The offer is in and accepted, the closing date set. The bank has approved the loan and it seems like smooth sailing from here. All that remains is for your clients to sign on the dotted line and hand over or accept the keys. Sound about right? In a perfect world, maybe, but we all know that factors beyond (anyone’s) control almost always produce some barriers to closing. Here’s a closer look at some of those more common.

Obstacles Common Among Delayed Closings

1. Defects on title discovered: Problems surrounding boundary issues, unresolved seller liens, unknown heirs or illegal deeds, among others, can all prolong the closing date until such obstacles are resolved.

2. Problems missed by appraiser arise prior to closing: Repairs overlooked or undervalued by an appraiser may indeed require repair by the bank before settlement. Issues may include interior and exterior paint, leaks and cracks along with roofing, air conditioning or heating problems.

3. Incomplete documentation: Any documentation pertinent to the real estate transaction determined incomplete by the lender must be fully and satisfactorily submitted before closing can occur. Such paperwork might include information missing from the loan application, complete list of debts or assets, or full disclosure of income.

4. Delayed inspection or homeowner’s insurance documents: For the loan to fund, a myriad of documents, among those home inspection and homeowner’s insurance paperwork, must fall into the right hands prior to closing. Getting ahead of the game and guiding your clients to do the same saves time and stress when closing is days (or hours) away.

5. Communication breakdown: For a successful, smooth closing, all parties must be transparent in their actions, working symbiotically to move the transaction forward in a timely manner. Fluidity of communication, among all parties, cannot be overstressed enough.

Staying abreast of the process and knowing exactly where it is along the path towards settlement can do wonders for the stress level of your clients, and yours as well. After all, you are the tether to which clients cling throughout the (often) tumultuous home buying process. Having a broad knowledge of the potential mishaps and obstacles potentially threatening that golden closing date helps mitigate such events, bringing you, your clients and those privy closer to the smooth ride we all hope for.

Reducing our carbon footprint is something on everyone’s mind these days, prompting us to participate in everything from recycling and using energy-efficient lighting to driving electric cars. Even businesses get in on the effort by reducing waste, and minimizing or eliminating paper usage through cloud-based file sharing and storage. But is a truly paperless work environment really possible? That probably depends on your industry, and in some cases, the laws governing your trade.

Saving a Tree or Two

Paper-saving solutions have been implemented across various industries to reduce waste, preserve natural resources and participate in eco-friendly business practices. Retailers have certainly jumped on board, following the lead banks and credit card companies established a few years back with electronic submission of statements and ATM inquiries. In many locales, it’s becoming common practice to offer the option of emailing purchase receipts rather than providing a paper receipt at the point of sale. These industries have made a concerted effort to reduce, and even eliminate, the paper stream plaguing society, at least in theory. A number of customers still prefer to have paper-in-hand when it comes to their money.

The Medical Sector Cuts Back

While some medical and dental offices are ultra-high tech, asking patients to complete medical histories and HIPAA forms either online or via tablet, others have them fill out paperwork then scan the documents into their systems. The latter still generates a fair amount of paper in the short term, in addition to the time and effort of shredding paperwork once scanned. (Doing so does, however, significantly diminish the amount of paper maintained by an establishment.) Medical and dental practices must factor in the initial software and hardware costs of integrating a truly paperless system plus the human capital needed to assist those less technically advanced when considering the jump to such an environment. Focusing on the long-term benefits and environmental advantages is great motivation to continue on this path.

Paperless Real Estate Transactions

There’s perhaps no other business situation generating such a great amount of paper as a traditional real estate transaction. From the initial contract to the very last page of settlement, pages upon pages of information must be presented and received by parties on either side. A number of companies have come to the rescue, offering up the opportunity to be a truly, bonafide paperless business. Some of these heroes include Paperless Pipeline, Real Estate Paperless Solutions and dotloop, with new companies touting paperless real estate transactions on the rise.

In general, the title and escrow sector is making to push towards a solely digital interface, yet the extent to which this occurs is largely dictated by lenders and state governments. While in some locales paperless closings are commonplace, not all states allow digital signatures. In the Commonwealth of Virginia, for instance, all closing documents must be signed on the dotted line with ink (typically blue ink, at the preference of most lenders). As technology advances, and the benefits of a paperless system embraced, we may just see the day all real estate closings are completed without pen in hand.

Is it possible to have a completely paperless environment, one without even a single sticky note? The theoretical, and realistic for some, answer is yes. It’s simply a matter of overcoming the technological learning curve and mindset, and making the concerted effort to create a truly digitized work environment.

Consider this scenario…

The closing is scheduled for tomorrow. The title company receives the binder and immediately places a call to the realtor indicating the whole thing might not go down. A couple of judgments and an unreleased deed of trust (from two decades ago) on title is threatening the thwart the transaction and demolish future plans of all parties partaking in the sale. Enough to make you run for a bottle of antacid? We think so, too.

Your Owner’s Policy, the Hero

What do you do? Well, that depends on which side of the transaction you’re on. If you’re the seller, having an Owner’s Title Insurance Policy covers your interests, likely without even having to file a claim. Clouds or defects on title not identified at the time of your purchase of the property are, in fact, covered by title insurance. Without an Owner’s Policy, however, you may have to say goodbye to selling your house and hello to a whole host of other issues.

On a side note, and speaking directly to the hypothetical situation described above, you can file a claim if the buyer’s side won’t accept anything other than release of deed of trust.

View From the Other Side

What if there is no owner’s policy? How does this affect the buyer? The title has to be cleared before purchase, of course, which may increase the time it takes to close. If the owner cannot convey clear title, however, the buyer may back out of the transaction (provided the buyer isn’t in breach of contract), and receive a refund of any deposits applied toward the property.

When Might a Claim Need to Be Filed?

Having an Owner’s Policy is a must when protecting your interests surrounding a property. As well, you never know when an unforeseen issue may arise and threaten your rights to your home, forcing you to file a claim against your policy. Some of the most common reasons for filing a claim include:

• Foreclosures with title issues (the bank would file a claim against the owner’s policy)
• Unreleased deeds of trusts
• Judgments against prior owners who weren’t found during title search or missed by the underwriter
• Undisclosed or long lost heirs to the property
• Buyer’s side fails to accept Owner’s Policy

In such a situation as those listed here, the buyer’s side could allow the seller to indemnify, but the seller assumes responsibility for defects on title in the future.

Who Files, and With Whom?

The party filing the claim all depends on the nature of the situation. With an Owner’s Policy comes a claim form that should be completed and submitted to the underwriter as soon as possible. On it, assuming you’re the party filing, you’ll need to describe the details of title clouds or other circumstances preventing you from selling your property.

 What to Expect

The Process: The underwriter’s attorney on staff will act on your behalf, taking care of all necessary paperwork. Since he/she will proceed in your best interest, there’s generally no need to seek counsel on your own accord.

Timeframe: The time is takes to work out all the kinks is circumstantial, depending on the situation and its complexity. Processing the claim could take anywhere from one month to a year.

Potential Outcome: If you’ve covered yourself with an Owner’s Policy and were issued clear title, the claim will typically pay out. Depending upon the title issue, for example the discovery of a long lost heir, the resolution may result in the loss of the property; however, you’d still be compensated for the loss by your Owner’s Policy.

The lesson to be learned is, of course, the dire need to have an Owner’s Title Insurance Policy. Ensuring swift action at the first hint of a title problem is also key to preserving your real estate interests. For more information on Owner’s Title Insurance, contact Linear Title & Escrow at (757) 340-0340 today.

Building your business reach nowadays takes on a different form compared to decades ago, or even the last five years, for that matter. Staying abreast of not only how people connect but the platforms behind the various techniques available for doing so is crucial, whether looking to take on new clients or partner with other organizations. While meet-and-greets and business conferences are far more personal and still tried-and-true ways of creating, strengthening and maintaining connections, digital networking opens up a world of opportunity.

Benefits of networking in the digital age include:

• Enhanced information sharing
• Cultivation of relationships
• Exponential business growth
• Global reach/exposure
• Expedited dissemination of information
• Unlimited potential for new opportunities

Digital Networking for Today’s Professional

Physical, in-person communication still reigns king, but failing to take advantage of digital networking leaves a great deal of untapped opportunity to grow your business reach, expand your knowledge base and enrich relationships with business contacts. Consider the following popular avenues for networking today:

LinkedIn – A wonderful outlet for expanding your network, LinkedIn is the platform for initiating and fortifying connections with colleagues, recruiters and other organizations. No matter your profession, this unique social media arena affords the occasion to network with other professionals, potential employers and employees, and business contacts.

Email – Using email for networking purposes can be extremely advantageous, provided it’s not spammy. Email is great for follow-ups and keeping your name, brand or business fresh in the minds of your contacts. It’s also an effective means of communicating upcoming events, changes to your business structure or product offerings, and your interest in the brand, products and/or services of your contacts.

Social Media – Networking through social media is a way to really maximize your business reach. With the potential to engage millions of people around the world, well-placed social media posts can take your business to heightened levels. Since social media platforms do offer the chance to reach the masses, however, be sure you engage in a way that supports your business goals and objectives as well as your brand.

Apps – As you well know, there’s an app for everything nowadays – and business networking is no different. New networking apps are constantly in the works, and can certainly streamline your efforts to connect whether in town or on the road. A few of the more popular, current networking apps include Addaapt, Shapr, Fuze, GroupMe, MeetMe and Skype. A quick, periodic Google search can keep you up-to-date with what’s relevant at any given time.

You never know when your connections will drive your business into new, profitable territories. Give it the best chance possible with a sound digital networking strategy.

Social media has become a cornerstone of marketing for businesses and individual services worldwide. Whether brick-and-mortar or Internet based, companies of all sizes are getting in on the social media marketing game, and with huge success. Not every platform is right for all types of businesses, but to ignore this huge elephant of a marketing strategy is selling yourself short of maximizing your business reach – and your profits.

The Platforms Are Aplenty

From Facebook to Pinterest and everything in between, you likely have your own personal relationship with social media – but does your business? Teens, stay-at-home-moms and dads, business associates and even grandparents crave the connection these outlets provide, visiting their accounts multiple times each day (some bordering on the obsessive). When it comes to social media, there truly is something for everyone. Consider the following popular avenues in which we stay socially connected:

• Facebook
• Twitter
• Pinterest
• Google+
• Instagram
• LinkedIn
• Tumblr
• … and a whole host of others (literally – there’s something for everyone)

Give Thanks to the Information Superhighway

Thank you, Internet (and Al Gore). Congruent with the rise in social media popularity for staying connected with others, businesses everywhere have leveraged the world’s love for the Internet as a chance to be seen and heard by the masses. No matter where you are in the world, you can direct a significant share of your marketing towards your target demographics, often at no to low cost (think PPC and AdWords). With a well-planned social media strategy, your business can reach a much larger audience, even targeting those whom you previously overlooked as potential clients.

Location, Location, Location

Yes, the Internet is everywhere. But jockeying for that coveted first page of Google rankings means a great deal to many a company. Given the world’s love and devotion to social media, the potential for widespread information exchange is exponential and affords the opportunity for well-placed content to bring in new and repeat business. “Content is king,” three words having become an axiom for Internet/social media marketing, rings true – but only as it best relates to your business, brand and marketing goals. Your efforts on social media, and your company website, should include content, images, infographics and the like to appropriately engage your audience. Only when you have your target market’s full attention will you convert engagement to sales. Position your content wisely, and reap great rewards.

Branding Through Social Media

Social media is an excellent way to brand your business, products or services. The key is determining which social media channels best support your marketing/branding objectives. Consumers are smart and often know exactly what they’re looking for. It’s important to choose the right platforms, and remain genuine and truthful in your message to best engage your audience organically.

No matter your business or position within an organization, you could say you have the world at your fingertips. If you find the task of social media daunting, it’s often well worth it to hire a social media marketing manager. In either case, don’t let this enormous opportunity to further your business reach pass you by.

When you purchase a home or piece of land, the title company leading the real estate transaction will at some point request a copy of the property survey. Surveys are significant to the home buyer, clearly identifying property boundaries and legal points of which to be aware.

There are several factors of importance title companies attach to the confines of a property in question, the least of which is to add to settlement costs. If you can obtain the original survey from public record, good for you – you may save yourself some money. However, in the event the original survey can’t be located (too far buried or no longer accessible) or the lender requires a more recent document, ordering a survey on the property will be necessary. Here’s why:

Top 6 Reasons a Property Survey Is Necessary

Utility and Municipality Claims: Recording the location of utility pipes, wires and other equipment is especially important prior to any type of construction, but it also determines if a utility provider or municipality has certain rights to utilize your property to maintain services. The location of easements, right-of-ways and the like must be made obvious to all parties affected by the property.

Exact Demarcation of Boundary Lines: Knowing where the property lines begin and end is crucial in establishing the value of the property, among other factors – such as avoiding future boundary disputes.

Presence of Burial Grounds: A land survey provides information on the presence of cemeteries or burial grounds on the property, areas in which building or landscaping may be prohibited.

Zoning Classifications/Restrictions: Understanding zoning classifications and restrictions governing the property assists in knowing exactly how the property can be used according to city, county and/or state law.

Standing Property Improvements/Renovations: A survey will determine if any improvements or renovations having occurred on or to the property fall within legal parameters, and whether any changes need to be made to the property to comply with laws governing the land and any structures.

Encroachment/Joint Structures: It’s important to identify areas of encroachment (for instance, a neighbor’s shed that sits partially on your property) or the sharing of structures between two or more properties. Dealing with such issues now can save you money and legal headaches down the road.

There are certainly other considerations that go into a property survey (particularly if you plan to add a pool, fence or other structures in the future), underscoring the need to hire a professional to cover all concerns affecting this critical document. For more information on property surveys or assistance with hiring the right professional for the job, contact Linear Title & Escrow today at (757) 340-0340.

We talk a great deal about the importance of purchasing title insurance, but can passing over such a policy truly place your client’s property and finances in peril if they fail to purchase? In short? Yes. Absolutely. Without a doubt.

As you likely know, title insurance protects parties on either side of the real estate contract from caustic infractions that can render a title problematic. However, your clients may not be aware that such a policy (or a need for one) even exists – especially first time home buyers. Whether you’ve been in the business for a short time or more years than you care to divulge, maintaining a thorough understanding and healthy respect for title insurance is crucial as you navigate your valued clients through the home buying experience.

Understanding Each Policy Type

First, let’s delve into the difference between a lender’s policy and an owner’s policy. Often referred to as a “Loan Policy,” lender’s insurance covers the financial interests of the lender in accordance with the dollar amount owed on the home loan. In no way does it protect your client’s interests in the property. Even if your client’s lender requires the purchase of a Loan Policy, and they will, your client’s interests in the property still need the protection of an owner’s policy. The owner’s policy covers the amount of the real estate purchase (or up to this amount) in the event the title is deemed unmarketable or defective following closing. Both policy types are vital to their respective parties and necessary to protect against potential financial losses resulting from issues undiscovered during the title search.

Consider the following breakdown of each policy type:

• Lender’s Policy: Protects the mortgage lender’s financial interests for the remaining dollar amount of the loan.

• Owner’s Policy: Protects the homeowner’s/buyer’s financial interests up to the amount of the real estate transaction.

Factors With Potential to Affect Title

Even when a title search is performed by the best of the best, certain factors may be overlooked unknowingly or completely undiscoverable at the time. A sample of such factors are included below (for a more comprehensive list, visit our Title Insurance page:

• Fraudulent actions
• Forgery
• Missing or undisclosed heirs to the property
• Improper delivery of deeds
• Unpaid property liens, judgments, assessments or taxes
• Inaccurate or unlawful property descriptions
• Inaccurate or unlawful execution of documents
• Conveyance of a property by a person deemed legally incompetent or a minor

Buying Peace of Mind for Both Parties

Essentially, lender’s and owner’s title insurance policies are equally important portions of a title insurance package. Purchasing title insurance incurs a one-time payment, unless the property is ever refinanced (in which case, a new title insurance policy would be necessary). Though ultimately the responsibility of the buyer, the premium for this policy may be negotiated between the buyer and seller prior to closing. In any case, title insurance affords protection of associated assets and ultimately peace of mind for parties on both sides of the transaction.

The more you know, the more your clients trust you. For more information on title insurance, visit our Title Insurance page or contact us at (757) 340-0340 today.

Having served the Greater Hampton Roads area since 2007, we are proud to be your premier source for title and escrow services. Contact us today to learn more about ensuring a smooth closing experience for you and your clients.

Our Commitment to Excellence

Linear Title and Escrow provides unsurpassed levels of tangible and intangible value. We make every effort to accommodate clients under any and all circumstances within industry regulations to ensure an effective real estate transaction. We offer our clients a sense of security with all real estate closing needs while consistently exceeding expectations. Our staff is committed to providing assistance in handling any and all title concerns that occur both within and beyond the scope of standard proceedings.