Tag: deed packet

But really, have you met RON?

Ever since the State of Kansas passed and implemented permanent RON legislation, we’ve been hard at work to get RON off the ground and running.

We’re thrilled to introduce you to our friend RON.

Who/what is RON?

RON stands for Remote Online Notarization. This is the process of a signer appearing before a notary public (with RON designation) via a recorded audio-visual call. The documents are signed and notarized electronically, and the signer must complete KBA (knowledge-based authentication) identity verification prior to signing.

The implementation of KBA identity verification makes completing a signing and notarization with RON technology even more secure than in-person.

Why does RON matter?

Over the past few years we have come to understand the need to be flexible and introduce remote solutions. Beyond quarantine and illness, we’re living in an increasingly digital world. If you can order your groceries from your couch, why not buy or sell your house? Both are inevitably quicker and contact free.

The significance of RON goes beyond a matter of convenience. Sellers often move before the sale and buyers aren’t always available to close. Our Kansas RON notaries can complete a notarization with a signer anywhere in the United States. Over the past month, we’ve completed deed packets with sellers in Colorado, Iowa, Texas, and right here in the Flint Hills.  These signings took no more than 15 or 20 minutes, proving to be quicker and more cost effective than overnighting documents back and forth to out of state parties.

How does it work?

Tallgrass Title has partnered with the RON platform Pavaso in order to complete seamless notarizations. Like many other RON platforms, Pavaso boasts KBA identity tools and an environment to perform audio-visual sessions, that are recorded and stored for 10 years (should there ever be any question about a particular signing or document).

Pavaso also allows for your Tallgrass Title closers to act as the notary during these RON sessions, whereas many RON vendors require that you use their contracted notaries. We understand that relationships make up 90% of the work that we do – if you and your client utilize RON through Tallgrass Title, you and your clients will be meeting with your beloved Tallgrass Title closers.

If we decide that RON will be right for your next transaction, we will send the signer and any requested observers links to sign up for Pavaso in advance of the scheduled “closing” time. During this time, the signer will have access to review the documents they will be signing in advance. We feel that this gives the client opportunity to prepare questions for the closing agent and avoid the “rush” feeling that often accompanies in-person signings.

When will this be available?

It’s available now! We have been using RON to complete deed packets for several months now and have found this to be an excellent resource for sellers. We hope to utilize RON for loan packets in the future, but approval will always be up to the individual lender’s discretion. If your lending institution is interested in or already using RON, let’s talk!

That’s a wrap!

If your team would benefit from more information about this awesome resource, we’d love to sit down and provide you with more information and/or a demo! Please keep this awesome resource in mind for your next transaction. And as always, let us know how we can best serve you and your clients – it’s what we’re here for!

Closings with Karissa: Settlement Statements

As we prepare to close a transaction, we create settlement statements, which are documents demonstrating all debits and credits associated with the transaction. The American Land Title Association (ALTA) has provided a standard template for these forms, so they are recognizable and readable, no matter which title company you close your next transaction with. Whether the transaction is cash or financed, our office will provide ALTA Settlement Statements to both the Buyer and Seller. The Buyer and Seller statements are unique to their respective side of the closing and can only be shared with the other party if we have express permission in writing.

Sellers

When reviewing the Seller Settlement Statement you will find the sales price, any applicable credits the Seller gave to the Buyer in the contract, a tax proration (either a credit or debit depending on the time of year and if Seller paid them prior to closing or not), title expenses that consist of closing fees and title insurance premiums owed to the title company, any commissions due to realtors, payoffs of current liens, and any invoices or repairs that the Seller has agreed to pay for.

Buyers

When reviewing the Buyer Settlement Statement you will find the sales price, any applicable loan amounts, any applicable Seller credits the Seller agreed to within the contract, a tax proration (either a credit or debit depending on the time of year and if Seller paid them prior to closing or not), loan closing charges determined by the lender, impounds for the Buyers new escrow account collected at closing by the lender, title expenses that consist of closing fees and title insurance premiums owed to the title company, recording fees to file the deed and mortgage of public record with the county register of deeds office, and fees for any inspections or additional work the Buyer has requested prior to closing.

Buyer Settlement Statements may also be referred to as Buyer Settlement Statements.

Bottom Line

Both the Buyer and Sellers statements will include an amount that is either due from or due to that party.  If an amount is due from, this represents the amount due to the title company to close the transaction. If an amount is due to, then you should expect a proceeds check following closing!

This Buyer/Borrower settlement statement reflects the amount the due from the borrower in order to finalize the transaction.
This Seller settlement statement reflects the proceeds the seller will receive after all seller costs are paid.

Signing

As part of “closing” Buyers and Sellers need to review and sign their respective ALTA settlement statements in order to acknowledge their acceptance of the breakdown of debits, credits, and bottom line.

Sellers are more than welcome to sign in our office, with their realtor, on their own or electronically.

Buyers of cash purchases can do the same as above but in the case of a loan will need to sign with the title company, lender or mobile notary.

Questions?

If you have questions about you or your client’s ALTA Settlement Statement, give us a call! We are here to help make this a positive experience.

Early Deed Packets = Smooth Closings!

We have a saying in our office: “early deed packets means smooth closings!” But why would a few signed documents mean closing would run smoother? The more information we receive ahead of closing allows our closing team to gather any additional information we may need well in advance.  An early and complete deed packet allows us to balance with your client’s lender and get final numbers out for buyers in cash transactions. That way, when the day of closing comes around finalizing the transaction is a smooth process, leaving more time for celebration and little to no concern about whether things will fall into place.

Deed Packets contain several documents that consolidate much of the information we will need prior to closing.  This includes a form that allows us to contact the Seller’s current mortgage holder to obtain a payoff. This is especially important right now with many mortgage companies experiencing staffing shortages with extended processing times.  Oftentimes, it can take up to 20 days to get payoffs returned to us.

Early deed packets also allow us to deliver early settlement statements to you and your clients.  This gives plenty time for review and provides a clear picture of what the closing day will look like on the financial end of the transaction.

Additionally, some expenses will not be clear to us until we have the deed packet returned, including information about Homeowners Associations.  Having information about a property’s HOA membership in advance allows us to ensure that prorations are applied appropriately at closing.

This early document package also contains important information about email fraud and wire fraud. We want to help protect your client’s money just as much as you do.  This information is available to all of our clients in order to inform them of the dangers of spam emails and the possibility of fraudsters intercepting wires. Likewise, we include information about how we protect our clients from theft with CertifID.  We use CertifID to send or verify wiring instructions prior to the day of closing.

We understand sometimes coordinating a deed packet signing can be an issue as schedules vary.  Your clients are more than welcome to come to either of our offices Monday through Friday during business hours and we would be happy to walk through the deed packet with them. Alternatively, we offer free courier service and would be happy to meet your clients at a convenient location in Manhattan, Wamego, Alma, and Westmoreland.

Should you have any questions about the contents of a deed packet, feel free to contact one of our real estate professionals to assist you through the process.  It’s our pleasure to assist you!

What Day of the Week is the Best Day to Schedule Your Closing?

In today’s market with interest rates so low everyone is looking to buy. Why is it important to pick the right closing day? What are the best and worst days to close? For most clients, the bottom line is “When will my proceeds check be ready?” or “When may I move into my new house?”

Any day is the best day to close!  You are purchasing a home and are anxious to move in or are ready to close on the sale of your home and eager to use the proceeds for another transaction.  However, based upon the hectic housing market and record transactions taking place, certain days may just not be as convenient for all parties as others.

We will start with the best days to sign. From a title and lender standpoint the best days are Tuesday through Thursday with the exception of the 1st, 15th, or last day of the month. No one really wants to leave work early, come in late or take a day off in the middle of the week to go sign a bunch of papers, right? But those are the least busy days for a title office or lender which for the client means more flexibility on scheduling the appointment, more time available to go over specific questions about the transaction, and a more relaxed atmosphere.

So why are certain days less ideal than others? The short answer is that Fridays just seem to be a popular day for closings. We are also seeing an increased volume of closings on Mondays as well as the 1st, 15th, and last day of the month. While closing can still take place those days, scheduling will not be as flexible, and the appointment may be restricted to a certain time frame due to the high volume of other transactions.

Another consideration to make is that picking a Friday to close could actually result in further delaying your transaction if something doesn’t go as planned or a funding number is not received by the close of business. If a Friday closing has to be delayed for whatever reason, the earliest it can occur would be the following Monday or even Tuesday if the issue that caused the delay cannot be corrected in enough time for a Monday closing. If Friday is your only option for closing, consider closing in the morning to ensure funding can take place before the end of the business day.

So when will the checks be ready? Most lenders have requirements to be met before authorizing the title company to fund each transaction. This can take anywhere from a few minutes to several hours. Rest assured that as soon as funding is authorized, we will issue checks and notify all parties.

For updates on your transaction, we offer Ready2Close. This portal allows clients to track the progress of their closing with a milestone tracker. Clients can also securely transmit and receive documents, e-sign certain documents, and access contact information for those involved with their transaction.

Happy Closing Day!

Defining Deed Packets

Getting Deed Packets signed early is an essential part of the closing process. It helps your Closer calculate certain fees, pull payoffs if there are any, and makes it possible to verify information for post-closing tasks well in advance

There are quite a few documents in every deed packet and it might be difficult to remember what they all mean if your client asks, so today I will walk through our Deed Packets and what each document is used for.  As always, our team remains available to answer questions that you or your client might have about completing these documents. So don’t hesitate to give us a call!

Fraud Warning Fact Sheet

We use this form to make our clients aware of wire fraud and our partnership with CertifID to ensure that all wire instructions are verified and insured when the funds leave our office via wire transfer. Each statement will need to be read and initialed and then signed at the bottom.

Authorization for Release of Information (Payoff Requests)

This form allows us to request payoffs for existing mortgages in order to clear them at closing. The more information provided, the easier it is for the closing agent to obtain the payoff. Along with the signature line is a place to include the Sellers SSN and the date they signed the release.

1099 Tax Information Sheet

The top portion of this form will need to be filled out completely with the Seller’s Address, Phone number, and SSN or EIN. This will help us send out accurate 1099s the following January.

Proceeds Instruction Sheet

These are instructions for us to disburse the proceeds and how to get them to the Seller in the transaction. Once a selection has been made from the list we will need the form signed and returned with the rest of the packet. These instructions can always be changed by signing a new form with new instructions.

Authorization to Pay Commission

If there is a realtor, this one allows us to get the realtor paid at closing in the accurate commission amount as designated by the Agreement. It will need to be filled out whether there is a commission percentage or flat fee. If there is a Seller Realtor Admin fee, there is a place to include that as well and then it will be signed by both Seller and Listing Agent.

Homeowners Information Sheet

Not all packets will include this form. If the real estate is not located in a subdivision or we know that there are no HOAs in a certain subdivision, we will not include this. If it is in the packet, we will need to know if there are HOAs. If there are not, the “No” box will be checked and you can move to the next form. If there are HOAs then the “Yes” box will be checked; please complete as much of the HOA contact information as possible.

Authorization for Release of Information to Designated Realtor

This form will not change how we treat the transaction. Sellers have the option to direct us not to share their private information with the Buyers Realtor. If the top box is checked, directing us not to share information with anyone other than their realtor or lender, then we cannot and will not share a settlement statement with anyone, even those involved in the transaction, other than their realtor and lender.

NOTE: To prove commissions have been applied appropriately we can send a heavily redacted version of the ALTA settlement statement that only shows commission amounts and the Sellers signatures.

Covid-19 Notice of Possible Delays

This one is a notice that lets everyone know that there could be delays related to Covid-19 with getting documents recorded, back from recording and getting final policies issued.

Notary Instruction, Identification Verification and Notary Information and Certification

When documents are notarized, our office needs proof that the notary checked the identification of the signor and that the notary is in good standing with the state in which they are bonded in. It will also help in the event that we need to contact the notary if we have any questions regarding the notary’s information.

Affidavit as to Debts, Liens and Indemnity

This affidavit is a statement made by the seller that there are no liens or potential liens, or that no one holds an interest in the real estate that we would need to clear up prior to closing. This will need to be signed in front of a notary.

Limited Power of Attorney

We include a Limited Power of Attorney in all of our packets for Sellers to utilize. If signed it allows the realtor to sign settlement statements and any Buyer loan docs on behalf of the Seller. It is not required and is solely at the option of the Seller to sign.

Deed

The Deed varies as much as the transaction itself as to what kind of Deed is used to transfer the real estate. This will need to be signed by everyone who holds an interest in the real estate to complete a free and clear transfer. We hold the deed in our office until the transaction is closed and funds have been disbursed. At that time we record the deed with the county register of deeds to complete the transfer. The original will be sent to the buyer with the final loan policy.

In addition to the above, other documents may appear in a deed packet on a case by case basis.

Affidavit of Non-Production – Used to clear existing expired oil and gas liens.

Affidavit of Child Support or Spousal Maintenance – Used to clear divorce/child support cases.

Certificate of Trust – Used to prove the trustee signing has authority to sign.

Corporate Resolution – Used to prove the signor of a company has authority to sign on behalf of the company.

Affidavit of Death – Takes the place of a death certificate to clear title.

The earlier in the process we can get these documents signed and back to our office, the smoother we can make the whole closing process. Everyone in our office is a notary and we are more than happy to meet with clients to get Deed Packets signed.

We do offer a free courier service and can send someone to you to get everything signed if you just can’t get away. Just call our office and set an appointment for a time that works best for you.

Deed Packet Pro Tips

So, what comes next after the signed contract has been delivered to the title company and the title commitment is complete? The Deed Packet!

The number one thing to remember is: EARLY SIGNATURES MEAN SMOOTHER CLOSINGS!

The sooner the completed deed packet is sent back to the title company, the easier it is to complete the pre-closing tasks. For example, the information release allows us to obtain the mortgage payoff quote. The deed and other documents to be recorded must be reviewed to ensure they will meet the county recording requirements.

The second thing to remember is: Let the title company know asap if the seller doesn’t live close by.

If the seller lives some distance away, they may need extra time to ship the completed documents back to us in time for closing.

Here is a breakdown of the most common documents in the Deed Packet:

The Deed. (No kidding, right?)

However, this is the most important document of the bunch. Please ensure that each party signs it in the presence of a notary. As we mentioned in a previous blog, it is also paramount to keep the same original formatting to ensure it is accepted for recording. And, it really makes our job easier if all of the documents are printed single-sided, not double-sided!

The Affidavit as to Debts, Liens and Indemnity.

This is a complicated title for a document that actually has a rather simple purpose. The purpose is for the seller to confirm that there are no other liens that can attach to the real estate. Each party will have to sign in the presence of a notary. However, the important thing to keep in mind are the checkboxes that usually appear on pages 2 and 3. Each of the statements that accompany the checkboxes should be read carefully before being marked off.

The Authorization for Release of Information.

All mortgage holders require that 3rd parties receive authorization from the mortgagors to receive any information from them. Without this document, we can’t prove how much money will be needed to get the mortgage released. It is also important for the seller to fill out the name of the lender, and the account number if they have it. This is because there are certain types of mortgages that don’t have to report to the county when they are sold. It could potentially delay closing if the title company doesn’t know who is actually holding the mortgage.

The 1099 Tax Information Sheet.

Yes, the title company must report most sales to the IRS. Besides the signature lines that are clearly visible at the bottom of the page, there is other information that is needed. Near the top of the page, please guide the seller to fill in their social security or tax ID number(s), their new/forwarding address, and their phone number. We have to mail out a copy of the actual 1099 form to each seller for the next tax year, so a valid mailing address is really, very helpful.

Here at Tallgrass Title, we also include Fraud Warnings to put people on their guard. This is very important to us, since fraud is becoming more common.

These are the documents that are included in most Deed Packets. There may be other documents specific to the transaction, but they usually don’t appear as often. Please feel free to reach out to us if you have any questions about any of the documents you see in the Deed Packet. We are always happy to help and will even send out a notary to meet with your sellers who are in the area!