title insurance
Title Insurance: More Important Than Ever
Starting a closing with Ryan Stuart
Understanding the tenets of title insurance is especially important considering the turmoil in the real estate industry.
Title insurance is intended to protect the insured from improper titling, including defects in foreclosure proceedings, forgery, or impersonation or cases in which no title is legally conveyed. Other defects are partial, such as a neighboring fence or garage encroaching on the insured person’s property.
The title insurance industry recently set down strict guidelines for when and if they will insure a title to a property on which there has been a foreclosure.
The buyer should be equally vigilant, insisting on a 60-year search and paying for an owner’s policy as well as the lender’s policy that the bank will demand.
Source: Washington Post, Harvey S. Jacobs (11/27/2010)
Buyers Should Push to Cut Junk Fees
Now is a good time for home buyers to push for lower closing costs.
Closing costs include lending charges, local tax and transfer fees, and expenses for such things as title insurance, appraisal costs, and other third-party services. The rule of thumb used to be about 3 percent of the cost of the property.
Today, most buyers should be able to do better than that, said Guy Cecala, publisher of industry newsletter Inside Mortgage Finance. Fees that buyers shouldn’t have much trouble negotiating away include wire-transfer fees, loan application-processing fees, and high FedEx charges.
“It all boils down to what a lender will work for,” says Cary Pearce, production manager at Provident Bank Mortgage in Riverside, Calif.
Source: Investor’s Business Daily, Kathleen Doler (04/22/2010)
Why I recomend MBH and Ryan Stuart for title and settlement needs
 MBH is in Old Town What is a settlement company?A settlement company processes and records transactions such as home sales or mortgages and refinances. One such settlement company is MBH Settlement Group L.C. Ryan Stuart of MBH tells me, “The settlement company’s primary role is to insure the conveyance of clear and marketable title from the Seller to the Purchaser. Further, as a settlement service provider, the settlement company prepares documentation incident to the closing, conducts the settlement, records the deed and necessary loan documentation in the land records, and disburses all funds in accordance with the HUD-1 settlement statement.” Who do you recommend for settlement?MBH in Alexandria VA is located on Washington St. in a historic structure in Old Town. When clients ask me for a recommendation for a title company I often suggest MBH because I’ve been pleased with the service at MBH. |
Why did you choose MBH in the first place? Inside MBH I met Ryan Stuart of MBH because a fellow realtor recommended Ryan at MBH to me. Ryan Stuart is counsel to MBH and handles many closings for them. My colleague said that Ryan had “the best closings in Alexandria”. Not knowing Ryan at the time I really doubted this claim. Her endorsement was so enthusiastic, I almost wondered if she was taking a kick-back from him! Of course, I knew she was not receiving any such payment from MBH or Ryan. It’s important for consumers to understand that enticements and payments for endorsements like these are illegal in the Commonwealth of Virginia. The colleague that recommended MBH and Ryan is a highly ethical agent who works for a reputable brokerage. I knew I had to give MBH a try. |
Why do you tell your client’s about MBH? MBH is in Old Town My brokerage makes nothing off of settlement, and so long as the transaction is smooth and professional, I personally could care less who does your title work. The client has a right to choose any company for settlement and I encourage clients to take advantage of that right. However, most clients ask me for a suggestion when it comes time to pick a title company. I tell them the truth. The services provided by the title companies are nearly identical anywhere you go. (More on this later.) There is very little difference in pricing on title work. What I like about MBH is that there is very little hassle dealing with them. I submit the title order to them and then forget it. But, I would expect no less from any title company. What I love about MBH is how Ryan handles a closing. |
Ryan Stuart of MBHStarting a closing with Ryan Stuart From the time Ryan settles in to the time the last document is signed, it’s obvious that that Ryan is a professional. He knows exactly where the money is going and where it’s coming from and it’s all spelled out on the documents. One of the duties of a settlement agent is to explain the transaction in a way that the layman can understand the paperwork. I find that many settlement agents use industry terms that make perfect sense to myself or other real estate professionals, but Ryan goes one step further. He breaks down the transaction using simple English that anyone can understand and this is his real value add. He doesn’t get frustrated with questions, and he doesn’t rush the signers. He will work with the client until there is a full understanding by all parties at the table. |
 settlement agent I asked Ryan, why do property owners need title insurance. He told me, “A title insurance policy contains a statement of the condition of ownership of real property. A title policy indemnifies you against loss or damage incurred as a result of title defects on your property. In the event of a lawsuit challenging your ownership interest, the title insurance company provides a legal defense for the policyholder and, if the suit is lost, pays all valid claims or losses insured by the policy.” For example in a recent closing, a property was sold with only the signature of one spouse. Years later, heirs or the missing spouse could come back to make a claim against the title. Title insurance protects against this kind of a claim. |
 When settlement is over, Jane is relieved. It’s a huge relief when all the ducks finally line up and the property is yours. |
 Will Nesbitt |
About the Author — Will Nesbitt is the principal broker of Will Nesbitt Realty and maintains Condo Alexandria. Will specializes in condos, townhouses and single family residences in Alexandria, Arlington, Fairfax County, Crystal City, and Kingstowne. Will resides in Belle Haven Estates just outside Alexandria VA in Fairfax County. |
