February 2007

Things you need to know: The newest purchase agreements have revised wording pertaining to seller paid closing costs. If it is the intent of the parties to have seller pay up to a certain dollar amount of the buyer’s closing costs, you must be very specific about which of the buyer’s costs will be included.

For example, Item #5 (Method of payment) now states “Buyer shall pay all costs of obtaining financing except _________(dollar figure).” If you list $2,500 in Item #5, it will only include buyer’s costs of financing. It will not include closing fee, survey, and title insurance. If buyer’s costs of financing are less than $2,500, and the survey, closing fee, and title insurance items are marked that the buyer will pay them, then the seller will only be paying the buyer’s costs of financing. The cost of the survey, closing fee, and title insurance cannot be used to make up the total of $2,500 listed in Item #5.

However, if it is the parties’ intent that seller will pay up to $2,500 of buyer’s costs whether related to financing, survey, closing fee, or title insurance, state the following in Item #22 (Further Conditions): “Buyer shall pay up to $2,500 of buyer’s closing costs, including, but not limited to, costs of financing, closing fee, survey, and title insurance.” In Item #5, state “see Item #22.”

Please pay special attention to your purchase agreements. Not all agents are using the new forms yet and they are not the same.

A New Look!

Abstract & Title has a new look! We have a new logo and new company colors. We will be delivering new rate sheets soon.

Title Trivia Question of the Month

True or False? Under an Owner’s Policy, when an insured dies, those who inherit the insured property automatically become insured under the policy?

Quote

“The hardest thing to do and the right thing to do are the same thing.” (source unknown)

Happy Valentine’s Day!

Don’t forget to tell those you love how much they mean to you.