Insurance

Home Owners Associations

Homeowner’s Associations are a huge issue with short sales and REO properties. Many times escrow is presented with a contract, negotiations are complete on the short sale or the REO, escrow proceeds and closes – a few weeks/months later escrow is contacted by the new owner who has received a bill for delinquent dues and transfer fees. Owner wants to know who will pay. Sellers in both types of transactions have no money with which to pay these ‘after the fact’ bills. Short Sale sellers know if there is an HOA, so they need to be questioned about this subject. REO sellers, however, may or may not know if there is an association, so this is where the Realtor’s experience comes in. You may know the neighborhood, so, please, if you do know there is an HOA, mention it to escrow so the information can be followed up on.

Canadian Citizens

Canadian citizens document signings:  To sign in the United States, they will need a passport AND a visa as identification.  Should the party wish to sign in Canada, they have two choices:  They can go to the U.S. Consulate OR be signed by an attorney.  The signed documents must be accompanied by a Canadian Certification of Notary.  Sellers will also need to complete the FIRPTA (Foreign Investment Real Property Tax Act) forms.  Depending on the use of the property, there may be a charge at close of escrow of 10% of the sales price which is remitted to IRS per the FIRPTA laws.

The transfer of funds from a Canadian Bank must be in US Dollars and there may be charges for that conversion of funds from Canadian to US dollars.

Lisa Capes

Chicago Title Insurance

capesl@ctt.com

www.chicagotitlearizona.com/capes

In Order to Give Good Funds We Have to Receive Good Funds

When purchasing a home there are two checks written during the process.  First, a check written for Earnest Money. Earnest Money is given as a promise to the seller that the buyer is serious about purchasing thier home.  Earnest Money is usually given in the form of personal check made payable to the title company closing the escrow.  The second check is given at the signing table during the close of escrow.  

The Earnest Money check paid by personal check to the Title Company is usually an adequate form of payment due to the fact once escrow is opened there is time for the check to clear prior to the close of escrow.  However, the check given for final closing cost at the close of escrow MUST be in the form of a Certified Check.  You must request this type of check from the teller at the bank.  If the teller hands you a check with “Official Bank Check” written at the top, this is not the same as a Certified Check and could be denied at the signing table.  This would result in a potential delay of the closing of the transaction. 

Other forms of “Good Funds” accepted by Chicago Title Insurance are monies that are wired from bank to bank.  Those funds are good immeadeatly.

For more information please contact

Lisa Capes, Sales Representative

Chicago Title Insurance (Arizona)

capesl@ctt.com