Frequently Asked Questions

What do I need to bring to settlement?
You will need to bring 2 forms of Identification, one being a picture ID; cashiers check/certified funds for any monies that are due at the time of settlement and finally a copy of your Home Owners Insurance Policy with a paid receipt if this has not already been reviewed by your lender.

What is needed for someone to use a Power of Attorney at settlement?
If the buyers can’t not make it to settlement and need a power of attorney, you need to get in touch with your mortgage company, they will need to approve the power of attorney, and sometimes they have a their own that needs to be used. If the Sellers need a Power of Attorney, this needs to be prepared by the title company or if one is already done, it needs to be approved by the title company. Powers of attorney must be specific to the property. A general power of attorney is acceptable only if specific language is included and must be reviewed and approved prior to settlement.  

What kind of survey do I need?
Some lenders require a house location survey only. A boundary survey can be ordered for any property, but we do have to collect the money upfront and the borrower will have to sign an agreement before the surveyor will get started. A Boundary survey is were they flag the corners of the property, a house location just shows how the house and all improvements sit on the property. 

Who is considered a Non-Maryland Resident?
The State of Maryland requires 7% of the gross sale of the property be paid to them, if a seller is not a Maryland Resident. A person is considered to be a Maryland Resident if they hold a Maryland Driver’s License, or if this was their primary residence, although they no longer reside in Maryland. If you do not fall within these two guidelines, you can contact the State of Maryland and ask for an exemption. If you file for an exception, it does take between 4 and 6 weeks for the State to review the documents and make a decision. So prepare in advance, if you think that you are eligible to be exempt from this tax.

How long does it take for Settlement?
A purchase takes approximately one hour. As a Settlement Officer, I review each document with you; a settlement can take longer if you want to read all documents.

A refinance takes approximately 45 minutes, due to the fact that you have already been through the settlement process before and have a better understanding.

Do I need to purchase Owners Title Insurance?
Owner’s title insurance is optional and is only available to be purchased when you are purchasing your home. It covers you from any and all title issues and previous owners of the property. It is what we call a piece of mind policy. I feel that owner’s title insurance is very important and that everyone should get it, so that you are protected, but it is up to each borrower to make that decision for themselves. Besides giving you the protection, by having owner’s title insurance, you can get a reissue rate off the Lenders policy for each and every refinance. That will save you approximately 30 to 40% off your Lenders policy with each refinance. Also, the newest thing is if a Seller has an owner’s policy that is under 10 years old, they can pass it on to the new owners and that will save the new owners 30 to 40% off their new lenders and owners policy at the time of settlement.

Isn’t a Title Exam Enough, why do I need Title Insurance?
It is impossible for a title examiner to know many of the circumstances that would effect a title, such as Under the Influence of someone who transferred a title previously, False impersonation of ownership, missing heirs, improperly probated will, misinterpretation of wills and trust, etc. That’s why a title exam may not be through enough to discover the true history of all title issues. As you build equity in the property, you expose yourself to a higher risk of loss from a title defect. For all these reasons and many more, we strongly recommend title insurance to fully safeguard your investment.

How should we hold title?

Sole Ownership: One person owns 100% of the property

Tenants in Common: Two or more parties own a property in equal or unequal percentages. Each party may sell its interest at any time. At death, a party’s interest in the property is transferred to the deceased heirs.

Joint Tenants with the right of survivorship: Two or more parties own a property in equal percentages, with an undivided right of possession. If one party dies, his or her interest automatically reverts to the other parties in Deed.

Tenants by Entirety: This tenancy can only be taken if the two individuals in title are married to each other. It offers the greatest legal protection against any judgments files against only one of the individuals in title. Upon death of a spouse, ownership is automatically reverts to the surviving tenant by the entirety.