Tag: insurance

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!

How to Securely Share Documents to Paperless Closer

With email fraud at an all-time high, it is highly important that any information shared with your title company be transferred securely.  In addition to password protecting emailed documents, the Paperless Closer technology utilized by Tallgrass Title allows for you to securely upload documents to our system.  The process is simple, secure and live in our system as soon as the document is uploaded.  Utilizing this platform is an easy alternative to emailing documents that may possibly contain Non-public Personal Information.  We will have immediate access as soon as you complete the process below.

When you upload a document to Paperless Closer, the system automatically restricts access to it.  No one other than the admin for that Paperless Closer (the title company) can change the restrictions and allow others to access the documents.

If you have never uploaded a document to Paperless Closer before, here is how you do it.

STEP 1: Click on the Add Document Button at the bottom

STEP 2: Click on Choose File to browse and locate the document you would like to upload.

STEP 3: Make sure you name your document in the Description Box. Then hit the Save button.

STEP 4: Once you have saved the Document will appear in the Document Tab List along with any other Documents you have permission to view.

Documents will also be available to us on our system right away.

Paperless Closer requires that the user has a login ID and password.  If you do not have an account, call or email and we will set up login information for you.  Once you have access, you will need specific permission for each file you would like to view.  Finally, uploaded documents are restricted until permission for access to any document is granted.  Every layer is one more way that the client (Buyer, Seller, Realtor, Lender) is protected.

Paperless Closer functions in real time.  This means that as soon as a document is uploaded, anyone with permission can access it.

Additionally, the document can be uploaded securely to this portal from anywhere in the world.  This means that you can upload a contract without delivering to our office.  More and more, folks are uploading their new contracts and requesting our free courier to pick up an earnest money check.  In this scenario, you never have to leave your office or home!

At Tallgrass Title we take our clients’ security seriously.  If you have any questions or need some help with your Paperless Closer, we are only a phone call away!

Escrowing Insurance Premiums and Taxes

When folks purchase residential real estate and require financing, most likely an “escrow account” will be established during the loan process for the payment of insurance and taxes. This is different than “putting a contract into escrow.”  “Putting a contract into escrow” means that the contract signed by the buyer and seller has been delivered to a title company to begin working towards a transaction.  An “escrow account” established for the payment of insurance and taxes basically means that you will make a monthly mortgage payment to your bank and a portion of that payment will be set aside to pay your homeowners insurance and real estate taxes automatically.  This is done for a couple of reasons.  First and foremost, lending regulations require a bank to establish an escrow account with most residential real estate loans.  Secondly, because the home is the bank’s security for the repayment of the loan, it wants to make sure that its security is protected.  Therefore, the bank wants to make sure the home is insured against loss and they also do not want the home taken away for the failure to pay the real estate taxes.

During the loan process, you will be informed of how much the monthly insurance and taxes escrow will be. Also, because your transaction will most likely not happen on the 31st of December, some proration of taxes will be required.  Proration means that the seller will be responsible for the taxes while he/she owns the home and you will pay the taxes when you own the home.  However, taxes are only payable at the end of the year.  Therefore, the seller gives a portion of the taxes to the buyer and the buyer pays all the taxes at the end of the year.

Also, the bank will collect additional funds to be placed into the escrow funds at the time of closing your loan. Those beginning funds will be added with the monthly payments to pay the insurance and taxes when they come due.  The bank handling the escrow account will receive the yearly bill for insurance and taxes and pay them when each comes due.  You will still receive a statement from the County Treasurer and your insurance provider, but this is simply for your information.  Additionally, you are always welcome to choose or change your homeowner’s coverage and insurance company.

Upon selling your house, you may have funds left in the escrow account that will not be needed to pay any future insurance or taxes. These funds will be returned to you following the sale of your real estate.  It is important to work with the escrow service to make sure they are mailed to your new address.  Questions about escrow accounts, homeowner’s insurance coverage and real estate taxes during the loan process are quite common and can seem complicated.  If you have questions, speak with your banker or our closing agents here at Tallgrass Title.  We are happy to explain the process.  It’s our job!