faq
What do I need to bring to settlement?
You will need to bring a valid government issued picture ID such as a Driver's License, Passport, or Military ID, your original hazard insurance policy and a check for any amounts due. Additionally, if you are bringing money to the settlement these funds will need to be "certified funds." Certified funds can come in the form of a cashier's check, teller's check, money order, or certified personal check. You may also be required to bring additional documents which our office will inform you of in advance.
Can I have my closing funds wired to your account?
Absolute Title will accept funds by wire but these funds MUST be received PRIOR to closing. The closing cannot be finalized until all funds are received, which could conceivably delay delivery of the keys to your new home. We suggest that you arrange to have funds wired for arrival at Absolute Title the day before closing. Please note that wired funds coming from someone other than a bank (such as a brokerage account) often require up to three (3) days prior notice to ensure that the wire gets sent out. Also, most companies that wire funds for you will require written authorization before sending the wire out. Be sure to contact your bank or brokerage well ahead of time to make the necessary arrangements.
How long will the settlement take?
While the time of a settlement can vary greatly, typically a refinance will take approximately 30 to 40 minutes and a purchase will take 45 minutes to 1 1/4 hours.
Can you wire my proceeds to my bank, money market or stock account?
Provided written wiring instructions, we will wire funds to your account for no additional fee; we cannot accept verbal wire instructions. Normally your funds will be wired to your bank within two business days after your closing. Please note that many banks do not actually credit your account with these funds until the day after the bank receives the wire. If we are to wire directly into a regular bank checking account, your wire information is normally shown on the face of your checks. If we are to wire to a brokerage or similar account, the wire instructions are more detailed and should be supplied by your brokerage firm. Normally, such institutions will fax their wire information with your account name and account number directly to Absolute Title, upon your request.
How far in advance should I contact Absolute Title to handle my settlement?
If purchasing, you should contact Absolute Title & Escrow as soon as you have a signed contract. By contacting us as early as possible, you allow us adequate time to obtain a title abstract on the property being purchased and clear any outstanding "clouds" on title prior to your contracted settlement date. Additionally, we can better coordinate the settlement with all parties involved including the sellers, purchasers, real estate professionals, and lenders.
If refinancing, you should contact us after you submit your loan application. Do not wait for final loan approval, as the time between your loan approval and settlement is often only a few days. By scheduling with us early, you allow us time to obtain the title abstract and clear any issues with your title, obtain payoffs from your current lender, and coordinate closing with your new lender.
What if I can not attend settlement?
In certain circumstances, a "power-of-attorney" can be prepared for you. A "power-of-attorney" is a legal instrument which allows another to sign legal documents on your behalf. Any POA must be reviewed and pre-approved by Absolute Title & Escrow and (IF you are the purchaser) by your lender. The review of the POA should be done as soon as possible in case the existing POA is not acceptable, prompting the need for a new POA to be drafted and circulated prior to closing. The pre-approved ORIGINAL POA MUST be delivered to Absolute Title & Escrow at or before closing, as we must present the original POA at the courthouse for recordation. Special POA for the specific transaction is normally required in order to satisfy the title company insuring the transaction. However, if a General POA is pre-approved by us for the transaction, we must collect and keep the ORIGINAL POA to be recorded at the courthouse. The original will be returned to you after recording at the courthouse, which may take a few weeks. Also, please be sure that Absolute Title has the contact information for the person who will sign for you and be sure that person will attend closing. It is wise to provide us and the person signing for you a phone and fax number to reach you during closing for any last minute issues.
If you are the seller, be sure your agent or the person signing for you has the keys, garage door openers, any money due from you, etc., to deliver at closing.
If you are the purchaser, be sure you make arrangements to have your purchase money delivered to Absolute Title at or before closing. Checks are to be made payable to Absolute Title & Escrow, LLC and must be a cashier, certified or teller check. Wired funds should be wired for arrival at Absolute Title the day before closing; please note that wired funds coming from some source other than a bank (such as a brokerage account) often require three (3) days prior notice. Please inform us of any wire expected to be sent to us and the wire should contain a reference to your specific case
Who attends settlement?
At a "purchase settlement", typically the sellers, purchasers, and their real estate professionals will attend the settlement which will be conducted by one of our competent and experienced attorneys or settlement officers. At a refinance settlement usually only the borrowers and our attorney or settlement officer are present.
When can I find out how much money I need to bring to settlement?
Because we rely on third parties such as lenders to provide us with instructions, information, and figures for your settlement, we often can not furnish to you the exact amount you need to bring to closing until the day before, or, sometimes, even the day of settlement. However, you should be able to rely on your lender's or your realtor's good faith estimate for the approximate amount of money you need to bring with you. If you happen to bring too much money to settlement, we refund back to you any excess amount upon completion of the closing.
How do we get our proceeds?
Once we have verified that all necessary title documents have been recorded, proceeds can be mailed or picked up in check form. We do not issue certified checks. If the payee wishes to have the funds immediately available, we recommend a wire transfer. (We do not charge to send wires.)
Why can't the sales proceeds or the commission check be disbursed at the table?
Virginia statutes prohibit us from disbursing funds from the transaction until after all title documents (deeds or deeds of trust) have been recorded in the local Land Records. Recordation is not accomplished until such time as the settlement is complete, in other words, until all required funds are received by us for the transaction, and all documents are executed by the parties according to the lender's instructions. Once settlement is complete, the title documents will be sent for recordation, and upon verification, we are permitted to disburse funds. The recordation process can be time consuming, and it varies from jurisdiction to jurisdiction. Additionally, the recordation of documents from settlements conducted at the end of the month or during the holidays may take significantly longer due to volume.
I sold my primary residence this year. What form do I need to file?
NOTE: Persons are advised to check with an accountant or tax attorney to verify eligibility and details regarding any tax information on this web site.
If you meet the ownership and use tests, you will generally only need to report the sale of your home if your gain is more than $250,000 ($500,000 if married filing a joint return). This means that during the 5-year period ending on the date of the sale, you must have:
1. Owned the home for at least 2 years (the ownership test), and
2. Lived in the home as your main home for at least 2 years (the use test).
If you owned and lived in the property as your main home for less than 2 years, you may still be able to claim exclusion in some cases. The maximum amount you can exclude will be reduced. If you are required to report a gain, it is reported on Form 1040, SCHEDULE D, Capital Gains and Losses. (For additional information on selling your home, refer to Publication 523, Selling Your Home.)
Types of Title Insurance
There are two types of title insurance: Lenders title insurance, also called a Loan Policy, and Owner's title insurance. Most lenders require a Loan Policy when they issue you a loan. The Loan Policy is usually based on the dollar amount of your loan. It protects the lender's interests in the property should a problem with the title arise. The policy amount decreases each year and eventually disappears as the loan is paid off.
Owner's title insurance is usually issued in the amount of the real estate purchase. It is purchased for a one-time fee at closing and lasts as long as you or your heirs have an interest in the property. This may even be after the insured has sold the property. Only Owner's title insurance fully protects the buyer should a problem arise with the title that was not uncovered during the title search. Owner's title insurance also pays for any legal fees involved in defending a claim to your title. Owner's title insurance is necessary to fully protect a home buyer. Lender's title insurance, which is usually required by the mortgage lender, serves as protection only for the lending institution.
How Am I Protected by Title Insurance?
In order to issue title insurance, the title company must search public land records for matters affecting that title. Many search the "chain" of title back 40 to 60 years. Twenty-five percent of title searches find a title problem that is fixed before the insurance is issued. Some examples of items that can cause a problem are: deeds, wills and trust that contain improper information; outstanding judgments or tax liens against the property; and easements. Title companies fix the problems then issue the title insurance.
Occasionally, in spite of an exhaustive title search, hidden hazards can emerge after closing. Things such as mistakes in the public record, previously undisclosed heirs claming to own the property; or forged deeds could cloud the title. Owner's title insurance offers financial protection against these by negotiating with third-parties, and paying claims and the legal fees involved in defending the title.
What are some examples that a Title Policy would guard against?
• False impersonation of the true owner of the property by the seller or other persons previously in title
• Forged deeds, releases and other documents
• Deeds by persons of unsound mind
• Deeds by minors
• Invalid documents completed by an expired attorney
• Invalid deeds delivered after the death of the grantor
• Deeds by supposedly single persons but actually married
• Fraud
• Claims for unpaid estate inheritance and gift taxes against prior owners of your home
• Unrecorded easements - giving one party the right to enter another party's property
• Undisclosed descendents of former owners of your home or the land on which it is situated
I’m refinancing, why do I need title insurance?
When you refinance you are obtaining a new loan, even if you stay with your original lender. Your lender will require lender's title insurance to protect their investment in the property. You will not need to purchase a new owner's title policy; the one you bought at closing is good for as long as you and your heirs have an interest in the property. Even if you recently purchased or refinanced your home, there are some problems that could arise with the title. For instance, you might have incurred a mechanics lien from a contractor who claims he/she has not been paid. Or you might have a judgment placed on your house due to unpaid taxes, homeowner dues, or child support for instance. The lender needs reassurance that the title to the property they are financing is clear. If it has been no more than 10 years since you bought your house or refinanced, ask about a reissue or discount rate which is often available.
What other types of insurance will I need?
Your lender will require that you purchase homeowner's or hazard insurance, which protects you and the lender from loss in the event that the house is damaged or destroyed, such as by fire. Generally, coverage must be equal to at least the replacement costs of the property. Most home buyers purchase a homeowner's package of insurance that includes coverage for personal liability (which covers you if someone is injured on your property), personal property coverage (which covers loss and damage to personal property due to theft and other events), and dwelling coverage (which covers you for fire, theft, water damage and other hazards to your actual house). If you live near a body of water, you may also want to get flood insurance as part of your homeowner's protection. Lenders typically want the first year's premium to be paid at or before closing. Your lender may add the insurance cost to your monthly mortgage payments and keep this portion of your payments in a reserve called an escrow account, paying your insurance premiums when due each year out of the account. We encourage you to discuss any questions about required or recommended insurance with your lender.
