. BILBREY, President CURTIS J. HOFFMAN, Executive Vice President DANA C. SOLMS, Executive Vice President DANIEL M. WOLD, Executive Vice President, Secretary, General Counsel GARY J. HORN, Executive Vice President CAROLYN J. MONROE, Executive Vice President CHERYL JONES, Executive Vice President CHRIS G. LIESER, Executive Vice President
RANDE K. YEAGER, Chairman and CEO JEFFERY J. BLUHM, Executive Vice President MARK M. BUDZINSKI, Executive Vice President PATRICK A. CONNOR, Executive Vice President MIKE TARPEY, Vice President, Treasurer ROGER A. GAIO, Executive Vice President ROBERT E. ZELLAR, Executive Vice President MICHAEL B. SKALKA, Executive Vice President
Shareholders owning, controlling or holding, either personally or beneficially, 10% or more of the shares of Old Republic National Title Insurance Company as of the last day of the year preceding the date herein above set forth are as follows: Old Republic Title Insurance Companies, Inc.-100%, a wholly owned subsidiary of Old Republic National Title Holding Company, a wholly owned subsidiary of Old Republic Title Insurance Group, Inc., a wholly owned subsidiary of Old Republic International Corporation. 2.
The following disclosures are made by the Title Insurance Agent issuing this commitment: OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY (a) A listing of each shareholder, owner, partner or other person having, owning or controlling one (1%) or more of the Title Insurance Agent that will receive a portion of the premium as follows: Old Republic Title Insurance Companies, Inc.—100% (b) A listing of each shareholder, owner, partner, or other person having, owning, or controlling ten percent (10%) or more of an entity that has, owns, or controls one percent (1%) or more of the Title Insurance Agent that will receive a portion of the premium are as follows. Same as Section 1. (c) If the Agent is a corporation: (i) the name of each director of the Title Insurance Agent, and (ii) the names of the President, the Executive or Senior Vice-President, the Secretary and the Treasurer of the Title Insurance Agent. Directors: Same as Section 1
MARK A. BILBREY, President JEFFERSON C. WEBB, Vice President, Houston Div. Manage CURTIS HOFFMAN, Executive Vice President, SW Regional Mg AMY RODRIGUEZ, Vice President, DFW Manager
Old Republic National Title Insurance Company
Commitment for Title Insurance G.F. No.: 99009999 3. You are entitled to receive advance disclosure of settlement charges in connection with the proposed transaction to which this commitment relates. Upon your request, such disclosure will be made to you. Additionally, the name of any person, firm or corporation receiving a portion of the premium from the settlement of this transaction will be disclosed on the closing or settlement statement. You are further advised that the estimated title premium* is: Owners Policy Loan Policy Total
$2,235.60 $268.15 $2,503.75
Of this total amount: 15% will be paid to the policy issuing Title Insurance Company: 85% will be retained by the issuing Title Insurance Agent; and the remainder of the estimated premium will be paid to other parties as follows: Amount
To Whom
For Services
* The estimated premium is based upon information furnished to us as of the date of this Commitment for Title Insurance. Final determination of the amount of the premium will be made at closing in accordance with the Rules and Regulations adopted by the Commissioner of Insurance.
This commitment is invalid unless the insuring provisions and Schedules A, B, and C are attached.
Old Republic National Title Insurance Company
Commitment for Title Insurance G.F. No.: 99009999 IMPORTANT NOTICE
AVISO IMPORTANTE
To obtain information or make a complaint:
Para obtener informacion o para someter una queja:
You may contact (Old Republic National Title Insurance Company 713-682-4144).
Puede cominicarse con su (Old Republic National Title Insurance Company 713-6824144).
You may call Old Republic National Title Insurance Company’s toll-free telephone number for information or to make a complaint at:
Usted puede llamar al numero de telefono gratis de Old Republic National Title Insurance Company’s para informacion o para someter una queja al:
1-888-678-1700 You may also write to Old Republic National Title Insurance Company at:
1-888-678-1700 Usted tambien puede escribir a Old Republic National Title Insurance Company:
400 Second Avenue South Minneapolis, Minnesota 55401 Attn: Claims Department You may contact the Texas Department of Insurance to obtain information on companies, coverages, rights or complaints at:
400 Second Avenue South Minneapolis, Minnesota 55401 Attn: Claims Department Puede comunicarse con el Departamento de Seguros de Texas para obtener informacion acerca de companies, coberturas, derechos o quejas al:
1-800-252-3439
1-800-252-3439
You may write the Texas Department of Insurance:
Puede escribir al Departament de Seguros de Texas:
P. O. Box 149104 Austin, TX 78714-9104 Fax: (512) 475-1771 Web: http://www.tdi.state.tx.us E-mail: [email protected]
P. O. Box 149104 Austin, TX 78714-9104 Fax: (512) 475-1771 Web: http://www.tdi.state.tx.us E-mail: [email protected]
PREMIUM OR CLAIM DISPUTES: Should you have a dispute concerning your premium or about a claim you should contact the Old Republic National Title Insurance Company first. If the dispute is not resolved, you may contact the Texas Department of Insurance.
DISPUTAS SOBRE PRIMAS O RECLAMOS: Si tiene una disputa concerniente a su prima o a un reclamo, debe comunicarse con Old Republic National Title Insurance Company primero. Si no se resuelve la disputa, puede entonces comunicarse con el departmento (TDI).
ATTACH THIS NOTICE TO YOUR POLICY This notice is for information only and does not become a part or condition of the attached document.
UNA ESTE AVISO A SU POLIZA: Este aviso es solo para proposito de information y no se convierte en parte o condicion del documento adjunto.
(i)
Old Republic National Title Insurance Company
Tax Certificate
Tax Certificate
Sample Survey
Checklist for Lot and Block Residential Surveys
1.
Check for “North Arrow”.
2.
Check property description - address, lot, block, addition, city, county.
3.
Make sure corners are identified.
4.
Check for building set-back lines - front, back, sides.
5.
Check for access to public streets - driveways, alleys.
6.
Check for easements. a. Per play? b. Per recorded instrument? c. Access, ingress/egress? d. Utility? e. Alley? f. Blanket - do they affect the property? g. Other?
7.
Check for encroachments or protrusions over property lines, building lines, into easements. a. House? b. Storage or other buildings? c. Fences? d. Pool/Spa? e. Concrete driveways/walkways/planters? h. Other?
8.
Check for flood plain certificate, if applicable.
9.
Check for special “notes”.
10. Check for any unrecognizable symbols for other unclear information.
T-47 Residential Real Property Affidavit T-47 RESIDENTIAL REAL PROPERTY AFFIDAVIT (MAY BE MODIFIED AS APPROPRIATE FOR COMMERCIAL TRANSACTIONS) Date:___________________________________ GF No.___________________________________ Name of Affiant(s):__________________________________________________________________ Address of Affiant:___________________________________________________________________ Description of Property:_______________________________________________________________ County__________________________________ , Texas "Title Company" as used herein is the Title Insurance Company whose policy of title insurance is issued in reliance upon the statements contained herein. Before me, the undersigned notary for the State of ________________, personally appeared Affiant(s) who after by me being sworn, stated: 1.
We are the owners of the Property. (Or state other basis for knowledge by Affiant(s) of the Property, such as lease, management, neighbor, etc. For example, “Affiant is the manager of the Property for the record title owners.”)
2.
We are familiar with the property and the improvements located on the Property.
3.
We are closing a transaction requiring title insurance and the proposed insured owner or lender has requested area and boundary coverage in the title insurance policy(ies) to be issued in this transaction. We understand that the Title Company may make exceptions to the coverage of the title insurance as Title Company may deem appropriate. We understand that the owner of the property, if the current transaction is a sale, may request a similar amendment to the area and boundary coverage in the Owner’s Policy of Title Insurance upon payment of the promulgated premium.
4.
To the best of our actual knowledge and belief, since _______________________________ there have been no: a.
construction projects such as new structures, additional buildings, rooms, garages, swimming pools or other permanent improvements or fixtures;
b.
changes in the location of boundary fences or boundary walls;
c.
construction projects on immediately adjoining property(ies) which encroach on the Property;
d.
conveyances, replattings, easement grants and/or easement dedications (such as a utility line) by any party affecting the Property.
EXCEPT for the following (If None, Insert “None” Below:) 5.
We understand that Title Company is relying on the truthfulness of the statements made in this affidavit to provide the area and boundary coverage and upon the evidence of the existing real property survey of the Property. This Affidavit is not made for the benefit of any other parties and this Affidavit does not constitute a warranty or guarantee of the location of improvements.
6.
We understand that we have no liability to Title Company that will issue the policy(ies) should the information in this Affidavit be incorrect other than information that we personally know to be incorrect and which we do not disclose to the Title Company. _________________________________________ _________________________________________ SWORN AND SUBSCRIBED this ______ day of __________________, 20_______. _______________________________________ Notary Public
Closing Process Checklist - Texas
This checklist summarizes important information about the closing process, including what occurs during each stage and actions that will help facilitate a smooth transaction. KEY INFORMATION Property Address: Client Name(s): Email:
Phone:
Escrow Officer’s Name: Email:
PRIOR TO CLOSING FF Open title request as soon as possible to avoid potential delays. FF Schedule a closing appointment as soon as possible, especially for a closing to occur at the end of the month. Date of Closing: Time of Closing: Closing Location: FF Notify clients that a copy of the Closing Disclosure (CD) will be provided by the lender, at least three business days before closing of the loan. FF Inform buyer(s) that they must bring certified funds or a cashier’s check to the closing, or arrange to wire funds to Old Republic Title®. FF Make married buyer(s) and/or seller(s) aware that spouses must attend the closing if the property is their primary residence. Special arrangements must be made in advance if spouses cannot attend. FF Inform buyer(s) that keys will not be provided until the lender grants funding approval. FF Inform seller(s) that funds will not be provided until the lender grants funding approval.
Phone:
ITEMS TO BRING TO CLOSING Sellers FF Valid, government-issued photo identification (both spouses). FF All keys and garage door openers to the property. FF All repair receipts, if applicable. FF Lease-back check payable to buyer(s), if applicable. FF Wiring instructions, if applicable, including bank name, ABA number, name on the account and account number. FF Other: Real Estate Agent FF Wiring instructions, if applicable, including bank name, ABA number, name on the account and account number. FF Other:
AT CLOSING FF The final versions of the CD and all final documentation are executed by buyer(s) and seller(s). FF A certified check, cashier’s check or wired funds are provided to the escrow officer.
ITEMS TO BRING TO CLOSING Buyers FF Valid, government-issued photo identification (both spouses). FF Good funds in the form of a certified check, cashier’s check or arrange to wire funds to Old Republic Title. FF Other:
FF Copies of all executed documents are provided to buyer(s) and seller(s).
AFTER CLOSING FF Funding conditions are faxed to the lender. FF Funding approval is provided by the lender. FF Agent(s), buyer(s) and seller(s) are contacted to collect keys, garage door openers and funds from Old Republic Title. FF Funds are distributed in accordance with the CD.
Who Pays For What
Below you will find the customary distribution of expenses for the purchase of real estate in Texas. Keep in mind that many of these items can be negotiated by either party at the time of the offer, excluding some expenses the lender requires the seller to pay.
Buyer Typically Pays For: }} Escrow fees }} Document preparation (if applicable) }} Recording charges for all documents related to the transfer of title to the buyer }} Prorated share of taxes (from the date of acquisition) }} All new loan charges and fees (except those the lender requires the seller to pay), including: –– Appraisal –– Credit report –– Tax service fee –– Loan origination/discount fee –– Reserves for taxes and insurance –– Flood certification –– Mortgage insurance premium }} Title insurance premium: Lender’s Policy }} Interest on the new loan from the date of funding to 30 days prior to the first payment date }} Inspection fees }} Homeowner’s transfer fee (if applicable) }} Fire insurance premium for the first year
Seller Typically Pays For: }} Real estate agent’s commission(s) }} Escrow fees }} Payoff of all loans in the seller’s name (unless the existing loan balance is being assumed by the buyer), including: –– Interest accrued to the lender that is being paid off –– Statement fees, release fees and any prepayment penalties }} Home warranty (according to contract terms) }} Any judgments, tax liens, etc. against the seller }} Prorated share of taxes (for any taxes unpaid at the time of transfer of title) }} Any unpaid homeowners association dues }} Recording charges to clear all documents of record against the seller }} Any outstanding assessments }} Any and all delinquent taxes }} Title insurance premium: Owner’s Policy }} Seller credit for closing costs (according to contract terms)
Understanding Prorations
WHAT IS A PRORATIONS? Proration is defined as the act of dividing property taxes, interest, insurance premiums, rental income, etc., between buyer and seller proportionately to time of use or the date of closing. In a typical sale/ purchase closing, the item most routinely prorated is the ad valorem taxes for that year. Since ad valorem taxes are paid at the end of the year in which they are due (they can be paid as early as October 1st or as late as January 31st of the next calendar year without penalty in most Texas counties), any closing taking place before October 1st will generally show a charge to the seller from January 1st to the closing date and a credit to the buyer for the same period. Unless negotiated otherwise, this allows the seller to pay taxes for the time that he or she actually had ownership, use and enjoyment of the property. Around October 1st, tax notices will be sent to the new owners for the year. They will be expected to pay taxes (usually through their mortgage company escrow account) for the full year. Taking into account the credit that they received at closing, the new owners actually pay taxes only for the time during which they had ownership, use and enjoyment of the property. Title companies use the best information available when prorating taxes prior to October 1st (when official figures are released by tax authorities). This best-available information is usually the tax amount paid for the prior year. In closings that occur after official tax figures are released (generally October 1st), title companies will normally charge each party their pro rata tax amount and pay the taxing authorities directly. This allows title companies to insure that taxes have been paid when issuing their mortgage title policies. Loan assumptions usually involve several prorations, such as taxes, interest and escrow accounts. Most hazard insurance companies do not allow existing policies to be assumed. Consequently, the buyers must provide and pay for a new policy at the closing. The seller can cancel his or her policy after the closing and receive a refund of the unearned premium directly from their local insurance agent. A loan assumption closing involving prorations is usually handled in the following manner. The escrow account is purchased by the buyer and credited to the seller. The account must be “sufficient” at the time of transfer (any shortages must be collected from the seller and added to the existing balance). Unless negotiated otherwise, the tax proration is handled in the same way. Interest on the mortgage must also be prorated at the time of closing. Since interest is paid in arrears (a May payment covers April interest), the buyer is usually credited with the interest from the first of the month in which the closing occurs to the closing date;the seller is charged with this same amount. For example, if a closing occurs May 21st, the buyer’s first payment will be due June 1st. The June payment covers interest for the month of May, so the buyer is reimbursed for the time the seller still had ownership and use of the property (from May 1st to May 21st). This discussion assumes that the buyer will take possession of the property at closing. Obviously, if a buyer is allowed to take possession of the property prior to the actual closing, the contract should reflect this fact and stipulate whether or not the proration date is changed accordingly. The title company will always follow any specific requirements and instructions the contract contains regarding prorations.
The Closing Disclosure Closing Disclosure
This form is a statement of final loan terms and closing costs. Compare this document with your Loan Estimate.
Closing Information Date Issued Closing Date Disbursement Date Settlement Agent File # Property Sale Price
4/9/2018 4/13/2018 4/13/2018 Old Republic Title Company of Houston 99009999 123 Main Street Houston, TX 770 $293,000.00
Transaction Information
Loan Information
Borrower
Loan Term Purpose Product
Seller
Lender
John L Homebuyer and Jane F Homebuyer 123 MLK Ave Houston, TX 77000 James Homeseller and Julie Homeseller 123 Main Street Houston, TX 77000 Home Lender Inc.
Loan Type
Purchase Fixed Rate ☒Conventional ☐FHA ☐VA ☐__________ 12345798
Loan ID # MIC #
Can this amount increase after closing? Loan Amount
$278,350
NO
Interest Rate
0%
NO
Monthly Principal & Interest
NO
See Projected payments below for your Estimated Total Monthly Payment Does the loan have these features? Prepayment Penalty
NO
Balloon Payment
NO
Payment Calculation
Years
-
Years
-
Principal & Interest Mortgage Insurance Estimated Escrow
Amount can increase over time
____ + +
$713.97
Estimated Total Monthly Payment
+
____
+
____
$713.97 This estimate includes
Estimated Taxes, Insurance & Assessments Amount can increase over time See page 4 for details
☐ Property Taxes
monthly
☐ Homeowner's Insurance ☐ Other:
In escrow? YES YES NO
See Escrow Account on page 4 for details. You must pay for other property costs separately.
Closing Costs
$13,192.12
Includes $7,188.85 in Loan Costs + $6,003.27 in Other Costs - $0.00 in Lender Credits. See page 2 for details.
Cash to Close
$21,180.27
Includes Closing Costs. See Calculating Cash to Close on page 3 for details.
CLOSING DISCLOSURE File No. 99009999
PAGE 1 OF 7 • LOANID # 132465789 Date/Time: 05/08/18 1:54 PM
The Closing Disclosure Closing Cost Details Borrower-Paid At Closing A. Origination Charges 01 1% of Loan Amount (Points) 02 Origination Fee 03 Processing Fee 04 Underwriting Fee B. Services Borrower Did Not Shop For 01 Appraisal Fee 02 Credit Monitoring Service 03 Credit Report 04 Flood Determination Fee 05 Flood Life of Loan Coverage 06 Life of Loan Tax Service C. Services Borrower Did Shop For 01 Guaranty Assessment 02 Title - E-Recording Fee
Before Closing
to Texas Title Insurance to Old Republic National Title Insurance
$850.00 $300.00 $788.70 $570.00 $6.50 $142.70 $10.50 $5.00 $54.00 $2,466.65 $4.50 $6.00
03 Title - Escrow Fee
to Old Republic National Title Insurance
$425.00
04 Title - Lender's Title Insurance
to
05 Title - Messenger Fee
to
06 Title - Not yet due/payable (MTP &
to
BIN 07 Title - T17 PUD Endorsement
Equifax Information Services, LLC Credstar Flood Services Flood Services Tax Services LLC
Company
to
08 Title - T19 Res. Endorsement
to
09 Title - T30 Tax deletion MTP/ BNDR
to
10 Title - T36 Environmental Prot Lien
to
ON
Appraiser Inc.
11 Title - Tax Certificate to D. TOTAL LOAN COSTS (Borrower-Paid) Loan Costs Subtotals (A + B + C)
Company Old Republic Company Old Republic Company Old Republic Company Old Republic Company Old Republic Company Old Republic Company Old Republic Company MISI, Inc.
National Title Insurance
$5.00
National Title Insurance
$25.00
National Title Insurance
$93.15
National Title Insurance
$20.00
National Title Insurance
$25.00
$136.00 $136.00
$20.00
$3,306.98 $2,612.54 $694.44
to 3
mo.
per month for
mo.
per month for
mo.
04 City Property Taxes
per month for $152.20 per month for
$2,385.29 $653.13
mo. 7
per month for
mo.
$1,065.40
mo.
07 School Property Taxes
$234.04 per month for
7
mo.
$1,638.28
08 MUD Taxes
$110.02 per month for
7
mo.
$770.14
09 Other Taxes
per month for
10 Aggregate Adjustment
CLOSING DISCLOSURE File No. 99009999
$425.00
$75.78
03 Property Taxes
H. Other 01 Association Fees 02 HOA Transfer Fee 03 Home Warranty
$4.50 $3.00
$7,188.85 $7,188.85
02 Mortgage Insurance
06 Assessment Taxes
Others
$1,863.00
National Title Insurance
G. Initial Escrow Payment at Closing to Home Lender Inc. 01 Homeowner's Insurance $217.71 per month for
05 County Property Taxes
Paid by
National Title Insurance
E. Taxes and Other Government Fees 01 Recording Fees Deed: $24.00 Mortgage: $112.00 to Old Republic National Title Insurance Company 02 Transfer Tax to F. Prepaids 01 Homeowner's Insurance Premium (12 mo.) to ACME Casualty Company mo.) 02 Mortgage Insurance Premium ( to 03 Prepaid Interest ($38.58 per day from to Home Lender Inc. 04/13/2018 to 05/01/2018) mo.) 04 Property Taxes (
Before Closing
$3,933.50 $2,783.50
to Home Lender Inc. to to Home Lender Inc. to Home Lender Inc. to to to to to to
Seller-Paid At Closing
mo. -$1,741.66
to SUBDIVISION OWNERS ASSOC to PRINCIPAL MANAGEMENT GROUP to Old Republic Home Warranty
$175.00 $150.00 $25.00
$191.50 $550.00 PAGE 2 OF 7 • LOANID # 132456798 Date/Time: 05/08/18 1:54 PM
The Closing Disclosure 04 Real Estate Commission Buyer's Realtor 05 Real Estate Commission Seller's Realtor 07 Survey
to Buyers Broker
$8,790.00
to Sellers Broker
$8,790.00
to 08 Title - Owner's Title Insurance to Old Republic National Title Insurance Company 09 Title - T1 Survey Amendment to Old Republic National Title Insurance Company 10 Warranty Deed to Attorney I. TOTAL OTHER COSTS (Borrower-Paid) Other Costs Subtotals (E + F + G + H) J. TOTAL CLOSING COSTS (Borrower-Paid) Closing Costs Subtotals (D + I)
$6,003.27
$181.00 $291.60 $95.00
$6,003.27 $13,192.12 $13,192.12
$19,417.38
Lender Credits
CLOSING DISCLOSURE File No. 99009999
PAGE 2 OF 7 • LOANID # 123465798 Date/Time: 05/08/18 1:54 PM
The Closing Disclosure Use this table to see what has changed from your Loan Estimate. Total Closing Costs (J) Closing Costs Paid Before Closing Closing Costs Financed (Paid from your Loan Amount) Down Payment/Funds from Borrower Deposit Funds for Borrower Seller Credits Adjustments and Other Credits Cash to Close
Loan Estimate $0.00
Final $13,192.12
Did this change? YES • See Total Loan Costs (D) and Total Other Costs (I)
$0.00
$0.00
NO
$0.00
$0.00
NO
$0.00
$14,650.00
YES
$0.00
-$2,930.00
YES
$0.00
$0.00
NO
$0.00
$0.00
NO
$0.00
-$1,968.85
YES
$0.00
$22,943.27
• See details
in Sections K and L
Use this table to see a summary of your transaction. BORROWER’S TRANSACTION K. Due from Borrower at Closing 01 Sale Price of Property 02 Sale Price of Any Personal Property Included in Sale 03 Closing Costs Paid at Closing (J) 04 Adjustments 05 06 07 Adjustments for Items Paid by Seller in Advance 08 City Property Taxes 09 HOA Dues 4/14/2018 thru 12/31/2018 10 Flood Insurance 11 County Property Taxes 12 School Property Taxes 13 MUD Taxes 14 15 L. Paid Already by or on Behalf of Borrower at Closing 01 Deposit 02 Loan Amount 03 Existing Loan(s) Assumed or Taken Subject to 04 05 Other Credits 06 Refund from Buyers Broker 07 Adjustments 08 Adjustment for Owner's Policy Paid by Seller 09 10 Seller Pd Closing Costs 11 Option Fee Adjustments for Items Unpaid by Seller 12 City Property Taxes 13 HOA Dues 14 Flood Insurance thru 4/13/2018 15 County Property Taxes 1/1/2018 thru 4/13/2018 16 School Property Taxes 1/1/2018 1/1/2018 thru 4/13/2018 17 MUD Taxes CALCULATION Total Due from Borrower at Closing (K) Total Paid Already by or on Behalf of Borrower at Closing (L)
Cash to Close
☒ From ☐To Borrower
CLOSING DISCLOSURE File No. 99009999
SELLER’S TRANSACTION $306,848.91 $293,000.00 $13,192.12
$656.79
$285,668.64 $2,930.00 $278,350
$795.15
$1,763.00
$150.00
$515.41 $792.53 $372.55 $306,848.91 -$285,668.64
$21,180.27
M. Due to Seller at Closing 01 Sale Price of Property 02 Sale Price of Any Personal Property Included in Sale 03 04 05 06 07 08 Adjustments for Items Paid by Seller in Advance 09 City Property Taxes 10 HOA Dues 4/14/2018 thru 12/31/2018 11 Flood Insurance 12 County Property Taxes 13 School Property Taxes 14 MUD Taxes 15 16 N. Due from Seller at Closing 01 Excess Deposit 02 Closing Costs Paid at Closing (J) 03 Existing Loan(s) Assumed or Taken Subject to 04 Payoff of First Mortgage Loan 05 06 07 Seller Pd Closing Costs 08 Option Fee 09 10 Adjustment for Owner's Policy Paid by Seller 11 12 13 Adjustments for Items Unpaid by Seller City Property Taxes 14 HOA Dues 15 Flood Insurance 16 County Property Taxes 1/1/2018 thru 4/13/2018 17 School Property Taxes 1/1/2018 thru 4/13/2018 18 MUD Taxes 1/1/2018 thru 4/13/2018 19 CALCULATION Total Due to Seller at Closing (M) Total Due from Seller at Closing (N)
Cash
☐ From ☒To Seller
$293,656.79 $293,000.00
$656.79
$281,369.27 $19,417.38 $258,358.40
$150.00 $1,763.00
$515.41 $792.53 $372.55 $293,656.79 -$281,369.27
$12,287.52
PAGE 3 OF 7 • LOANID # 123456789 Date/Time: 05/08/18 1:54 PM
The Closing Disclosure Additional Information About This Loan
Assumption If you sell or transfer this property to another person, your lender ☐ will allow, under certain conditions, this person to assume this loan on the original terms. ☒ will not allow assumption of this loan on the original terms. Demand Feature Your loan ☐ has a demand feature, which permits your lender to require early repayment of the loan. You should review your note for details. ☒ does not have a demand feature. Late Payment If your payment is more than late fee of .
days late, your lender will charge a
Negative Amortization (Increase in Loan Amount) Under your loan terms, you ☐ are scheduled to make monthly payments that do not pay all of the interest due that month. As a result, your loan amount will increase (negatively amortize), and your loan amount will likely become larger than your original loan amount. Increases in your loan amount lower the equity you have in this property. ☐ may have monthly payments that do not pay all of the interest due that month. If you do, your loan amount will increase (negatively amortize), and, as a result, your loan amount may become larger than your original loan amount. Increases in your loan amount lower the equity you have in this property. ☒ do not have a negative amortization feature. Partial Payments Your lender ☐ may accept payments that are less than the full amount due (partial payments) and apply them to your loan. ☐ may hold them in a separate account until you pay the rest of the payment, and then apply the full payment to your loan. ☒ does not accept any partial payments. If this loan is sold, your new lender may have a different policy. Security Interest You are granting a security interest in 123 Main Street Houston, TX 77000
Escrow Account For now, your loan ☒ will have an escrow account (also called an “impound” or “trust” account) to pay the property costs listed below. Without an escrow account, you would pay them directly, possibly in one or two large payments a year. Your lender may be liable for penalties and interest for failing to make a payment. Escrow Escrowed Property Costs over Year 1
$8,567.64
Non-Escrowed Property Costs over Year 1
Estimated total amount over year 1 for your escrowed property costs: Estimated total amount over year 1 for your non-escrowed property costs:
You may have other property costs. Initial Escrow Payment Monthly Escrow Payment
$2,385.29 $713.97
☐ will not have an escrow account because ☐ you declined it ☐ your lender does not offer one. You must directly pay your property costs, such as taxes and homeowner’s insurance. Contact your lender to ask if your loan can have an escrow account. No Escrow Estimated Property Costs over Year 1 Escrow Waiver Fee
In the future, Your property costs may change and, as a result, your escrow payment may change. You may be able to cancel your escrow account, but if you do, you must pay your property costs directly. If you fail to pay your property taxes, your state or local government may (1) impose fines and penalties or (2) place a tax lien on this property. If you fail to pay any of your property costs, your lender may (1) add the amounts to your loan balance, (2) add an escrow account to your loan, or (3) require you to pay for property insurance that the lender buys on your behalf, which likely would cost more and provide fewer benefits than what you could buy on your own.
You may lose this property if you do not make your payments or satisfy other obligations for this loan.
CLOSING DISCLOSURE File No. 99009999
PAGE 4 OF 7 • LOANID # 123456789 Date/Time: 05/08/18 1:54 PM
The Closing Disclosure Appraisal If the property was appraised for your loan, your lender is required to give you a copy at no additional cost at least 3 days before closing. If you have not yet received it, please contact you lender at the information listed below.
Total of Payments. Total you will have paid after you make all payments of principal, interest, mortgage insurance, and loan costs, as scheduled Finance Charge. The dollar amount the loan will cost you. Amount Financed. The loan amount available after paying your upfront finance charge.
$278,350
Annual Percentage Rate (APR). Your costs over the loan term expressed as a rate. This is not your interest rate.
0%
Total Interest Percentage (TIP). The total amount of interest that you will pay over the loan term as a percentage of your loan amount.
0%
?
Questions? If you have questions about the loan terms or costs on this form, use the contact information below. To get more information or make a complaint, contact the Consumer Financial Protection Bureau at www.consumerfinance.gov/mortgage-closing
Name
Contract Details See your note and security instrument for information about • what happens if you fail to make your payments, • what is a default on the loan, • situations in which your lender can require early repayment of the loan, and • the rules for making payments before they are due Liability after Foreclosure If you lender forecloses on this property and the foreclosure does not cover the amount of unpaid balance on this loan, ☒ state law may protect you from liability for the unpaid balance. If you refinance or take on any additional debt on this property, you may lose this protection and have to pay any debt remaining even after foreclosure. You may want to consult a lawyer for more information. ☐ state law does not protect you from liability for the unpaid balance. Refinance Refinancing this loan will depend on your future financial situation, the property value, and market conditions. You may not be able to refinance this loan. Tax Deductions If you borrow more than this property is worth, the interest on the loan amount above this property’s fair market value is not deductible from your federal income taxes. You should consult a tax advisor for more information.
Lender
Real Estate Broker(B)
Real Estate Broker(S)
Settlement Agent
Home Lender Inc.
Local Realty Company
Sellers Broker
Old Republic Title Company of Houston 12505 Memorial Drive, Suite 200. Houston, TX 77024
Address NMLSID TX License ID Contact
Mortgage Broker
Buyers Agent
Listing Agent
Contact NMLS ID Contact TX License ID Email Phone
By signing, you are only confirming that you have received this form. You do not have to accept this loan because you have signed or received this form.
John L Homebuyer
CLOSING DISCLOSURE File No. 99009999
Date
Jane F Homebuyer
Date
PAGE 5 OF 7 • LOANID # 123456789 Date/Time: 05/08/18 1:54 PM
ALTA Settlement Statement
ALTA Settlement Statement
ALTA Settlement Statement
ALTA Settlement Statement
Showstoppers
In our business, the show is the closing, and we want to help your customers have the smoothest closing possible. While not every problem can be anticipated, there are “Red Flags” you should watch for in your transactions. Being proactive to these potential showstoppers will help ensure a successful closing and bring you referrals. If you determine that your buyer or seller is affected by any of the following, call Old Republic Title© immediately. TRUSTS BANKRUPTCY FORECLOSURE DIVORCE OR SEPARATION RECENT MARRIAGE OF SELLER/BUYER DEATH OF PROPERTY OWNERS KNOWN ENCROACHMENTS POWER OF ATTORNEY SHARED DRIVEWAYS FOREIGN SELLERS LIENS/JUDGMENTS AGAINST PROPERTY OWNERS GUARDIANSHIP/INCOMPETENCE OF SELLER SELLERS/BUYERS THAT WILL NOT BE PRESENT AT CLOSING EASEMENTS OBTAINED/GIVEN SINCE PURCHASE OF PROPERTY
Beware of Wire Fraud
Since 2013, there have been 22,000 reported cases of wire fraud involving losses of
$3.1 BILLION. - FinCEN
It is estimated there are
4,000 HACK ATTEMPTS per day nationwide. - FBI
FRAUDULENT WIRING instructions are being sent to real estate agents, title companies and customers
HOW TO PROTECT YOURSELF
BE WARY of free, web-based email accounts; they are easily hacked. ALWAYS VERIFY changes in payment instructions and confirm requests for transfer of funds.
IF YOU THINK YOU MIGHT BE A VICTIM: Using a previously known phone number, call the supposed sender of the email to authenticate the change request - don’t call the number on the email.
If you suspect fraud, immediately notify the financial institutions and escrow agent involved in the transaction.
BE SUSPICIOUS of requests for secrecy or pressure to take action quickly. Contact your local law enforcement authorities, and file a complaint with the FBI’s Internet Crime Complaint Center.
02/2018 | © Old Republic Title | This material is for educational purposes only and does not constitute legal advice. We assume no liability for errors or omissions. Old Republic Title’s underwriters are Old Republic National Title Insurance Company and American Guaranty Title Insurance Company.
Texas Foreign Seller Information Sheet
The Foreign Investment in Real Property Tax Act of 1980 (26 USC § 1445 et seq.), better known as FIRPTA, outlines Internal Revenue Service (“IRS”) tax withholding and reporting obligations on the “transferee” (the “buyer”) of a “U.S. real property interest” when the “transferor” (the “seller”) is a “foreign person.” Under FIRPTA, foreign sellers are taxed similarly to U.S. real estate owners when selling their properties by placing the tax-remittance burden on the buyer.
FOREIGN PERSON UNDER FIRPTA A “foreign person” under FIRPTA is defined as (1) an individual that is not a U.S. citizen or a resident alien, (2) a foreign corporation that has not elected to be treated as a domestic corporation, or (3) a foreign partnership, trust or estate.
BUYER’S OBLIGATIONS UNDER FIRPTA In transactions with foreign persons, the buyer must withhold a certain percent of the “amount realized” from the “transfer” (the “sale”) of the property. The buyer must report and pay over to the IRS any tax withheld within 20 days of closing. Generally speaking, the amount realized is the sales or purchase price of the real property. Property
Amount Realized
Withholding Rate
Not acquired to be buyer’s residence
Any Amount
Fifteen Percent (15%)
Up to $300,000
None (0%)
Over $300,000 and up to $1,000,000
Ten Percent (10%)
Over $1,000,000
Fifteen Percent (15%)
Acquired to be buyer’s residence
SELLER EXEMPTIONS UNDER FIRPTA If a foreign person is selling a U.S. real property interest, the appropriate tax must be withheld, unless there is an exception from withholding. The most common exceptions are:
}} Sales price is $300,000 or less, and the buyer acquires the property for use as his or her “residence.” }} The seller provides an Affidavit of Non-Foreign Status. }} The seller provides a FIRPTA Withholding Certificate from the IRS. }} The seller is participating in a simultaneous 1031 exchange and the seller gives the buyer written notice that no recognition of any gain or loss on the sale is required.
SELLER’S AFFIDAVIT OF NON-FOREIGN STATUS The Seller’s Affidavit of Non-Foreign Status (“Seller’s Affidavit”) is a sworn statement completed and signed by the seller. It includes the seller’s tax identification number (most often a social security number), and a statement by the seller, under penalty of perjury, that he or she is not a foreign person as defined under FIRPTA, and thus, is not subject to tax withholding under FIRPTA. The seller must provide a completed and signed Seller’s Affidavit directly to the buyer.
BUYER’S LIABILITY UPON FAILURE TO WITHHOLD TAX A person that is required to deduct and withhold tax but fails to do so may be held liable for the payment of the tax and any applicable penalties and interest.
FEDERAL TAX REQUIREMENTS UNDER THE TEXAS REAL ESTATE COMMISSION’S (“TREC”) CONTRACT According to paragraph 20 of the standard TREC contract, if a seller is a foreign person, or if seller fails to deliver the Seller’s Affidavit, then the buyer must withhold from the sales proceeds an amount sufficient to comply with applicable tax law and deliver the same amount to the IRS with the appropriate tax forms.
Owners Title Policy
12505 Memorial Drive, Suite 200 Houston, TX 77024 Phone: 713-465-1137 Fax:
April 17, 2018 John L Homebuyer and Jane F Homebuyer 123 Main Street. Houston, TX 77000 GF. Number: 99009999 Dear John L Homebuyer and Jane F Homebuyer, Enclosed is your Owner’s Policy of Title Insurance for the property recently acquired by you. Old Republic National Title Insurance Company has a permanent file on the property and can give you prompt and efficient service if needed in the future. Your deed has been filed in the Office of the County Clerk and is enclosed. If the taxes for the current year were not due at the time of closing your transaction, and are not to be paid through an escrow account with your lending institution, such taxes should be paid before the end of the year. You should make certain that the property is assessed in your name for the following year. We appreciate your business and it is a pleasure to be of service to you. Old Republic National Title Insurance Company
This material is for educational purposes only and does not constitute legal or tax advice for your particular transaction. It describes the buyer’s legally required tax withholding obligations under the Foreign Investment in Real Property Tax Act (“Act”) in very general terms and plain English. Terms like “transferor,” “transferee,” “foreign person,” “transfer,” “U.S. real property interest,” “amount realized,” “residence,” and other terms not defined herein, are legally defined in the Act. A complete understanding of the Act is critical to determining the buyer’s tax withholding and reporting obligations. If the seller in your transaction is a foreign person, you should immediately contact an attorney or tax professional for assistance in determining if any tax is due and preparing the appropriate IRS forms.
Owners Title Policy OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY
TEXAS RESIDENTIAL OWNER'S POLICY OF TITLE INSURANCE ONE-TO-FOUR FAMILY RESIDENCES (T-1R)
OWNER’S INFORMATION SHEET Policy Number: TR09999999 Your Title Insurance Policy is a legal contract between you and Old Republic National Title Insurance Company. This policy is not an opinion or report of your title. It is a contract of indemnity, meaning a promise to pay you or to take other action if you have a loss resulting from a covered title risk.
Su Po1iza de Seguro de Titulo es un contrato legal entre usted y Old Republic National Title Insurance Company. Esta poliza no es una opinion o reporte en relacion a su titulo de propiedad. Es un contrato de indemnificacion, esto es, la promesa de reembolsarle o de tomar cualquier otro tipo de accion si usted sufre una perdida como resultado de cualquier riesgo cubierto por la poliza.
Esta forma de poliza ha sido designada para ser utilizada It applies only to an improved one-to-four family exclusivamente en los casos de propiedades en las cuales hay residential property or condominium unit. If construidas viviendas para no mas de cuatro familias o en los your land is not either of these, contact us casos de unidades en condominios. Si su propiedad no es ninguna de las anteriores, por favor, notifiquenos immediately. inmediatamente. We insure coverage: • • •
you against certain risks to your land title. We list these risks on page 2. The following limit your Exclusions on pages 2 and 3 Exceptions on Schedule B. Conditions on pages 3 and 4.
You should keep the policy even if you transfer the title to your land. If you want to make a claim, see Section 3 under Conditions on page 3. You do not owe any more premiums for the Policy. This sheet is not your insurance Policy. It is only a brief outline of some of the important Policy features. The Policy explains in detail your rights and obligations and our rights and obligations. The Policy - and not this sheet - is the legal document. YOU SHOULD READ THE POLICY VERY CAREFULLY. THE TOLL-FREE NUMBER OF OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY IS 1-888-678-1700. YOU MAY CALL THIS NUMBER TO DISCUSS THIS POLICY OR TO MAKE A COMPLAINT. YOU MAY WRITE TO OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY AT THE ADDRESS IN SECTION 3 UNDER CONDITIONS ON PAGE 3. Issued through the Office of: Old Republic National Title Insurance Company 12505 Memorial Drive, Suite 200 Houston, TX 77024 Phone: 713-465-1137
Owners Title Policy
TABLE OF CONTENTS OWNER'S COVERAGE STATEMENT COVERED TITLE RISKS OUR DUTY TO DEFEND AGAINST COURT CASES SCHEDULE A POLICY NUMBER, DATE AND AMOUNT 1. Name of Insured 2. Interest in Land Covered 3. Description of the Land SCHEDULE B - EXCEPTIONS EXCLUSIONS
PAGE 2 2 2 INSERT
INSERT 2 and 3
CONDITIONS 1. Definitions 2. Continuation of Coverage 3. Your Duties if You Make a Claim 4. Our Choices When You Notify Us of a Claim 5. Handling a Claim or Court Case 6. Limitation of Our Liability 7. Transfer of Your Rights 8. Arbitration 9. Entire Contract Provision 10. Complaint Notice
PAGE 3 and 4 3 3 3 3 and 4 4 4 4 4 5 5
Owners Title Policy OWNER'S COVERAGE STATEMENT This Policy insures your title to the land described in Schedule A-if that land is a one-to-four family residential property or condominium unit. Your insurance, as described in this Coverage Statement, is effective on the Policy Date shown in Schedule A. This document is title insurance. It is not an opinion or report of your title. It is a contract of indemnity, meaning a promise to pay you or to take other action if you have a loss resulting from a covered title risk.
Exclusions on pages 2 and 3. • Exceptions on Schedule B, page 2. • Conditions on pages 3 and 4. We insure you against actual loss resulting from: • Any title risks covered by this Policy - up to the Policy Amount, and • Any costs, attorneys' fees and expenses we have to pay under this Policy. We must approve the attorney before the attorney begins to work. You have the right to disapprove our choice of attorney for reasonable cause. COVERED TITLE RISKS This Policy covers the following title risks subject to the Exceptions (p. 2) and Exclusions (p. 2 and 3), if they affect your title to the land on the Policy Date. We do not promise that there are no covered risks. We do insure you if there are covered title risks. 1. Someone else owns an interest in your title. 2. A document is invalid because of improper signature, acknowledgment, delivery, or recording. 3. A document is invalid because of forgery, fraud, duress, incompetency, incapacity or impersonation. 4. Restrictive covenants apply to your title. 5. There is a lien on your title because of: • a mortgage or deed of trust, • a judgment, tax, or special assessment, or • a charge by a homeowner's or condominium association. 6. There are liens on your title for labor and material which have their inception before the policy date. However, we will not cover liens for labor and material that you agreed to pay for. 7. Others have rights in your title arising out of leases, contracts, or options. 8. Someone else has an easement on your land. 9. You do not have good and indefeasible title. 10. There are other defects in your title. 11. There are other liens or encumbrances on your title. •
This Policy also covers the following title risk: You do not have any legal right of access to and from the land. OUR DUTY TO DEFEND AGAINST COURT CASES We will defend your title in the part or parts of a court case involving a Title Risk covered by this Policy. We will pay the costs, attorneys' fees, and expenses that we incur in that defense. We will not pay for the parts of a case not involving a covered title risk. You may disapprove our choice of attorney for reasonable cause. Old Republic National Title Insurance Company
Page 4
Owners Title Policy We can end this duty to defend your title by exercising any of our options listed in Item 4 of the Conditions, see pages 3 and 4. This Policy is not complete without Schedules A and B. EXCLUSIONS In addition to the Exceptions in Schedule B, we do not insure you against loss, costs, attorneys' fees, and expenses resulting from these Exclusions: 1. We do not cover loss caused by the exercise of governmental police power or the enforcement or violation of any law or government regulation. This includes building and zoning ordinances and laws and regulations concerning: a. Land use b. Improvements on the land c. Land division d. Environmental protection This exclusion does not apply to notices of violations or notices of enforcement that appear in the public records at Policy Date. However, there may be an Exception in Schedule B. 2. We do not cover the right to take the land by condemning it, unless: a. a notice of exercise of the right appears in the public records on the Policy Date, or b. the taking happened before the Policy Date and is binding on you if you bought the land without knowing of the taking. 3. We do not cover title risks: a. that are created, allowed, or agreed to by you, b. that are known to you, but not to us on the Policy Date unless they appeared in the public records, c. that result in no loss to you, or d. that first affect your title after the Policy Date - this does not limit the labor and material lien coverage in Item 6 of the Covered Title Risks. 4. We do not cover the effect of failure to pay value for your title. 5. We do not cover lack of a right: a. to any land outside the area specifically described and referred to in item 3 of Schedule A, b. in streets, alleys, or waterways that touch your land. this exclusion does not limit the access coverage in the Covered Title Risks. 6. We do not cover any claim based upon allegations that your purchase of title (or acquisition of title by gift or otherwise): a. was a fraudulent conveyance, fraudulent transfer, voidable distribution, or voidable dividend; b. should be subordinated or recharacterized as a result of equitable subordination; c. was a preferential transfer unless (1) the Company or its issuing agent failed to timely file for record the deed to you after delivery, or (2) the recordation of the deed to you is not legal record notice. (We do cover the two types of claims described in c. (1) and c. (2) above.) 7. We do not cover the refusal of any person to buy, lease or lend money on your land because of unmarketability of the title. 8. We do not cover claims concerning the physical condition of your land or of the access to your land. 1. DEFINITIONS
CONDITIONS
Owners Title Policy a. Actual Loss. This is the difference between the value your loss of your land without the covered title risk and the value of your land with the covered title risk. These values are the respective values at the time you must furnish proof of your loss. b. Document. A deed or other conveyance of title to you or a prior owner. c. Easement. A portion of your land someone else has the right to use for a special purpose. d. Government Regulation. Any federal, state, or local law, constitutional provision, regulation, ordinance, or guideline. e. Land. The land or condominium unit described in Schedule A and any improvements on the land that are real property. f. Knowledge or known. Actual knowledge, not constructive knowledge or notice that may be imputed to an insured by the public records. g. Mortgage. A type of lien on the land such as a deed of trust or other security instrument. h. Public Records. Those records required by Texas law and maintained by public officials in the county where the property is located that give legal notice of matters affecting your title. i. Title. The ownership interest in the land, as shown in Schedule A. j. We, us or our. The title insurance company. This is Old Republic National Title Insurance Company. k. You, your. The insured. 2. CONTINUATION OF COVERAGE We insure you as long as you: a. own your Title, b. own a mortgage from anyone who buys your Title, or c. are liable for any Title warranties you make. We insure your transferee or assignee only as follows: a. a person who inherits the original named insured’s title on the original named insured’s death: b.the original named insured’s spouse who receives title in a dissolution of marriage with the original named insured; c. the trustee or successor of a trust established by the original named insured to whom the original named insured transfers title after the date of policy; or d.the beneficiaries of a trust described by Subdivision (c) on the death of the original named insured. 3. YOUR DUTIES IF YOU MAKE A CLAIM You must follow this process to make a claim: a. You Must Give Us Notice Of Your Claim If anyone claims a right against your insured title, you must notify us promptly. Send the notice to Old Republic National Title Insurance Company, 400 Second Avenue South, Minneapolis, Minnesota 55401 or call 1-800-328-4441 and ask for a claims attorney. If you initially notify us by phone, we recommend that you also notify us in writing. Please include the Policy number shown in Schedule A, and the county where the land is. Our obligation to you is reduced or ended if: (1) you fail to give prompt notice, and (2) your failure affects our ability to dispose of or to defend you against the claim. Our obligation is reduced only to the extent that your failure affects our ability to dispose of or to defend you against the claim.
Owners Title Policy b. You Must Give Us Proof of Your Loss if We Request It. You must send to us, if we request, your signed proof of loss within 91 days of our request on a standard form supplied by us. Within 15 days after we receive your notice of claim, we must request a signed proof of loss. If not, we waive our right to require a proof of loss. This waiver will not waive our other rights under the policy. The statement must have the following information to the best of, your knowledge: (1) the Covered Title Risks which resulted in your loss, (2) the dollar amount of your loss, and (3) the method you used to compute the amount of your loss. c. You Must Provide Papers We Request. We may require you to show us your records, checks, letters, contracts, and other papers that relate to your claim of loss. We may make copies of these papers. If you tell us this information is confidential, we will not disclose it to anyone else unless we reasonably believe the disclosure is necessary to administer the claim. d. You Must Answer Questions Under Oath. We may require you to answer questions under oath. e. Effect of Failure to Cooperate. Our obligation to you reduces or ends if you fail or refuse to: (1) (a) provide a statement of loss, (b) answer our questions under oath, or (c) show us the papers we request, and (2) your failure or refusal affects our ability to dispose of or to defend you against the claim. 4. OUR CHOICES WHEN YOU NOTIFY US OF A CLAIM a. After we receive your claim notice or in any other way learn of a matter for which we are liable, we can do one or more of the following: (1) Pay the claim against your title. (2) Negotiate a settlement. (3) Prosecute or defend a court case related to the claim. (4) Pay you the amount required by this Policy. (5) Take other action under Section 4b. (6) Cancel this policy by paying the Policy Amount, then in force, and only those costs, attorneys' fees and expenses incurred up to that time that we are obligated to pay. We can choose which of these to do. b. If you report to us that a covered title risk exists, we will promptly investigate to determine if that covered title risk is valid and not barred by law or statute. A covered title risk is a title risk that this Policy does not exclude or except.
Owners Title Policy If we conclude that your claim, or any part of your claim, is covered by the policy, we will take one or more of the following actions to the extent that it is covered: (1) Institute all necessary legal proceedings to clear the title to the property; (2) Indemnify you pursuant to the terms of the policy; (3) Issue a new title policy without making exception to the covered title risk. If another insurer issues the new title policy to your purchaser, lender or other transferee without making exception to the covered title risk, we will indemnify the other insurer. (4) Secure a release of the covered title risk. c. If we deny your claim, or any part of your claim, not more than 15 days after we deny the claim, we will: (1) notify you in writing, and (2) give you the reasons for denial of your claim in writing 5. HANDLING A CLAIM OR COURT CASE You must cooperate with us in handling any claim or court case and give us all relevant information. We must repay you only for those settlement costs, attorneys' fees and expenses that we approve in advance. When we defend or sue to clear your title, we have a right to choose the attorney. You have the right to disapprove our choice of attorney for reasonable cause. We can appeal any decision to the highest court. We do not have to pay your claim until your case is finally decided. We do not agree that the matter is a covered title risk by defending. 6. LIMITATION OF OUR LIABILITY Our liability is limited by the following: a. We will pay up to your actual loss or the Policy Amount in force when the claim is made - whichever is less. b. If we remove the claim against your title with reasonable diligence or take other action under this policy after receiving notice of it, we will have no further liability for it. c. All payments we make under this policy - except for costs, attorneys’ fees and expenses - will be subtracted from your Policy Amount. d. If the Covered Title Risk is an easement, we may pay an insured mortgage holder instead of paying you when a written agreement between you and the mortgage holder allows. If the claim involves another Covered Title Risk, we may pay the mortgage holder instead of paying you. The amount paid to the mortgage holder is considered a payment to you under your policy and will be subtracted from your policy amount. e. If you do anything to affect any right of recovery or defense you may have, we can subtract from our liability the amount by which you reduced the value of that right or defense. But we must add back to our liability any amount by which our expenses are reduced as a result of your action. 7. TRANSFER OF YOUR RIGHTS When we settle a claim, we have all the rights you had against any person or property related to the claim. You must transfer these rights to us when we ask, and you must not do anything to affect these rights. You must let us use your name in enforcing these rights. We will not be liable to you if we do not pursue these rights or if we do not recover any amount that might be recoverable.
Owners Title Policy With the money we recover from enforcing these rights, we will pay whatever part of your loss we have not paid. We have a right to keep what is left. 8. ARBITRATION If it is permitted under Texas or federal law, you and we may agree to arbitration when you file a claim. The arbitration may decide any matter in dispute between you and us. Arbitration is one means of alternative dispute resolution. It may lessen the time and cost of claims settlement. You may wish to consider another form of mediation or use the court system. If you choose arbitration, you may give up some discovery rights and your right to sue. The arbitration award may: a. include attorneys' fees if allowed by state law, and/or b. be entered as a judgment in the proper court. The arbitration shall be under the Title Insurance Arbitration Rules of the American Arbitration Association. You may choose current Rules or Rules in existence on Policy Date. The law used in the arbitration is the law of the place where the property is located. You can get a copy of the Rules from us. 9. ENTIRE CONTRACT PROVISION This policy and any endorsements we attach are the entire contract between you and us. Any claim you make against us must be under this Policy and is subject to its terms. 10. COMPAINT NOTICE Should any dispute arise about your premium or about a claim that you have filed, contact the agent or write to us. OUR TOLL-FREE NUMBER IS 1-888-678-1700. If we do not resolve the problem, you also may write the Texas Department of Insurance, P.O. Box 149104, Austin, TX 78714-9104, Fax No. (512) 3057426. THE TOLL-FREE NUMBER FOR THE TEXAS DEPARTMENT OF INSURANCE IS 1-800-2523439. This notice of complaint procedure is for information only. It does not become a part or condition of this policy.
Owners Title Policy TEXAS RESIDENTIAL OWNER POLICY OF TITLE INSURANCE ONE-TO-FOUR FAMILY RESIDENCES SCHEDULE A G.F. No. 99009999
Issued with Policy Number: TL09999999
Policy Number: TR09999999 Policy Date: April 17, 2018, 01:44 pm Policy Amount: $293,000.00 Premium: $2,235.60 JE 04-24-18 1.
Name of Insured: John L Homebuyer and Jane F Homebuyer
2.
We insure your interest in the land covered by this Policy is: Fee Simple
3.
Legal Description of land: Lot 99, in Block 9, of SUBDIVISION, SEC. 9, a subdivision in Harris County, Texas, according to the map or plat thereof recorded under Film Code No. 544146 of the Map Records of Harris County, Texas.
Owners Title Policy TEXAS RESIDENTIAL OWNER POLICY OF TITLE INSURANCE ONE-TO-FOUR FAMILY RESIDENCES
G.F. No. 18001738
SCHEDULE B G.F. No. 99009999 Policy No. TR09999999 EXCEPTIONS We do not cover loss, costs, attorneys' fees and expenses resulting from: 1.
The following restrictive covenants of record itemized below (We must either insert specific recording data or delete this exception): As set forth on the map or plat recorded under Film Code No. 544146 of the Map Records of Harris County, Texas, and by instrument(s) filed for record under Harris County Clerk's File No(s). X256921, Y581323, Y954444, 20070319498, 20080101281, 20110429087, 20110467523, 20110548281, 20140217432, 20160006276, RP-2016-219578, RP-2016497195, RP-2017-278136, RP-2017-400404, RP-2017-494860, and RP-2018-118614. BUT OMITTING ANY COVENANT OR RESTRICTION BASED ON RACE, COLOR, RELIGION, SEX, HANDICAP, FAMILIAL STATUS, OR NATIONAL ORIGIN.
2.
Any discrepancies, conflicts, or shortages in area or boundary lines, or any encroachments or protrusions, or any overlapping of improvements.
3.
Homestead or community property or survivorship rights, if any, of any spouse of any insured. (Applies to the Owner’s Policy only.)
4.
Any titles or rights asserted by anyone, including, but not limited to, persons, the public, corporations, governments or other entities, a. to tidelands, or lands comprising the shores or beds of navigable or perennial rivers and streams, lakes, bays, gulfs or oceans, or b. to lands beyond the line of harbor or bulkhead lines as established or changed by any government, or c. to filled-in lands, or artificial islands, or d. to statutory water rights, including riparian rights, or e. to the area extending from the line of mean low tide to the line of vegetation, or the rights of access to that area or easement along and across that area.
5.
Standby fees, taxes and assessments by any taxing authority for the year 2018, and subsequent years; and subsequent taxes and assessments by any taxing authority for prior years due to change in land usage or ownership, but not those taxes or assessments for prior years because of an exemption granted to a previous owner of the property under Section 11.13, Texas Tax Code, or because of improvements not assessed for a previous tax year.
6.
The following matters and all terms of the documents creating or offering evidence of the matters (We must insert matters or delete this exception.):
a.
Vendor's lien retained in the Deed dated April 13, 2018, filed for record on April 17, 2018, under Harris County Clerk's File No. RP-2018-999998, from James Homeseller and Julie Homeseller, Husband and Wife to John L Homebuyer and Jane F Homebuyer, Wife and Husband, securing the payment of a note in the amount of $278,350.00, payable to the order of Home Lender, Inc., additionally secured by Deed of Trust of even date therewith to Trust EE, Trustee, securing Mortgage Electronic Registration Systems, Inc. MERS, soley as nominee for Lender, and Home
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Owners Title Policy Lender, Inc. as their interests may appear, as further reflected therein, said Deed of Trust filed for record on April 17, 2018, under Harris County Clerk's File No. RP-2018-999999. b.
Rights of parties in possession.
c.
Terms and provisions of any and all leases, together with rights of Lessees thereunder.
d.
The following matters reflected on the map or plat recorded under Film Code No. 544146 of the Map Records of Harris County, Texas: Easement for drainage purposes extending 15 feet on each side of the centerline of all natural drainage courses. Utility easement 10 feet in width along the front property line. Building set back line 20 feet in width along the front property line.
e.
No building, structure, or other improvement shall be located on any Lot nearer than 10 feet to any side street line. No building shall be located nearer than 5 feet to any interior Lot line with the exception of detached garages that, where allowed, may have a 3 foot side-yard building line. No Lake, Reserve or Golf Course Lot shall have any improvements within 20 feet of the Lot line adjacent to the Lake, Golf Course or Reserve, as set forth in instrument filed for record under Harris County Clerk's File No. X256921
f.
Terms and provisions of that certain Agreement for Underground Electric Service with CenterPoint Energy Houston Electric, LLC, filed for record under Harris County Clerk’s File No. X345724.
g.
1/16th royalty interest in all of the oil, gas and other minerals in and under the herein described property, as reserved in instrument filed for record under Harris County Clerk's File No(s). C324122, C324123 and C324124. (Said interest not investigated subsequent to date of reservation or conveyance.)
h.
All leases, grants, exceptions or reservations of coal, lignite, oil, gas and other minerals, together with all rights, privileges, and immunities relating thereto, appearing in the Public Records whether listed in Schedule B or not. There may be leases, grants, exceptions or reservations of mineral interest that are not listed.
i.
Maintenance charge including special assessments for capital improvements, secured by a vendor's lien as set forth in instrument filed for record under Harris County Clerk's File No. X256921, payable to S-G Owners Association, Inc.
j.
Restrictions on subject property require that a Covenant Compliance Inspection be obtained at time of transfer of ownership on houses within the Association, set forth in instrument(s) filed for record under Harris County Clerk's File No(s). 20140217432.
k.
We have been furnished with a plat of survey made by MATTHEW J. PROBSTFELD,
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Owners Title Policy Professional Land Surveyor No. 4985, dated July 14, 2004. Said survey reflects the following matters: Concrete encroaches over 10 foot Utility Easement along the front property line.
Countersigned:
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Owners Title Policy IMPORTANT NOTICE
AVISO IMPORTANTE
To obtain information or make a complaint:
Para obtener informacion o para someter una queja:
You may contact (Old Republic National Title Insurance Company 713-682-4144).
Puede cominicarse con su (Old Republic National Title Insurance Company 713-682-4144).
You may call Old Republic National Title Insurance Company’s toll-free telephone number for information or to make a complaint at:
Usted puede llamar al numero de telefono gratis de Old Republic National Title Insurance Company para informacion o para someter una queja al:
1-888-678-1700
1-888-678-1700
You may also write to Old Republic National Title Insurance Company at:
Usted tambien puede escribir a Old Republic National Title Insurance Company:
400 Second Avenue South Minneapolis, Minnesota 55401 Attn: Claims Department
400 Second Avenue South Minneapolis, Minnesota 55401 Attn: Claims Department
You may contact the Texas Department of Insurance to obtain information on companies, coverages, rights or complaints at:
Puede comunicarse con el Departamento de Seguros de Texas para obtener informacion acerca de companies, coberturas, derechos o quejas al:
1-800-252-3439
1-800-252-3439
You may write the Texas Department of Insurance:
Puede escribir al Departament de Seguros de Texas:
P. O. Box 149104 Austin, TX 78714-9104 Fax: (512) 475-1771 Web: http://www.tdi.state.tx.us E-mail: [email protected]
P. O. Box 149104 Austin, TX 78714-9104 Fax: (512) 475-1771 Web: http://www.tdi.state.tx.us E-mail: [email protected]
PREMIUM OR CLAIM DISPUTES: Should you have a dispute concerning your premium or about a claim you should contact the Old Republic National Title Insurance Company first. If the dispute is not resolved, you may contact the Texas Department of Insurance.
DISPUTAS SOBRE PRIMAS O RECLAMOS: Si tiene una disputa concerniente a su prima o a un reclamo, debe comunicarse con Old Republic National Title Insurance Company primero. Si no se resuelve la disputa, puede entonces comunicarse con el departmento (TDI).
ATTACH THIS NOTICE TO YOUR POLICY This notice is for information only and does not become a part or condition of the attached document.
UNA ESTE AVISO A SU POLIZA: Este aviso es solo para proposito de information y no se convierte en parte o condicion del documento adjunto.
Owners Title Policy DELETION OF ARBITRATION PROVISION (Not Applicable to the Texas Residential Owner’s Policy) ARBITRATION is a common form of alternative dispute resolution. It can be a quicker and cheaper means to settle a dispute with your Title Insurance Company. However, if you agree to arbitrate, you give up your right to take the Title Insurance Company to court and your rights to discovery of evidence may be limited in the arbitration process. In addition, you cannot usually appeal an arbitrator's award. Your policy contains an arbitration provision (shown below). It allows you or the Company to require arbitration if the amount of insurance is $2,000,000 or less. If you want to retain your right to sue the Company in case of a dispute over a claim, you must request deletion of the arbitration provision before the policy is issued. You can do this by signing this form and returning it to the Company at or before the Closing of your real estate transaction or by writing to the Company. The Arbitration provision in the Policy is as follows: "Either the Company or the Insured may demand that the claim or controversy shall be submitted to arbitration pursuant to the Title Insurance Arbitration Rules of the American Land Title Association (“Rules”). Except as provided in the Rules, there shall be no joinder or consolidation with claims or controversies of other persons. Arbitrable matters may include, but are not limited to, any controversy or claim between the Company and the Insured arising out of or relating to this policy, any service in connection with its issuance or the breach of a policy provision, or to any other controversy or claim arising out of the transaction giving rise to this policy. All arbitrable matters when the Amount of Insurance is $2,000,000 or less shall be arbitrated at the option of either the Company or the Insured, unless the Insured is an individual person (as distinguished from an Entity). All arbitrable matters when the Amount of Insurance is in excess of $2,000,000 shall be arbitrated only when agreed to by both the Company and the Insured. Arbitration pursuant to this policy and under the Rules shall be binding upon the parties. Judgment upon the award rendered by the Arbitrator(s) may be entered in any court of competent jurisdiction." I request deletion of the Arbitration provision.
SIGNATURE
Old Republic National Title Insurance Company
DATE
Page 15
Owners Title Policy Old Republic National Title Insurance Company
Privacy Policy Notice
PURPOSE OF THIS NOTICE
Title V of the Gramm-Leach-Bliley Act (GLBA) generally prohibits any financial institution, directly or through its affiliates, from sharing nonpublic personal information about you with a nonaffiliated third party unless the institution provides you with a notice of its privacy policies and practices, such as the type of information that it collects about you and the categories of persons or entities to whom it may be disclosed. In compliance with the GLBA, we are providing you with this document, which notifies you of the privacy policies and practices of Old Republic National Title Insurance Company. We may collect nonpublic personal information about you from the following sources: Information we receive from you such as on applications or other forms. Information about your transactions we secure from our files, or from others. Information we receive from a consumer reporting agency. Information that we receive from others involved in your transaction, such as the real estate agent or lender. Unless it is specifically stated otherwise in an amended Privacy Policy Notice, no additional nonpublic personal information will be collected about you. We may disclose any of the above information that we collect about our customers or former customers to our affiliates or to nonaffiliated third parties as permitted by law. We also may disclose this information about our customers or former customers to the following types of nonaffiliated companies that perform services on our behalf or with whom we have joint marketing agreements: Financial service providers such as companies engaged in banking, consumer finance, securities and insurance. Non-financial companies such as envelope stuffers and other fulfillment service providers. WE DO NOT DISCLOSE ANY NONPUBLIC PERSONAL INFORMATION ABOUT YOU WITH ANYONE FOR ANY PURPOSE THAT IS NOT SPECIFICALLY PERMITTED BY LAW. We restrict access to nonpublic personal information about you to those employees who need to know that information in order to provide products or services to you. We maintain physical, electronic, and procedural safeguards that comply with federal regulations to guard your personal information.
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Glossary of Real Estate Terms
ABSTRACT OF TITLE A condensed history or summary of all transactions affecting a particular tract of land. CHAIN OF TITLE A term applied to the past series of transactions and documents affecting the title to a particular parcel of land. CLOSING Also known as “escrow” or “settlement.” The process of executing legally binding documents, such as deeds and mortgages, most commonly associated with the purchase of real estate and the borrowing of money to assist in the purchase. DEED A written document by which the ownership of land is transferred from one person to another. DEED OF TRUST An instrument used in many states in place of a mortgage. Property is transferred to a trustee by the trustor (borrower), in favor of the beneficiary (lender), and reconveyed (satisfied) upon payment in full. EARNEST MONEY Advance payment of part of the purchase price to bind a contract for property. EASEMENT An interest in land owned by another that entitles its holder to a specific limited use, such as laying a sewer, putting up electric power lines or crossing the property. ENCROACHMENT A trespass or intrusion onto another’s property, usually by a structure, wall or fence. ENCUMBRANCE A lien, liability or charge upon a parcel of land, e.g. a mortgage or easement. ESCROW A procedure whereby a disinterested third party handles legal documents and funds on behalf of a seller and buyer, and delivers them upon performance by the parties.
EXAMINATION OF TITLE The investigation and interpretation of the record title to real property based on the title search or abstract. EXCEPTION In legal descriptions, that portion of land to be deleted or excluded. The term often is used in a different sense to mean an encumbrance on title, excluded from coverage in a title insurance policy. HEIR One who might inherit or succeed to an interest in land of an individual who dies without leaving a will (intestate). JOINT TENANCY An estate where two or more persons hold real estate jointly for life, the survivors to take the entire interest on the death of one of the joint tenants. JUDGMENT A decree of a court. In practice, this is the lien or charge upon the land of a debtor resulting from the court‘s award of money to a creditor. LIEN A hold, claim or charge allowed by a creditor upon the land of a debtor. Some examples are mortgage liens, judgment liens and mechanics’ liens. LOAN POLICY A form of title insurance policy which insures the validity, enforceability and priority of a lender’s lien. This form does not provide protection for the owner. OWNER’S POLICY A policy of title insurance, which insures a named owner against loss by reason of defects, liens and encumbrances not excepted to in the policy or unmarketability of the title. The company also agrees to defend covered claims made against the title.
POWER OF ATTORNEY An instrument authorizing another to act on one’s behalf in legal matters. PRORATE To allocate between seller and buyer their proportionate share of an obligation paid or due. For example, a proration of real property taxes or fire insurance premiums. SURVEY The process of measuring land to determine its size, location and physical description, and the resulting drawing or map. TITLE (i) ownership of real property, which stands against the right of anyone else to claim the property; (ii) the evidence of right which a person has to the ownership and possession of land. TITLE DEFECT Any legal right held by others to claim property or to make demands upon the owner. TITLE INSURANCE An agreement to indemnify the insured against loss arising from a covered defect in title to a particular parcel of real property, which is typically issued to both the buyer to protect their property rights (through an owner’s title insurance policy), and the lender to protect its lien rights (through a loan policy of title insurance). TITLE INSURANCE POLICY A written contract of title insurance. TITLE SEARCH An examination of public records, laws and court decisions to disclose the current facts regarding ownership of real estate.
Texas Title Insurance Basic Premium Rates FOR STATED POLICY AMOUNT RANGE. POLICIES UP TO AND INCLUDING
BASIC PREMIUM
POLICIES UP TO AND INCLUDING
BASIC PREMIUM
POLICIES UP TO AND INCLUDING
BASIC PREMIUM
POLICIES UP TO AND INCLUDING
BASIC PREMIUM
POLICIES UP TO AND INCLUDING
BASIC PREMIUM
$10,000
$238
$28,000
$365
$46,500
$497
$64,500
$625
$83,500
$759
10,500
242
28,500
368
47,000
499
65,000
628
84,000
762
11,000
244
29,000
373
47,500
503
65,500
631
84,500
767
11,500
248
29,500
376
48,000
508
66,000
635
85,000
770
12,000
252
30,000
380
48,500
512
66,500
640
85,500
773
12,500
255
30,500
383
49,000
515
67,000
644
86,000
776
13,000
260
31,500
390
49,500
518
67,500
645
86,500
781
13,500
264
32,000
393
50,000
522
68,000
649
87,000
785
14,000
267
32,500
398
50,500
525
68,500
653
87,500
788
14,500
270
33,000
401
51,000
527
69,000
656
88,000
791
15,000
272
33,500
405
51,500
531
69,500
659
88,500
795
15,500
276
34,000
408
52,000
536
70,000
664
89,000
799
16,000
280
34,500
412
52,500
540
70,500
668
89,500
801
16,500
284
35,000
415
53,000
543
71,000
672
90,000
804
17,000
288
35,500
419
53,500
547
71,500
674
90,500
809
17,500
292
36,000
422
54,000
550
72,000
677
91,000
813
18,000
296
36,500
426
54,500
553
72,500
681
91,500
817
18,500
298
37,000
429
55,000
556
74,000
692
92,000
819
19,000
301
37,500
433
55,500
559
74,500
696
92,500
823
19,500
304
38,000
437
56,000
565
75,000
700
93,000
827
20,000
309
38,500
441
56,500
568
75,500
702
93,500
831
20,500
312
39,000
443
57,000
571
76,000
706
94,000
832
21,000
317
39,500
447
57,500
575
76,500
709
94,500
837
21,500
320
40,000
450
58,000
579
77,000
713
95,000
842
22,000
324
40,500
455
58,500
581
77,500
716
95,500
845
22,500
327
41,000
457
59,000
585
78,000
720
96,000
847
23,000
330
41,500
462
59,500
589
78,500
725
96,500
851
23,500
333
42,000
465
60,000
593
79,000
729
97,000
855
24,000
337
42,500
469
60,500
597
79,500
730
97,500
859
24,500
340
43,000
471
61,000
600
80,000
734
98,000
862
25,000
345
43,500
475
61,500
603
80,500
738
98,500
866
25,500
348
44,000
479
62,000
607
81,000
742
99,000
870
26,000
352
44,500
483
62,500
611
81,500
744
99,500
873
26,500
355
45,000
487
63,000
613
82,000
748
100,000
875
27,000
358
45,500
490
63,500
617
82,500
753
27,500
361
46,000
493
64,000
621
83,000
757
Title Basic Premium Calculation for Policies in Excess of $100,000 Using the table on the right, apply these steps to determine basic premium for policies above $100,000: Step 1 In column (1), find the range that includes the policy’s face value. Step 2 Subtract the value in column (2) from the policy’s face value. Step 3 Multiply the result in Step 2 by the value in column (3), and round to the nearest dollar. Step 4 Add the value in column (4) to the result of the value from Step 3.
(1) Policy Range ($100,001 - $1,000,000) ($1,000,001 - $5,000,000) ($5,000,001 - $15,000,000) ($15,000,001 - $25,000,000) (Greater than $25,000,000)
Rates effective May 1, 2013
(2) Subtract 100,000 1,000,000 5,000,000 15,000,000 25,000,000
(3) Multiply by 0.00554 0.00456 0.00376 0.00267 0.00160
(4) Add $875 $5,861 $24,101 $61,701 $88,401
Texas Title Insurance Basic Premium Rates FOR SPECIFIC POLICY AMOUNT.* POLICY AMOUNT
BASIC PREMIUM
POLICY AMOUNT
BASIC PREMIUM
POLICY AMOUNT
BASIC PREMIUM
$110,000
$930
$480,000
$2,980
$6,000,000
$27,861
120,000
986
490,000
3,036
6,250,000
28,801
130,000
1,041
500,000
3,091
6,500,000
29,741
140,000
1,097
550,000
3,368
6,750,000
30,681
150,000
1,152
600,000
3,645
7,000,000
31,621
160,000
1,207
650,000
3,922
7,250,000
32,561
170,000
1,263
700,000
4,199
7,500,000
33,501
180,000
1,318
750,000
4,476
7,750,000
34,441
190,000
1,374
800,000
4,753
8,000,000
35,381
200,000
1,429
850,000
5,030
8,250,000
36,321
210,000
1,484
900,000
5,307
8,500,000
37,261
220,000
1,540
950,000
5,584
8,750,000
38,201
230,000
1,595
1,000,000
5,861
9,000,000
39,141
240,000
1,651
1,100,000
6,317
9,250,000
40,081
250,000
1,706
1,200,000
6,773
9,500,000
41,021
260,000
1,761
1,300,000
7,229
9,750,000
41,961
270,000
1,817
1,400,000
7,685
10,000,000
42,901
280,000
1,872
1,500,000
8,141
15,000,000
61,701
290,000
1,928
1,600,000
8,597
20,000,000
75,051
300,000
1,983
1,700,000
9,053
25,000,000
88,401
310,000
2,038
1,800,000
9,509
30,000,000
96,401
320,000
2,094
1,900,000
9,965
35,000,000
104,401
330,000
2,149
2,000,000
10,421
40,000,000
112,401
340,000
2,205
2,250,000
11,561
45,000,000
120,401
350,000
2,260
2,500,000
12,701
50,000,000
128,401
360,000
2,315
2,750,000
13,841
55,000,000
136,401
370,000
2,371
3,000,000
14,981
60,000,000
144,401
380,000
2,426
3,250,000
16,121
65,000,000
152,401
390,000
2,482
3,500,000
17,261
70,000,000
160,401
400,000
2,537
3,750,000
18,401
75,000,000
168,401
410,000
2,592
4,000,000
19,541
80,000,000
176,401
420,000
2,648
4,250,000
20,681
85,000,000
184,401
430,000
2,703
4,500,000
21,821
90,000,000
192,401
440,000
2,759
5,000,000
24,101
95,000,000
200,401
450,000
2,814
5,250,000
25,041
100,000,000
208,401
460,000
2,869
5,500,000
25,981
470,000
2,925
5,750,000
26,921
Rates effective May 1, 2013
COMMONLY REQUESTED ENDORSEMENTS Form # Endorsement Charge T-3 Down Date.............................................................................................................$50 T-3 Interim Construction Binder (ICB) Extension (6 months each)....... $25 T-14 First Loss.................................................................................................................. $25 T-16 Loan Policy Aggregation.................................................................................. $25 T-17 Planned Unit Development............................................................................ $25 T-19 Restrictions, Encroachments & Minerals Residential real property.........................5% of Basic Rate or Min. $50 Non-residential real property............. 10% of Basic Rate or Min. $50 T-19.1 Owner’s Restrictions, Encroachments & Minerals Residential real property .................10% of Basic Rate or 5% with Survey Deletion or Min. $50 Non-residential real property ...............15% of Basic Rate or 10% with Survey Deletion or Min. $50 T-19.2 Minerals & Surface Damage (based on property type).......................$50 T-19.3 Minerals & Surface Damage (based on property type).......................$50 T-23 Access (Non-residential)................................................................................$100 T-24 Non-Imputation (Non-residential)............5% of Basic Rate or Min. $25 T-24.1 Non-Imputation (Mezzanine)......................5% of Basic Rate or Min. $25 T-25 Contiguity (Non-residential).........................................................................$100 T-26 Additional Insured (Non-residential).......10% of Basic Rate or Min. $25 T-27 Assignments of Rents & Leases...................................................... No Charge T-28 Condominium....................................................................................... No Charge T-30 Amendment of Tax Exception.......................................................................$20 Not Yet Due & Payable Tax Amendment...............................................$5 T-31 Manufactured Housing.....................................................................................$20 T-31.1 Supplemental Coverage Manufactured Housing.................................$50 T-33 Variable Mortgage Loan...................................................................................$20 T-35 Future Advance/Revolving Credit................................................................$50 T-36 Environmental Protection Lien..................................................................... $25 T-38 P-9b (3): Partial Release, Modification etc. ..............................................................$100 after 1st year of date of policy ...............$10 for each 12 month period thereafter, or a part thereof ................................................................................. or Max. 50% of Basic Rate T-39 Balloon Mortgage ............................... $25 prior to issuance of Loan Policy and $50 after T-42 Equity Loan Mortgage.......................................................................10% of Rate T-42.1 Supplemental Coverage Equity Loan Mortgage.................... 15% of Rate T-43 Texas Reverse Mortgage................................................................... No Charge T-99 Limited Pre-Foreclosure Policy Down Date............................................$50 Survey Deletion (T-1R) 5% of the Basic Rate with a minimum of $20 (T-1) 15% of the Basic Rate with a minimum of $20 Additional endorsements and credits may be available. Contact your Old Republic Title representative for more information. Additional fees may be charged for endorsements, extra hazardous risk or for difficult or unusual transactions.
Notes
Notes
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