Sometimes Titles Mean Everything
Oftentimes the title aspect of a purchase transaction can be overlooked as a mere perfunctory function after you have invested much time locating the perfect property for your pernickety client, negotiated the best deal possible for them with an emotional[i] seller, and made sure they can obtain financing in these post-TARP days. [That was a lot; take a deep breath].
However, taking notice of certain items in the title commitment that title companies issue on a property can save your client heartache. It also can save you the weeping and gnashing of teeth that naturally comes from damaged credibility or possible litigation should the client fault you for not advising properly. We all want our clients to have happy thoughts associated with their memory of us, and we work too hard to create that association in order to only lose it.
The title company will ensure, among other things, that vesting is transferred into your client’s name and that all prior liens are removed. But it is advisable that you make sure your client understands all encroachments on the property and that the encroachments do not interfere with their vision for the property.
Schedule B of the title commitment will tell you all that. It lists all deed restrictions and easements, including those created by the municipality or a utility company. And if the metes and bounds gibberish is untranslatable, a new survey based on that Schedule B will give you a graphic representation of those encroachments.
I recently heard about an incident in which a man bought a home and did not notice that the water fountain flowing into the swimming pool sat in a utility easement. Shortly after the purchase, the utility company had to utilize their easement and tore up his beautiful fountain to reach the cables underground. The utility company is under no duty to restore the fountain or compensate the homeowner: it was on their property. Needless to say, the man was more than angry and felt the need to direct that energy at someone. Had the man reviewed his Schedule B, he would have known prior to his purchase that the pool fountain was potentially in jeopardy…unless of course, the title company failed to list the easement in the commitment.
Nonetheless, taking the time to go over these encroachments with your client educates them more about the property they will buy and emboldens your role as their trusted advisor.
At Griffin Law Firm, as a fee office for a title company, we can always assist you in understanding a title commitment we have issued to you. We will be more than glad to educate you on these matters so you can be the expert your client needs when purchasing a home.
Griffin Law Firm focuses in real estate law and is a fee office for a title agency. We handle both residential and commercial transactions and realize your image often hinges on our performance. To open escrow with us, you can reach our office at 800.846.6011 or http://www.mytexastitle.com/.
[i] In your professional opinion, the seller was bipolar.
However, taking notice of certain items in the title commitment that title companies issue on a property can save your client heartache. It also can save you the weeping and gnashing of teeth that naturally comes from damaged credibility or possible litigation should the client fault you for not advising properly. We all want our clients to have happy thoughts associated with their memory of us, and we work too hard to create that association in order to only lose it.
The title company will ensure, among other things, that vesting is transferred into your client’s name and that all prior liens are removed. But it is advisable that you make sure your client understands all encroachments on the property and that the encroachments do not interfere with their vision for the property.
Schedule B of the title commitment will tell you all that. It lists all deed restrictions and easements, including those created by the municipality or a utility company. And if the metes and bounds gibberish is untranslatable, a new survey based on that Schedule B will give you a graphic representation of those encroachments.
I recently heard about an incident in which a man bought a home and did not notice that the water fountain flowing into the swimming pool sat in a utility easement. Shortly after the purchase, the utility company had to utilize their easement and tore up his beautiful fountain to reach the cables underground. The utility company is under no duty to restore the fountain or compensate the homeowner: it was on their property. Needless to say, the man was more than angry and felt the need to direct that energy at someone. Had the man reviewed his Schedule B, he would have known prior to his purchase that the pool fountain was potentially in jeopardy…unless of course, the title company failed to list the easement in the commitment.
Nonetheless, taking the time to go over these encroachments with your client educates them more about the property they will buy and emboldens your role as their trusted advisor.
At Griffin Law Firm, as a fee office for a title company, we can always assist you in understanding a title commitment we have issued to you. We will be more than glad to educate you on these matters so you can be the expert your client needs when purchasing a home.
Griffin Law Firm focuses in real estate law and is a fee office for a title agency. We handle both residential and commercial transactions and realize your image often hinges on our performance. To open escrow with us, you can reach our office at 800.846.6011 or http://www.mytexastitle.com/.
[i] In your professional opinion, the seller was bipolar.
Labels: encroachment, litigation, personal property title insurance, Schedule B, title commitment
posted by R. Jason Griffin at
1:04 PM
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