Aug 9, 2023 | Buying Real Estate, Mortgage Lenders, News, Selling Real Estate, Short Sales
Title insurance underwriters, concerned about the risk in insuring short sale flips have taken a position of not insuring them. Old Republic Title Insurance announced to it’s agents last month that it would no t authorize the issuance of lender or owner title insurance policies on short sale flip transactions.
So what is a short sale flip?
A short sale flip is when a property is purchased by a real estate “investor” from a seller who has negotiated with the current mortgage holder(s) to release the mortgage(s) for less than what is owed, the purchaser of the property then flips, or resells, the property for a profit. (more…)
Aug 4, 2023 | Real Estate
These scams often involve fraudsters posing as property owners to exploit the real estate transactions process. As a real estate agent, understanding the red flags and strategies to prevent fraud is essential to protect both your clients and yourself.
Scammers may try to make their schemes seem legitimate, but there are common signs to watch out for:
- The seller claims to reside in another state or country and insists on communicating only through email.
- The seller is overly eager to close the deal quickly, often proposing a price that seems too good to be true.
- The seller shows little concern about the standard closing costs and appears solely focused on getting the net proceeds as swiftly as possible.
- The email communication from the seller contains typographical mistakes, boilerplate language, or originates from a suspicious foreign domain.
- The seller provides a questionable reason for limited contact, such as working as an offshore engineer or suffering from a severe medical condition.
- The seller insists on using a power of attorney, but the agent under that power does not personally know the seller.
- The seller’s identification appears dubious, with features like pasted photos or a lack of security features.
- The signatures of the seller or notary appear suspicious.
- The seller’s current location does not match the address listed in the county tax records, and the documents provided by the seller are notarized in a different location.
- The seller provides wiring instructions to a bank located in a different place.
If a transaction appears or “feels” suspicious, take proactive steps to verify the legitimacy of the seller and the transaction:
- Subscribe to databases like “PeopleFinders” and attempt to contact the property owner directly.
- Conduct online searches for the owner, including checking for obituaries or probate estates.
- Check online real estate listings to verify if the property is listed for sale and contact the listing agent to cross-check your transaction.
- Request additional documents from the seller to assist in verifying their identity.
- Ask the seller to send a picture of their driver’s license or passport via email or text.
- Verify the notary through the Secretary of State where the document was notarized.
- Make an effort to contact the notary directly and verify the acknowledgment.
By understanding these red flags and prevention strategies, real estate agents can play a crucial role in curbing the rise of vacant property fraud. Stay vigilant, stay informed, and protect your interests and those of your clients.
Providing title, escrow, closing and settlement services to clients throughout Massachusetts and New Hampshire
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“The Law Office of Attorney David R. Rocheford, Jr. is by far the most exceptional real estate law office that I have had the pleasure of working with. The professionalism is by far second to none.”
SENIOR LOAN OFFICER, SALEM FIVE MORTGAGE SERVICES
“Attorney David Rocheford has provided settlement and title services for me and Greenpark Mortgage several years. He has assisted all of my clients, including my family and friends with mortgage closings. Always providing excellent service. Reliable and trustworthy!”
Jul 27, 2023 | Uncategorized
In the complex world of real estate, one of the most debated topics is the necessity of property disclosure from sellers to prospective buyers. This debate becomes even more intriguing when we delve into the specifics of what is perceived as ‘material facts’—information that could potentially influence a buyer’s decision to purchase a property. These facts can range from structural issues, pest infestations, to a property’s less tangible history, such as deaths or crimes that occurred on the premises.
While property disclosure laws vary by state, we will focus on Massachusetts and the particularities of its legislation—specifically focusing on the disclosure of deaths (natural or otherwise) and crimes on the property.
Understanding Massachusetts Law Chapter 93, Section 114
According to Massachusetts law, particularly Chapter 93, Section 114, sellers are not legally obligated to inform potential buyers if the property in question is “psychologically impacted.” More explicitly, this means if a property was the site of a felony, suicide, or homicide, or that the real property has been the site of an alleged parapsychological or supernatural phenomenon, the seller is not required to disclose this information.
However, it’s essential to differentiate between ‘mandatory disclosure’ and ‘honesty in disclosure.’ While the law doesn’t require sellers to proactively reveal this information, they are obligated to provide truthful responses if buyers directly question them about the property’s history. Misleading a buyer or outright lying in response to direct inquiries can potentially lead to legal repercussions.
Understanding the Rationale and its Implications
The rationale behind this law is to protect sellers from the societal stigmas attached to properties where untoward incidents occurred. In many cultures and societies, properties with a history of death or crime are considered ‘stigmatized’ or ‘tainted,’ and this perception can significantly affect their market value.
However, this law also implies a greater responsibility on the buyers. Potential home buyers in Massachusetts should be aware of this law and take it upon themselves to ask detailed and comprehensive questions about the property’s history.
The Importance of Honesty in Real Estate Transactions
Despite the specifics of the law, the principle of honesty remains a fundamental cornerstone of any real estate transaction. While sellers are not legally bound to disclose certain information, maintaining transparency can foster trust and pave the way for smoother transactions.
Moreover, sellers should consider the ethical implications of withholding such information. While the law might not require them to disclose, the moral question of whether or not to share such details remains a personal decision.
Conclusion
Navigating the intricacies of property disclosure laws can be challenging, but understanding the local laws is crucial for both sellers and buyers. For sellers, it’s about striking a balance between their legal rights and ethical responsibilities. For buyers, it’s about asking the right questions and ensuring they are fully aware of what they are investing in. Regardless of the legal nuances, honesty and transparency should always be the guiding principles in real estate transactions.
Jul 12, 2023 | Uncategorized
When you’re grieving the loss of a loved one, the last thing you want to do is sort through the complex details of their assets – especially real property. But knowing more about what happens to real property after death can help avoid unwarranted surprises. There are many factors that play a role in how real property is transferred, like whether or not the deceased person had a will, or if the property is part of a trust or co-owned with others. In some instances, a probate proceeding may be required to ensure an orderly transfer of the decedent’s assets – including real property. Let’s explore when and how the title to real property is transferred during a probate proceeding.
What is probate?
Probate is the formal legal process of ensuring the validity of a person’s will, reviewing their assets and finalizing the executor of the estate, or the person responsible for distributing assets to beneficiaries and heirs as described in the will. Typically, this person is a close remaining relative. If the deceased individual (or decedent) did not have a will, the death is considered what is referred to as intestate. In this circumstance, the court uses state-specific probate and intestate succession laws to make fair and just determinations about the assets and assigns an administrator or personal representative to administer the estate.
How does probate work?
Although the probate process varies by state, there are some routine steps in every jurisdiction. Below is a simplified version of each:
1. File a petition. A petition for probate must be filed with the court in the jurisdiction where the decedent lived at the time of death by the individual who intends to act on behalf of the decedent. Once filed, the court will schedule a hearing to appoint the executor or name an administrator.
2. Give notice. Notice must be given to all parties who may hold an interest in the decedent’s estate, such as heirs and beneficiaries named in the will. The executor or administrator holds the responsibility of giving notice, which must be sent by mail or process service. Notice must also be provided to potential creditors. This is usually accomplished by publication in a newspaper with a wide circulation and must be published for several days or weeks, depending on state requirements.
3. Inventory and appraisal of all assets. Once the probate case has been opened, the next step is to determine the list of the decedent’s assets and respective value, then present them to the court. This is particularly important when it comes to real property, which will need to be appraised before it is put on the market, if a sale of the property is required.
4. Transfer remaining assets and close the estate. Once all claims, debts and expenses are paid; real property has been legally transferred to appropriate heirs or sold; and funds disbursed to beneficiaries, all records and receipts are submitted to the court with a petition to close probate. Once the court examines the records, and if there are no objections, then an order to close the estate will be filed by the court.
What happens when real property is sold through probate?
The executor or administrator of the estate is generally tasked with administering the sale of real property. The court controls the process of the sale, including how the property is marketed, which offer is accepted and negotiations that are made. There are some unique nuances to probate sales, which may include, but are not limited to, the following:
- Real property is often sold at a price relatively lower than average, with minimum overbid requirements in some states.
- The buyer may be asked to remit a deposit (10 percent of the sale price) when making an offer.
- Property is generally sold “as-is.”
- The closing process can take longer than a traditional sale.
Once the court approves the sale and a buyer has submitted an offer and deposit, the closing process can begin. In order to facilitate the closing, the Escrow Officer or Closing Agent may request copies of documents filed in probate court, which can include, but are not limited to: A Letter of Testamentary that confirms the individual has been granted authority to conduct matters on behalf of the estate; a certified copy of the death certificate recorded in the county where the decedent lived; and a copy of a filed disclaimer of interest from any beneficiary who rejects their rights to the property.
Is probate always required to transfer real property after death?
No, not all real property is subject to probate. There are certain circumstances where probate can be avoided when transferring real property after death, such as if title to the decedent’s real property was held in a trust; if it was jointly owned with a co-owner who had rights of survivorship; or if the property was shared with a spouse or domestic partner in a community property state, regardless if the spouse or domestic partner was on title.
How long does it take to transfer real property in probate?
A probate case should take less than a year but can extend to several years if there are unforeseen circumstances, such as a challenge to the validity of the will, a complicated list of assets, or an inability to locate beneficiaries. Also, when dealing with real property, title issues such as improper recordings after a divorce or an incorrect legal description in the court order can cause further delays.
Probate proceedings can be complex. Taking the time to discuss the process with an attorney and to understand the steps and court requirements can help provide insight and lessen overwhelming feelings about the process. At Old Republic Title, we’ll work with you to make sure your property rights are protected for years to come. For more helpful resources about title insurance and settlement services, contact an Old Republic Title representative today.
Copyright Old Title – Reprinted from https://www.oldrepublictitle.com/blog/probate-and-real-property-transfers/
This material is for educational purposes only and does not constitute legal advice. Old Republic Title strongly recommends that consumers obtain guidance and advice from qualified professionals, including attorneys specializing in real property law, probate law, or tax law to get more detailed and current information as to their particular situation.
Jul 12, 2023 | Uncategorized
The National Association of REALTORS® (NAR) recently released its latest report on Home Buyers and Sellers Generational Trends for 2023, reviewing market trends for 2022. Check out our summary of four major takeaways from this year’s report and what they mean for the real estate industry:
1. Baby Boomers overtook Millennials as the largest demographic of home buyers, making up 39 percent of the market in 2022, compared to 29 percent in 2021. They also remained the largest demographic of home sellers, jumping from 42 percent in 2021 to 52 percent in 2022.
One reason for this rise is, as NAR deputy chief economist Dr. Jessica Lautz explains, “Baby Boomers have the upper hand in the homebuying market. The majority of them are repeat buyers who have housing equity to propel them into their dream home…[and] they are living healthier and longer and making housing trades later in life.” Younger Boomers (ages 58-67 in 2022) may be seeking larger multigenerational homes or are choosing to move closer to family and friends, while Older Boomers (ages 68-76) may be seeking less property maintenance responsibility as they enter retirement.
2. First-time buyers made up only 26 percent of all home buyers, a sharp decrease from 34 percent last year, and the lowest number since NAR began tracking data in 2013. Seventy percent of Younger Millennials (ages 24-32) and 46 percent of Older Millennials (ages 33-42) were first-time home buyers. Behind these groups, 21 percent of Gen Xers (ages 43-57) were also first-time home buyers.
3. When relocating, all generations are moving farther distances, with Millennials typically moving the shortest distance of just 15 miles and Younger Boomers moving the furthest of 90 miles. The most common reason for such a move is to be closer to family and friends.
4. Gen Z (ages 18-23) now makes up 4 percent of buyers, an increase from 2 percent in 2021. Thirty percent of Gen Z buyers are moving directly from a family member’s home into their own first home and many are relying on family support systems to make the purchase. Gen Z also surprisingly expects to reside in their first home for 19 years, a much-longer stint than previous generations. As the most internet-savvy and climate-conscious generation, Gen Z buyers have likely done their research and are seeking a home that will sustain them for as long as possible. One thing is for sure: this generation is no longer “statistically irrelevant” and is gaining traction in the market.
Industry professionals can continue to cater to each generation by using data to create a good first impression, understanding and honoring customer preferences, and offering care and respect to the values and needs of each. For example, Baby Boomers will appreciate careful assistance with paperwork and inspections, touring areas that offer criteria that they value (e.g., affordability, lower tax rates, ample access to health care, moderate climates and low crime rates) and personalized touches, such as a hand-written thank-you note upon closing. For more ideas, check out our flyer on understanding generational trends.
There’s a reason countless Americans have relied on Old Republic Title for over a century. Through changing markets and generational trends, we continue to offer personalized service and a variety of title insurance resources designed to help our customers protect one of their biggest investments. Whenever you’re ready to buy or sell your home, Old Republic Title will be there to help.
Copyright ©2023 “Home Buyers and Sellers Generational Trends Report 2023.” NATIONAL ASSOCIATION OF REALTORS®. All rights reserved. Reprinted without permission. July, 2023. https://cdn.nar.realtor//sites/default/files/documents/2023-home-buyers-and-sellers-generational-trends-report-03-28-2023.pdf
