Archive for the ‘Title Industry Definitions’ Category

What is the PURPOSE of Title Insurance? by Inwest Title a Utah Title Company

Thursday, October 24th, 2013

Click on the play button to hear Tracy explain WHY you need title insurance.

Tracy Cottle-Tips from a Title Agent

 

For this and other information on Utah Title Companies, Utah Title & Escrow, or Title Insurance Quotes locate and contact your nearest Inwest Title office at www.inwesttitle.com.

HOA Registry by Inwest Title a Utah Title Company

Thursday, July 11th, 2013

HOA and Condo Contact Information to make your life easier!

 

All new Homeowner Associations and Condos are required to file in the registry no later than 90 days after recording their CC&Rs.  They are also required to file changes within 90 days of being implemented. The registry provides contact information so you know the point of contact for payoff or lien release information.  You can access this registry by going to :  https://secure.utah.gov/hoa/index.html

Here is what the website looks like and offers several different points of contacts.

For this and other information on Utah Title Companies, Utah Title & Escrow, or Title Insurance quotes locate and contact your nearest Inwest Title office at www.inwesttitle.com.

No Split Closings on Cash Deals in Utah, by Inwest Title, a Utah Title Company

Thursday, December 20th, 2012

Have you ever been involved in a split purchase transaction where the Buyer and Seller want to close at different title companies in Utah, only to be informed that your cash Buyer has to close with the Seller’s title company?  Is this True? Can they force your Buyer to do this?  Why is this happening?

This issue first arose in 2007 when the Utah Insurance Department issued a bulletin announcing their official position that under the Insurance laws a title company that was only handling the cash side of a purchase was not authorized to conduct an escrow since they would not be issuing a title insurance policy.  For a while after this a few title companies tested the waters claiming the statutory language was ambiguous and elected to close Buyer side cash closings anyway.  Ultimately, these companies were pursued, fined, placed on probation, and ended up losing their battles with the Utah Insurance Department.  Additionally, a few years ago the Division’s position was further strengthened by an amendment to the insurance laws (see 31A-23a-406(1)(c))  that clarified the language stating a title company must issue a policy in order to conduct an escrow.  (There is a minor exception to this rule when a title company is dealing with mobile homes, grazing rights, or water rights.)

Is everyone happy with the result? No, but it is the law and it is unlikely to change.

Potential Solutions for your cash Buyer:

  1. Negotiate in the REPC that the Seller close and purchase title insurance from a title company selected by the Buyer;
  2. Request the Buyer be permitted to do a courtesy signing at the title company of their choice.  (This will mean the Seller’s title company will still prepare all the documents and receive all funds, but the signing can take place elsewhere); or
  3. Close with the Seller’s title company.

For this and other information on Utah Title Companies, Utah Title & Escrow, or Title Insurance Quotes locate and contact your nearest Inwest Title office at www.inwesttitle.com.

 

What is a Title Plant? By Inwest Title, a Utah Title Company

Thursday, December 6th, 2012

Have you ever heard the two words, “title plant” together and wondered, “What is that?”  Question no more because today is your lucky day! Below is an explanation of what and where our title plant is located and how it can be beneficial for you and your clients.  Be sure to watch the video for an even closer look at onsite footage and further insight regarding our title plant!

Inwest’s title plant is a privately owned facility located in West Haven Utah.  Inwest Title Services owns all of the county record information including abstracts, plat maps, documents, and important information necessary to complete a title examination.  One of the many benefits of owning our own title plant is full access to information on our own schedule without the delay of limited courthouse hours.

Our title plant was built in 2002 and serves many purposes.  The plant has ten departments and retains thirty-eight employees.  We have built more individual county title plants than any other title company in Utah and are progressively building new title plants for outlying counties.  We have title records for 93% of the population of Utah and will soon have county records for the entire state.  This allows customers unprecedented access to information about most cities or counties in Utah.

For this and other information on Utah Title Companies, Utah Title & Escrow, or Title Insurance quotes locate and contact your nearest Inwest Title office at www.inwesttitle.com.

How Should I Hold Title To My Real Property? by Inwest Title, a Utah Title Company

Friday, November 9th, 2012

Joint Tenancy and Tenancy-In-Common are practices that will simplify and answer the posed question.

Joint Tenancy: When title to real property is held in joint tenancy between two or more people, and one of the owners dies, the other owner(s) automatically own the deceased owner’s share. This is generally known as a right of survivorship. This right is only available to natural persons and not entities. This is commonly used with married couples or family members who want the survivor of them to own the property.

Example A:

  • Husband and Wife own a property in joint tenancy.
  • Husband dies.
  • Wife now owns the property.

Example B:

  • Brother, Sister, and Mom own a property in joint tenancy.
  • Mom dies.
  • Brother and Sister now own the property in joint tenancy.

The advantages of right of survivorship, is costs and delay of a probate are not required to transfer the property. Also, it is easy and inexpensive to set up. The disadvantage is there can be unexpected tax implications with this type of transfer, so check with your accountant or legal counsel before using this to avoid probate. Another disadvantages to this, is that all joint tenants must be equal owners in the property. Interest in joint tenancy can easily be destroyed without the knowledge of other joint tenant(s). This happens by the owner(s) deeding their interest to another person or by deeding it to themselves. This situation creates a tenancy-in-common.

A common way to achieve similar results, upon death of an owner, is through setting up an Estate Planning Trust, and having the Trust hold title to the property. This allows for a greater degree of flexibility and control as to what can or cannot be done with the property. When used appropriately this can also avoid some of the unexpected tax implications of holding title in joint tenancy.

Tenancy-In-Common: When Title to real property is held in tenancy-in-common between two or more people, each can leave his or her interest upon death to beneficiaries of their choosing. A Will is the document that the Courts will look to when conducting a probate to determine who the beneficiaries are that will receive the deceased owner’s interest in the property. If there is no Will, a probate must still be conducted, and the deceased owner’s interest will pass to their heirs through the state’s Intestacy Laws.

This is commonly used with people who want to both jointly own real property with others, but also want to specify who will receive their interest when they die.

Example A:

  • Brother and Sister own a property in tenancy-in-common.
  • Brother dies.
  • Brother’s ½ interest is now inherited by his beneficiaries (a probate must be conducted to accomplish this and Sister still owns her ½ interest.

Example B:

  • 60% Brother, 20% Sister, and 20% Mom own a property in tenancy-in-common.
  • Mom dies.
  • Mom’s 20% interest is now inherited by her beneficiaries (a probate must be conducted to accomplish this) and Brother still owns his 60% and Sister still owns her 20% interest.

An advantage of tenancy-in-common is that ownership can be divided into any number of equal or unequal interests. Each owner has a separate, legal title to his or her undivided interest. Another advantage is that each owner’s interest may be separately transferred. The disadvantages to this practice is that a probate, to determine the beneficiaries/heir, can be time consuming and pricey. Also, individual tenancy-in-common interest ban be freely sold without consent of other owners (unless there are agreements in writing to the contrary).

Please note that besides individuals, Trusts and other Entities may hold title in tenancy-in-common. Holding title in a Trust or other Entity may allow for a greater degree of flexibility and control, and can also avoid the time and expense of a probate.

Joint tenancy and tenancy-in-common describes how Title to real property can be held. For this and other information on Utah Title Companies, Utah Title & Escrow, or Title Insurance Quotes locate and contact your nearest Inwest Title office at www.inwesttitle.com.