Tag: Commitment

What’s the Timeline for Closing Your Deal?

Here at Tallgrass Title, once we receive the signed contract in our office, the clock starts ticking on our countdown to get everything out in a timely manner.  Our goal is to be efficient, friendly, and fast in all aspects of what we do, but, sometimes the fast part does not always happen as fast as we would like. We get asked often what the time frame is to close a transaction.  In most instances, we are able to say that we can have it done within 30 days. There are situations where that is not possible and there are situations we can close in as little as a few days. The following is a rough timeline of the steps we take to get transactions closed in order to give you an idea of the potential timeline for your unique closing.

Commitment

Within 24 – 48 hours of receiving a signed contract we try to have to commitment issued to all parties. This can take longer depending on whether additional research is needed to clear the title. Generally, this means tracking down additional documents to trace the chain of title or add exceptions.

Preliminary Documents

Once the commitment is sent out, the file is assigned a Closing Agent. Your Closing Agent will put together two preliminary packets: a Deed Packet and Buyer Documents. These packets will then be sent to the clients’ respective realtors or directly to the clients (if unrepresented) to get reviewed and signed prior to closing. Getting the preliminary packets signed and returned well in advance can help make the process smoother as we sometimes experience delays in the process of getting payoff instructions from lien holders.

Invoices and Payoffs

Once both of the preliminary packets have been sent out, the Closing Agent begins working on the preliminary settlement statements. With a cash transaction this can mean closing as soon as the deed packet and buyer docs have been returned, we receive any invoices and payoffs we need to obtain, and the buyer and seller are both ready to close. For a transaction that is being financed the process is a little longer. The lender has to disclose fees three days prior to closing, we need have underwriter approval or a “clear to close” status, and the bank has to have the property appraisal back.

Closing

Once we have everything in our office we need and the lender, if there is one, has received approval to close as well –what’s next? We will set up a time for closing either at the bank or in our office.

Cash Sale Closing

Buyers and Sellers may sign all their final documents electronically and certified funds can either be wired or dropped off at one of our offices.  After disbursement and recording the deed, the transaction is complete!

Financed Closing

When there is a mortgage involved, we ask you block off about an hour for closing as there are several documents to work through and sign. Once signing is complete, we will send the loan packet to the lender for funding authorization. Once we have authorization and all funds, we will disburse, record the deed and mortgage, and the transaction is complete.

We strive to make the closing process as smooth and easy (and quick) as we can.  Hopefully this gives you better picture of the timing of your unique transactions. We are here to facilitate everything and take the pressure off you and your clients. Please feel free to give us a call with any questions you have.

Tips and Tricks for Submitting a New Order

How do I submit a new order and what info do I need?

Here at Tallgrass Title we are always happy to get new orders started for you and hope to make it as easy as possible.  To do this, we offer three simple ways to submit new orders or ask questions. Whether it be a contract, refinance, informational report, or preliminary title, any of these methods should cover you!

Email or Fax

A simple way to contact us is through email. A quick email to order@tallgrasstitleks.com is all it takes to get us started.  Whether it’s an order, a simple question, or preliminary title you are just getting started, we can get things going for you with minimal information. All it takes is a quick email.

We can also receive new orders through fax at (785)456–8581. Just send over your contract or title order form and we will get a file started for you!

Our Website

We can also receive new orders through our website: tallgrasstitleks.com! All it takes is to go to the website and follow the link on the main page to Submit Order or follow the Services drop down and click on “Get Started”.

This will lead you to an online fillable order form. Just fill this in, to the best of your ability, and hit submit at the bottom. The fields marked with an * will help guide you through required information.

We will receive your order like this and get a file started for you.

Just remember to include your name and contact information so we can contact you with any questions!

PaperlessCloser

Another way to submit a new order to us is through PaperlessCloser. Access to this program can be found on the main page of our website or through the Client Login drop down. This will direct you to the log on for PaperlessCloser. Once logged in there will be a button for New Order in the bottom right corner.

Fill in the fields with your information and hit Add Order. This will send your order directly to our system so we can get it started for you.

We can get pretty much anything started with an address or current owner so don’t let the details slow you down; feel free to submit what you have, and we will help you with the rest.  However, if you can provide information regarding the buyer or sellers marital status, that will help us immensely in the initial stages! For more information on placing orders or all things title insurance, feel free to give us a call or send an email! We are so happy to help.

Construction Hold-Open Commitments

The 2020 residential building season is now upon us!   Building season brings construction loans and the title concerns that come with this type of financing.   There can be concerns about the duplication of title services and costs that come along with it as well as insuring that the title to the real estate does not collect liens and other title issues prior to permanent financing.   At Tallgrass Title, we are pleased to offer a “construction hold-open” type commitment to assist in the construction of residential property.

Tallgrass Title is proud to say that we can assist in this area!

Q:  How is residential construction financed?

A:  People constructing a home will typically borrow money in order to finance the construction with a “construction loan.”  A construction loan is short term financing of real estate construction.  Generally, a construction loan is followed by long term financing called an “End Loan” that is issued upon completion of improvements.

Q:  Do both loans need title insurance?

A:  Because of the nature of a construction loan, Lenders are often concerned about the length of time a commitment is valid from its issuance.  Commonly, the commitment expires before the construction can be completed and  before going to end loan. To solve this issue, lenders will pay for a full title policy on the construction loan and then again on the end-loan.  The downside is that this creates duplicated costs.

How we can help:

Tallgrass Title is the only title insurance company in the area that offers a “Construction Hold-Open Commitment.”  A Construction Hold Open Commitment provides periodic updates of the construction loan commitment every 120 days keeping the title coverage valid until the end loan is closed.  Therefore, the costs are not duplicated between the construction loan and the end loan.

How to request:

Simply order a Construction Hold-Open Commitment from Tallgrass Title and we will perform the initial search and issue a Commitment for a $200 fee.  The Construction Hold-Open Commitment is then valid for 120 days from the Commitment Date and can be renewed for an additional 120 days with an update. We will perform two updates as part of the initial fee.  We will typically send out an update reminder when the expiration date is near. However, we do not perform updates without a request from the lender. After the second update, if further updates are required there will be an additional $50 fee per update. Construction Hold-opens can remain open indefinitely with the appropriate updates.

When the construction is complete and the mortgage is ready to go to End Loan or final policy we will do a final update at no additional charge. When the Final Mortgage is ready to be filed we collect the Premium and any Endorsement fees and record the New Mortgage. Our office must record the Mortgage and any other required documents with the Register of Deeds Office to ensure that the title is free and clear of any possible new liens. When the recorded documents come back from the county and all the requirements are met we will issue the Policy.

For those of you that use our Paperless Closer system, simply note that the loan is for new construction and type into the notes that you want a Construction Hold-Open Commitment.  If you prefer to email the order, please note the request on your order form.

Please contact our office if you have any questions!  We look forward to assisting you in the 2020 building season. 

MHK Office

 

As most of you know, we recently opened an office in MHK. We had the opportunity to talk a little about our new adventure! Check out the video below!

 

 

Thank you Manhattan!

Last week we officially opened a Manhattan, Kansas office.  This move follows requests from real estate professionals to locate an office to better serve their regional needs.  You asked, we listened!  Our Manhattan office (TGT MHK) is located at 210 N. 4th, Suite A in the Hartford Building.  We are fully staffed Monday – Friday from 8:00 am to 5:00pm and are open over the noon hour.  A drop box is located on the front of the building for after hours drop-offs.  Both the Wamego and Manhattan offices are equipped to deal with closings, escrow deliveries, deed packet deliveries and notary services.  Additionally, TGT MHK will continue to offer free courier service in the Manhattan area as well as mobile closings.  We are here to serve your needs!

At Tallgrass Title, we love feedback about how we may better serve your needs.  Feel free to speak with any of our title experts about your needs as a real estate professional.

Internet Safety Tips

In this technological age, it seems like everything is at your fingertips. Have business to conduct?  Pull out your smart phone and get it done.  Have a report that is due while you are out of town and do not have all of the information you need?  Find an internet café or public wifi, pull out your laptop computer and get to work.  With the help of Wikipedia, Google, and any number of search sites, all of the information you need is at your fingertips.  Great, right?  It can be, but while it is easier for people to access information, it is also easier for hackers and scammers to access people’s personal information like social security numbers, bank accounts, and other personal information.  Once they have that information, Tada!  You now have six new credit cards, your debit card has been used to buy a new car half-way across the world, and you managed to get a speeding ticket in some hole-in-the-wall town three states over!  Your identity was stolen!  Scary, right? How can you protect yourself and your clients from this type of threat?  Here are some tips for practicing public (and personal) internet safety:

  1. Never log into your email using public wifi. Get yourself a mifi device. A mifi device is a personal wifi that uses cellular broadband to make a wifi connection. Not super convenient, or free, but using a mifi device is much more secure. You can password protect it and it pulls from a private source. You can also typically use your smartphone as a personal hotspot.
  2. Change your passwords frequently. If a hacker gains access to your password, they may try to access your system or account more than once over a period of time. Changing your password reduces the risk that they will have frequent access. It also keeps things like a keystroke logger, which is surveillance technology used to record keystrokes, from obtaining your password through repeated logins.
  3. Never email any documents that have your client’s personal information. If you do email any documents that have that type of information, make sure it is password protected and encrypted.
  4. Stop and read an email before opening any attachments or following any links. If you do not have your email set up to preview a message before opening, modify your settings to allow it. A lot of attachments and links in fake emails from scammers and hackers have viruses and other little nasty surprises that can corrupt your system or open a backdoor for someone to get to the rest of your information.
  5. Do not use a free email service for your business email. Yes, they are convenient, and better yet, free. However, they have the barest minimum of security when it comes to allowing junk through.

Computers can be a convenient tool that can make our lives easier in many ways.  By following these 5 rules, they can continue to be the tools that they are intended to be. Here at Tallgrass Title we are committed to protecting all of our associates and clients. Let us know how we can help you protect yourself and your clients from scammers and hackers.

Tips for Recording and Filing Documents

We realize that many of you will probably not have to take a document to the county Register of Deeds Office. However, it is still helpful to know a little bit about the requirements. It makes filling out and completing the deed packet and other documents necessary for closing much easier.

Tip 1:

This first thing to keep in mind is: Only documents with original signatures can be recorded. As of 2019, the Register of Deeds will not accept documents that have been signed electronically. What that means, is that each deed, mortgage, and affidavit must be signed in person in front of a notary. The original documents must be sent back to the title company for closing. (Remember, if you can’t drop it off to us, we will come to you!)

Tip 2:

Don’t change the formatting of a deed or other notarized document. Let’s face it, technology is complicated. Your computer or printer might try to change the margins, font, font size, or spacing. Why is that a big deal?

It is the duty of the Register of Deeds to keep the real estate records legible and clear. In order to do this, there are strict guidelines to help make that happen. One of the rules is the size of the font. If the wording is too small, the documents can’t be scanned correctly into the archives. There are also rules in place about document margins. There needs to be plenty of space at the top for the filing information, as well as enough space on the sides so no information will be cut off. If your printer likes to cut off the top or bottom of a legal-sized document, you run the risk of losing important information. For example, part of a legal description or a signature line could be left out.

Also, it is very important to print the documents single-sided, not double-sided.

Tip 3:

When will the recorded original deed be given back to the buyers after closing? This is a question we get asked on a regular basis. The answer? Usually within 30-60 days following a closing, we send out the recorded original documents with the Title Insurance Policy. Unfortunately, we cannot just pull out a magic number that fits all cases. This is because we have to wait until the commitment requirements have been met. For example, some banks take a bit more time than others to file mortgage releases. Rest assured though, that we will work to send out the policy and documents just as soon as we possibly can.

Here at Tallgrass Title it is our goal to help you successfully complete your real estate transaction as smoothly as possible. Reach out to us to let us know how we can help you make it happen!

Easement Basics

Easements to real estate are simply an interest in some other person’s land for the limited purpose identified in the easement. In plain language, it is the right of another person to use your land for some limited purpose.  Easements can be exclusive; meaning that the use is restricted to a certain person or persons.  Easements can also be limited to a certain amount of time or can be perpetual and “run with the land.” As there are countless different variations of easements, it is impossible to explain all the law surrounding easements.  The purpose of this post is to point out two of the most common types of easements and give a brief overview of common issues.

Some of the most common forms of easements are travel easements and utility easements. A travel easement is the right for another individual to cross real estate not owned by them.  Usually this is for the purpose of accessing their own real estate.  Commonly, a travel easement (otherwise known as “ingress-egress” easement) is granted to a homeowner who owns real estate that is only accessible by crossing another person’s land.  With agricultural real estate, a travel easement is typically given to a farmer so that they may access their field or pasture as there is no direct access from a road.  Most of these types of travel easements are perpetual or “run with the land.”  This means that if the owner of the easement sells their real estate that is accessed by the easement, the new owner will have the right to continue to use the easement.  When representing buyers of real estate, if there is not apparent direct access from a government roadway, it is wise to inquire as to whether there is a travel easement and whether it transfers to your buyers.  Nobody wants to purchase real estate only to find out they cannot access it!

The other major type of easement is a utility easement. Based upon reading the first portion of this post, it should come as no surprise that a utility easement is simply the right to cross another person’s real estate with utilities.  These types of easements range from a small water line running to a house all the way to high voltage transmission lines.  The most important thing to take into consideration with utility easements is whether the easement will affect the planned use of a potential buyer.  Utility easements commonly do not allow a person to build any structure over or under an easement.  For example, if a Buyer had plans to build a garage, the location of an easement could affect these plans.

An easy way to determine whether there are easements on real estate being purchased or sold is to review the title commitment. This report should list all easements that are affecting the real estate being transferred.  The easements will be listed under the “exceptions” section or following the legal description.  Often the commitment will only list the existence of the easement and not specify the details.  At Tallgrass Title, we happily supply the underlying document listed in our commitments upon request.  That’s our job!

Probate Information for the Real Estate Agent

A common cause for the sale of real estate is when an individual passes away. As a listing agent preparing to list and market the real estate, it is important to answer a few questions regarding the status of the real estate.  You do not want to sign a contract with a buyer, only to find out that the seller does not have the ability to sell the real estate.  Similarly, when representing buyers, it is important to determine whether the seller has the ability to sell the real estate or if there will be a delay in transferring title.  The purpose of this post is in no way meant to be a guide for decedent’s estates.  Instead, the purpose is to identify a few of the common pitfalls and items that routinely delay closings.

When a person passes away owning real estate in Kansas, that real estate will pass to the people identified by the decedent (a person that has died) in some written document. If no such document exists, the real estate will pass to the “heirs” of the decedent as directed by Kansas law.  The three methods of passing real estate by written document are:

  1. Transfer on Death Deed or Joint Tenancy Deed
  2. Trust
  3. Will

A Transfer on death deed or joint tenancy deed will automatically transfer the ownership of real estate to the person or persons identified in the deed. The filing of a death certificate at the register of deeds is all that is required to finalize the transfer.  As a real estate agent, take a look at the deed or ask your title company to take a look to verify that the seller has the authority to transfer title.

The second method is through a trust. Typically, but not always, the trustee of the trust will have the authority to sell and transfer real estate.  However, there are innumerable varieties of trusts with varying powers being granted the trustee.  Therefore, it is wise to verify that the trust document grants authority to sell real estate to the trustee.  Additionally, it is important to make sure that there are not special requirements in the trust document that must take place before a sale is allowed.  For example “I grant the trustee the right to sell real estate….so long as my son does not want to purchase the real estate at the appraised value.”  This example illustrates a potential issue that could delay a sale.

Lastly, if the decedent had a will or passed away without a will, a probate proceeding will be needed prior to a sale. Simply put, probate is the court process of transferring assets of a decedent to those entitled to the assets.  The most important thing to remember with a probate proceeding is that it is not a quick process.  It usually takes at least sixty days from the first court document filed until authority is granted by a judge for the sale of real estate. Based upon the buyer, this may be an unacceptable amount of time to wait.  If you are unsure of where the probate process is, simply contact the attorney representing the estate and ask.

Decedents estates can be overwhelming and often times complicated. At Tallgrass Title, our attorneys have years of experience transferring real estate following death.  We are happy to answer questions pertaining to your transaction.  It’s our job!

Judgments That Appear on the Commitment – and what to do about them

Our job as a title insurance provider is to insure the parties are passing clear title to the real estate. We perform an in-depth search of the real estate to prove that. We also perform a judgment search on both sellers and buyers. We check for court cases filed against each party and any liens that have been filed against the real estate. If we find any open matters that need to be resolved, we add requirements to the commitment. Once the required documents are provided to us, we can clear the lien from the real estate.

Child Support

If a divorce has been filed by one (or more) of the parties, there may be a court order for child support or spousal maintenance. The title insurance commitment will list a requirement for proof that the payments are current.

Tax Liens

In some cases, the real estate taxes may be delinquent. When this happens, the delinquent taxes must be paid off during closing. The seller can certainly pay the taxes before closing, but we are usually asked to pay them off out of the seller’s proceeds. We obtain a payoff statement from the county treasurer’s office and add the total payoff amount to the settlement statement. If the seller chooses to pay the back taxes early, we will update the commitment as soon as we receive proof of payment.

Mechanics Liens

Contractors who do certain types of repairs or improvements have a period of time to file a lien. For example, if a homeowner doesn’t pay a bill for their driveway being paved, the buyers could be stuck with paying it. The unpaid contractor has up to a few months to file a lien at the county. This is why we have each seller sign the Affidavit of Debts and Liens. By doing so, they are swearing that there are no other outstanding debts that could attach to the real estate.

Civil Matters

If there has been a civil case filed against one of the parties, we have one of our attorneys review the documents to be sure it will not attach to the real estate. We may require additional documents or a payoff in order to release the suit.

Here at Tallgrass Title we understand that each real estate transaction has unique twists. Feel free to call or email if you have any questions about your transactions. As always, we are here to help!