VLTA
The Magazine of the
Virginia Land Title Association
Volume 16, Number 1 wiNter 2010
The
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Contents
VLTA
Winter 2010
Features
In The Bridging Into a New Decade . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
news
2009 Distinguished Service Award Recipient . . . . . . . . . . . . . . . . . 9
Bill Johnston Retires . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
American Land Title Association Policy Licensing Initiative . . 11
FeaTures Protect Your Business Against Check Fraud . . . . . . . . . . . . . . . . 12
Financial crimes continue to increase in frequency and sophisticated
computer technology has made it easier for fraud artists to counterfeit
checks.
Top Ten Claims for 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Some take away lessons for title agents: watch out for loan documents
prepared by lenders, deeds prepared by attorneys and title policies pre-
pared by other agents.
page 29 The American Dream… Interrupted . . . . . . . . . . . . . . . . . . . . . . . . 18
Protecting the American Dream…
Home Ownership for All . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
I Sell Title Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
How to Defer Capital Gains Tax Liability
on a Commercial Foreclosure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
The Nooks and Crannies of Mona v. Cranston. . . . . . . . . . . . . . 27
In the course of title insurance underwriting one of the first steps is to
determine the specific area of interest. The next step is to fit the facts
into a so-called general rule. Oftentimes there will be exceptions to the
general rule.
Beaufort’s Bucket . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
page 28
Title Tips by Tute . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Departments
Follow us! from the President 5
TM from the Editor 6
from the Executive Director 6
Recorded Treasure 32
Agent Resources 36
Phone: 770.754.3117 Toll Free: 800.929.8730 Fax: 770.754.6142
2010 Membership Application 37
www.vlta.org VLTA ExaminEr Volume 16, Number 1 • WiNter 2010 3
VL A
T VLTA Board of Directors
2009-2010
Dave Croson Florence Reagle
PRESIDENT Director
The Newsletter of the Virginia Land Title Association Stonewall Title & Escrow, Inc. Ph. 703.896.0459
Volume 16, Number 1 WiNter 2010 9300 Grant Avenue, Suite 102 Freagle54@gmail.com
Manassas, VA 20110
Lisa K. Tully, Esq.
PUBLISHER Paul M. Sawtell Ph. 703.330.8047
Director
Dominion Title Corporation Fax 703.330.7247
Virginia Land Title Association dave@stonewalltitle.com Lawyers Title Insurance Corporation
1144 C Walker Road 7130 Glen Forest Drive, Suite 403
Timothy L. Akers Richmond, VA 23226
EDITOR-IN-CHIEF Great Falls, VA 22066
1st VICE PRESIDENT Ph. 804.287.0909 Fax 888.600.5166
tel. 703.757.9500 fax 703.757.9359 Stewart Title Guaranty Company ltully@ltic.com
E. Claire Kennett paul@dominiontitle.com 1802 Bayberry Court, Suite 305
Fidelity National Title Insurance Company Richmond, VA 23226 Manus E. Holmes, Esq.
Julie Ann Rutledge Ph. 804.897.0000 Director
310 First Street, 12th Floor First American Title Insurance Company
Land Title Research, Inc. Fax 804.897.0001
Roanoke, VA 24011 takers@stewart.com 1051 East Cary Street, Suite 1111
tel. 540.853.4039 fax 540.982.0918
2145 Jefferson Davis Highway Richmond, VA 23219
ckennett@fnf.com P.O. Box 3271 Paul M. Sawtell Ph. 804.237.6833 Fax 804.698.5403
2nd VICE PRESIDENT mholmes@firstam.com
Stafford, VA 22554 Dominion Title Corporation
tel. 540.659.0107 fax 540.659.4952 1144 C Walker Road Michelle Reynolds
MANAGING EDITOR ltr.inc@verizon.net Great Falls, VA 22066 Director
Ph. 703.757.9500 Old Republic National Title
Karenlee Oreo Fax 703.757.9359 Insurance Co.
Maureen Dunn, Esq. 9303 Center Street, Suite 101
Virginia Land Title Association paul@dominiontitle.com
Old Republic National Title Insurance, Co. Manassas, VA 20110
5665 Atlanta Highway, Suite 103-140 9303 Center Street, Suite 101 Deborah Y. Allen Ph. 703.365.2300 Fax 703.365.2400
Alpharetta, GA 30004 TREASURER mreynolds@oldrepublictitle.com
Manassas, VA 20110 Pioneer Title
tel. 800.929.8730 fax 770.754.6142 Glenda S. Brooks
tel. 703.365.2300 fax 703.365.2400 One Columbus Center, Suite 400
kloreo@vlta.org Virginia Beach, VA 23462 Director
mdunn@oldrepublictitle.com Middlesex Title Company
Ph. 757.671.7413
EDITORIAL BOARD Melinda Loper Fax 757.671.7540 P.O. Box 559
dyallen@titleassistance.com Deltaville, VA 23043
Judy Blackwell Old Republic National Insurance Company Ph. 804.776.9202 Fax 804.776.9696
Judy Blackwell gbrooks@va.metrocast.net
Fidelity National Title Insurance Company 6802 Paragon Place, Suite 410 SECRETARY
7130 Glen Forest Drive, Suite 403 Richmond, VA 23230 Fidelity National Title Myrna Lou Keplinger
Insurance Company Director
Richmond, VA 23226 tel. 804.441.6113 fax 804.441.6050
7130 Glen Forest Drive, Suite 403 The Settlement Group, Inc.
tel. 804.287.0930 fax 804.282.4432 mloper@oldrepublictitle.com 7630 Little River Tpke, Suite 301
Richmond, VA 23226
jblackwell@fnf.com Ph. 804.287.0930 Annandale, VA 22003
Joy T. Herndon Fax 804.282.4432 Ph. 703.642.6002 Fax 703.642.6003
Cardinal Abstract Company myrna@settlementgroup.com
Palma J. Collins, Esq. jblackwell@fnf.com
First American Title Insurance Company 158 Culpeper Street Joanne W. Payne
2859 Centerview Drive,Suite 300 Warrenton, VA 20186 PAST PRESIDENT
Ph. 540.349.1022 Fax 540.349.8648 Chicago Title Insurance Company
Chantilly, VA 20151 830 E. Main Street, Suite 1600
tel. 703.480.9500 fax 703.480.9481 joy@cardinalabstract.com Richmond, VA 23219
pcollins@firstam.com Ph. 804.643.5404
Glenda S. Brooks Fax 804.521.5759
James Bruce Davis, Esq. Middlesex Title Company paynej@ctt.com
Bean, Kinney & Korman, P.C. P.O. Box 559
Deltaville, VA 23043
2300 Wilson Boulevard, Seventh Floor
Arlington, VA 22201 Ph. 804.776.9202 Fax 804.776.9696 Non-Voting Committee Chairs
tel. 703.525.4000 fax 703.525.2207 gbrooks@va.metrocast.net Stephanie Campbell E. Claire Kennett, Editor
bdavis@beankinney.com EDUCATION THE EXAMINER
ART DIRECTOR The Escrow Store, LLC Fidelity National Title
7201 Glen Forest Dr., Suite 202 Insurance Company
John Comerford Richmond, VA 23226 316 South Jefferson Street
Ph. 804.662.5650 Fax 804.662.5653 Roanoke, VA 24011
J.Comerford Design stephanie@theescrowstore.com Ph. 540.853.4039 Fax 540.982.0918
jcomerford@cox.net ckennett@fnf.com
Kay M. Creasman, Esq.
LEGISLATIVE Tony Brown
Old Republic National Title PUBLIC RELATIONS (PR)
The mission of the Virginia Land Title Association (VLTA) is to promote communication and Carteret Title LLC
Insurance Co.
to provide education throughout the real estate and title industries. The mission includes 9303 Center Street, Suite 101 4935 Pleasant Valley Road
promoting standards and regulations that increase the effectiveness of the industries. Manassas, VA 20110 Harrisonburg, VA 22801
Ph. 703.365.2300 Fax 703.365.2400 Ph. 540.438.9531 Fax 540.437.1948
Legislative initiatives and educational programs are primary aspects of the VLTA’s work. tony@carterettitle.com
kcreasman@oldrepublictitle.com
Leadership in ethical practices and standards is an integral part of its members’ business,
Susan Sawyer Karenlee Oreo
within and outside of the VLTA. EXECUTIVE DIRECTOR
MEMBERSHIP
Lighthouse Title Virginia Land & Title Association
The VLTA ExaminEr is the official publication of the Virginia Land Title Association. It is published for VLTA 10600 Arrowhead Drive, Suite 150 5665 Atlanta Hwy, #103-140
members. Requests for address changes must be received 30 days prior to the date of the issue with which it is Fairfax, VA 22030 Alpharetta, GA 30004
to take effect. Although advertising is screened, acceptance of an advertisement does not imply VLTA endorse- Ph. 703.359.0400 Fax 703.359.0618 Ph. 770-.754-3117 Fax 770.754.6142
ssawyer@titleassistance.com Toll Free: 800.929.8730
ment of the product, the services, or the views expressed. The views and opinions expressed in this publication vlta@vlta.org
are not necessarily those of the association. Articles may not be reprinted without the consent of the VLTA. Sub- Megan Meloon
EVENTS
scriptions are available to interested individuals or groups at $150.00 per year. Address all VLTA and magazine Old Republic National Title
inquiries to: VLTA ExaminEr; 5665 Atlanta Highway, Suite 103-140, Alpharetta, GA 30004; 800–929–8730; Insurance Co.
770–754–6142 (fax); kloreo@vlta.org. Submit all articles for publication in the magazine to: Stewart Title Ph. 800.232.6817 Fax 703.543.0647
e-Fax
Guaranty Company; 10505 Judicial Drive, Suite 300; Fairfax, VA 22030; 703–352–2901; 703–352–5115 (fax); Cell 703.989.7113
bjohnston@stewart.com mmeloon@oldrepublictitle.com
4 VLTA ExaminEr Volume 16, Number 1 • WiNter 2010 www.vlta.org
from the President
Confidence is
the companion of success
G
etting out and meeting with groups of backs and go on about our business. I am glad
title industry professionals has been a to say that I am beginning to see a change.
real blessing for me. Our industry has Title industry professionals in Virginia and
some of the most conscientious, hard working across the country are beginning to realize and
folks that you can find. With every title person embrace the value we offer and are no longer
I meet, the more inclined I am to say “I am being still about it. When asked about our in-
proud to be a title industry professional”. One dustry, we are now sharing national statistics
of my goals is to help the folks in our industry such as, every year our industry collects and
to be as confident in making that statement as pays $3 billion in delinquent real estate taxes,
I am. We are all so busy with the details of our $1.75 billion in federal income taxes, $325
by work that the actual value of our own prod- million in back child support payments and
David W. Croson ucts and services doesn’t even cross our minds. on and on. An industry that does that would
Stonewall Title & Escrow, Inc., The truth is and to paraphrase the message be considered quite valuable.
VLTA President of world renowned economist, Hernando We are now dealing with the new RESPA
DeSoto, our title industry is the critical link rule and I must say, regardless of the chal-
that breaths life into real property that would lenges, title industry professionals have been
otherwise be “dead capital.1 ” An industry that leading the way and assisting others in dealing
does that would be considered quite valuable. with the change. We know the hit that our
Many of our day to day routine functions economy has taken in this downturn and how
have provided such tremendous benefits to our communities have suffered. Title industry
so many, for so long, that even the recipients professionals trained long and hard prior to
have taken them for granted. We have done the implementation of the new rule to assure
such a good job of facilitating secure transfers that the changes would not be disruptive. Our
of ownership, of preventing claims, of paying title industry professionals have taken a lead-
off mortgages in a timely manner, of collect- ing role by sharing their training with related
ing and paying delinquent taxes and liens, and industry groups such as lenders and Realtors.
correcting errors in county land records that An industry that does that would be consid-
we make it seem very easy. An industry that ered quite valuable.
does that would be considered quite valuable. Be proud to be a title industry professional
Our industry has been misunderstood by and know that an industry that does what we
many people, and how quick they are to criti- do is quite valuable.
cize what they do not understand. In the past, “Confidence is the companion of success.”
we have had a tendency to let it roll off our
1 DeSoto, Hernando. “Keynote Speaker.” 2009 American Land Title David W. Croson
Association. Palm Beach, Florida. 23 October 2009.
President, VLTA
www.vlta.org VLTA ExaminEr Volume 16, Number 1 • WiNter 2010 5
from the Executive Director
Happy New Year! to the entire list. This is an excellent resource
for reaching VLTA members across the state.
Members are automatically enrolled in this list
It’s the End of the Biennium. For all our serv. It’s a great way to get some quick research
licensed title agents, it’s the end of the biennium on a particular industry related topic.
and each of you should have already completed Membership Directory. Members, don’t forget
your inventory of credits needed by the end of the to visit www.vlta.org occasionally and check the
year. Why not get it done BEFORE December. directory listing for your company. The directory
VLTA has several options to obtain the necessary is available for all visitors to view. One more way
credits for your license. VLTA promotes your company!
■ Published Courses – Self Study Courses. Learn at Audio Conferences. Audio Conferences —
by home or office. another opportunity for our members to receive
Karenlee Oreo ■ NEW! VLTAOnline – Online learning business education from the comfort of their
Executive Director, ■ Annual Convention in Chantilly, Virginia (June
office. Most likely, the topics selected for an audio
Virginia Land Title Association 3-6, 2010)
conference will not be eligible for credit. On occa-
sion, we will have one available for title insurance
■ Fall Symposium
credit. The main purpose is to offer education
VLTA has been busy. We ■ Last Resort – Video Seminars will be offered in that aids our owner members to sharpen their
closed the year with 36 December. (Richmond and NOVA) business practices. It is usually a 90-minute
new members. 2010 is FREE Job Postings for our Agent Members. telephone seminar. The session provides con-
looking good. I know I With the economy looking up, the time will come venient, quality learning at an affordable price
sound like a broken record that our agent members will be looking for exper- — participants will be able to see materials, hear
sometimes, but I can’t ienced help. Agent members have the privilege of an instructor and ask questions in real time. All
help myself! VLTA keeps having FREE job postings. VLTA wants to help you need is a speaker-phone. The greatest benefit
growing and adding more you. One of the benefits of our website is the of an audio conference is that you purchase one
benefits to membership, ability to establish a list serv (forum), so with little connection but can have unlimited participants.
that we can hardly keep cost, VLTA was able to expand its’ member benefits These are great for “Lunch-N-Learns.”
track — so I assume, our to include a VLTA List Serv in early 2005. Banner Ads. Another great way to promote
members have the same If you haven’t signed up to participate yet, your company on the VLTA website. Associate
trouble. So yes, I often maybe learning more about it will entice you. and Abstractor Members receive 50% off and
repeat myself. Here we go Those of you who have signed up, but have not yet Underwriters get a FREE one as a benefit of
again. utilized this tool, should continue reading…you membership.
may find yourself inspired to “post a message”. Guess what? This is not a comprehensive list of all the
Members Google List Serv. Have you used bennies. The time has come to “bookmark” the VLTA
it yet? The list serve is a communication forum website in your favorites. Make it a point to cruise the
in which members can share best practices and site at least weekly. We try to note the new postings on
industry related issues. It should not be used for the home page to help you out.
personal communications and participation is vol- We don’t want our members to miss anything!
untary. Keep in mind that all posts are distributed So log on today at www.vlta.org and bookmark us!
From the Editor Bill Johnston recently retired as Editor of the VLTA Examiner.
Having worked with Bill as Co-Editor for over a year, I am now
stepping into this new role. Bill leaves big shoes to fill, so I am just going to take a deep breath and keep
my fingers crossed that I can live up to the high standards that he established and maintained for many,
many years, making the Examiner the best trade magazine in the title industry. Bill, we will miss you and
the dedication and expertise you brought to our organization!
As we begin a new year I want to thank everyone on the Editorial Board for their hard work and ongoing
support, and a special thank you to Karenlee Oreo for keeping us on track with her energy and enthusiasm.
And to our readers, this is YOUR magazine! We need more participation from VLTA members. Please
by consider joining our Board. We conference call once a month to brainstorm, and the more brains, the better!
E. Claire Kennett Email or call us with ideas or a referral to someone who might submit an article. We’ll follow up.
Editor-In-Chief Best wishes to all for a happy and successful 2010!
6 VLTA ExaminEr Volume 16, Number 1 • WiNter 2010 www.vlta.org
In the News
2010 Annual Convention
“Bridging Into a New Decade”
June 3-5, 2010 – Chantilly, Virginia
VLTA’s Annual Let’s Play Golf!
Convention provides oppor- Join your colleagues as they
tunities for our members tee off on one of Chantilly’s
to gain their continuing finest golf courses: Chantilly
education credits while National Golf and Country
networking and socializing Club. Enjoy lunch while hitting
with their colleagues. We’ve the greens with your friends
made a few changes to the and colleagues.
overall convention. We’re Sponsors: Don’t miss this
starting a day early, with golf and a reception to welcome opportunity to market your
our attendees…offering you more opportunities to network company! Yes, times are dif-
with your friends and colleagues. 2010 is the End of the ficult, but we all know that
Biennium, so know you’ll need your credits! Be sure to face-to-face meetings continue
register before the discount deadline ends. Don’t forget to to be the most effective mar-
secure your lodging too! keting. Furthermore, the data
Log on at www.vlta.org to register. shows that to increase business,
you need to be there to build
Westfield Marriott stronger and more meaningful
Washington Dulles business relationships. So don’t
14750 Conference Ctr Dr. waste any time…make sure
Chantilly, VA 20151 you’ve secured your space!
Discount Deadline:
Are you retired from the title industry? We have a NEW Membership category for you!
Emeritus Membership*
The Association provides an Emeritus Membership status to those members who have attained sixty-five (65) years of
age, who have retired from the industry as an underwriter and/or agent, and who have been Members in good standing for
a period of at least ten (10) years preceding their retirement. Emeritus Members are not required to pay annual dues to the
Association. Emeritus Members receive all of the same benefits, rights, and privileges that are accorded to underwriter/agent
members with the exception of voting privileges. To be eligible for Emeritus Membership, individuals should
■ Have retired from full and regular employment in the title and/or settlement industry.
■ Have been a member in good standing of the association for ten (10) years or more immediately preceding their retirement.
■ Have attained the age of sixty-five (65) years.
Apply for Emeritus Membership Status to the Executive Director of the Association. The Executive Director will make a
recommendation of Emeritus Membership Status to the BOD of the Association, who will then vote to approve the Emeritus
Membership Status of the member.
*Emeritus Membership renews annually. Each year, you will receive an application.
www.vlta.org VLTA ExaminEr Volume 16, Number 1 • WiNter 2010 7
Dominion Title Corporation’s goal is
to make each person’s experience of
closing a real estate transaction result
in Dominion Title becoming your
Settlement Company for life. The real
estate transaction is a stressful time
for all parties involved in the deal. By
the time our clients reach the settlement table, all parties
have worked hard to make the transaction successful.
Dominion Title makes the closing experience a final win-win
celebration for all parties. ~The Escrow Store, LLC ~
Our professional staff has a combined experience of
over 60 years in title insurance and real estate settlements. The Escrow Store, LLC has a fully trained staff. Our
Each of us brings in a different area of expertise to provide a title insurance agents have a combined thirty four years
well-rounded service. Our goal is to help you celebrate your of experience in title insurance underwriting and real
new home or your new refinance by removing stress from estate closings in Richmond and its surrounding areas.
the real estate settlement process. Our clients are always Our agency employs an in house abstractor, allowing us
amazed by how hassle-free settlements are with us. to offer a wide range of title abstracting services. We
Our services include: are members of Virginia Land Title Association, Better
• Full Real Estate Settlement and Title Insurance Services Business Bureau and the National Association of Women
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• Reasonable Rates with Quality Service We are a family owned and operated Agency!
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8 VLTA ExaminEr Volume 16, Number 1 • WiNter 2010 www.vlta.org
Distinguished Service Award
2009 Recipient Alaine Belongia Donovan, Esq.
VLTA is honored to call Real Property and Probate Sections of both the District of
individuals like this year’s Columbia Bar and the Virginia State Bar. She has served as
Distinguished Service President of the District of Columbia Land Title Association,
Award recipient, Alaine and has held various offices of the Virginia Land Title
Donovan, part of the Association. Ms. Donovan was the Education Chair of the
group of people who work VLTA when continuing education for title insurance agents
hard to help our associa- became law. In order to make continuing education courses
tion grow. Alaine Belongia available on behalf of the VLTA to all licensed title insurance
Donovan is Vice President, agents throughout the state, she had programs taped in a
Virginia and District of local television studio. From 1993 to 2009, Ms. Donovan was
Columbia Counsel for appointed by the Virginia Commissioner of Insurance to the
Chicago, Commonwealth Virginia Continuing Education Board, most recently serving
Land and Ticor Title as Vice Chair.
Insurance Companies. Ms. Donovan is admitted to the practice of law in the
She has a career of over 33 Commonwealth of Virginia and in the District of Columbia.
years in the real estate and title insurance industry. She graduated with distinction from George Mason University
Ms. Donovan has lectured extensively about various aspects in 1982, and received her juris doctorate from George Mason
of real property law and title insurance issues, including University School of Law in 1986.
programs approved for the Virginia State Bar, the Virginia
Land Title Association, the District of Columbia Land Title
Association and the Virginia Continuing Education Board
for licensed title insurance agents. She is a member of the Bill Johnston Retires
William P. ‘Bill’ Johnston recently
announced his retirement as Vice
President of Stewart Title Guaranty
Company and as Editor in Chief
of the VLTA Examiner. Bill has had
a long career in the title insurance
industry, working in all facets of the
title and settlement industry for more
than 45 years. Bill is a past President
(1998-1999) of the Virginia Land Title
Association, and has served as Editor
in Chief of the VLTA Examiner since the inception of the
magazine. Bill’s leadership as Editor was instrumental in the
success of the VLTA Examiner, which is recognized as one of
the best trade publications in the land title industry. Bill was
recognized for his service in the title insurance industry by the
Virginia Land Title Association in 2006, receiving the VLTA
Distinguished Service Award.
Bill looks forward to spending more time with wife Elaine,
his children and grandchildren, and polishing his golf game.
We all wish Bill the best as he starts this new phase of his life,
and appreciate his tireless efforts on behalf of the VLTA. We
MISS you Bill!
www.vlta.org VLTA ExaminEr Volume 16, Number 1 • WiNter 2010 9
The Membership Advantage
Standing together, our members are a powerful force
keeping the land title industry an integral part of protecting
interests in real property.
ALTA members get the very best information, advocacy,
education and networking opportunities.
Membership increases professional contacts, improves
www.alta.org
industry knowledge and business success. service@alta.org
A LTA
10 VLTA ExaminEr Volume 16, Number 1 • WiNter 2010 www.vlta.org
American Land Title Association Policy
Licensing Initiative to Strengthen Industry
I
n a move aimed at strengthening the land title industry ALTA forms far into the future. ALTA is doing more than
by protecting the association’s top industry product, the ever to carry the banner for our industry. We want to keep up
American Land Title Association has launched an initia- that level of advocacy on behalf of our members and for all
tive to license the use of its uniform title insurance policy in the title business. And, we want to do it in an environment
forms. where all beneficiaries share in the cost,” Pryor continued.
“ALTA’s uniform policy forms have become the ‘gold ALTA has already begun to serve the current needs by
standard’ throughout the lending and legal communities. ramping up its grassroots network; rolling out several new
Because land title insurance coverage is standardized, the communications vehicles, including the Advocacy and
secondary market readily accepts mortgages that carry title Grassroots Updates, News You Can Use, and TitleNews
insurance. This has greatly contributed to the growth of Online; dramatically increasing the size of its political ac-
demand for title insurance across the country,” said Mike tion committee; tripling the number of in-house registered
Pryor, past president of ALTA. lobbyists; hiring outsidelobbying talent to augment in-
A license to use ALTA’s policy forms will be provided free house effectiveness; commissioning new industry research
to all ALTA members. Companies that are not members of to demonstrate the value of the industry to policymakers;
the association will be required to pay an annual licensing increasing its collaboration with state land title associations
fee of $195 to write on ALTA policy forms. to enhance their ability to counter hostile legislation and
To launch the program, ALTA is granting a free ALTA regulation; increasing its involvement with the National
membership to all non-members for the remainder of 2009. Association of Insurance Commissioners (NAIC) title insur-
In 2010, those companies must choose to either continue ance working group; and spearheading the creation of a
their ALTA membership or purchase the yearly license from RESPA Implementation Taskforce to work with HUD on the
ALTA to write on the policy forms. new RESPA rule.
“A lot of agents think the forms belong to their under- “We probably can’t make members out of everyone, but
writers,” stated Pryor. “But the truth is, our trade associa- we can at least get everyone in the industry to get a little
tion created the standardized forms and filled a unique role more connected and a little more involved,” said Pryor. “The
bringing the industry together to eliminate the confusion $195 license fee is a minimal investment in a product that
and chaos of disparate coverage. In turn, this has built a is an integral part of our business each day. The value of
bridge to broader market availability for title insurance.” the forms far exceeds the license fee. This program will be a
In addition, Pryor said this program will bring together small step toward reestablishing a level playing field for all
the land title community and strengthen efforts to protect industry participants,” Pryor concluded.
its business interests.
“As I have traveled across the country speaking to title
All publications of the American Land Title
professionals, one thing is clear,” said Pryor. “The land title
Association® are copyrighted and are reprinted herein
industry is at a critical juncture where we have the opportu- by specific permission from:
nity to step up and show home buyers, lenders, and our com-
munities how we have made our land recordation system American Land Title Association® (ALTA®)
the best in the world; or, we can sit back and watch our life’s 1828 L Street, N.W., Suite 705
work be altered completely by a stroke of a legislative pen or Washington, DC 20036
Phone: 202-296-3671
a regulatory change.”
E-Mail: service@alta.org
“Licensing of the policy forms will reduce the drain of Web: http://www.alta.org
critical resources to the association and protect the value of
www.vlta.org VLTA ExaminEr Volume 16, Number 1 • WiNter 2010 11
Protect Your Business Against
Check Fraud
U
nder recent changes to the Uniform ■ Evaluate your check printing technology.
Commercial Code, businesses can now be Businesses still using pre-printed check stock with
liable for some fraud related losses if they fail a dot matrix printer are at greater risk for check
to act responsibly. Check fraud and check coun- fraud. Laser printers that print on blank check
terfeiting losses cost U.S. companies and financial stock offer greater security.
institutions more than $10 billion annually. The ■ Consider adding bank fraud prevention services to
amount of fraudulent checks presented increased help reduce your company’s exposure to risk.
28 percent last year, according to an American
Many banks offer “positive pay” services allow-
Bankers Association fraud survey.
ing the company to provide the bank with infor-
Counterfeiting is one of the rapidly growing
mation on all checks issued, including the dollar
by areas of check fraud. Since checks that busi-
amount and serial number of each check. The bank
nesses circulate have company checking account
Chris Johnson numbers and authorized signatures in “plain
then monitors all checks presented, to make sure
Business Banker the information matches up with checks issued by
view,” scam artists have a menu of information to
M&T Bank, Manassas, VA the business. “Suspicious” checks are reported back
copy. Using basic personal computers and Internet
to the company before being paid.
technology, counterfeiters can utilize computer
Financial crimes continue Similar services are available for ACH monitor-
software, color copiers and printers to produce
to increase in frequency ing. Companies can set up “allowable ACH debits”
exact replicas of genuine checks.
and sophisticated com- that are permitted based on your approved ven-
Altered checks are another common type of
puter technology has made dors and dollar amounts. The company can then
fraud. A criminal takes a good check and uses
it easier for fraud artists instruct the bank to block all ACH debits that don’t
chemicals to erase the amount, or the name of
to counterfeit checks. match with the pre-approved vendor list and dollar
the payee, and enters new information. Under the
Businesses can better amounts.
Uniform Commercial Code for checks, failure to
protect themselves from Every business has different circumstances.
examine bank statements and report fraudulent
fraud losses by employing Some businesses issue more checks – or accept
activity promptly could make the business liable
some basic fraud preven- more checks – than others. Each business has
for some if not all of the financial losses. Those
tion strategies and closely to evaluate its own risk for fraud related losses.
same standards apply to fraudulent Automated
monitoring their accounts. Every business should take check fraud seriously.
Clearing House (ACH) transactions. Companies are
Financial fraud is a growth industry and recent
responsible for reviewing financial statements and
changes to the Uniform Commercial Code have
promptly reporting fraudulent ACH transactions.
redefined liability for check fraud to shift more
Here are some steps your business should
responsibility for fraud monitoring to the business
consider to prevent fraud losses:
community.
■ Monitor your accounts daily and review the inter-
nal controls surrounding your payment processes.
Segregating payment duties and requiring more About the Author
than one signature on checks can add another
level of security. A system of checks and balances
Chris has been in the financial industry for
reduces fraud exposure.
nearly twelve (12) years now, serving in the
Northern Virginia area, from Fredericksburg up
■ If you are a retailer, establish clear check accep- to D.C. and out to Lovettsville. He’s held various
tance policies covering acceptable forms of iden- roles as a lender and banker, as well as, invest-
tification and dollar limits for checks. Train your ment advisor, mortgage loan officer, and most
staff to carefully examine identification presented recently as a business/commercial banker with a
by customers. strong focus on the title and settlement industry.
12 VLTA ExaminEr Volume 16, Number 1 • WiNter 2010 www.vlta.org
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www.vlta.org VLTA ExaminEr Volume 16, Number 1 • WiNter 2010 13
Top Ten Claims for 2009
2009 was another busy year for the title insur- When Kahled and Fatima sold Blackacre to
ance lawyers at Bean, Kinney & Korman, P.C. This Kelem, the abstractor missed Big Bank’s deed of
article presents our top ten claims for the past trust. After Big Bank foreclosed, Kelem sued to set
year, based on our subjective judgment of their aside the sale. He contended that the sale did not
educational value. Some take away lessons for title affect his title because Big Bank’s deed of trust had
agents: watch out for loan documents prepared by been misindexed or misrecorded. A title insurance
lenders, deeds prepared by attorneys and title poli- company hired our firm to defend Big Bank.
cies prepared by other agents. We’ve changed the Kelem’s misindexing claim was not a major
names in some cases and omitted them in others concern. If the Clerk of the Court makes an error in
to avoid embarrassing anyone. indexing a mortgage, a subsequent purchaser takes
the property subject to the mortgage, even if he
1. The almost right name.
does not know about it. Jones v. Folks, 149 Va. 140,
Smith & Sons, Inc. applied to Friendly Bank for
140 S.E. 126 (1927). The injured purchaser may be
a mortgage loan to finance the company’s busi-
able to recover all or part of his loss by suing the
ness. The Bank ordered a title insurance commit-
Clerk for negligence. First Virginia Bank‑Colonial v.
ment that showed title to the security property
Baker, 225 Va. 72, 301 S.E.2d 8 (1983).
vested in Smith & Sons. The owner, it turned out,
Kelem’s misrecording claim was based on his
was a general partnership owned by members of
contention that the grantor named in the deed
the Smith family, who also owned the corporate
of trust did not own the property. “Fatima” was
borrower.
the record owner, but the grantor under the deed
The Bank prepared a note and deed of trust for
of trust signed her name “Fatina.” We argued
signature by an officer of Smith & Sons, Inc. The
that the difference in the written expression of
settlement agent obtained the required corporate
grantor’s first name was not fatal. We invoked the
by signatures and recorded the deed of trust. After
doctrine of idem sonens, which holds that if two
James Bruce Davis the loan went to default, the Bank discovered that
names sound alike, they are presumed to refer to
the deed of trust was defective because the owner
Raighne C. Delaney the same person. Goodman v. Riddick, 152 Va. 693,
of the property never signed it.
Bean, Kinney & Korman, P.C. 697, 148 S.E. 695, 696 (1929). Kelem responded
No policy having been issued, the Bank sued
that the idem sonens doctrine was an ancient rule
the title insurer on a closing protection letter. The
that the court should disregard in the modern age.
Bank alleged that the settlement agent failed to
However, even if the idem sonens doctrine did not
follow the Bank’s instructions to provide the Bank
apply, we could have proved that the Fatima who
with a first priority lien on the property. The title
owned the property was the same person as Fatina,
insurer is defending on the ground that the Bank
who had signed the deed of trust. This would have
caused the problem by putting the wrong name
established the validity of the deed of trust. Id. The
on the deed of trust, and then compounded the
case settled before trial.
problem by issuing closing instructions that told
the settlement agent it need not review documents 3. Exhibit A is not an afterthought.
prepared by the Bank. In 2010, a judge will tell us All of us know about Exhibit A, the document
who must bear the loss. that (usually) gets attached to a deed or deed of
trust to describe the property conveyed. One of
2. You say Fatima; I say Fatina.
the authors had his first encounter with a miss-
John deeded Blackacre to Kahled and Fatima.
ing Exhibit A several years ago, when a borrower’s
They took out a credit line deed of trust from Big
bankruptcy trustee avoided a deed of trust that
Bank. The deed of trust named “Fatima” as the
lacked a legal description. The settlement attor-
grantor, but she signed her name, “Fatina.” The
ney claimed that the Clerk of the Court removed
Clerk indexed the deed of trust under the name
Exhibit A during the recordation process, which
“Fatina.”
14 VLTA ExaminEr Volume 16, Number 1 • WiNter 2010 www.vlta.org
Cover Story
was probably the least convincing excuse since “the dog ate my 5. Exhibit A revisited.
homework.” But that’s a story from another year. This year we Even if a deed of trust incorporates an attached Exhibit
dealt with problematic Exhibits A. A, it may not be the right Exhibit A. In one such transaction,
Alli purchased Whiteacre in Maryland, but his settlement a subdivision developer acquired land for his subdivision by
agent missed a deed of trust. A three-page document titled Deed two different deeds. The developer subsequently applied for a
of Trust had been recorded in the land records, together with development loan. The title insurance agent for the loan transac-
nine separate pages, each titled “Exhibit A.” Each Exhibit A tion prepared a title insurance commitment that described the
described a separate property in the county. The three-page Deed proposed security property in an Exhibit A. However, this Exhibit
of Trust was a printed form that had a space for describing the A described only one of the two parcels that was to be included
mortgaged property, but that space was left blank. Nothing in in the proposed subdivision. A loan officer for the bank prepared
the three page document referred to an Exhibit A. a deed of trust that described the mortgaged property in an at-
When the lender secured by the three-page deed of trust dock- tached Exhibit A, which was the same Exhibit A attached to the
eted a foreclosure proceeding, a title insurance company hired title insurance commitment. The title insurance agent recorded
us to defend Alli. We asserted on his behalf that the three-page the deed of trust and issued a policy, with the same Exhibit A.
deed of trust was void because it contained no legal description After a while, the developer filed a Chapter 11 bankruptcy. In
of the property to be encumbered. See Berlin v. Caplan, 211 Md. an ensuing adversary proceeding, the Bankruptcy Court ruled
333, 127 A.2d 512 (1956). The trial judge aptly stated the issue: that the deed of trust covered only the land described in Exhibit
Did the nine pages recorded in the land records constitute a 12- A. The Court also ruled that, once a bankruptcy had been filed,
page deed of trust, or a three-page deed of trust followed by nine the deed of trust could not be reformed to encompass all of the
concurrently recorded pages? The court took the matter under land in the proposed subdivision, even if the parties intended for
advisement. all of the land to be encumbered. As coverage counsel for the title
4. The non-creditworthy spouse. insurance company, our firm wrote a letter denying the bank’s
Even in the halcyon days of easy credit, some mortgage lend- claim because the bank had received good title to all of the land
ers still considered a borrower’s credit report. Thus, when a mar- covered by the policy.
ried couple applied for stated income, subprime mortgage loan 6. Exhibit A, again!
for 100% of the cost of buying a house, the lender balked because Coverage issues become more problematic when a title insur-
the husband had a bad credit rating. “Not to worry,” said the ance agent issues a commitment for one parcel, but the lender’s
creative mortgage broker. “We’ll just fill out a loan application in closing instructions require a lien on two parcels. In one such
the wife’s name because her credit rating is ok.” And so it came case the lender realized it had no claim under its title insurance
to pass that the loan was approved for the wife, and the couple policy. However, the lender asserted a claim under a closing
purchased a house they couldn’t afford. protection letter, arguing that the title insurance agent had failed
The title insurance agent (a lay person) had an attorney pre- to follow the lender’s written closing instructions to obtain title
pare a deed. The attorney prepared the deed so that title would insurance for both parcels. We defended the title insurer in a suit
vest in the husband and wife as tenants by the entirety. (That’s before the U.S. District Court for the Eastern District of Virginia.
how it’s always done, isn’t it?) Meanwhile, the lender prepared a One of our defenses was that the lender had prejudiced the title
deed of trust for the wife’s signature. You can see the train wreck insurer by waiting until after the borrower had filed bankruptcy
coming, can’t you? to report the claim. The case settled on terms favorable to the
After the borrowers defaulted on the loan, the lender found insurer.
out it could not foreclose on tenancy by the entirety property.
The deed of trust was worthless unless the husband predeceased 7. What’s a little horizontal privity between neighbors?
the wife or the couple divorced. A title insurance company hired Mary’s Trust owned Lot A, a waterfront property where she
us to fix the lender’s problem. lived with her husband, Bill. Mary and Bill also owned adjacent
We opted for the most civilized of the potential solutions. Lot B. They decided to sell Lot A and live on Lot B.
We filed a suit to reform the deed of trust so that it would be Before selling Lot A, Mary, as trustee of her trust, recorded a
effective against the husband and the wife. Our case was based restrictive covenant on Lot A that prohibited the building of a
on evidence that the parties actually intended for both spouses deep water pier. A stated purpose of the covenant was to protect
to sign the deed of trust, even though the wife would be the only Lot B’s view of the water. However, the instrument containing the
party liable on the note. It helped that the husband had attended covenant did not identify a grantee.
the closing and provided the settlement agent with a copy of his The Trust then sold Lot A to Fred. Mary and Bill did not tell
driver’s license. The suit was unopposed, and the court granted Fred about the covenant, and the title examiner did not report
the relief sought. it. Fred’s title insurance agent issued an owner’s policy without
Our firm handled five cases more or less like this one in 2009. exception for the covenant. Fred’s title insurer hired us to fix the
We wonder why it was always the husband who had the bad problem.
credit.
www.vlta.org VLTA ExaminEr Volume 16, Number 1 • WiNter 2010 15
Virginia will enforce restrictive covenants if they are clear and land pursuant to Virginia Code § 41-8, a rare, but valid, excep-
if they satisfy various technical requirements. Barris v. Keswick tion to the rule that one cannot adversely possess land owned
Homes, LLC, 268 Va. 67, 597 S.E.2d 54 (2004). One of the tech- by the Commonwealth. Section 41-8 permits someone who
nical requirements is “horizontal privity,” which requires that settles “waste and unappropriated land” to acquire title from
a restrictive covenant must be created in a deed that transfers the Commonwealth by occupying the land for five years and
title to real estate from one person to another. Many states have paying taxes on it for one of those years. “Waste and unap-
abolished horizontal privity as a requirement, but Virginia has propriated land” means land that the Commonwealth owns
not. Sonoma Development, Inc. v. Miller, 258 Va. 163, 515 S.E.2d 577 that is not used or dedicated for a public purpose. We argued
(1999). Although this claim remains unresolved, we contemplate that, even if the Commonwealth had owned Cameron Run,
bringing a quiet title action on behalf of Fred on allegations that the former stream bed became waste and unappropriated land
the restrictive covenant fails for lack of horizontal privity. when the Commonwealth relocated the stream. The reloca-
tion left the stream’s former bed high and dry, unused by the
8. Yes, Virginia, you can adversely possess against the
Commonwealth, and not dedicated to public use. We intended
Commonwealth (sometimes).
to prove that the dealer had settled the land with an automotive
The Virginia Department of Transportation (“VDOT”) con-
dealership, had operated the dealership at least five years, and
demned land from a car dealer, offered a set sum, and told the
had paid real estate taxes on the property.
owner to take the offer or else. “Else” was a suit to declare that
The court denied VDOT’s motions to bar the dealer’s evidence
the dealer never owned its land in the first place. The reason: the
and ruled that the dealer was entitled to a trial on its claims. The
dealer’s property formerly was part of Cameron Run, a waterway
parties settled the matter prior to trial.
that formed the boundary between the City of Alexandria and
(We borrowed this case from 2008 because we thought the
Fairfax County. Aerial photographs dating from the 1930s to
Examiner’s readers would find it of special interest.)
1960s showed that part of the dealer’s land was under water. This
land became fast land in the early 1960s, when VDOT relocated 9. False starter.
and channelized Cameron Run in connection with the construc- Why order a new title search when you can just rely on an old
tion of the Capital Beltway. policy prepared by someone else? Well, someone else might have
The dealer’s title derived, in part, from grants by the made a mistake.
Commonwealth. VDOT argued that these grants were void due In the case that confronted us, the Searchlight Title Agency
to VA Code § 62-1, which prohibits the Commonwealth from issued an owner’s policy to Leviathan Builders for a 2000 acre
granting any title to lands in a stream or waterway. The dealer’s tract in Tankerville County. Leviathan intended to subdivide the
title insurer hired us to defend the dealer. property for a housing development.
After investigation, the dealer asserted that it could prove Leviathan had acquired the property a few years earlier, and
its title without regard to the grants from the Commonwealth. had obtained a $1.5 million mortgage loan at that time to fund
First, prior to the Declaration of Independence, the Crown initial development costs. After having the property rezoned for
granted the entire Northern Neck of Virginia, including navi- residential use, Leviathan applied to Agency for a $40 million
gable waterways, to certain proprietors, whose interests passed owner’s policy and a $50 million loan policy. Agency was happy
to Lord Fairfax. Lord Fairfax had granted the land in question to oblige. In underwriting the new policies, Agency appears
to the Earl of Tankerville. These facts, we argued, showed that to have used a policy for the $1.5 million loan as a starter for
the Commonwealth never owned the land, even if it had been a Agency’s title examination. Another agent had prepared the $1.5
stream bed. million loan policy.
Second, we argued that the dealer had acquired title to the After Leviathan started selling houses, a neighboring property
16 VLTA ExaminEr Volume 16, Number 1 • WiNter 2010 www.vlta.org
Cover Story
owner harvested timber on part of the 2000 acre site. Leviathan The title insurer exercised its option under the policy to take
ordered a new title search. This disclosed that Leviathan held no legal action to remove the safety easement. In the ensuing quiet
record title to approximately 50 acres of its property. About half title suit, the owner claimed the Army abandoned the easement
of the 50 acres was owned by the neighbor; the residue of the 50 by selling the missile site to a commercial developer. The Army
acres was owned by heirs of an English settler who acquired the responded that the suit was barred by the Quiet Title Act, which
land in the 1700s and then went back to England. provides that any suit against the United States to quiet title to
We defended the title insurer in a suit by Leviathan under land must be brought within 12 years of the date the owner learns
the policy and ultimately negotiated the settlement. Under the about the government’s interest in the property. The Army argued
settlement, the insurer agreed to take further action to correct that the original joint venturers’ knowledge of the safety easement
the title problem. The corrective action required an agreement to must be imputed to the current owner because, in the eyes of the
purchase the land owned by the neighbor and a quiet title action law, the current owner was the same entity as the joint venture.
(based on adverse possession) against the heirs of the English Before the court reached any decision, the owner sold the
settler. All ended well, except the insurance company had to pay land to Montgomery County, rendering the litigation moot. The
several hundred thousand dollars to cover the cost of the neigh- County intends to train firefighters at the property, and we can’t
bor’s property. The insurer also had to pay the cost of the quiet think of a better use for the former safety easement.
title action and the company’s own legal defense costs.
An underwriting counsel we consulted is of the opinion that
at least three circumstances should have alerted Agency to do
a full title search. First, Leviathan was already in title when it
ordered the owner’s policy. Second, the starter policy was a loan
policy, which may have been subject to less stringent underwrit-
ing than an owner’s policy. Third, the amounts of the proposed
new policies were significantly greater than the amount of the
prior loan policy.
10. Outta Site, Outta Mind.
In 1955, the US Army condemned land in Maryland for the
purpose of building a NIKE missile site, along with a safety ease- About the Authors
ment. The safety easement prohibited human habitation within
an area of land surrounding the missile site. The missile site James BruCe DaVis is a shareholder of the firm and represents
discontinued operations in 1962. Eventually, the Army sold the title insurance companies and financial institutions in commercial litiga-
missile site to a third party, but forgot about the safety easement. tion in Virginia, the District of Columbia and maryland. His areas of
Meanwhile, the owner of the land burdened by the easement sold expertise include title insurance coverage, creditors’ rights, bankruptcy
the property to a joint venture, which later converted itself into a litigation and lender liability defense.
limited liability company. in addition to his trial practice, mr. Davis represents financial
The original joint venture/LLC members knew about the safety institutions in a variety of lending transactions and workouts, including
easement. They asked the Army to vacate the safety easement in commercial mortgage loans, construction loans, and asset based loans.
the 1970s, but the Army’s price for vacating the easement was too mr. Davis has co-chaired the D.C. Bar’s section on real estate,
high. Eventually, they gave up and sold their membership interests Housing and Land use and has served as President of the District of
to a second generation of owners. The second generation of owners Columbia Land Title association. He graduated from the College of
sold their membership interests to a third generation of owners. William and mary and the university of Virginia school of Law. His
The third generation of owners sold their membership interests to academic honors include Phi Beta Kappa and Order of the Coif.
a fourth generation of owners. By this time, it seems that anyone
who remembered the safety easement was no longer with the com- raigHNe C. DeLaNey is a shareholder with the firm. He practices
pany. The fourth generation tried to sell the land to a developer, in the area of general civil litigation. He has successfully prosecuted and
which discovered the safety easement through a title search. defended numerous cases in each of the following areas: real estate litiga-
These events gave rise to a claim under a title insurance tion, business litigation, government contracts, and construction litigation.
policy issued to the owner when the fourth generation members mr. Delaney is a LeeD accredited Professional with knowledge of
acquired their limited liability company interests. The owner’s the law as it relates to the construction, design and operation of green
policy took no exception for the safety easement. The title insurer buildings.
hired us as its coverage counsel for the claim. mr. Delaney is licensed to practice law in Virginia, the District of
Settlement negotiations with the Army were unproductive. The Columbia and maryland. He is admitted to practice before the u.s.
Army valued the easement as if it were a fee simple interest in land. supreme Court, as well as various u.s. federal courts.
www.vlta.org VLTA ExaminEr Volume 16, Number 1 • WiNter 2010 17
Cover Story
The American Dream…
Interrupted
We had the American Dream – in 1998 HUD controls and standards. Coupled with the slow
announced that their goal was to provide the down in housing prices, borrowers were pre-
opportunity for every American to own their vented from refinancing or selling their home.
own home. From 2002 to 2005 we did just that. Homeowners were stuck!
Housing prices were stable, interest rates were Over the past two years, Congress appropri-
dropping, banking regulations were relaxed ated funds to Neighbor Works America, and
and with the job market growing, houses began other organizations formed to help keep bor-
selling faster than ice cream on a hot summer rowers in their homes. Congress enacted HOPE,
day. As a title industry, we celebrated record HERA, and other legislation and initiatives
breaking revenue. Title companies opened up through various government agencies, funded
on every corner to capitalize on the refi-boom. multiple bailouts, all to stem the growing tide
by
With interest rates hovering at unforeseen lows, of foreclosures. Unfortunately, the number of
Maureen S. Dunn creative mortgage products and the greed of delinquencies continues to grow. Most of the
Associate Counsel
a nation, the housing boom soon followed. loan modifications that have been offered have
Old Republic National Title
Insurance Company Builders and developers built more subdivi- not reduced monthly payments. The Center for
sions, housing prices climbed, sellers were Responsible Lending (CRL) estimated that only
anxious to move to bigger and better homes and 1 in 5 of all subprime workout plans actually
A homeless beggar on the the housing industry became the number one lowered monthly mortgage payments for fi-
street in DC yesterday headline across the nation. Loudoun County, nancially distressed borrowers.2 On October 14,
called out “Can’t you spare Virginia was touted as the fastest growing 2009, Secretary Donovan of U.S. Department of
a homeless man $10?” county in the United States. We were on a Housing and Urban Development announced
Ten Dollars! I thought how roll. We worked hard, we worked tirelessly, we $2.4 million in housing counseling grants to
cheeky, it used to be “buddy didn’t stop to question. We closed those loans, help Virginia families facing foreclosure, seek-
can you spare a dime?” Oh, recorded those deeds, and cashed those checks. ing affordable rental housing or hoping to buy
we have all read about the
We hoped that this would never end. their first home or to keep the homes they own.3
recession, we hear about
But end it did. The housing market was So how many people are homeless? Of that
how many people are unem-
ployed and we secretly think once again the number one headline across number, how many are a result of the current
that, there but for grace go the nation. When the number of subprime foreclosure crisis? What have we done? The
I. Today, the economic crisis lenders closing their doors had reached 22, National Coalition for the Homeless in the July
just jumped up and asked the headlines began to read Mortgage Crisis.1 2009 report states that there is no easy answer
me for ten dollars. The Interim Report on the Root Causes of the to this question. “Homelessness is a temporary
Foreclosure Crisis found that while soften- circumstance – not a permanent condition.
ing housing prices were an important factor, Studies of homelessness are complicated by
the sharp rise in mortgage delinquencies and problems of definitions and methodology.”4
foreclosures were the result of rapid growth in The Coalition reviewed a recent study by the
loans with a high risk of default. Loans with a
2 Interim Report to Congress on the Root Causes of the
high risk of default were a result not only of the Foreclosure Crisis; U.S. Department of Housing and Urban
terms of the loan, but also relaxed underwriting Development Office of Policy Development and Research,
March 2009, pg 45.
1 Interim Report to Congress on the Root Causes of the 3 Homes & Communities Press Release for Wednesday,
Foreclosure Crisis; U.S. Department of Housing and Urban October 14, 2009; U.S. Department of Housing and Urban
Development Office of Policy Development and Research, Development, October, 2009.
March 2009, pg 25. 4 How Many People Experience Homelessness; The National
Coalition on Homelessness, July, 2009.
18 VLTA ExaminEr Volume 16, Number 1 • WiNter 2010 www.vlta.org
U.S. Conference of Mayors which found that 12 of the 23 cit- resort to sleeping in their cars. Many cities have recently
ies surveyed had to turn people in need of shelter away due allowed car-camping in designated areas. The shelters are be-
to lack of capacity. Ten of the cities found an increase in the yond capacity, the food pantries are running low and public
number of households with children seeking access to shel- programs for school breakfast and lunch have diminishing
ters and transitional housing. Nineteen percent of homeless resources to meet the increasing demand. With another
people are employed.5 Due to the recent foreclosure crisis, fascinating twist, USA Today reported back in February
homelessness has been on the rise. In the U.S. Conference of 17, 2008 that homeless individuals were seeking shelter in
Mayor’s 2008 report, 12 of the 25 cities surveyed reported properties left vacant by foreclosure!11
an increase in homelessness due to foreclosures. Thirteen As title companies, settlement agents and attorneys,
of these cities had adopted policies to deal with the recent we played a major role in the rise and the fall of the Great
increase in victims of the housing crisis. 6 American Dream. From the ashes comes a call to duty – yes
The National Policy and Advocacy Council on our duty! Let 2010 be the year where the VLTA stepped
Homelessness cites lack of affordable housing leads the list of up our efforts to help the homeless crisis in our areas. The
causes of homelessness followed by low-paying jobs, mental number of agencies and organizations needing your help is
illness, substance abuse, domestic violence, unemployment, too vast to include in this article. You won’t have to look any
poverty and prisoner re-entry.7 The National Law Center on further than your own local community, church, food bank,
Homelessness and Poverty estimated between 2.3 and 3.5 Habitat for Humanity organization or school.
million people experience homelessness. The states with I’ve thought a lot about that ten dollars. It may be a small
the highest rates of homelessness include Maryland and step, but its going to the Interfaith Food Bank in Leesburg.
Washington, D.C. Recent articles predict that the recession Renew your commitment to the community and make 2010
will force 1.5 million more people into homelessness over a year to help the homeless!
the next two years. One out of every 50 American children
are homeless each year and almost half (650,000) of these 11 Some Homeless Turn to Foreclosed Homes; USA Today, February 17, 2008.
children are under 6 years of age. 8
Eastern BC 1/7/09 4:19 PM Page 55
What about our Veterans? HUD in their December 16,
2009 News Briefing found the number of Veterans returning
from Iraq and Afghanistan is the fastest growing group of
homeless individuals. The Department of Veteran Affairs
is implementing a $3.2 billion plan to help servicemembers
3951 Pender Drive
find housing. The resources are there but the need is only Suite 105
increasing.9 Fairfax, VA 22030
There were 342,038 foreclosure filings on US properties
Tel: 703.272.1364
in April 2009, a 32% increase compared with foreclosures in
866.828.1644
April 2008. 6 million jobs have been lost since the recession Founders Title Agency, Inc. Fax: 703.218.2855
began. There are 14.5 million unemployed Americans. In a Founders Title Agency of MD, L.L.C. www.khovtitle.com
survey of people who faced foreclosure, 49% indicated that
medical problems played a role. In 2008, 1 in 5 foreclosures
were rental properties. Roughly 40% of the families facing
eviction due to foreclosure are renters. Youth homelessness Founders Title Agency, Inc.
has increased at least 25% from the 2007 to 2008 school Your preferred service provider throughout Virginia, Maryland,
year.10 West Virginia and the District of Columbia.
After facing eviction due to foreclosure, many families
5 Interim Report to Congress on the Root Causes of the Foreclosure Crisis; U.S.
“Quality, Service, Commitment -
Department of Housing and Urban Development Office of Policy Development
and Research, March 2009, pg 45.
Our Guarantee, your Peace of Mind.”
6 How Many People Experience Homelessness; The National Coalition on
Homelessness, July, 2009. Our Mission Statement - “To fairly and ethically serve the Consumer by
7 Facts About Homelessness; National Policy and Advocacy Council 2009 Report. providing current, comprehensive information to assist Purchasers and
8 Facts and Figures: The Homeless; PBS, June 26, 2009 and Quick Facts: The Sellers of real estate in making informed decisions with respect to their
National Center on Family Homelessness, www.familyhomelessness.org
title insurance and title-related service needs.”
A division of
9 News Briefing, December 16, 2009; www.bulletinnews.com/hud
10 Foreclosure to Homelessness: The Forgotten Victims of the Subprime Crisis;
National Coalition for the Homeless, June 2009.
www.vlta.org VLTA ExaminEr Volume 16, Number 1 • WiNter 2010 19
KHOV_ad.indd 1 8/20/09 4:57 AM
Cover Story
Virginia Land Title Association – Habitat for Humanity Partnership
submitted
by
VLTA Public Protecting the American Dream…
Relations Committee
Home Ownership for All
The Virginia Land Title Association ing a bedroom, closet and hallway. The
(VLTA) has partnered again with Habitat greatest portion of the day was spent outside
for Humanity affiliates around the state for installing a moisture barrier that goes under
their third “Protecting the American Dream” vinyl siding. This task required the removal
Volunteer Days. This event is part of VLTA’s of some old materials and involved quite a bit
partnership with Habitat for Humanity that of jigsaw cutting to work around the window
began out of the Board of Director’s desire and power box. We learned the importance
to support a charitable organization as part of sealing in a way that runs with the flow
of the association’s community outreach. of water to insure there was no leakage. The
Habitat for Humanity is a perfect match for September 2nd volunteers were repeat volun-
the Title Industry – Securing the American teers and were thrilled for the opportunity to
Dream – home ownership for all. volunteer once again.
Due to inclement weather, the volunteers
South Hampton
who worked on September 16th worked
Roads – September 2,
indoors at the Habitat headquarters in
2009
Norfolk. They painted a conference room and
Pioneer Title
a hallway. They not only found it very gratify-
had three teams of
ing to stand back and look at what they had
volunteers to work
accomplished at the end of the day, but the
for Habitat Hampton
opportunity to meet so many interesting
Roads on separate
multi-talented people with such vast know-
Wednesdays dur-
ledge on so many different subjects ensured
ing the month of
the painting was never boring and they
September. The
learned something new along the way. This
team that worked
team also had members who volunteered last
on September 2nd
year and they are committed to serve again.
worked at a house
Finally, the crew that worked on September
on Sangaree Circle in
23rd included some first time volunteers
Virginia Beach that
but they won’t be last time volunteers. This
is being renovated.
group returned to the house being renovated
Time was spent
on Sangaree Circle in Virginia Beach. The
inside the house
house was much closer to completion than
paint-
it was for the first team of volunteers. This
team also painted, but
experienced painting pop-
20 VLTA ExaminEr Volume 16, Number 1 • WiNter 2010 www.vlta.org
corn ceilings for the first time. It was well worth the pain Fredericksburg, Spotsylvania, Stafford – October 2, 2009
in the neck experienced the next day. They were a little Repeat volunteers from Land Title Research, Inc. and
daunted at the aspect of painting the vaulted ceiling and Soroptimist International of Fredericksburg worked
were quite relieved to find out that was not an area they at the 3rd Annual Harvest Festival in Fredericksburg
were to paint. This team was also very impressed with in Celebrate Virginia – Central Park. This is the
the seasoned volunteers from Habitat who have chosen Fredericksburg Habitat for Humanity’s Big Annual
to spend their retired days devoted to such a worthwhile Fundraiser for the Fredericksburg Area. With Mother
organization. The veteran Habitat volunteers regaled the Nature’s cooperation, a good time was had by all helping
team with interesting stories and Habitat trivia, which to set-up activities and then assisting with the different
sealed their conviction to volunteer again. events during the day.
Middleburg – September 4, 2009 Fredericksburg, Spotsylvania, Stafford - October 4th, 2009
On Friday, September 4th, MainStreet Bank, through Land Title Research, Inc. and Soroptimist
the Virginia Land Title Association, assisted Habitat for International of Fredericksburg joined together to vol-
Humanity on one of their houses. Our team consisted of unteer with Habitat for Humanity of Fredericksburg to
6 MainStreet Bank, volunteers and an equal number of help with a home under construction near Lake Anna in
Habitat volunteers along with the homeowners and two Spotsylvania County. The team met Bruce Seger, the local
of their children. director of Habitat, and his staff at the site. Bruce took
We mixed the mortar and helped lay tile floors in the everyone on a tour of the home and briefed us on the
kitchen and utility/laundry room. We also painted the philosophy of Habitat. Later on in the day we met with
baseboards and interior doors. Sharon Jadrnak, HFHVA Program Assistant and it was
We had a great time as well as the personal satisfaction interesting to learn about Bruce and Sharon, about what
of helping out a family — making their dream a reality. It they do and their involvement in the program.
turned out to be a great team building activity for us as Habitat, we learned, is founded on the principle of
well. We are looking forward to participating again in the affordable homeownership for those who may never be
near future. able to afford to purchase a home otherwise. The selected
Prince William, Manassas, Manassas Park – October 2, future owners are taken through an education process
2009 about home ownership, finances, recycling and helping in
Volunteers from Old Republic Title, Axion Title and the community. Most, if not all of the manpower needed
Alliance Bank worked on the Malaty House with Prince to construct a Habitat house is provided by volunteers
William, Manassas, Manassas Park Habitat and their “A and the intended owner, thus, greatly reducing the cost to
Brush With Kindness” repair program. construct the home.
www.vlta.org VLTA ExaminEr Volume 16, Number 1 • WiNter 2010 21
SAVE the DATES!
2010 VLTA Annual Convention . . . . . . . . . . . . . . . . .June 3-6, 2010 The
Marriott, Chantilly, Virginia
Settlement
2010 VLTA Fall Seminar . . . . . . . . . . . . . . . . . October 21-22, 2010
Richmond Marriott, Richmond, Virginia Group, Inc.
2010 ALTA Annual Convention . . . . . . . . . . October 13-16, 2010 “Where Experience IS the Difference!”
Manchester Grand Hyatt, San Diego, California
2011 VLTA Annual Convention . . . . . . . . . . . . . . . .June 2-5, 2011 An independently owned
The Jefferson, Richmond, Virginia real estate settlement service
2011 VLTA Fall Seminar . . . . . . . . . . . . . . . . . October 20-21, 2011 with 5 convenient locations
Norfolk Marriott, Norfolk, Marriott in Northern Virginia
2012 VLTA Annual Convention . . . . . . . . . . . . . . June 6-10, 2012
Colonial Williamsburg, Virginia Corporate Office
5641 Burke Centre Pkwy, #229 5641 Burke Centre Pkwy, #215
2012 VLTA Fall Seminar . . . . . . . . . . . . . . . . . October 18-19, 2012 Burke, VA 22015 Burke, VA 22015
Richmond, Virginia 703-642-6002 703-250-9440
2013 VLTA Annual Convention . . . . . . . . . . . . . . . .June 6-8, 2013
5100 Leesburg Pike, #301 6096B Franconia Road
Wyndham Oceanfront, Virginia Beach, Virginia Alexandria, VA 22302 Alexandria, VA 22310
2013 VLTA Fall Seminar . . . . . . . . . . . . . . . . . . . . . . . October 2013 703-933-3090 703-971-4701
To Be Determined
44121 Harry Byrd Hwy, #220 6257-A Old Dominion Drive
2014 VLTA Annual Convention . . . . . . . . . . . . . . . . . . . .June 2014 Ashburn, VA 20147 McLean, VA 22101
The Hotel Roanoke and Conference Center, Roanoke, Virginia 571-209-1240 703-584-0450
www.TheSettlementGroup.com
Cardinal Abstract Company
provides residential and
commercial settlement
services in Fauquier County
and the surrounding areas.
The Times
We are owner operated
and without the constraints of Controlled Business
May Be
Agreements. This makes every customer our most
Changing,
important customer. But Some
Established in 1983, Cardinal Abstract Company
Things Stay
served the legal community with search and title
insurance services. In response to changing markets
True.
we began to provide settlement services directly to
the consumer in the early 1990s. Settlement services
are our primary focus and source of business today.
Pricing structures and service packages will continue
to change as consumer needs dictate, but our focus on
the customer will remain fixed and firm.
Phone: (757) 671-7413
FAX: 1-800– LANDFAX
Cardinal Abstract Company 1-800-526-3329
158 Culpeper Street, Warrenton VA 20186
pioneertitle.com
540-349-1022
22 VLTA ExaminEr Volume 16, Number 1 • WiNter 2010
22 VLTA ExaminEr Volume 16, N www.vlta.org
www.vlta.org
The house was not as far along
as we expected due to the economic
downturn. When we originally
signed up for this project it was to
help paint the interior, but when we
got there the house was still in the
framing stage. This enabled us to
actually see how they construct the
homes, which was very interesting.
The house we visited is built eco-
nomically using a fair share of green
technology. For example, the exterior
walls are concrete filled with foam
insulation, providing superior sound
control and very high insulation ‘R’
values. This innovative method of
construction and several other new
green products help to preserve our
environment and provide a cost
efficient home with low utility and
maintenance costs.
After the orientation, the team members went to work sense of accomplishment. In the middle of the day we
taking down trees and mulching them with a machine. stopped for lunch and got a chance to talk with the staff
Others were sent to clear brush from the whole rear of the and learn more about the program.
lot and they battled against undergrowth, sneaky snakes, At the end of the day, the team members felt a sense of
brush, various and sundry types of poison ivy, poison satisfaction that only comes from hard work and helping
oak and briars, not to mention numerous bugs and other a neighbor. Habitat for Humanity is an important and
critters. The members were for the most part victorious worthwhile cause that has provided necessary affordable
in their efforts except for a few sore muscles, bug bites housing internationally for many people and for many
and, of course, itchy skin. Other, more experienced team years. We all hope to continue to support this program
members, were put to work using their construction skills and we want to encourage others to give their support,
installing siding and trim. They were able to install one whether it is in the form of volunteering time or helping
whole side of siding to the house, which gave them a real financially.
www.vlta.org VLTA ExaminEr Volume 16, Number 1 • WiNter 2010 23
Commentary
I Sell Title Insurance
I sell title insurance. “an ounce of prevention is worth a pound of
cure”. Those wishing for a change to the metric
Some people don’t like to say they “sell” for a
system might wish to parse words with Franklin,
living, much less that their product is title insur-
but the fact remains, title agents are the “ounce
ance.
of prevention” that enable one of our country’s
I sell title insurance. greatest privileges…..Home Ownership.
I “sell” it because I believe in it. Selling is Yes, our industry has its critics. Yes, our indus-
explaining. Selling is providing information rela- try has those whose bad practices should be elimi-
tive to the good points of the product. Selling is nated. Yes, our industry needs to be pro-active
providing peace of mind. in demanding ethical market practices. But our
I sell title insurance. industry should NEVER allow ANYONE to char-
by acterize the overwhelming super majority of our
I do not hang my head and apologize for selling work as anything other than the PROTECTION
Michael B. Pryor
title insurance. I provide a thorough and accu- OF THE AMERICAN DREAM.
President and
rate search of the title, resolve ownership issues,
Chief Executive Officer I know my product. I know its value. I know the
provide lien records, keep the courthouse records
Lenders Title Company importance of the process.
accurate, collect unpaid child support, facilitate
collection of government taxes and assessments, I sell title insurance.
and require proper conveyances and acknowledge-
ments. My work keeps the housing market and
the overall economy from being bogged down by About the Author
inaccuracy, uncertainty and fraud. My vocation
miKe PryOr is the President and Chief executive
protects my neighbors from falling into disruptive
Officer of Lenders Title Company, headquartered in
disputes over their property rights. My commu-
Little rock, arkansas. The company has offices in
nity is better for the work I do. arkansas and Louisiana.
I sell title insurance. in arkansas, Pryor is both a licensed abstracter
and licensed title agent. He is a Past President of the
I cannot imagine allowing a family member, arkansas Land Title association and was awarded the
friend or acquaintance to purchase real estate 2006 arkansas Titleman of the year.
without insisting on title insurance. And not Pryor is Past President of the american Land Title
just ANY title insurance. I want them to have a association (aLTa). Pryor’s aLTa committee service
well searched title policy, because I know how includes the governmental affairs Committee, Trustee
disruptive and unsettling a claim can be. I want and former Vice Chairman of the Board of Trustees of
my family and friends to pay for a policy that they the Title industry Political action Committee (TiPaC),
NEVER have to use. I hope the same thing for the mortgage impairment Committee, agents section
Chair and member of the Board of governors.
them regarding their fire insurance.
The arkansas Business Publishing group named
Our industry is constantly being criticized for Pryor a Business executive of the year finalist in both
our low claims payout. I salute every title insur- 2006 and 2007. additionally, the group recently
ance agent who has made that happen! Our named Pryor to its exclusive “Power List” of arkansas
GOOD work keeps our customers…our friends business leaders. October research recognized Pryor as
and neighbors… from experiencing claims. We a Title executive “aLL-sTar” in 2008.
Pryor and his wife Linnette live in Little rock,
have done our job. WELL DONE.
arkansas. They have a son, Dan, who is also in the title
Benjamin Franklin is often quoted as saying business.
24 VLTA ExaminEr Volume 16, Number 1 • WiNter 2010 www.vlta.org
MAKING THE BEST OF A BAD SITUATION:
How to Defer Capital Gains Tax
Liability on a Commercial Foreclosure
U
nsuspecting commercial investors are the taxable gain equals loan amount minus
driving to the bank to turn in their keys adjusted basis. To clarify, for nonrecourse debt
on projects that did not work out as fair market value of the property is not taken
planned and waking up the following year with into consideration. In Commissioner v. Tufts,
an unexpected tax headache. The discharge of the Court pointed out that taxpayers receive
the loan can result in a capital gains tax liability. value when they are relieved of a nonrecourse
Not only did the clients lose whatever equity debt obligation.
they had in the property, but they also face For this problem, there is a solution.
capital gains tax liability for simply how they Exchange Solutions Group designs solutions
transferred the property to the bank! for property owners facing foreclosure and
by Individuals confuse the property’s tax im- related imputed gains. By purchasing another
James Andrew Brennan, pacts with the property’s economics. However, property of equal or greater value to the trans-
Esq., LL.M. these two calculations are different. For tax fer price on the foreclosed property, a like-kind
Managing Director/ purposes gain or loss equals the difference exchange can be used to delay the capital gain.
Corporate Counsel between the transfer price to the bank and the The cash that would have been used to pay
ES Group adjusted basis. Thus, if you bought a property the tax liability can alternatively be redeployed
in 1987 for 700k (your cost basis) and it has into an asset rather than simply used to pay an
been depreciated and now has an adjusted basis expense.
of $400K, and it is foreclosed with a 950k loan, To execute this strategy all 1031 exchange
this transfer without a 1031 exchange results in procedures need to be followed including
a taxable gain of $550K, i.e. $950k transfer price preparing exchange agreements, identifying
minus the $400K adjusted basis. replacement propert(ies), and closing within
Drilling down, the amount of gain for tax 180 days. Recall, that even if you are unsuccess-
purposes depends on whether or not the debt ful and end up with a “failed exchange” in the
is recourse or nonrecourse. With nonrecourse next year, you can elect installment sale treat-
debt, the taxpayer is charged with gain equal ment and push the tax liability to the following
to the difference between the outstanding tax year, if you structured this as part of a 1031
mortgage amount and the adjusted basis. Thus, exchange.
www.vlta.org VLTA ExaminEr Volume 16, Number 1 • WiNter 2010 25
26 VLTA ExaminEr Volume 16, Number 1 • WiNter 2010 www.vlta.org
The Nooks and Crannies
of Mona v. Cranston
In the course of title insurance underwriting and one day) because Cranston failed to file in
one of the first steps is to determine the specific Fairfax General District Court a motion to extend
area of interest. The next step is to fit the facts into the judgment within ten years from the date it
a so-called general rule. Oftentimes there will be was rendered as required by that Code Section
exceptions to the general rule. aforementioned. The Supreme Court deemed
Let us begin by identifying the case of Mona v. the extension of the judgment to be mandatory
Cranston, 273 VA 1 (2007) as an exception to the to extend the lien and thereby ruled in favor of
general rule relating to the life span of judgment Mona in dismissing the Fairfax County Circuit
liens. The general rule we have all learned and Court judgment.
apply almost daily is that a judgment properly Now, as Paul Harvey would put it, we get to
docketed in accordance with VA Code §8.01-457 “the rest of the story.” Let me interject a few
by has a life span of twenty years from the date the personal comments. While I had no inkling
William M. Amrhein judgment was rendered (and not the date of dock- about this case, I was aware of the Code Section
Assistant Vice President eting). Mona v. Cranston provides an exception and as counsel for another underwriter, opined
Virginia Agency Counsel to that rule when applied to judgments arising on several occasions that general district court
from general district courts during a limited time judgments, once docketed as liens, were good
period. for twenty years. My rationale was based upon a
The facts of the case are fairly simple and distinction between (in personam) judgments and
straightforward. On July 28, 1986, Cranston (in rem) liens. It did not bother me that the judg-
obtained a $7,000.00 judgment against Mona in ment was unenforceable if the lien had attached
Fairfax General District Court. Cranston obtained prior thereto. My theory was based on bankruptcy
a certified extract of the judgment and paid the in cases where a judgment was docketed prior to
fee in Fairfax County Circuit Court to docket the bankruptcy and attached to real estate owned by
judgment as a lien on real estate owned by Mona. the bankrupt prior to filing. The debt (judgment)
No satisfaction was made by Mona, and Cranston, is discharged in Chapter 7, but the lien (in rem)
on September 29, 2005 (within the general rule survives, and the Supreme Court of Virginia has
twenty year life span) filed a motion in Fairfax so held and made that distinction in the case
Circuit Court in the nature of a scire facias to of Leasing Service Corp. v. Justice, 243 VA 441
renew and extend the judgment lien for an addi- (1992).
tional twenty year period as provided in VA Code Putting aside my comments, there is more to
§8.01-254. The Circuit Court granted the motion, be known about this situation and its relation-
and Mona appealed that judgment of the Circuit
Court.
The opinion of the Court was that About the Author
the Cranston judgment was subject
to the provisions of VA Code §16.1- WiLLiam amrHeiN is the state agency and
69.55 (in effect at the time but which underwriting Counsel for Old republic National Title
insurance Company. Previously, he was richmond Branch
has since been amended three times).
Counsel for Chicago Title insurance Company in 1989 after
The judgment was deemed to be un-
twenty plus years in private practice in the richmond area.
enforceable on July 29, 1996 (10 years
www.vlta.org VLTA ExaminEr Volume 16, Number 1 • WiNter 2010 27
ship to this case. The Virginia General Assembly amended the STATUS AS A JUDGMENT OF THE CIRCUIT COURT, twenty
aforementioned code section to provide that general district years from the date the judgment was rendered.
court judgments, once properly docketed, have the same status Second, if the judgment has been docketed prior to the
and life span as Circuit Court judgments. As of July 1, 2005 time the motion has been granted, the lien may be extended by
ALL docketed judgment liens last for twenty years from the renewal pursuant to the provisions of Virginia Code §8.01-251
date of the judgment. which would require the judgment creditor to file a motion
Now you ask —– what about general district court judgments for scire facias in the Circuit Court, and the judgment thereaf-
docketed prior to that date? First, we must state the rules. VA ter would have the same statues as a judgment of the Circuit
Code §16.1-69.55 specifically provides that judgments shall Court.
remain in force for a period of ten years. The Virginia Supreme The great bard of Avon, William Shakespeare, aptly titled
Court applied that time limitation absolutely. one of his comedies, Much Ado About Nothing. The case of
However, there is a saving clause for judgment creditors. It Mona v. Cranston does not totally fall into that category, but
is very technical and time intensive. Within the ten year period it does seemingly qualify as Much Ado About Not Much. It
from the date of the judgment, the plaintiff (judgment credi- involves a fair amount of work, mostly out of the record room,
tor) MUST file a motion in general district court to extend the to clear general district court judgments docketed as liens.
period of limitations of enforcement of the judgment, which Finally, we address the last question, which is how far back
motion must be granted by the judge thereof. does one have to go in time with respect to the issues raised
All papers are sent to the circuit court for further handling herein. The answer is twenty years back from September 1, 2009
after the motion is granted. The granting will occasion one of since a ten-year judgment rendered in September, 1989 could
two situations as to the lien of the judgment. (not very likely but could) be still alive in September of 2009.
First, if the judgment has NOT been theretofore docketed as And if, by chance, we didn’t cover every nook and cranny, it’s
a lien, it may then be docketed and IT WILL HAVE THE SAME not because we didn’t try.
Some things are not what they seem.
Like companies that claim to be financially stable
but are actually treading water. For your own
safety, always look below the surface before you dive
into a relationship with a title insurance company.
Old Republic Title has the financial strength,
One of these days breadth of experience and long-term stability
I’ll learn how to swim. your customers are counting on — and deserve.
Not to mention we are the highest rated title
insurance provider in the industry. Make sure
you’re getting comprehensive title insurance
from a reliable, experienced provider.
Don’t get caught in the undertow.
Old Republic Title. We’ve earned our reputation.
Strength and Stability for Over a Century
Virginia State Operations
Kevin T. Pogoda • Assistant Vice President, Northern Virginia State Manager
William Amrhein • Assistant Vice President, Virginia State Counsel 9303 Center St, Suite 101 • Manassas, Virginia 20110
Maureen Dunn & Kay Creasman • Associate Counsels 800.232.6817 •703.365.2400 FAX
Michelle Reynolds • Operations Manager
Megan Meloon • Agency Representative Old Republic National Title Insurance Company | Mississippi Valley Title Insurance Company
American Guaranty Title Insurance Company
28 VLTA ExaminEr Volume 16, Number 1 • WiNter 2010 www.vlta.org
ort’s
B ea Bucket
uf Howdy! My name iz Beaufort Hambucket. Welcum
to my buket.
This iz where yoo git to ask me kwestions ‘bout
title and settlement, and I anser dem.
But first, lemme tell yall a little bit bout
me. I’m frum Stickleyville down in Old Holler
County, Virginny. I gradiated from college in 1994.
I majured in English. I got me a pickup truck named Elvira and
a settlement cumpany called “Galactic Title.” Our motto is “Our
Service is Out of This World!” A long time back I lost one of my
front teeth. I’m still lookin fer it.
Enuf bout me—now, the kwestions.
Dear Beaufort, Dear Beaufort,
I am somewhat new to the title industry. Last week a realtor I’ve recently attended a few RESPA seminars that talk about
asked me to give her a kickback because she brought me a deal. I the new GFE and new HUD, and I understand that when the
thought kickbacks were illegal. Arent’ they? loan originator gives the new GFE to a consumer, he must also
Sincerely, provide a list of service providers for services that the borrower
Pressured to Cross the Palm with Silver can shop for, including a title and settlement agent like me. I
further understand that a borrower may be influenced to choose
Dear Pressured, the provider off the list because by doing so, that service pro-
Kickbacks aren’t illegal—I give em all da time. Sure vider’s fees would be guaranteed not to exceed 10% of estimated
enuf, jus last week one of dem relaturs asked me after costs (when considered together with other fees that fall into this
settlement to give him $200 fer bringin in da deal. He category). I’m worried that if I cannot get on enough “lists”, I’m
asked me fer money rite at the settlement table. So I told going to go out of business. Help!
him “no”. And then I kicked him rite under the table to Sincerely,
make sure he new I wazn’t gonna do no RESPA violashun. Listless in Lynchburg
That’s right—every time someone asks me to pay money
for a deal, I give em a kick back—rite under the table. Dear Listless,
Getting on dat list is good and all, but don’t git yooself
Dear Beaufort, all rapped around the axil if you aint on nobody’s list. All
I am struggling to keep my business afloat. Is there any your relatur friends will still put you in da sales contract
advice you can give me to save money? fer sales. And for refis, just do a good job on the purchase
Sincerely, and doze borrowers will cum runnin back to yor shop for
Squeezed a refi, specially if yoo advertize that yor fees won’t change
at all or if yoo offur som sorta refi disscount fer repeet
Dear Squeezed, klients that iz better than the fees from the guy on the
Get rid of dat big fat office yoo got with all dat over- “list”. Dat list is important, but not de enda da werld if
head. Yoo don’t need no big confurens table for yor yoo aint on it becuz the borrower still makes a choice dat
settlements. Do what I do—use a big kooler. Fill it with ice yoo can influens. Yoo jus gotta figur out how.
and sody pop. Peepul like it when yoo give em a free drink
at clozing. Make sure yoo git a big kooler with wheels on Got mo kwestions? Email dem to vlta@vlta.org.
it so yoo can do mobile clozings.
www.vlta.org VLTA ExaminEr Volume 16, Number 1 • WiNter 2010 29
Questions & Answers
for Title Examiners and
Underwriters
by My dear Readers, should have been looking for lugubrious, but that
TUTE doesn’t have the sense of finality that I, apparently
The Unknown Title Examiner Je suis navré. Après plus de dix ans, j’ai man- in error, thought morbidity would convey.
qué une date-limite. complètement manqué lui. Lacking interesting title issues within my im-
Title Tips by Tute J’essayerai de faire mieux. Quelle est l’échéance mediate orbit, Tute descended to reading claims
pour le matériel pour la prochaine édition ? Je reports. In all honesty, the claimed matter is not
is a regular feature in
suis désolé d’avoir manqué Bill’ retraite. Sa main terribly new, but recent headlines regarding health
the VLTA ExaminEr. insurance reform, public options and expanding
éditoriale était ainsi poids léger, on l’a à peine
Tute offers interest- noté. the pool of Medicare or Medicaid recipients made
ing and informative Would that I had missed the deadline for the it seem remarkably current, and perhaps useful in
questions and answers last issue because a short trip to Paris turned into a “forward thinking” way.
a semi-permanent rendezvous with my destiny, The facts are simple enough, and we’ve all seen
pertinent to title exam- them over and over again. Property is owned by
an Irish sweepstakes funded retirement fund, a
iners and underwriters. husband and wife. Actuarially speaking, we antici-
Nigerian e-mail scam that actually wasn’t. Alas,
Tute may be reached at my regrets are the result of far more mundane pate, and sure enough, husband dies first. Title
www.tute.us. causes - short staff - multiple requests for work vests in wife pursuant to the survivorship clause
that should have been (and in several situations, in the deed. Wife’s health declines, and a child’s
I thought had been) delivered months (and/or family moves in to assist in her care. In the claim
We encourage our file, the child’s family paid for an expansion of the
years) ago - personal inability to shake certain
readers to submit their destructive personal habits that vaguely resemble home to allow them to live there while providing
questions or comments a combination of OCD and ADD - and a lack care. In consideration of the care that would allow
to Tute c/o the of time (to recognize? to embellish?) good title her to remain at home, wife conveys the home to
stories. Maybe every five years I need to reprise the herself and child, with right of survivorship. After
VLTA ExaminEr.
Title 101 columns to recharge the creative juices. several years, wife’s condition worsened to the
point professional care was needed — and provid-
Here’s to new beginnings ... what was that ed — through a nursing home, where wife spent
next deadline again? the last six to eight months of her life. Part of
Don’t you just hate it when the dictionary those nursing home expenses were paid through
uses a version of the same word to define it? For the state Medicaid program.
example: Morbidity: 1. The quality of being mor- Following wife’s death, child administered the
bid 2. the rate of incidence of a disease . . . forcing estate using a process similar to Virginia’s “small
you to go up the page to Morbid: 1.a. Of, relating estate” probate, thinking the house would pass
to, or caused by disease; pathological or diseased under the terms of the deed. Four years later the
b. Psychologically unhealthy or unwholesome 2. state Medicaid program filed a petition for formal
Characterized by preoccupation with unwhole- probate, claimed the wife’s estate was liable for
some thoughts or feelings 3. Gruesome; grisly. more than $28,000 of reimbursement, and sought
So that’s not exactly the word I’m looking for, al- to sell the real estate (notwithstanding the child’s
though, I think we can all agree that claims have deeded survivorship interest more than 15 years
a tendency to be gruesome and grisly. Perhaps I earlier).
30 VLTA ExaminEr Volume 16, Number 1 • WiNter 2010 www.vlta.org
Title examiners have long been aware of the federal estate tax Program, or (iii) the transferee is without financial means or
lien, a sneaky, silent secret lien that exists without the necessity that such payment would work a hardship on the transferee or
of a filing of a notice of lien. That lien has been the subject of less his family. The married child who expanded the house ought
concern in recent years, as the federal estate tax rate declined, to be able to show consideration, but is not otherwise exempt
and the minimum taxable estate amount climbed. For reasons under this statue. If the child were recently released from
noted earlier (increasing federal need for tax dollars in order to employment by the Commonwealth or a private employer, they
fund health care reform . . . or any of a myriad of other spending might fit within the “hardship” category. Without a decade
initiatives taken during the recent economic unpleasantness), the fulfilling the role of caretaker, any grantee, not just a child,
contemplated repeal of the estate tax is perhaps less likely than might be forced into an accounting and value of services battle
it once was, and federal enthusiasm to receive the revenue will be with the state agency. (As an aside, the Iowa court thought the
high. child might have a breach of contract claim against the estate,
The claim here presents a different economic demographic; but the value they had given was no defense to the claim for
that of the small estate where the home may be the only, or the reimbursement.) While Tute was unable to find the statutory
largest single asset, and which was the location of the decedent’s authority, the Commonwealth’s Department of Social Services
health care until a final, terminal illness. Medicaid Fact Sheet #3 indicates that the Commonwealth
Are you worried yet? Let’s ratchet down the tension a bit by would not pursue reimbursement from a transferee who was an
noting that the claim arose under Iowa law. Another calming adult child who lived with the decedent for the last two years
note is an Illinois decision that reached an opposite result. Tute and who provided care that kept the decedent out of a nursing
can hear the clamor now . . . “So, you’ve gotten us all scared for facility.(www.dmas.virginia.gov/downloads/pdfs/ab-VA_Medicaid_
no reason,” you’re saying, “Virginia is not Iowa.” True enough, FS_3.pdf )
but could it happen in Virginia? Under the specific facts from We all remember the clamor when the Internal Revenue
Iowa, I would like to think not; but a claim for reimbursement Service gutted the protection from claims of creditors of the
could be asserted here in the Commonwealth. Let me acquaint decedent for a surviving spouse receiving title pursuant to a
you with a couple of sections of the Code that seem particularly tenancy by the entirety (U.S. v. Craft, 535 U.S. 274, 122 S. Ct.
relevant. 1414 (2002). A joint tenancy with right of survivorship would
Virginia Code § 20-88.02 is our first stop. If, within 30 months be on shakier ground to begin with, absent the evidence of full
of a person receiving benefits from a public assistance or social and fair consideration paid. The state agency quiver holds yet
services program, they transferred property or resources to another arrow to pursue its claim.
another (including fractional interests) and the value of the For those members of society mired in perpetual adoles-
asset exceeded the consideration received, the transferee (grantee cence, wondering why the world doesn’t take care of them the
for us title folks) “of such property or resources shall be liable way their parents did, Virginia Code § 60-88 may come as a
to repay the Commonwealth for benefits paid on behalf of the shock. “It shall be the . . . duty of all persons eighteen years of
transferor up to the amount of that uncompensated value less age or over . . . to assist in providing for the support and main-
$25,000.” The agency can petition a court to enter a judgment tenance of his or her mother or father, he or she being then and
for that reimbursement, and the agency also receives the benefit there in necessitous circumstances.” This section authorizes
of a rebuttable presumption that the transfer was for the pur- the Commonwealth to seek reimbursement from a child of the
pose of qualifying the grantor to receive assistance. person receiving public assistance or services.
Why do I feel the Iowa facts could lead to the same result in When both the decedent’s estate and the decedent’s children,
Virginia? Subsection D of the Virginia statute exempts transfer- including a child who provided home health care for the par-
ees and their property from an agency petition or court order ent, are liable for reimbursement of public funds which provid-
when: (i) the uncompensated value of the property transferred ed care, the limited defense of a survivorship tenancy appears
is $25,000 or less, (ii) . . . the property transferred was the home far more illusory. For those title examiners and underwriters
of the transferor at the time of the transfer and the transferor or whose secondary goal in life is to reduce corporate overhead by
any of the following individuals reside in the home: the transfer- eliminating the claims department, this scenario may require
or’s spouse, any natural or adopted child of the transferor under some additional due diligence.
the age of twenty-one years or any natural or adopted child of
the transferor, regardless of age, who is blind or disabled as de- Tute
fined by the federal Social Security Act or the Virginia Medicaid
www.vlta.org VLTA ExaminEr Volume 16, Number 1 • WiNter 2010 31
Recorded Treasure
Total
Failure
of Title
Those of you who have
had the experience of
working in various record
rooms have undoubtedly
come across some very
interesting recorded
documents.
If you have come across
an unusual instrument
in the land records,
we would like to print
it as part of a regular
feature in the VLTA
ExaminEr. Please
send us your unusual
finds.
32 VLTA ExaminEr Volume 16, Number 1 • WiNter 2010 www.vlta.org
Recorded Treasure
The documents illustrated here
were recorded on September 9, 2009
in King William County as Instrument
#090002462. Reading the second and
third pages closely, it appears that
Emperor El Bey Bagby is claiming title
to the entire county through an indig-
enous line of succession.
www.vlta.org VLTA ExaminEr Volume 16, Number 1 • WiNter 2010 33
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34 VLTA ExaminEr Volume 16, Number 1 • WiNter 2010 www.vlta.org
Member What is the are not a member of the VLTA Google Members
Benefit! VLTA Google Members List? List, your message is bounced and is not sent to
T
anyone.) Even the sender of a message to the List
LIST he VLTa googLe MeMbers LisT is an e-mail
automatically receives a copy of the same mes-
SErVE based discussion group made up of Virginia
sage. Other members of the List may then reply to
for Members discussionTitlethe VLTA Google Members List
Land Association members. Topics of
your message; they may do so directly to you, or
Only should be related to the title industry in Virginia.
on
they may send their reply back to the List, which
sends out copies of the reply to everyone on the
Many members will use the group as a forum
List.
to give and receive advice on administrative and
business related issues. Do not use the List to
post personal messages. Remember, this is a great
What Protocols do I Have to
way to reach many VLTA members; however, since Follow to Use the List?
all members receive all posts, keep messages clear ■ Be as clear as possible in your communica-
and pertinent. Failure to comply with these guide- tion.
lines will result in removal from all List Serve lists. ■ Include your name, company, and city in the
How Does It Work? body of your e-mail.
bers
First, you join the List. (Details on how to join ■ The Members List is to be used for business-
MeMNLY
are covered below.) Then, you compose a message related questions.
and send it, using your e-mail software, to the
How Do I Join?
O VLTA Google Members List address. If you are a
valid member of the List, your message will then
be sent to all other members of the List. (If you
Joining the List is voluntary. This is done from
the Web site—www.vlta.org.
Why Not Consider Contributing to the VLTA PAC?
T
he Virginia Land TiTLe associaTion continues to strive to ■ There are no restrictions as to the amount or number of
be a major force in our commonwealth on the legislative contributions.
level. It requires the effort of the entire membership to
■ The PAC may not accept anonymous contributions.
ensure its place and voice! Please contribute to the future of
your profession! ■ The PAC may not accept cash contributions.
The Virginia Land Title Association Political Action ■ The PAC may accept in-kind contributions of goods or services.
Committee (VLTAPAC) is a nonprofit, unincorporated
political association that promotes the nomination and
election of candidates for
VLTAPAC Contribution
state and local office. The
Yes, I want to help support the land title profession. Here is my contribution.
PAC supports candidates who
$1,000 $500 $250 $100 Other (not tax deductible)
effectively help to address the
policy concerns of the land Check enclosed (make personal checks payable to VLTAPAC)
title industry. Contributions Name
to the VLTA PAC are volun- VISA MasterCard AMEX
tary and are not tax deductible. Company
■ You have the right to refuse to
contribute to the PAC. Address Card number Exp. date
■ VLTA PAC may accept con-
City State Zip Name on Card
tributions from any person,
firm, corporation, partner-
Telephone Ext. Fax Signature
ship, or other entity. Amounts are suggested amounts only. All contributions are strictly voluntary. Your decision to make this voluntary contribution does not affect your membership
status with the association. Contributions to VLTAPAC must be made with personal, not corporate funds. Contributions are not tax deductible.
Mail to: Virginia Land Title Association – PAC, 5665 Atlanta Hwy., #103-140, Alpharetta, GA 30004 OR Fax to: 770.754.6142
www.vlta.org VLTA ExaminEr Volume 16, Number 1 • WiNter 2010 35
Agent Resources
Underwriter Contacts:
Chicago Title Insurance Company . . . . . . Alaine Donovan & Don Wells Lawyers Title Insurance Corporation . . . . . . . . . . . . . . . . . . . Lisa Tully
TEL: 703.815.6886 TEL: 804.287.0909
Commonwealth Land Title Insurance Company . . . . .Patricia Shaner Old Republic National Title Insurance Co. . . . . . . Kevin Pogoda, Esq.
TEL: 703.219.3701 TEL: 703.365.2300
Fidelity National Title Insurance Company . . . . . . . . . . . . .Anne Kerr Southern Title Insurance Corporation . . . . . . . . Eugene McCullough
TEL: 804.287.0925 TEL: 804.648.6000
First American Title Insurance Company . . . . . . . . . . Leslie Kostelecky Stewart Title Guaranty Company . . . . . . . . . . . . . . . . .Steven Blizzard
TEL: 800.733.3284 TEL: 703.352.4736
Ticor Title Insurance Company . . . . . . . . . . . . . . . . . . Mark Waninger
TEL: 703.815.6407
Abstractor Contacts:
Accutitle Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mai Waye Northstar Title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Serena Stout
tel: 757.717.5140 fax: 757.204.2048 email: accutitlesearch@aol.com tel: 540.943.4890 fax: 540.949.8413 email: sestout@go.com
Serving: Southwest Virginia
Northumberland Title Company, Inc. . . . . . . . . . . . . . . . . . . Anita McQuary
Amarisearch, Inc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Marian Littleton tel: 804.580.1056 fax: 804.580.6012 email: anita@northumberlandtitle.com
tel: 703. 267.6827 fax: 703. 267.6825 email: marian@amarisearch.com Web site: www.NorthumberlandTitle.com Serving: Mid-Atlantic Virginia
Serving: Northern Virginia, Central Virginia
Patowmack Title, LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . James Tabor
Amy C. Talbot. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Amy Talbot tel: 703.703.3020 email: jtabor@patowmacktitle.com Web site: www.
tel: 804.467.8866 fax: 804.360.7049 email: amyhankins@comcast.net patowmacktitle.com Serving: Northern Virginia
Capital Title Services . . . . . . . . . . . . . . . . . . . . . . . . . . Timothy O’Donohue Potomac Title Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . David Henken
tel: 703.691.0688 email: capitaltitle@juno.com Web site: www.capitaltitleservices.com tel: 540.948.6630 email: dhenken@potomactitle.com
Web site: www.potomactitle.com
Direct Title Solutions, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . Bryan L. Marion
tel: 540.450.0740 fax: 540.450.0744 email: info@dtsadvantage.com Research & Retrieval Services, Inc.. . . . . . . . . . . . . . . . . . . . . . . David Beloff
Serving: All of Virginia tel: 757.463.0030 fax: 757.463.0040
email: dbeloff@cox.net Web site: www.researchandretrievals.com
Drolls Xpress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Scottye Zember
tel: 757.473.2280 fax: 757.473.2283 email: scottye@drollsxpress.
Serving: Mid-Atlantic Virginia
com Web site: www.drollsxpress.com Seaside Title, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .David Sacks
tel: 757.630.2075 fax: 757.427.1636 email: davsacks@yahoo.com
eTitle Agency, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Karen Jennelle
tel: 703.777.4261 fax: 703. 940.9111 email: karenj@tuscaroratitle.com
Serving: Mid-Atlantic Virginia
Web site: www.tuscaroratitle.com Serving: Mid-Atlantic Virginia Summit Title Group, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Jennifer Fish
tel: 703.624.7116 email: summittitlegroup@cox.net
Ex Libris Title, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Karen Andrews
tel: 804.350.4431 fax: 804.464.1029 email: karen_andrews_notary_ Terry’s Title & Abstract, L.C. . . . . . . . . . . . . . . . . . . . . . . . . . Terry L. Wilson
public@msn.com Serving: Central Virginia tel: 540.891.8268 fax: 540.891.8267 email: terrystitleandabstract@yahoo.com
Greater Richmond Abstract & Title, Inc. . . . . . . . . . . . . . . . . . . .Larry Shiner Serving: Central Virginia
tel: 804.266.2101 fax: 804.266.2810 email: johnc@comgi.net The Roberts Group Title & Abstract, LLC . . . . . . . . . . . . . . . Debby Roberts
Abstractor Services, Serving: Central VA tel: 757.717.4664 fax: 757.313.9577 email: theroberstgrouptitle@yahoo.com
Jefferson Title, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Christopher Mabie Serving: Mid-Atlantic Virginia
tel: 703.368.3770 fax: 703.368.6164 email: cmabie@jeffersontitleva.com Title Abstractors, LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Jack Page
Web site: www.jeffersontitleva.com Abstractor & Recording, Serving: Northern VA tel: 276.676.0434 fax: 276.628.1989 email: titleabstractors@comcast.net
KDR Real Estate Services, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . Allen Dorin Serving: Southwest
tel: 804.672.1368 fax: 804.672.1373 email: adorin@kdrealestate.com Tri-County Title, Inc. . . . . . . . . . . . . . . . . . . . . . . . . .Robert W. Coleman, Jr.
Serving: Southern Virginia tel: 703.624.2281 fax: 703.293.9528 email: tctinc@aol.com
Land Title Research, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . Julie Ann Rutledge Serving: Northern VA
tel: 540.659.0107 fax: 540.659.4952 email: ltr.inc@verizon.net Trinity Title, LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Martha Campbell
Abstracting, Serving: Stafford & Spotsylvania County, and City of Fredericksburg tel: 434.665.1956 fax: 888.737.0726 email: mwcsmt@aol.com
Serving: Central Virginia
Mohr Information Services, LLC . . . . . . . . . . . . . . . . . . . .James Mohrmann
tel: 540.678.8775 fax: 540.678.1696 Twyman Services, LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Loretta Twyman
email: jmohrmann@mohrinformation.com Web site: www.mohrinformation.com tel: 757.343.8211 fax: 757.426.3741 email: twymanservices@cox.net
Serving: Northern Virginia Serving: Virginia Beach, Chesapeake
36 VLTA ExaminEr Volume 16, Number 1 • WiNter 2010 www.vlta.org
NEW P
AYME
NT OP
VIRGINIA LAND TITLE ASSOCIATION
VLTA 2010 Membership Application
"INSURING...THIS LAND IS YOUR LAND"
2010 Membership Application TIONS!
Mission Statement
The mission of the Association is to advance the efficient and secure Membership Dues Schedule
transfer of ownership of real property by proactively serving its (Circle Membership Category/Payment Option)
members, the consumer, and affiliated associations. Licensed Agents/Agency (Average number of staff in last calendar year)
Annual* Monthly*
To achieve this objective, VLTA will: o 1 to 5 employees $300 $360 ($30 per month)
Provide superior education programs o 6 to 10 employees $550 $612 ($51 per month)
Represent the industry on legislative and regulatory issues o 11 or more employees $875 $936 ($78 per month)
Support the American Land Title Association and its initiative to
continually maintain and promote members to engage only in
business practices that are lawful and consistent with high
Underwriter
professional standards and ethics. Underwriters' dues are based on Form 9, gross premiums received for the previous
Communicate industry related information year in Virginia. If sales are less than $2,000,000 - remit $1000, plus $250 per each
Fairly represent all interests of the membership additional $500,000 in gross premiums. If sales are greater than $10,000,000 - remit
Enhance and protect the value of its members, consumers, and $5000.
the title industry as a whole Minimum $1,000 / Maximum $5,000
Raise public awareness and understanding of the land title
industry Associate Company Annual* $350 Monthly* $408 ($34 per month)
All Memberships include a year’s subscription to the Examiner, a Employees or principals may not hold a title insurance agent's license (e.g., title examiners,
listing in the website directory, discounted registration to all VLTA lawyers, surveyors, realtors, lenders).
events and meetings, access to the member’s only side of the
website, and more! Abstractor/Examiner Company Annual* $165 Monthly* $228 ($19 per month)
___________________________________________________________________
Agent Members receive FREE job postings all year long and are
listed in our online directory. *Annual: Lump Sum Payment of one year OR Renew for two years with a 10% discount (Annual
Dues X 2 Less 10%).
Underwriter Members receive a FREE banner ad on the VLTA
*Monthly: Credit Card will be charged automatically each month by the amount stated above.
website and a FREE listing on the website and in the Examiner.
Member is responsible for all dues incurred for the calendar year. The membership cannot be
Associate & Abstractor Members receive 50% off of a banner ad on canceled or otherwise terminated prior to 12/31/10 without incurring charges for the unpaid
the VLTA website and a FREE listing on the website and in the remaining balance. Payments include a nominal administrative charge.
Examiner. 45% of your dues is allocated to lobbying expenses and is not tax deductible. Consult your
accountant or tax attorney for more information.
VLTA PAC - The VLTA Political Action Committee (PAC) is a New Members may prorate their first payment based on the actual receipt of payment
nonprofit, unincorporated political association that promotes the accordingly: July 1st through September 30th – 50% reduction on total dues.
nomination and election of candidates for state and local public office.
October 1 – December 31: Members who join during this period receive up to 15 months for
The PAC will support candidates who will effectively help to address
the price of 12 (15 for 12). Membership expires on December 31 of the following year.
the policy concerns of the land title industry. Contributions to the
VLTA PAC are voluntary and are not tax deductible.
Corporation/Company: ________________________________________________________________________________
Membership Holder Name: __________________________________ Title: ______________________________________
Business Address: ____________________________________________________________________________________
City: ___________________________ ST: _____ Zip: _________ Referred by: _________________________________
Telephone: ________________________ Fax: ________________ E-mail: ____________________________________
Website URL: _________________________________________ Corp Federal ID #: ______________________________
Check if CRESPA Settlement Agent Choose Region: Mid-Atlantic Northern VA Central VA Southwest
Check here if you would like to receive a Membership Certificate.
Membership Type: Agent Associate Abstractor Underwriter
Payment Option: Annually Multi Year Discount Monthly Payment Option
Payment must be submitted with your application. FAX TO: 770.754.6142 Dues: $___________
Check Enclosed
(Check payable to VLTA: 5665 Atlanta Hwy, #103-140, Alpharetta, GA 30004)
PAC Contribution: $___________
Visa MasterCard American Express
Card Number _________________________________________________________ Total Due: $___________
Exp. Date __________ V-Code (3-digit no. on back of VISA/MC) ___________
4-digit no. on front of AMEX) As an active member of the Virginia Land Title
Card Holder ____________________________________________________________ Association (VLTA), I agree to comply with all of the
provisions of the VLTA’s By-laws and Code of Ethics.
Signature ______________________________________________________________ I understand that all contributions to the VLTA PAC
are voluntary and that I have the right to refuse to
contribute without reprisal.
Applicant’s Signature: __________________________________________________ Date: _________________________
Keep your company’s profile updated at www.vlta.org.
Attach a list of staff to ensure that all members of your company receive their membership identification cards.
5665 Atlanta Hwy, #103-140 I Alpharetta, GA 30004 I 800.929.8730 (PH) 770.754.6142 (Fax) I kloreo@vlta.org
www.vlta.org VLTA ExaminEr Volume 16, Number 1 • WiNter 2010 37
THANK YOU TO OUR SPONSORS
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We are your closing agent, title agent, and abstractor
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VIRGINIA LAND TITLE ASSOCIATION
"INSURING...THIS LAND IS YOUR LAND"
Published Courses:
Self Study for CE Credits!
VLTA offers another opportunity to further your
professional development in addition to receiving con-
tinuing education credits for
licensing purposes. Self-Study
Courses can be completed at
your leisure without ever leav-
ing your office. So if time is an
issue and education credits are
needed, why not consider one
of our self-study courses.
For more information go to
www.vlta.org.
38 VLTA ExaminEr Volume 16, Number 1 • WiNter 2010 www.vlta.org
www.vlta.org VLTA ExaminEr Volume 16, Number 1 • WiNter 2010 39
Presorted
Standard
U.S. Postage
PAID
Chesapeake, VA
VIRGINIA LAND TITLE ASSOCIATION Permit No. 14
"INSURING...THIS LAND IS YOUR LAND"
5665 Atlanta Highway, #103-140, Alpharetta, GA 30004
ADDRESS SERVICE REQUESTED
Get a Competitive Edge! Become
a Virginia
Land Title
Association
Member and
have Access
to Exclusive
MEMBERS
ONLY Info…
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Today!
www.vlta.org/about/membership.htm
40 VLTA ExaminEr Volume 16, Number 1 • WiNter 2010 www.vlta.org