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  • 1.  Exceptions

    Posted 11 days ago

    Good afternoon,

     

    I am wondering how others are disclosing exceptions to the policy to buyers before closing? Looking for a more effective, efficient, and meaningful way to present to our clients and use as another touchpoint.

     

    Thank you,

     

    Ryan Godbout

     

    .

     

    WARNING – FRAUDULENT WIRING INSTRUCTIONS Email hacking and fraud are on the rise to fraudulently misdirect funds. Please call us immediately using contact information found from an independent source to verify any funding instructions received. We are not responsible for any wires sent by you to an incorrect bank account.

     

     

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  • 2.  RE: Exceptions

    Posted 10 days ago
    Disclosing exceptions means you are explaining them, yes? That should always be left to the insured’s attorney.
    Explaining exceptions opens you up to a claim of the unauthorized practice of law and could haunt the title insurance company if it has to defend a claim arising from the disclosure.

    Stephen M. Flatow, Counsel
    Vested Land Services LLC
    973-808-6131 D
    973-808-6130 O
    973-227-0645 Fax


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  • 3.  RE: Exceptions

    Posted 10 days ago

    Thanks for your response. I hear you on the claim bit and do have concerns. We don't send buyers commitments in our region and most buyers do not have attorneys so how are you disclosing this info up front?

     

    .

     

    WARNING – FRAUDULENT WIRING INSTRUCTIONS Email hacking and fraud are on the rise to fraudulently misdirect funds. Please call us immediately using contact information found from an independent source to verify any funding instructions received. We are not responsible for any wires sent by you to an incorrect bank account.

     

     




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  • 4.  RE: Exceptions

    Posted 10 days ago
    Ryan,

    I usually send an email to the realtors (or parties, when there's no realtors) that includes a cover letter that explains how to read the commitment. If there's anything troublesome in Schedule B or C, such as really old oil and gas leases that need an affidavit of non-production, or heirship issues/judgments/tax liens that will have to be cleared before closing, I'll usually include some careful wording in the cover email, such as, "Please pay particular attention to paragraph 14 of Schedule C" or "Please contact us about Paragraph 10.b of Schedule B to let us know how you want to handle it." That wording doesn't alarm people, but usually makes them actually look at the commitment, instead of just ignoring it.

    --

    Sincerely,
     
     
    Cathy Clamp, PLS, ACP, CAEP, CTIP
    TBLS Board Certified Paralegal - Real Estate
    Paralegal/Escrow Officer
    Heart of Texas Title Co. LLC
    Terry R. Norman, P.C.
    100 W. Main St.
    Brady, TX  76825
    (325)597-0796
    (325)597-1732 (fax)

    WIRE FRAUD IS ON THE RISE IN TEXAS! 
    PROTECT YOUR INFORMATION!
    Do: Always confirm wire information with our office by phone before sending a wire to us.
    Don't: Email us your bank account information. We will not use emailed instructions & will delete it for your protection.
    Don't: Ask us to email our bank information to you. We won't. We will, however, fax it to a known number. Once you receive our wire ins
    tructions (which contain security features) they will not be re-sent without confirmed request by phone. Do not respond to any emails which attempt to change our wire information. Please verify any instructions to send or receive a wire by calling us.

    Lenders: Texas is a pass-through state. We must have your closing instructions 3 business days before the Closing Disclosure is DUE to the borrower, to include actual figures on endorsements, courier and recording information. We are not allowed to close on estimates if actual costs are obtainable.


    SECURITY NOTICE:  Email transmissions may not be secure. If you prefer for communications to be sent by other means, please let us know. Contacting us by email indicates your agreement to receive emails from us. This communication and any attached files is privileged and confidential and intended only for the viewing and use of the addressee. Any mistake in transmission is not intended to waive or compromise any such privilege. NOTE TO UNINTENDED RECIPIENTS: If you have received this email in error, please immediately notify (325)597-0796, and delete this. You are hereby notified that any use, dissemination, distribution or reproduction is prohibited. Any information or text in this email is not intended to alter, amend, change or create a contract or agreement unless there is an attachment to this email containing a signed document.



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  • 5.  RE: Exceptions

    Posted 10 days ago

    Thank you, this is very helpful.

     

    .

     

    WARNING – FRAUDULENT WIRING INSTRUCTIONS Email hacking and fraud are on the rise to fraudulently misdirect funds. Please call us immediately using contact information found from an independent source to verify any funding instructions received. We are not responsible for any wires sent by you to an incorrect bank account.

     

     




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  • 6.  RE: Exceptions

    Posted 9 days ago

    As a rule, title producers can explain coverages (That is what they are licensed for) they cannot explain liabilities.  All Exceptions are liabilities to the Insured.  Any explanation of Exceptions must be measured carefully as previously noted, you could be practicing law.

     

    Disclosure of Exceptions is accomplished through the issuance of the Commitment or Contract of Insurance.  If you have sent a copy of the Title Commitment to the Insured then you have fulfilled your disclosure requirement.

     

    You can certainly recommend that the Insured seek legal counsel upon receipt of the title commitment.  In New Jersey under Opinion 26, title producers are REQUIRED to make such a recommendation if they are aware of any matters which might require legal counsel.

     

    Your practice of sending commitments to buyers/Insured is the correct way to handle this.  Sending a commitment to a realtor is NOT sufficient.  You cannot rely upon a Realtor to disclose or explain a Contract of Insurance.

     

    We have a similar practice in the southern part of New Jersey and many title producers make the mistake of not sending a title commitment to the insured.  That violates NJ law. NJSA 17:46B-9

     

    "the title company shall mail a notice, either separate from or as part of the commitment to insure, to the address of the insured, notifying the insured that there may be conditions, exceptions, and limitations of the insurance liability of the title company, contained in the commitment to insure, and that the proposed insured is entitled to review the commitment to insure, before transfer of title, with an attorney at law of the insured's own choosing. Such notice shall be sent at least 5 days before the closing of title."

     

    You may want to go that extra yard and call specific attention to specific Exceptions, but I would go not further.

     

    Joseph A. Grabas, CTP, NTP

    Grabas Institute for Continuing Education, LLC

    1340A Campus Parkway

    Wall, NJ 07753

    732-261-1013

     

     




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  • 7.  RE: Exceptions

    Posted 9 days ago
    Keeping in mind that we all have different rules/regulations depending on the state we operate in, I agree that you must be careful about explaining anything other than what the exception is.  You certainly do not want to step into unauthorized practice of law.  

    However, most home buyers don't know what title insurance is let alone how to read a commitment.  Pointing out exceptions that may require some sort of action or inaction on the part of the property owner seems to me to be part of our job as title insurance licensees/agents.  If the client needs more information about the effects or consequences of the matter, they do need to seek legal advice.




    I have a great referral network so if you "need a guy or gal" or if you want to "be a guy or gal", let me know and I'll connect you!!

     

    To Book an Appointment https://calendly.com/ngusman

     

    Nancy L. Gusman, Esq.                                                 

    GusmanLegal, LLC   

    Brick House Consulting Services, LLC

    Affiliated with Centerview Title Group, LLC    

    Past President, Maryland Land Title Association

    Certified Land Title Professional (CLTP)

    National Title Professional (NTP)                                                                 

    11720 Beltsville Drive

    Suite 500

    Beltsville, MD 20705

    Phone: (301)563-9669

    Fax: (240)559-1430

    Mobile: (240)994-1697

    Email: [email protected]

     

     

    This e-mail and any attachments may contain confidential and privileged information. If you are not the intended recipient, please notify the sender immediately by return e-mail, delete this e-mail and destroy any copies. Any dissemination or use of this information by a person other than the intended recipient is unauthorized and may be illegal.

     

     




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  • 8.  RE: Exceptions

    Posted 10 days ago
    Hi Ryan,

    I have addressed this in several ways over the years.  I think my most effective way has been to try a phone conversation with the buyer prior to closing but to definitely have a written statement at the closing table where we explained the issue to the buyer and had them sign acknowledging that they are aware of the issue.   Timing and delivery may also depend on how the title provisions in your contract are worded.   Some contracts state that a buyer may terminate a contract if there are exceptions that concern them.  In that case, you definitely need to have that conversation within that contingency period so they can make an educated decision about whether to proceed with the purchase.

    Please feel free to reach out to me offline if you want to discuss.

    I have a great referral network so if you "need a guy or gal" or if you want to "be a guy or gal", let me know and I'll connect you!!

     

    To Book an Appointment https://calendly.com/ngusman

     

    Nancy L. Gusman, Esq.                                                 

    GusmanLegal, LLC   

    Brick House Consulting Services, LLC

    Affiliated with Centerview Title Group, LLC    

    Past President, Maryland Land Title Association

    Certified Land Title Professional (CLTP)

    National Title Professional (NTP)                                                                 

    11720 Beltsville Drive

    Suite 500

    Beltsville, MD 20705

    Phone: (301)563-9669

    Fax: (240)559-1430

    Mobile: (240)994-1697

    Email: [email protected]

     

     

    This e-mail and any attachments may contain confidential and privileged information. If you are not the intended recipient, please notify the sender immediately by return e-mail, delete this e-mail and destroy any copies. Any dissemination or use of this information by a person other than the intended recipient is unauthorized and may be illegal.

     

     




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  • 9.  RE: Exceptions

    Posted 9 days ago

    Hi Ryan,

    The disclosure would be from sending the title commitment ahead of closing. Why isn't one being sent to the buyers?



    ------------------------------
    Gricel Chavez
    President
    Southwestern Abstract & Title Co., Inc.
    Las Cruces NM
    +1 (575) 523-8561
    ------------------------------

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  • 10.  RE: Exceptions

    Posted 9 days ago

    This is an excellent topic, and the insights and perspectives shared are highly informative. I appreciate you taking the time to share your knowledge, experience, and viewpoints.

    This information is particularly valuable for those, like me, seeking to understand the intricacies involved in the closing process of a real estate transaction.

    Thank you once again.



    ------------------------------
    Mary Enzi CAA
    Tax Solutions – FIRPTA Consulting
    [email protected]
    +1 (281) 578-1040
    Katy TX
    ------------------------------

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