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ATLA Title Commitments: What Every Real Estate Professional Needs to Know
Do you attend
your clients closings? Do you review your clients closing documents? What is your role at the closing and
what does your client think your role is? In many cases,
the real estate professionals answer and the clients answer are not the same. The client often believes that the real
estate agent or loan officer is reviewing the closing documents to protect them. The real estate agent and the loan
officer say that they aren't reviewing the closing documents for their client, the closer's job is to explain the
documents to the seller and buyer. The closer takes the position that they are just giving a summary explanation of
the closing documents, they aren't advising the seller or buyer as to whether they should sign them or not - after all
they don't have a fiduciary relationship with the buyer or seller and, in most cases, are not lawyers. In the above case, the seller and buyer think that they are protected but they really aren't.
The loan officer and real estate agent think that they are protected because it is not their job to review the closing documents,
yet their client thinks that is their job. This is a recipe for disaster. At the beginning of the relationship it should be made clear what you do and do not do for your
clients so there are no misunderstandings. The client should be made aware that the closing documents are extremely
important documents that they must understand before signing them to make sure that their rights are protected and they know
the risks that they are taking. One of the
most important documents from the buyers perspective is the Title Commitment. The buyer needs to obtain a owners'
title policy that protects their interests in the property they are purchasing; however, NOT ALL TITLE COMMITMENTS
ARE THE SAME. Just like any other insurance you may have to negotiate to get the best coverage.
At a minimum, the title commitment has to be reviewed, understood and marked to reflect the title insurance that is being
offered. Without a "marked title commitment" the buyer has no proof of the title
coverage they were promised. Even the form of the title commitment can be negotiated - is it to be the new 2006 ATLA
Policy or the 1992 ATLA Policy? This seminar
will go through the basics of the title commitment, the differences between the 1992 and 2006 title forms and why the coverage
has to be negotiated and, ultimately reflected in a "marked " title commitment.
Bill Keyes and Terri Refshaw are both experienced speakers
and have extensive title insurance background. The seminar will contain practical, up-to-date information and will be
presented in an informal setting to allow you to ask the questions that you need answered.
2 Real Estate Continuing Education Credits
Approved
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