Category: Underwriting Q & A’s

25 Jul

Underwriting Q&A: If the subject property is the seller’s homestead, can I remove the abstract of judgment against the seller (debtor) from the Commitment?

Q: If the subject property is the seller’s homestead, can I remove the abstract of judgment against the seller (debtor) from the Commitment? A: Texas– No. The Texas Constitution exempts a homestead from forced sale by creditors, except those constitutionally permitted liens enumerated in the constitution. However, if a judgment lien is recorded, it can

28 May

Underwriting Q&A: If the current seller was awarded the property in a divorce proceeding, do we need to worry about a federal tax lien recorded against the ex-spouse post-divorce?

Q: If the current seller was awarded the property in a divorce proceeding, do we need to worry about a federal tax lien recorded against the ex-spouse post-divorce? A: The answer will depend on what steps were taken after the divorce to provide notice to creditors and the characterization of the subject property as set

12 Apr

Underwriting Q&A : What are the IRS instructions for Form 1099-S reporting with respect to a married couple?

Q:        What are the IRS instructions for Form 1099-S reporting with respect to a married couple? A:        The IRS makes an exception to its Multiple Transferor guidelines for spouses.  The IRS instruction for spouses is set out below. For multiple transferors of the same real estate, you must file a separate Form 1099-S for each

27 Feb

Underwriting Q&A: Do Texas title companies offer “survey coverage”?

Q: Do Texas title companies offer “survey coverage”? A: No. Unfortunately, over the years our industry has used the slang term “survey coverage” to describe various policy endorsements that may be available on a proposed transaction. However, the over use of the term has resulted in a misunderstanding of the actual coverage provided by the

21 Jan

Underwriting Q&A: What is the correct exception in Schedule B when finding a memorandum [of lease, of agreement, etc.] recorded in the Public or Official Records which affects the property? When can this exception be removed?

A:  The exception would properly read as follows:  “Terms, conditions and stipulations of the [lease or agreement] as evidenced by Memorandum of [Lease/Agreement/etc.] recorded as [document/instrument] in the [Public/Official] Records of ______ County,  [State]  .’   [Additional information such as the parties to the memorandum and the dates of execution and recording are always helpful as

20 Nov

Underwriting Q&A: What are the requirements of issuing the Texas Residential Owner Policy (Form T-1R)?

Q: What are the requirements of issuing the Texas Residential Owner Policy (Form T-1R)? A:  Requirements to issue the The property must be residential (defined in Procedural Rule P-1.u); The residence must be for 1-to-4 families; and the proposed insured MUST be a “natural person” (required in Procedural Rule P-38) the Texas Residential Owner Policy

19 Sep

Underwriting Q&A: The Grantor in the proposed insured transaction is a Trust. How does the Deed have to be prepared so that a title insurance policy can be issued?

Question: The Grantor in the proposed insured transaction is a Trust. How does the Deed have to be prepared so that a title insurance policy can be issued?   Answer:     Trusts establish a relationship between a person holding in interest in a property for the benefit of another person. The person who holds the interest

16 Aug

Underwriting Q&A: What date should be inserted into the blank on paragraph 4 of the T-47 Residential Real Property Affidavit?

Q: In Texas, where we are encountering multi-generational re-use of existing surveys, the T-47 Residential Real Property Affidavit allows a seller to verify that a prior survey is still an accurate depiction of the property to be insured for purposes of giving an area and boundaries exception amendment and/or T-19 or T-19.1 coverage. What date

16 Jul

Underwriting Q & A | I came across a notary signature with reference to Florida Statute 118.10. Also, the document appears to be notarized in another country. Is this a valid notary acknowledgement?

Q: I came across a notary signature with reference to Florida Statute 118.10.   Also, the document appears to be notarized in another country.  Is this a valid notary acknowledgement?  A: The Florida law provides for a specialized type of notary certification, called an International Notary or Civil Law Notary. There are approximately 150 International Law Notaries