People buying and selling real estate often open an escrow for their protection and convenience. The buyer can instruct the escrow holder to disburse the purchase price only upon the satisfaction of certain prerequisites and conditions. The seller can instruct the escrow holder to retain possession of the deed to the buyer until the seller's requirements, including receipt of the purchase price, are met. Both rely on the escrow holder to carry out faithfully their mutually consistent instructions relating to the transaction and to advise them if any of their instructions are not mutually consistent or cannot be carried out.

• Acting as the impartial "stake-holder," or depository of documents and funds
• Processing and coordinating the flow of documents and funds
• Keeping all parties informed of progress on the escrow
• Responding to the lender's requirements
• Securing a title insurance policy
• Obtaining approvals of reports and documents from the parties as required
• Prorating and adjusting insurance, taxes, rents, etc.
• Recording the deed and loan documents
• Maintaining security and accountability of monies owed and owing.

• The method by which the escrow holder is to receive and hold the purchase price to be paid by the buyer.



• The conditions under which a lapse of time or breach of purchase contract provision will terminate the escrow without a closing.
  
  
• The instruction and authorization to the escrow holder to disburse funds for recording fees, title insurance policy, real estate commissions, and any other closing costs incurred through escrow.
  
  
• Instructions as to the proration of insurance and taxes.
  
  
• Instructions to the escrow holder on the payment of prior liens and charges against the property and distribution of the net sale proceeds.

• Deposits the executed deed to the buyer with the escrow holder.
• Deposits evidence of pest inspection and any required repair work.
• Deposits other required documents such as tax receipts, addresses of mortgage holders, insurance policies, equipment warranties or home warranty contracts, etc.

• Deposits the funds required, in addition to any borrowed funds, to pay the purchase price with the escrow holder
• Deposits funds sufficient for home and title insurance.
• Arranges for any borrowed funds to be delivered to the escrow holder.
• Deposits any deed of trust or mortgages necessary to secure loans.
• Approves any inspection reports, the Preliminary Report for title insurance, etc., called for by the purchase and sale agreements.
• Fulfills any other conditions specified in the escrow instructions.

• Deposits proceeds of the loan to the purchaser.
• Directs the escrow holder on the conditions under which the loan funds may be used.

• Opens the order for title insurance.
• Obtains approvals from the buyer on the Preliminary Report, pest and other inspections.
• Receives funds from the buyer and/or any lender.
• Prorates insurance, taxes, rents, etc.
• Disburses funds for title insurance, recording fees, real estate commissions, lien clearance, etc.
• Prepares a final statement for each party, indicating amounts to be disbursed for services and any further amounts necessary to close escrow.
• Records deed and loan documents, delivers the deed to the buyer, loan documents to the lender and funds to the seller, closing the escrow.
  

• Preliminary Report
• Commitment - Shows the condition of title in the way we are willing to issue it.
• Pro Forma - Specimen of what the requested policy, as requested, will look like. Underwriting issues not completed. Not binding upon the company.
• Policy - Final product. Contract of indemnity between named insureds and the company.

• Community Property:
  Property acquired by husband and wife, or either during marriage, other than by gift, bequest, devise, descent or as the separate property of either is presumed community property.
  Example: John Doe and Mary Doe, husband and wife, as community property.
  Example: John Doe and Mary Doe, husband and wife.
  Example: John Doe, a married man



• Joint Tenancy:
  Joint and equal interests in land owned by two or more individuals created under a single instrument with right of survivorship.
  Example: John Doe and Mary Doe, husband and wife, as joint tenants.



• Tenancy in Common:
  Under tenancy in common, the co-owners own undivided interests; but unlike joint tenancy, these interests need not be equal in quantity and may arise at different times. There is no right of survivorship; each tenant owns an interest, which on his or her death vests in his or her heirs or devisee.
  Example: John Doe, a single man, as to an undivided ¾ ths interest, and George Smith, a single man as to an undivided 1/4th interest, as tenants in common.



• Trust:
  Title to real property in California may be held in trust. The trustee of the trust holds title pursuant to the terms of the trust for the benefit of the trustor/beneficiary.

The preceding summaries are a few of the more common ways to take title to real property in California and are provided for informational purposes only.

There are significant tax and legal consequences on how you hold title. We bly suggest contacting an attorney and/or CPA for specific advice on how you should actually vest your title.

1. A fire destroys only the house and improvements. The ground is left. A defective title may take away not the only the house but also the land on which it stands. Title insurance protects you (as specified in the policy) against such loss.
2. A deed or mortgage in the chain of title may be a forgery.
3. A deed or a mortgage may have been signed by a person under age.
4. A deed or a mortgage may have been made by an insane person or one otherwise incompetent.
5. A deed or a mortgage may have been made under a power of attorney after its termination and would, therefore, be void.
6. A deed or a mortgage may have been made by a person other than the owner, but with the same name as the owner.
7. The testator of a will might have had a child born after the execution of the will, a fact that would entitle the child to claim his or her share of the property.
8. A deed or mortgage may have been procured by fraud or duress.
9. Title transferred by an heir may be subject to a federal estate tax lien.
10. An heir or other person presumed dead may appear and recover the property or an interest therein.
11. A judgement or levy upon which the title is dependent may be void or voidable on account of some defect in the proceeding.
12. Title insurance covers attorneys’ fees and court costs.
13. Title insurance helps speed negotiations when you’re ready to sell or obtain a loan.
14. By insuring the title, you can eliminate delays and technicalities when passing your title on to someone else.
15. Title insurance reimburses you for the amount of your covered losses.
16. A deed or mortgage may be voidable because it was signed while the grantor was in bankruptcy.
17. Each title insurance policy we write is paid up, in full, by the first premium for as long as you or your heirs own the property.
18. There may be a defect in the recording of a document upon which your title is dependent.
19. Claims constantly arise due to marital status and validity of divorces. Only title insurance protects against claims made by non-existent or divorced "wives" or "husbands."
20. Many lawyers, in giving an opinion on a title, protect their clients as well as themselves, by procuring title insurance.
21. Over the last 24 years, claims have risen dramatically.

Real estate has become a very complicated business. Selling (or buying) a home can be one of the most important financial transactions in your life. That's why it pays to work with a professional who specializes in this field -- a licensed real estate agent or broker.

Becoming a licensed agent or broker requires thorough training and examination. Several states, including California, require continuing education in real estate for license renewal. These specialists are compensated on their ability to sell properties quickly and cost-efficiently -- and their expert abilities are chargeable only when a transaction is complete.

• When you use an agent, you'll get the benefit of professional experience from the moment you consider selling your house. Your agent will help you establish a fair market value from his or her daily dealings in your neighborhood, and arrange financing terms that make it easier to obtain a quick sale in today's market -- helping you receive the equity in your home.

• If you wish to participate in financing the purchase of your property, your agent or broker can structure a workable plan that helps reduce risk from unusual terms -- and give you an estimate of the anticipated yield from carrying a property-secured financing plan.

• Real estate agents are professionals at marketing properties -- that's their job. They can choose the media -- and the message -- that brings interested prospects to your home. They'll interview and qualify buyers for you. They'll use their sales skills and negotiating techniques to help you receive the best possible return on your sale.

• Every brokerage office has a steady stream of prospects that no individual can match. National referral networks and multiple listing services also help to reach buyers from out of town -- or out of state. Many corporate relocation clients may be working with a broker before a move is made.

• When you work with an agent or broker, they will follow-up with other agents who have shown your property and share their constructive comments on cosmetic repairs, financing arrangments, or re-evaluating your list price.

• An agreement between buyer and seller is just the beginning of a final transaction. From that point on your agent or broker can handle the details and paperwork necessary to make it complete: from building and termite reports to fire insurance and closing arrangements with the escrow company, title company or closing attorney.

• As an expert in real etstae, your agent or broker will give you advance estimates of your closing costs and net proceeds from the sale, as well as keeping you informed of the details to assure a smooth and timely closing.

A vital part of any sale is title insurance. Lenders usually require a loan policy to protect their interests, and buyers need an owner's policy to protect their equity. Be sure to ask your agent or broker for protection from Chicago Title. Your title insurance policy will be backed up by the resources of CT&T, the strongest title insurance family in the industry. Your Chicago Title Account Manager is an integral part of your agent's or broker's closing team. If You Are Buying a Home

Buying a home involves several stages. Below is a list of the more common steps during a residential transaction.

Your situation may vary and it is best to contact your real estate professional for more information.

• Select real estate agent
• Determine needs and wants
• Determine financial eligibility

• Discuss finances
• Obtain prequalification

• Select an affordable property that fits your needs
• Discuss offer with agent
• Buyer reviews contract with agent
• Agent presents offer to selling side

• Buyer prepares "earnest money" deposit (typically, 1 to 3% of purchase price)
• Seller accepts offer (Seller can accept your offer, counter your offer, or reject your offer)

• Deposit "earnest money" into escrow
• Escrow will order Preliminary Report

• Conduct Physical Inspection of property by a qualified inspector
• Approve seller's Transfer Disclosure Statement
• Approve Preliminary Report
• Conduct property appraisal
• Obtain loan approval from lender
• Perform termite inspection and certification

• Select insurance company and coverage
• Insurance will be in effect at close of escrow

• Chicago Title receives signed documents

• Need cashier's check or money transfer prior to closing date

• Deposit down payment and closing costs to escrow
• Lender sends balance of purchase price to Chicago Title
• Deed is recorded with County Recorder's office
• Get your keys and move in!

Housing costs do not always offset lower interest rates. However, Pfister warns that in those markets where housing values remain b and keep growing, "waiting for interest rates to bottom-out" is a gamble. The bottom may not be the best time to buy. Talk to your local real estate agent or broker today to determine the best fit in housing and interest rate costs for you.

There are various costs and fees involved in purchasing a home. The following list depicts an example of the costs you may be responsible for. Keep in mind that responsibility for some of these charges can be negotiable and the responsible party may vary from area to area. Ask your real estate agent about applicable costs in your area.

• Title insurance premium (according to contract)
• Escrow fees (according to contract)
• Document preparation (if applicable)
• Notary fees
• Recording charges for all documents in buyer's names
• Termite inspection (according to contract)
• Tax proration (from date of acquisition)
• Homeowner's transfer fee
• All new loan charges (except those required by lender for seller to pay)
• Interest on new loan from date of funding to 30 days prior to first payment date
• Assumption/change of records fees for takeover of existing loan (if applicable)
• Beneficiary statement fee for assumption of existing loan
• Inspection fees (roofing, property inspection, geological, etc.)
• Home warranty (according to contract)
• City transfer/conveyance tax (according to contract)
• Fire insurance premium for first year

The following check list will assist in making the relocation process more organized. An important aspect of a successful move is pre-planning .

Find out what to do before the move and things you may overlook on moving day. Also, prepare yourself with the minimal necessities during the moving process. Finally, plan ahead and prepare your new residence for your arrival.

What to do before moving day:

Schedule rental truck and/or moving company at least six weeks in advance.

Begin gathering packing supplies and start packing early.

If you are renting, notify your landlord or management company at least 4 weeks in advance.

Contact utility companies and schedule shut off dates. These include water, electricity, gas, cable, trash service, telephone, etc.

Call your local phone company at least two weeks before your move to either transfer your number or request a new number for your new home.

Have gas, electric and water services connected at your new residence the day before you move in. Have services scheduled to be turned off at your old address the day after you move.

Arrange for cable installation at your new address.

Notify post office of new address and mail change of address forms at least one month in advance.

The following will be forwarded at no charge for the period indicated:

• First Class, Priority and Express Mail: 12 months unless otherwise requested by mailer.
• Newspapers and Magazines: 60 days.
• Packages weighing 16 ounces or more: 12 months locally (you pay forwarding charges if you move outside the local area. If you do not want this class of mail forwarded, contact your local Post Office).
• Mail Address Change Notification cards to people and businesses who send you mail.

If you have pets and/or plants, you need to arrange for their transfer. Most moving companies cannot move them for you.

If you need to dispose of hazardous products, call 1-800-cleanup.

Specific Tasks You Don't Want to Overlook

If you are traveling a great distance, have your car serviced 2 weeks in advance.

Make hotel reservations if you are traveling long distance or are unable to move in to your residence right away.

On moving day carry hard-to-replace items with you, such as jewelry, family photos, etc.

Make sure to back-up your computer files before you disconnect and pack it away.

Last Minute Tasks for the Day of the Move

Pack a survival kit with enough essentials to tide you and your family over for at least 24 hours:

• Personal needs - eyeglasses, medication, extra clothes, etc.
• Bathroom needs - towels, soap, toilet paper, etc.
• Cleaning needs - sponges, cleaners, broom, dustpan, etc.
• Kitchen needs - snacks, drinks, disposable utensils, cups, and plates, etc.
• Basic tools - hammer, screwdrivers (phillips head & flat head), knife, tape, etc.
• Payment for movers.
• Keys and directions to your new home.

Responsibilities at your future address:

Arrange to register your children in new school(s).

Familiarize your children with their new environment.

Put together your childrens' and your own health records - keep these handy during your move.

Look for new doctors and dentists.

Update or open new bank accounts.

Not only does this list include most of the features you'll be needing in a home, it takes into account the importance of the surrounding community.

Maybe even more important, it allows you to set up a priority list ahead of time, a ranking order of features from the most vital to insignificant. Since most home purchases are compromises, this should help make your decision easier. The priority list can also help a Realtor® get a better picture of what you are looking for in a house to select those houses available that best meet your requirements. When you are visiting different homes, there's no need to feel embarrassed about pulling out this check list and making notes. After all, you have a big decision to make, and it is in your best interest to take every precaution.

Click here to access the Scorecard.

• Escrow is opened and buyer deposits "earnest money" into escrow.

• Seller submits documents and information to escrow holder, such as:
  - addresses of lien holders
  - tax receipts
  - equipment warranties
  - home warranty contracts (if any)
  - any leases and/or rental agreements.

• Seller approves and signs the escrow instructions, grant deed and other related documents required to complete the transaction.

• Seller orders inspections, receives clearances and approves final reports and/or repairs to the property as required by the terms of the purchase and sale agreement (responsibility for inspection procedures may vary).

• Buyer and Seller fulfill any remaining conditions specified in the contract and/or escrow instructions; approves the pay off demands and/or beneficiary's statements.

• Buyer and Seller approve any final changes by signing amendments to the escrow instructions or contract.

The process of selling your home involves several costs and fees. The following information is very general. Many of these items can be negotiated with the buyer. Consult your real estate professional for details.

• Real estate commission

• Document preparation fee for deed

• Documentary transfer tax

• Any city transfer/conveyance tax (according to contract)

• Any loan fees required by buyer's lender

• Payoff of all loans in seller's name (or existing loan balance if being assumed by buyer)

• Interest accrued to lender being paid off, statement fees, reconveyance fees and any prepayment penalties.

• Termite inspection (according to contract)

• Termite work (according to contract)

• Home warranty (according to contract)

• Any judgments, tax liens, etc., against the seller

• Tax proration (for any taxes unpaid at time of transfer of title)

• Any unpaid homeowner's dues

• Recording charges to clear all documents of record against seller

• Any bonds or assessments (according to contract)

• Any and all delinquent taxes

• Notary fees

• Escrow fees (according to contract)

• Title insurance premium (according to contract)

If You're Selling a Home... You probably know that working with a REALTOR® is an indispensable part of selling your home. For one thing, your REALTOR® can list your property in the Multiple Listing Service (MLS), providing your home with incomparable exposure and ensuring you have as many REALTORS® as possible helping to find a buyer. But that's not all a REALTOR® does to market your home. He or she knows how to specifically target advertising to reach buyers for your home, and uses all the marketing tools available to ensure that your home is sold expediently. Additionally, a REALTOR® conducts a variety of other marketing efforts on your behalf, from holding open houses and handling phone inquiries to showing your home to the prospective buyers.

What does a REALTOR® do for you besides find buyers? Plenty. A REALTOR® provides information on local market conditions to help you price your property realistically and fairly, and keeps you abreast of changes in the market which may affect your property. And let's face it: buying or selling a home means paperwork, lots of it. When it comes to closing escrow, a REALTOR® can be invaluable, leading you through the paper trail with a steady hand, and familiarizing you with escrow, insurance, property disclosures and inspection procedures, to name a few.

So, Where Do You Find A REALTOR®? Like finding any good professional, the best way to locate a REALTOR® is through recommendations from friends or those who have bought or sold homes recently. Ask for references and check each thoroughly. Also, interview several REALTORS® before you decide on one.

It's important to find a professional who is a REALTOR®. Why? A REALTOR® is someone who, as a member of the local, state, and national trade associations, adheres to a strict code of ethics. Recently, the National Association of Realtors® commissioned a nationwide survey to determine whether REALTORS® were doing their job professionally. The results were impressive: 97 percent of respondents indicated they received "excellent" or "very good" service from their REALTOR®.

No Creditor's Rights Exclusion
No Usury Exclusion
No "Doing Business" Exclusion

Expansion of existing Access Coverage
Expansion of existing Mechanic's Lien Coverage requiring insurer to pay defense costs
Usury Law Protection
Accurate Street Address Protection
Missing Improvements Shown in the Policy
Zoning Law Violations
Subdivision Map Law Violations
Building Permit Violations
ALTA Form 9 Endorsement Protection
Survey Protection
Violation of Restrictions
Encroachment Protection
Damage from Mineral or Water Extraction
ALTA Form 6 Endorsement Protection
ALTA Form 6-2 Endorsement Protection
Post Policy Forgery Protection
Environmental Lien Protection
Loss of Priority Protection

Inflation Protection
Doing Business Protection
Creditors' Rights Protection