Many transactions involve Condominiums.  It is important to understand how Condominiums differ from other real estate transactions.

• When someone is purchasing a condominium they are buying the space inside the unit, possibly a parking space and/or storage locker, and a percentage interest in the common elements of the complex.
• Because there is no ground owned with a condominium, there is no survey required. 
• Many condominium associations will have a “First Right of Refusal” clause in their indentures and the title company will need to get the association to sign a waiver prior to closing.
• Condominiums typically have a monthly condo fee that is a prorated adjustment on their closing statement.
• If the condominium is currently paying a Special Assessment in addition to the condo fee, the contract may required the seller to pay that fee in full regardless of whether the fee is amortized over time.
• Condominiums typically have a Master Insurance Policy.  The lender will normally want a copy of the Master Insurance Policy in addition to the homeowners insurance that the purchaser will obtain from their insurance agent. 

Condominiums are very popular in today’s market and it is important to know how they differ from the typical single family home.  Please feel free to call with any additional questions you have regarding these transactions.

Jack Forsythe
Legal Counsel
(314) 835-4105
“Secure Your Investment With Security Title”

• The title company will normally require picture identification at the closing.
• Any funds required for closing will need to be in the form of a cashier’s check or wire transfer
• If you are selling one home and purchasing another home on the same day, be sure to let your title company know so that they can coordinate funding
• Make sure the seller brings in a forwarding address and contact information to the closing
• The purchaser must close and their funds be received before the title company can pay out to the seller- schedule accordingly
• Most title companies will send out a seller information letter to help them expedite the processing of the transaction- sellers should complete and return as soon as possible
• There are many people working to coordinate the transaction on behalf of the buyer and seller – don’t panic if you do not have your closing figures until just prior to closing.

Any questions can be directed to Wendy at Security Title or please feel free to call:

Jack Forsythe
Legal Counsel
(314) 442-6965
“Secure Your Investment With Security Title”

When dealing with a transaction where a Trust Agreement is involved, please remember the following:

• If the Buyer is wanting to vest the property in a Trust, it must be approved by their lender prior to closing
• Your title company will require a copy of the Trust agreement prior to closing
• The title insurance company is looking to see that the Trust agreement is still active, who has the power to act as trustee and that the trust contains the power to sell, mortgage, etc.
• If the original trustee is deceased or incapacitated and the successor trustee will be acting as the signer, notify the title company and be prepared to present a copy of the death certificate for the original trustee.
• Do not assume that the title of the Trust Agreement will dictate who the trustee(s) are (i.e. The Sally Smith Living Trust may not provide for Sally Smith to act as the Trustee)
• A Trust Agreement must be in writing
• If you want to keep portions of the Trust Agreement as confidential information, the following parts of the agreement should satisfy the title companies requirements:
o The declaration or first page
o The section that lists the powers of the trustee
o The successor trustee provision, if the original trustee is deceased or incapacitated
o The signature page

Any questions regarding a transaction including a Trust Agreement can be directed to Security Title.  Please feel free to call:

Jack Forsythe
Legal Counsel
(314) 442-6965

Or email Wendy

“Secure Your Investment With Security Title”

When involved in a transaction where a buyer or seller are contemplating using a Power of Attorney (POA) please remember the following:

• If the Buyer is wanting to use a POA it must be approved by their lender prior to closing
• Any POA form must be approved by your title company
• Title companies often will have a form that you can use if you ask them
• If you are not using the title company’s POA form then be sure to get it to them for review as soon as possible- do not wait until the day of closing
• The ORIGINAL Power of Attorney will have to remain at the closing to be recorded with the transaction
• An agent cannot typically be a POA for their client
• The document needs to be notarized by an independent third party
Any questions regarding the use of a Power of Attorney can be directed to Security Title.  Please feel free to call:

Jack Forsythe
Legal Counsel
(314) 442-6965
“Secure Your Investment With Security Title”

During the course of a transaction, you may run into a situation where borrowers or sellers have an unexpected loan show up on the title to their home.  This outstanding deed of trust could be from a previous owner or a loan that was refinanced but never released.

• First and foremost, work on this issue as soon as possible.  There are many ways to address the problem but the more time the title company has to work on it – the better!
• Locate the paperwork from the transaction where the loan was paid off. 
• If the loan was from a previous owner provide a copy of owner’s policy of title insurance.
• If the loan was from a refinance, locate a copy of the settlement statement, payoff letter and/or any additional paperwork that the lender may have sent them showing their account was paid in full.
• A Deed of Release is always the best way to take care of this problem; however, sometimes this is not possible due to the many bank consolidations throughout the years.
• Some lenders will send the Deed of Release to the borrower- so they may have it in their paperwork at home.
• Keep calm.  This does not mean you owe another loan on the property- it just means that a previously paid off loan was never released. 

This is a very common problem; please feel free to call Security Title if you have additional questions on this issue:

Jack Forsythe
Legal Counsel
(314) 442-6965
“Secure Your Investment With Security Title”