ESCROW UrbBurb by liaoqinmei

VIEWS: 2 PAGES: 9

									TITLE Toolkit




WAYS TO TAKE TITLE IN ARIZONA

THE LIFE OF AN ESCROW

CLOSING COSTS: WHO PAYS WHAT

CRITICAL DATE LIST

ESTIMATED COST SHEET - CASH

ESTIMATED COST SHEET - NEW LOAN

EXPLANATION OF ESTIMATED COSTS
                                 WAYS TO TAKE TITLE IN ARIZONA
                                                     JOINT TENANCY                             COMMUNITY PROPERTY
        COMMUNITY                                                                                                                                 TENANCY
                                                       WITH RIGHT                                      WITH RIGHT
         PROPERTY                                                                                                                               IN COMMON
                                                   OF SURVIVORSHIP                                 OF SURVIVORSHIP




                                                  Parties need not be                                                                      Parties need not be
  Requires a valid marriage                                                                     Requires a valid marriage
                                               married; may be more than                                                                married; may be more than
   between two persons.                                                                          between two persons.
                                                    two joint tenants.                                                                   two tenants in common.




                                                                                                                                         Each tenant in common
                                                                                                                                       holds an undivided fractional
                                                 Each joint tenant holds
    Each spouse holds                                                                              Each spouse holds                       interest in the estate.
                                                 an equal and undivided
   an undivided one-half                                                                          an undivided one-half                  Can be disproportionate,
                                                  interest in the estate,
   interest in the estate.                                                                        interest in the estate.                   e.g.,20% and 80%;
                                                     unity of interest.
                                                                                                                                        60% and 40%; 20%, 20%,
                                                                                                                                              20% and 40%; etc.




     One spouse cannot                              One joint tenant can                           One spouse cannot                     Each tenant’s share can
  partition the property by                  partition the property by selling                  partition the property by                be conveyed, mortgaged
  selling his or her interest.                   his or her joint interest.                     selling his or her interest.            or devised to a third party.




     Requires signatures                        Requires signatures of all                         Requires signatures                   Requires signatures of all
 of both spouses to convey                       joint tenants to convey                       of both spouses to convey                    tenants to convey
        or encumber.                             or encumber the whole.                               or encumber.                       or encumber the whole.




                                                                                                                                         Upon death the tenant’s
      Each spouse can
                                             Estate passes to surviving joint                Estate passes to the surviving             proportionate share passes
 devise (will) one-half of the
                                               tenants outside of probate.                    spouse outside of probate.                   to his or her heirs by
    community property.
                                                                                                                                              will or intestacy.




   Upon death the estate                                                                                                                  Upon death the estate
                                                No court action required                            No court action
  of the decedent must be                                                                                                                of the decedent must be
                                                   to “clear” title upon                         required to “clear” title
 “cleared” through probate,                                                                                                             “cleared” through probate,
                                               the death of joint tenant(s).                      upon the first death.
  affidavit or adjudication.                                                                                                              affidavit or adjudication.




Both halves of the community                     Deceased tenant’s share
                                                                                             Both halves of the community
  property are entitled to a                   is entitled to a “stepped up”                                                                    Each share has
                                                                                                  property are entitled
 “stepped up” tax basis as                          tax basis as of the                                                                       its own tax basis.
                                                                                                 to a “stepped up” tax
    of the date of death.                               date of death.



     Note: Arizona is a community property state. Property acquired by a husband and wife is presumed to be community property unless legally specified
     otherwise. Title may be held as “Sole and Separate.” If a married person acquires title as sole and separate, his or her spouse must execute a disclaimer deed
     to avoid the presumption of community property. Parties may choose to hold title in the name of an entity, e.g., a corporation; a limited liability company;
     a partnership (general or limited), or a trust. Each method of taking title has certain significant legal and tax consequences;
     therefore, you are encouraged to obtain advice from an attorney or other qualified professional.
                                    THE LIFE OF AN
             BUYER                                                               SELLER
      SELECTS A REALTOR                                                    SELECTS A REALTOR



                                          ESCROW
             BUYER                                                                SELLER
    PRE-APPROVED BY LENDER                                                 PREPARES HOUSE FOR
       IF NEW LOAN NEEDED                                                   SHOWING & SELLING


                                                 BUYER
                                            SELECTS HOME AND
                                         SUBMITS CONTRACT WITH                    SELLER
             BUYER                       LOAN STATUS REPORT (LSR)       REVIEWS & ACCEPTS CONTRACT
   VIEWS HOMES WITH REALTOR
                                                                               FROM BUYER




    INSPECTION REPORTS SENT                                                 ESCROW OPENED AT
                                           VARIOUS INSPECTIONS
TO APPLICABLE PARTIES & REVIEWED.                                             First American
                                                ORDERED
       NOTIFICATION SENT                                                & TITLE COMMITMENT ORDERED




                                                                                  BUYER
   TITLE COMMITMENT RECEIVED                    APPRAISAL
                                                                          ADVISES First American
      & APPROVED BY BUYER           ORDERED BY & COMPLETED FOR LENDER
                                                                        OF HOME INSURANCE COMPANY




      CLOSING DOCUMENTS                 LOAN DOCUMENTS PREPARED                   BUYER
          COMPILED BY                           BY LENDER                   RECEIVES FINAL LOAN
         First American                     & SENT TO ESCROW              APPROVAL FROM LENDER




  SEPARATE APPOINTMENTS SET:                                                 LOAN DOCUMENTS
                                                 BUYER
        BUYER & SELLER                                                          RETURNED
                                         DEPOSITS REQUIRED FUNDS
        SIGN DOCUMENTS                                                     TO LENDER FOR REVIEW




     DOCUMENTS RECORDED                    LENDER “FUNDS LOAN”          First American ENSURES ALL
      AND ESCROW CLOSED                  (SENDS FUNDS TO ESCROW)         CONTRACT CONDITIONS MET




        AFTER RECORDING
                                                                             FINAL DOCUMENTS
           CONFIRMED,
                                                 BUYER                           SENT TO
         First American
                                       RECEIVES KEYS FROM REALTOR           INTERESTED PARTIES
        DISBURSES FUNDS
                               CLOSING COSTS: WHO PAYS WHAT
                                  THIS CHART INDICATES WHO CUSTOMARILY PAYS WHAT COSTS

                                                                                            CASH       CTM        FHA       VA       CONV

 1.     Downpayment                                                                        BUYER      BUYER     BUYER     BUYER     BUYER

 2.     Termite (Wood Infestation) Inspection (negotiable except on VA)                                                   SELLER

 3.     Property Inspection (if requested by Buyer)                                        BUYER      BUYER     BUYER     BUYER     BUYER

 4.     Property Repairs, if any (negotiable)                                             SELLER      SELLER    SELLER    SELLER    SELLER

 5.     New Loan Origination Fee (negotiable)                                                                   BUYER     BUYER     BUYER

 6.     Discount Points (negotiable)                                                                            BUYER     SELLER    BUYER

 7.     Document Preparation Fee (Charge Seller on FHA/VA)                                                      SELLER    SELLER    BUYER

 8.     Credit Report                                                                                 BUYER     BUYER     BUYER     BUYER

 9.     Appraisal or Extension Fee (negotiable)                                                                 BUYER     BUYER     BUYER

10.     Interest Proration on Seller’s Existing Loan                                                  SELLER

11.     Existing Loan Payoff                                                              SELLER                SELLER    SELLER    SELLER

12.     Existing Loan Payoff Demand                                                       SELLER                SELLER    SELLER    SELLER

13.     Loan Prepayment Penalty (if any)                                                  SELLER                SELLER    SELLER    SELLER

14.     Next Month’s PITI Payment                                                                     BUYER     BUYER     BUYER     BUYER

15.     Prepaid Interest (approx. 30 days)                                                                      BUYER     BUYER     BUYER

16.     Mortgage Transfer Fee                                                                          SPLIT

17.     Reserve Account Balance (Credit Seller / Charge Buyer)                                        PRORATE   PRORATE   PRORATE   PRORATE

18.     FHA MIP, VA Funding Fee, PMI Premium                                                          PRORATE   BUYER     BUYER     BUYER

19.     Assessments payoff or proration (sewer, paving, etc.)                             SELLER      SELLER

20.     Taxes                                                                            PRORATE      PRORATE   PRORATE   PRORATE   PRORATE

21.     Tax Impounds                                                                                            BUYER     BUYER     BUYER

22.     Tax Service Contract                                                                                    SELLER    SELLER    BUYER

23.     Fire/Hazard Insurance                                                              BUYER      BUYER     BUYER     BUYER     BUYER

24.     Flood Insurance                                                                                         BUYER     BUYER     BUYER

25.     Homeowners Association (HOA) Transfer Fee                                          SPLIT       SPLIT     SPLIT    SELLER     SPLIT

26.     HOA/Disclosure Fee                                                                SELLER      SELLER    SELLER    SELLER    SELLER

27.     Current HOA Payment                                                              PRORATE      PRORATE   PRORATE   PRORATE   PRORATE

28.     Next Month’s HOA Payment                                                           BUYER      BUYER     BUYER     BUYER     BUYER

29.     Home Warranty Premium (negotiable)

30.     Realtors’ Commissions                                                             SELLER      SELLER    SELLER    SELLER    SELLER

31.     EAGLE Homeowners Title Policy                                                     SELLER      SELLER    SELLER    SELLER    SELLER

32.     Lenders Title Policy and Endorsements                                                                   BUYER     BUYER     BUYER

33.     Account Servicing Set-up Fee (negotiable)                                                      SPLIT

34.     Escrow Fee (NOTE: Charge Seller on VA Loan)                                        SPLIT       SPLIT     SPLIT    SELLER     SPLIT

35.     Recording Fees (Flat Rate)                                                         SPLIT       SPLIT     SPLIT     SPLIT     SPLIT

36.     Reconveyance/Satisfaction Fee                                                     SELLER                SELLER    SELLER    SELLER

37.     Courier/Express Mail Fees                                                          SPLIT       SPLIT     SPLIT    SELLER     SPLIT

38.     Wire Fees                                                                          SPLIT       SPLIT     SPLIT    SELLER     SPLIT

39.     Email Loan Documents                                                                                    BUYER     SELLER    BUYER


Note: Prorated items will appear on Closing Statement as charges for one and credits for the other.
                                         CRITICAL DATE LIST
SELLER : ___________________________________________________________________________________________________________________

BUYER : ___________________________________________________________________________________________________________________

PROPERTY ADDRESS : _____________________________________________________________________________________________________

Escrow Company : __________________________________________                Escrow Number : __________________________________________

Escrow Officer : _____________________________________________             Fax : ______________________________________________________

Listing Agent Name : ________________________________________              Company : ________________________________________________

Phone : _____________________________________________________              Fax : ______________________________________________________

Selling Agent Name : ________________________________________              Company : ________________________________________________

Phone : _____________________________________________________              Fax : ______________________________________________________


                        This is a CRITICAL DATE LIST, for the transaction listed above as of this date: ____ /____ /____ .
                        Any time this document is modified in any way copies should be sent to the Principals and Agents.

   ACTION                                                                                            DATE DUE                 DATE DONE
   Mutual Acceptance of Purchase Contract :                                                              N/A                 ____ /____ /____
   Earnest monies deposited to escrow :                                                              IMMEDIATELY             ____ /____ /____
   S.P.D.S. completed and delivered to Buyer by :                                                  ____ /____ /____          ____ /____ /____
   B.I.N.S.R. ( Buyers Inspection Notice & Sellers Response ) due by :                             ____ /____ /____          ____ /____ /____
   Sellers response to B.I.N.S.R. due by :                                                         ____ /____ /____          ____ /____ /____
   Buyer to apply for Homeowners Insurance by :                                                    ____ /____ /____          ____ /____ /____
   Receipt of Title Commitment/Sch. B :                                                            ____ /____ /____          ____ /____ /____
   Deadline for Buyer disapproval of above :                                                       ____ /____ /____          ____ /____ /____
   HOA documents ordered :                                                                         ____ /____ /____          ____ /____ /____
   HOA documents received and accepted by Buyer :                                                  ____ /____ /____          ____ /____ /____
   In the event of low appraisal Buyer must cancel by :                                            ____ /____ /____          ____ /____ /____
   Repairs ( if any ) completed no later than :                                                    ____ /____ /____          ____ /____ /____
   Buyers walk through inspection no later than :                                                  ____ /____ /____          ____ /____ /____
   Failure to qualify notice delivered by Buyer no later than :                                    ____ /____ /____          ____ /____ /____
   Buyer to sign closing and loan documents no later than :                                        ____ /____ /____          ____ /____ /____
   Recordation of Documents ( COE ) :                                                              ____ /____ /____          ____ /____ /____
   Keys Delivered :                                                                                ____ /____ /____          ____ /____ /____


                                          OTHER ACTIONS REQUIRED SPECIFIC TO TRANSACTION

   ACTION                                                                                            DATE DUE                 DATE DONE

   “ADWR” Registration of Existing Well :                                                          ____ /____ /____          ____ /____ /____
   Septic / Alternative System Certification :                                                     ____ /____ /____          ____ /____ /____
   Lead Paint Disclosure :                                                                         ____ /____ /____          ____ /____ /____
   Home Protection Plan Ordered :                                                                  ____ /____ /____          ____ /____ /____
   Other :                                                                                         ____ /____ /____          ____ /____ /____



                                                           CURE PERIOD ACTIVATED

   DATE : ____ /____ /____ REASON : __________________________________________________________________________________________________

   CURE DEADLINE : ____ /____ /____      DATE CURED : ____ /____ /____        or DATE CANCELLED : ____ /____ /____


   DATE : ____ /____ /____ REASON : __________________________________________________________________________________________________

   CURE DEADLINE : ____ /____ /____      DATE CURED : ____ /____ /____        or DATE CANCELLED : ____ /____ /____
                                                                                                                                                                                                                                                        CLEAR
                                                                                                                                                                   E S T I M AT E D C O S T S H E E T
                                                                                                                                                                                                                                                        FORM



SELLER ___________________________________________________________________                                                                                                                                  TYPE OF SALE
                                                                                                                                                                                CASH               NEW LOAN                FHA            VA           CONV.
BUYER ___________________________________________________________________
                                                                                                                                                                            Sales Price..............................   $ __________________________
ADDRESS _________________________________________________________________
                                                                                                                                                                            Down Payment .......................        $ __________________________

PARCEL# __________________________________ TAXES $ ____________________                                                                                                     Loan Amount ..........................      $ __________________________

ESTIMATED COST SHEET PREPARED BY: ___________________________________                                                                                                       Points/Loan Serv. Fee Quote ______________________________

                                                                                                                                                                                                SELLER                                       BUYER



                                     1.   Reconveyance/Satisfaction Fee .......................................................................................               $ ____________________________                 $ __________________________


                                     2.   Tax Proration See Note ....................................................................................................         $ ____________________________                 $ __________________________


                                     3.   Insurance: If new; 1st year. If assumed; proration .............................................................                    $ ____________________________                 $ __________________________


                                     4.   Assessments payoff or proration (sewer, paving, etc.) .....................................................                         $ ____________________________                 $ __________________________
   - E S T I M AT E D C O S T S :




                                     5.   Homeowners Association Transfer Fee ............................................................................                    $ ____________________________                 $ __________________________


                                     6.   Current Homeowners Association Payment Proration ....................................................                               $ ____________________________                 $ __________________________


                                     7.   Next Month’s Homeowners Association Payment ...........................................................                             $ ____________________________                 $ __________________________


                                     8.   Termite Inspection ............................................................................................................     $ ____________________________                 $ __________________________


                                     9.   Property Inspection ..........................................................................................................      $ ____________________________                 $ __________________________
  CASH SALE




                                    10.   Home Warranty Premium .................................................................................................             $ ____________________________                 $ __________________________


                                    11.   Owners Title Policy Based on sales price ........................................................................                   $ ____________________________                 $ __________________________


                                    12.   Recording Fees ................................................................................................................     $ ____________________________                 $ __________________________


                                    13.   Escrow Fee Based on sales price ....................................................................................                $ ____________________________                 $ __________________________


                                    14.   Real Estate Commission – Listing Agent..........................................................................                    $ ____________________________                 $ __________________________


                                    15.   Real Estate Commission – Selling Agent .........................................................................                    $ ____________________________                 $ __________________________


                                                                                                                                                         TOTALS:              $ ____________________________
                                                                                                                                                                                            0.00                             $ __________________________
                                                                                                                                                                                                                                          0.00



Buyer’s Approximate Monthly Payment                                                                            Estimated Proceeds to Seller                                                Estimated Costs to Buyer

Principal and Interest............................... $ ___________                                                                                              0.00
                                                                                                               Total Sales Price .......................... $ __________                                                                                     0.00
                                                                                                                                                                                           Down Payment .............................................. $ ___________

Tax Impounds .......................................... $ ___________                                          Less: Current Mortgage Owed .... $ __________                                                                                          0.00
                                                                                                                                                                                           Plus: Estimated Costs Above ........................ $ ___________

Fire Insurance Impounds ......................... $ ___________                                                Subtotal: Estimated Equity .......... $ __________
                                                                                                                                                          0.00                             Less: Financed FHA/MIPNA Funding Fee ..... $ ___________

Flood Insurance Impounds...................... $ ___________                                                   Less: Estimated Costs Above ..... $ __________
                                                                                                                                                      0.00                                                                0.00
                                                                                                                                                                                           EST. COSTS: $ _______________________________________

PMI Impounds If Conventional loan ....... $ ___________                                                                                  0.00
                                                                                                               EST. PROCEEDS: $ _______________________
                                                                                                                                                                                                                                                      Print Form
Homeowners Association Fee................. $ ___________


                              0.00
EST. PAYMENT: $ _________________________________                                                                     Seller Initials _________                       Date ___ / ___ / ___              Buyer Initials _________             Date ___ / ___ /
                                                                                                                                                                                                                                                        CLEAR
                                                                                                                                                                   E S T I M AT E D C O S T S H E E T
                                                                                                                                                                                                                                                        FORM


SELLER ___________________________________________________________________                                                                                                                                  TYPE OF SALE
                                                                                                                                                                                CASH               NEW LOAN                FHA            VA           CONV.
BUYER ___________________________________________________________________
                                                                                                                                                                            Sales Price..............................   $ __________________________
ADDRESS _________________________________________________________________
                                                                                                                                                                            Down Payment .......................        $ __________________________
PARCEL# __________________________________ TAXES $ ____________________
                                                                                                                                                                            Loan Amount ..........................      $ __________________________

ESTIMATED COST SHEET PREPARED BY: ___________________________________                                                                                                       Points/Loan Serv. Fee Quote ______________________________
                                                                                                                                                                                                SELLER                                       BUYER

                                  1. Origination Fee 1% of base loan amount .......................................................................                           $ ____________________________                 $ __________________________

                                  2.   Discount Points _____% ...................................................................................................             $ ____________________________                 $ __________________________

                                  3.   Credit Report ....................................................................................................................     $ ____________________________                 $ __________________________

                                  4.   Document Preparation Fee (Charge to Seller on FHA/VA) ...............................................                                  $ ____________________________                 $ __________________________

                                  5.   Appraisal or Extension Fee ...............................................................................................             $ ____________________________                 $ __________________________

                                  6.   Interest Proration on Seller’s Loan See Note...................................................................                        $ ____________________________                 $ __________________________

                                  7.   Reconveyance/Satisfaction Fee .......................................................................................                  $ ____________________________                 $ __________________________

                                  8.   Prepaid Interest Approx. 30 days ....................................................................................                  $ ____________________________                 $ __________________________

                                  9.   FHA MIP, VA Funding Fee or PMI Premium, as applicable ..............................................                                   $ ____________________________                 $ __________________________

                                 10.   Tax Service Contract Never charge Buyer on VA ............................................................                             $ ____________________________                 $ __________________________

                                 11.   Tax Proration See Note ....................................................................................................            $ ____________________________                 $ __________________________
   NEW LOAN - ESTIMATED COSTS:




                                 12.   Tax Impounds See reverse side for guideline ..................................................................                         $ ____________________________                 $ __________________________

                                 13.   Fire Insurance 1st year + 2 months impounds = 14 months ...........................................                                    $ ____________________________                 $ __________________________

                                 14.   Flood Insurance 1st year + 2 months impounds = 14 months ........................................                                      $ ____________________________                 $ __________________________

                                 15.   Assessments payoff or proration (sewer, paving, etc.) .....................................................                            $ ____________________________                 $ __________________________

                                 16.   Homeowners Association Transfer Fee ............................................................................                       $ ____________________________                 $ __________________________

                                 17.   Current Homeowners Association Payment Proration ....................................................                                  $ ____________________________                 $ __________________________

                                 18.   Next Month’s Homeowners Association Payment ...........................................................                                $ ____________________________                 $ __________________________

                                 19.   Termite Inspection ............................................................................................................        $ ____________________________                 $ __________________________

                                 20.   Property Inspection ..........................................................................................................         $ ____________________________                 $ __________________________

                                 21.   Home Warranty Premium .................................................................................................                $ ____________________________                 $ __________________________

                                 22.   Lenders Title Policy & Endorsements Based on loan amount .........................................                                     $ ____________________________                 $ __________________________

                                 23.   Owners Title Policy Based on sales price ........................................................................                      $ ____________________________                 $ __________________________

                                 24.   Recording Fees ................................................................................................................        $ ____________________________                 $ __________________________

                                 25.   Escrow Fee Never charge Buyer on VA ...........................................................................                        $ ____________________________                 $ __________________________

                                 26.   Real Estate Commission – Listing Agent..........................................................................                       $ ____________________________                 $ __________________________

                                 27.   Real Estate Commission – Selling Agent .........................................................................                       $ ____________________________                 $ __________________________

                                 28.   Endorsement ....................................................................................................................       $ ____________________________                 $ __________________________

                                 29.   Other (_____________________) ........................................................................................                 $ ____________________________                 $ __________________________

                                                                                                                                                         TOTALS:                           0.00
                                                                                                                                                                              $ ____________________________                             0.00
                                                                                                                                                                                                                             $ __________________________

Buyer’s Approximate Monthly Payment                                                                          Estimated Proceeds to Seller                                                  Estimated Costs to Buyer
Principal and Interest............................... $ ___________                                          Total Sales Price .......................... $ __________
                                                                                                                                                               0.00                        Down Payment .............................................. $ ___________
                                                                                                                                                                                                                                                             0.00

Tax Impounds .......................................... $ ___________                                        Less: Current Mortgage Owed .... $ __________                                 Plus: Estimated Costs Above ........................ $ ___________
                                                                                                                                                                                                                                                      0.00

Fire Insurance Impounds ......................... $ ___________                                              Subtotal: Estimated Equity .......... $ __________
                                                                                                                                                        0.00                               Less: Financed FHA/MIPNA Funding Fee ..... $ ___________
Flood Insurance Impounds...................... $ ___________                                                 Less: Estimated Costs Above ..... $ __________
                                                                                                                                                    0.00                                                                  0.00
                                                                                                                                                                                           EST. COSTS: $ _______________________________________
PMI Impounds If Conventional loan ....... $ ___________                                                      EST. PROCEEDS: $                             0.00
                                                                                                                                                 _______________________
                                                                                                                                                                                                                                                      Print Form
Homeowners Association Fee................. $ ___________

                              0.00
EST. PAYMENT: $ _________________________________                                                                    Seller Initials _________                       Date ___ / ___ / ___               Buyer Initials _________             Date ___ / ___ /
                                           E X P L A N AT I O N O F E S T I M AT E D C O S T S




APPRAISAL. A fee charged by an appraiser to render                       HOMEOWNERS ASSOCIATION TRANSFER
an opinion of market value as of a specific date. Required                FEE. The amount at close of escrow that is due in
by most lenders to obtain a loan.                                        payment of the Homeowners Association. The fee is
                                                                         charged by the Association to transfer ownership records.
ASSESSMENT. A lien on a property securing
payment, i.e., public improvements, delinquent                           INTEREST PRORATION. An estimated amount
homeowners association fees.                                             of interest due at closing. Interest is collected in arrears
                                                                         and therefore must be collected from the last monthly loan
                                                                         payment to closing or payoff.
ASSIGNMENT FEE. A fee charged by the lender to
cover the expense of the transfer of the loan.
                                                                         LENDER POLICY AND ENDORSEMENTS.
                                                                         An insurance premium charged by the title company
ASSUMPTION PROCESSING FEES. All fees,                                    to insure lender that encumbrance is a first lien on the
including assumption, transfer and/or processing fees
                                                                         property. Fee based on loan amount. Refer to rate chart
charged by the lender to process the records of the
                                                                         “Simultaneous Extended Loan Policy” rates. Lender is
existing loan into the buyer’s name.
                                                                         beneficiary.

COLLECTION SET-UP FEE. A one-time fee                                    LOAN DISCOUNT POINTS. A fee charged by the
charged by a company acting on behalf of the lender and
                                                                         lender to make a loan at a given interest rate. One point
borrower to set up the servicing of the loan, according to
                                                                         equals one percent of the total loan amount and fluctuates
the Note and mutual written instructions. May also be set
                                                                         depending on the interest rate and availability of money
up to impound for taxes/insurance. NOTE: Collection set-
                                                                         for loans.
up fees do not include annual or close-out costs.

                                                                         LOAN PAYMENT DUE. The payment amount due
CREDIT REPORT FEE. A fee charged by the                                  from the seller at the close of escrow and/or, in the case
lender to obtain the credit history of the buyer(s).
                                                                         of an assumption of the existing loan, the next payment
                                                                         due from the buyer.
DOCUMENT PREPARATION FEE. A fee
                                                                             Jan. & Jul. – 5 Months     May & Nov. – 3 Months
charged by the lender for the preparation of documents
necessary to fund the loan.                                                  Apr. & Oct. – 2 Months     Mar. & Sept. – 1 Month
                                                                             Feb. & Aug. – 0 Months     Jun. & Dec. – 4 Months

ESCROW FEE. A fee charged by the escrow
company as a neutral third party to carry out the                        MIP or PMI IMPOUND. An amount for MIP or PMI
procedures necessary to transfer ownership of property.                  is required under certain circumstances and collected
                                                                         by the lender and held in the impound account to insure
                                                                         that adequate funds are available to pay the next year’s
FIRE INSURANCE. The first annual premium, plus                            premium. Usually equivalent to 2 months of the annual
2 months, for fire and extended coverage insurance to
                                                                         premium.
cover loss of the property. (Usually called Homeowners
Insurance.) In the event of a condominium property,
coverage for personal property (contents) may also be                    MIP or PMI PREMIUM. An insurance premium to
needed.                                                                  protect the lender against loss incurred by loan default,
                                                                         thus enabling the lender to lend a higher percentage of the
                                                                         sales price. Mortgage Insurance Premium (MIP) is charged
FLOOD INSURANCE. A form of hazard insurance                              for FHA loan; Private Mortgage Insurance (PMI) is charged
that may be required by the lender as a condition of
                                                                         for Conventional loan. This is NOT credit life insurance
making the loan. NOTE: Does not cover personal property.
                                                                         that pays off the loan incase of death.

HOME WARRANTY FEE. A fee charged by a                                    ORIGINATION FEE. A loan processing fee charged
private company to cover specified defects. Coverage
                                                                         by the lender for originating a new loan.
and deductibles vary with the provider and plan. Both new
and resale homes may be warranted.
                                                    E X P L A N AT I O N O F E s T I m AT E d C O s T s



OwnER’S TiTlE POlicY. An insurance premium                                        REcORding FEES. Fees charged by the
charged by the title company to insure buyer that the                             County Recorder’s Office for recordation of appropriate
title is free from defects up to the date the conveying                           instrument(s).
instrument is recorded. Buyer is beneficiary.
                                                                                  TAX imPOundS. An amount for taxes required and
PAYOFF FEE. A fee charged by the lender or                                        collected by the lender/collection agent and held in the
collection company for payoff information.                                        impound account to insure adequate funds are available
                                                                                  to pay the taxes. The amount varies according to the
                                                                                  closing month. Following is a guideline only; check with
PAYOFF PEnAlTY. A prepayment penalty under a                                      your lender:
Promissory Note that may be imposed by the lender when
the loan is paid off before it is due.
                                                                                  TAX PRORATiOn. An amount due for taxes accrued
                                                                                  but not yet due and payable. Taxes are generally prorated
PREPAid inTEREST. The amount of interest to                                       to the day of closing. Verification for paid/unpaid taxes
cover the period from close of escrow until the beginning
                                                                                  can be made through the County Assessor’s Office.
of the first payment.

                                                                                  TAX SERvicE cOnTRAcT. A fee charged by
PROPERTY inSPEcTiOn FEE. A fee charged                                            the lender to insure the tax bill is mailed to the lender for
by a private company or individual(s) to examine and
                                                                                  payment from the appropriate impound account.
report on the condition of a property. Report may or may
not warrant condition.
                                                                                  TERmiTE inFESTATiOn REPORT FEE. A
                                                                                  fee for an inspection to verify there is no current wood
REAl ESTATE cOmmiSSiOn. A fee paid to a                                           infestation and/or current or past damage done by wood
real estate broker as compensation for services rendered.
                                                                                  infestation.

REcOnvEYAncE/SATiSFAcTiOn FEE.                                                    vA Funding FEE. A fee charged by the Veteran’s
A fee charged by the lender to execute the Deed of
                                                                                  Administration to guarantee the loan to a qualified veteran.
Reconveyance, or Satisfaction, when the existing note is
paid off.




                      EndORSEmEnT chEcKliST                                                                     PROPERTY TAXES

        This checklist comprises the endorsements most frequently                   Assessed on a calendar year (Jan.-Dec.). Payment dates are as follows:
      requested by lenders. Should you encounter requests for other
     endorsements, consult your Rate Manual, your Branch Manager,                   FiRST hAlF taxes (Jan. 1 - Jun. 30) for current year:
                     or your Title Officer for assistance.                            Due on: October 1st of the current year
                                                                                      Delinquent on: November. 1st of the current year
   EndORSEmEnT               dEScRiPTiOn                     FEE

        8.1                  Environmental             $50 - Residential            SEcOnd hAlF taxes (Jul. 1 – dec. 31) for current year:
                              Protection                (Unless Builder               Due on: Mar. 1st of the following year
                                                         Rate Applies)                Delinquent on: May 1st of the following year
                                                      $100 - Commercial

      100.12                Violation CC&R’s                 $75                    EXAmPlE – Taxes for the year 2005:
                                                                                      First half taxes due Oct. 1, 2005; delinquent Nov. 1, 2005
      100.13                  Insures Lien                   $75
                           Superior to CC&R’s                                         Second half taxes due Mar. 1, 2006; delinquent May 1, 2006

       103.1           Insures Against Damage by             $75
                                                                                    Examples of Prorated Annual Property Taxes of $1,200:
                        Reason of Easement Use
                                                                                      Closing date Dec. 1: Seller should have paid first half (Jan. 1 – Jun. 30)
       103.5            Insures Against Damage by            $75                      on Oct. 1st. Seller pays 5 months (Jul. 1 – Nov. 30) of second half or
                       Attempted Removal of Water                                     $500 at closing and any delinquent taxes.
     Waiver of          Amends Arbitration Clause            $75
     Arbitration          Contained in Policy                                                Note: Taxes for the day of the closing are traditionally
                                                                                                        the responsibility of the Buyer.
       115.2               PUD Endorsement                   $50

       111.5                  Variable Rate                  $50

								
To top