For Sale By Owner Information
So, you’ve decided to sell your home… Now what? At AlomaTitle Company, we understand the Home Sale Process. We assist sellers with title and escrow needs and point you in the right direction. There are 5 Steps to the For Sale By Owner process and you can educate yourself to those processes on this website. We’ve outlined these steps and we welcome you to use us as a resource for selling your home. Immediately after placing the For Sale sign in their yards, owners should order their Title Report and involve an Escrow Officer once they’ve contracted with a buyer. Whether you’ve already placed a sign in the yard, signed a contract with a buyer, or you’re trying to figure out how to get the closing completed on the home, Aloma Title Company has you covered!
Step 1: Place a Title Order
When you decide to put your home up for sale by owner, submit a “Request for Title.” This can be done by contacting Aloma Title Company . An Escrow Officer will be assigned to your file and will contact you to introduce themselves and confirm your order. Once your title search is completed, Aloma Title Company will provide you a copy of the preliminary title commitment (“Commitment”) via email, fax, or mail. You will need this Commitment, as most Real Estate Purchase Contracts require that the Buyer receive a copy. The Aloma Title Company Escrow Officer assigned to your order can answer any questions you have about the Commitment provided to you.
Step 2: Find a Buyer
Finding a buyer for your property can be a very difficult step. The forms below can assist you in your FSBO real estate sell.
HELPFUL SHEETS TO ASSIST YOU IN YOUR HOME SELL
The following documents have been compiled by Inwest associates
• Improve the interior of your home
• Improve the exterior of your home
• Other important tips
Step 3: Complete a REPC
Download the new 2014 Real Estate Purchase Contract (REPC)
What is a Real Estate Purchase Contract?
A Real Estate Purchase Contract (REPC) is signed by both the Buyer and Seller (you). You may use these forms, use your own forms, or have an attorney provide you with forms. The forms that have been provided are approved for use by the State of Florida. Place an Order with Aloma Title Company
Step 4: Submit Contract
Once the Contract has been signed by both parties, it needs to be delivered, faxed, or e-mailed to your Aloma Title Company Escrow Officer, so they can use that information to complete your transaction. If you make any changes or amendments to your Contract please make sure to forward that to your Escrow Officer as well.
Step 5: Documents & Closing
Aloma Title Company will then coordinate with you, the Buyer, and the Buyer’s Lender to receive all necessary items so that the final closing documents and settlement statements may be prepared.
Your Escrow Officer will set up separate times for both you and the Buyer to come in and sign all of the necessary closing documents. Once everything has been successfully completed the money will be transferred to the appropriate parties and the new deeds recorded.
Why you need Title Insurance
Other types of insurance coverage focus on possible future events and charge an annual premium, such as flood insurance or hazard insurance that safeguard against loss from wind damage. Title insurance protects against loss from hazards and defects already existing in the title and is purchased with a one-time premium.
TITLE SEARCH AND EXAMINATION IS THE FIRST STEP
Insuring a home’s title begins with a search of public land records affecting the property. The title agent or attorney working on behalf of the underwriter examines pertinent documents to determine whether the property is insurable. Those documents include deeds, wills, trusts, outstanding mortgages and judgments, property liens, highway or utility line easements, pending legal actions and notary acknowledgements. When title problems are disclosed during the search process, they are corrected whenever possible to avoid future claims. According to surveys done by the American Land Title Association (ALTA), title problems consistently arise in one out of three real estate transactions (36%).
A CORRECTIVE PROCESS IS VITAL TO CURING TITLE PROBLEMS
The process of performing title searches and curing title problems does not come cheap. Industry studies find that title insurers spend an average of 92 cents out of every premium dollar as their cost of doing business. The most common actions to cure title defects include:
• Releases/pay-offs for liens: 33%
• Releases/pay-offs for deeds/mortgages: 19%
• Typographical corrections (names, addresses, legal descriptions): 17%
• Clearing estate/family issue: 11%
• Clearing physical property issues: 7%
WHAT IF A PROBLEM IS HIDDEN OR MISSED?
After all this searching and examination, a title problem may still be hidden or missed, such as:
• A forged signature on a deed
• An unknown heir who steps forward to claim ownership of the property
• An expired or forged power of attorney used during a property transfer
• An incorrect public record
In each of these cases and many more, when there is appropriate title insurance coverage, a policy will offer financial protection. The title insurer defends the title and either perfects the title or pays valid claims.
WHY DO LENDERS NEED IT?
Lenders require the homeowner to purchase title insurance, just as they call for fire insurance and other types of coverage to protect their financial investment in the property. A lender’s policy insures that the mortgage is valid and the lien priority is correct. In addition, title insurance is required for lenders who package and sell their loans in the secondary mortgage market. For the homeowner to be covered, he or she must purchase an owner’s policy in addition to the required lender or mortgagee policy.
A SEPARATE OWNER’S POLICY IS THE BEST POLICY
Owner’s title insurance lasts as long as the policyholder or his or her heirs have an interest in the property—maybe even after the homeowner has sold the property. It is either purchased for an additional premium or an owner may pay a simultaneous issue charge (usually a smaller amount) for the separate lender coverage.