What You Should Know About Earnest Money

by Ask the ExpertResourcesVideo

Hello, Sheri Groom with Republic Title and I’m here with Wade Bogdan, Residential Counsel and we wanted to visit a little bit today about earnest money and the purpose of that with a contract.  So can you help talk a little bit about that?

Yes.  Traditionally earnest money was put in place so that people knew that you were going to try to purchase a property in earnest so basically you’re showing someone that you are serious about purchasing their property.

I like that so earnest and then earnest money. That’s great.  So if there’s no earnest money given does that mean there’s not a valid contract?

So actually that’s a common misnomer. So currently now in common day, you do not need earnest money to have a proper contract.  However, the contract does have a section for earnest money and actually most importantly now the contract was just changed to add a three day time limit for getting your earnest money in after execution of the contract which is pretty much the most important thing that’s going on with earnest money currently.

That’s good information because we would get asked that a lot.  Like do we have to have it? Is it still a valid contract?

So if you have any additional questions, please go to our website and look for our complete list of attorneys or reach out to your favorite business development rep  or your favorite closer.

 

What is Survey Deletion Coverage?

by Ask the ExpertReal Estate ArticlesResourcesVideo

Survey Deletion Coverage is often also referred to as “Survey Deletion”, “Survey Amendment”, and “Survey Coverage.”  When survey deletion coverage is given in the title policy it offers Buyers protection for errors or omissions that may have been made by the surveyor and accepted by the title company by changing the language in the “standard exception” of the title policy to read “Shortages in Area” only.  The “standard survey exception” in a title commitment or policy (before being amended) reads:

“Any discrepancies, conflicts, or shortage in area or boundary lines, or any encroachments or protrusions, or any overlapping of improvements.”

 Upon receipt of an acceptable survey, the title company may amend this exception to read “Shortages in area” only.   Things that a title company will look at to determine if a survey will be acceptable include, but are not limited to, the following:  that items noted on the survey are listed in the title commitment, verify the legal description, check platted building lines and platted easements, and other matters such as the seal and signature of the engineer, date of the survey, and north directional arrow. 

Survey Deletion is addressed in paragraph 6. A. (8) of the TREC One to Four Family Residential Contract, where the parties select between the options of amending or not amending the standard exception in the title policy and who will be responsible for the payment of the premium.

There are other issues that may show up in the review of a survey, such as a building or driveway or fence over a building line, or into a platted easement.  When this happens, the title company may still accept the survey and amend the standard exception to read “Shortages in Area” only, but will generally add a special exception on Schedule B of the title commitment and owner’s title policy for any of these issues that were shown on the survey.              

The cost of survey deletion coverage on residential transactions is 5% of the Owners Title Policy Premium, and is 15% of the Owner Title Policy Premium in a commercial transaction.

For more information on Survey Deletion Coverage, download our Survey Deletion Coverage Q&A flyer 

Remine At-A-Glance

by Ask the ExpertEducationTechnologyVideo

Did you know that there is a program that allows you to farm neighborhoods much more efficiently?  Our Technology Trainers, Annette and Robin, teach a great class that dives into how Remine can change your farming game. 

Check out our Remine At-A-Glance class and learn how to better farm neighborhoods.

Click this link to sign up for this class or any of our other classes offered by wonderful and knowledgeable trainers.