Arrowhead Title, Inc.

If you've been thinking about buying a house, it's time to educate yourself on the process. Buying a home is a ton of fun, but it is also a complicated process with a lot of details that must be met. Your real estate agent will be able to guide you through the process, and our title experts at the Lake of the Ozarks will be here to fill in the gaps wherever we can. This week, we want to look at one particular aspect of the home purchase agreement: the title contingency.



What Is A Contingency?

Before we look specifically at title contingencies, let's back up and look at contingencies in general. When you submit an offer on the house, you do so through a proposed home purchase agreement. This agreement outlines several details of your proposed sale, including the purchase price, closing date, any specific items that should be included in the sale, and your desired contingencies.

Contingencies are conditions that must be met in order for the contract to be considered valid. Here…

If you know anything about real estate, you know that there is a lot more to buying and selling property than simply handing over the keys. There are multiple steps that must be taken and quite a bit of paperwork that must be filled out before ownership can be transferred from one party to another. Typically these steps can be taken without too much trouble, but every once in a while, issues may arise that inhibit the sale of a property. A "cloud" is an example of one such issue.


What Is "Cloud On Title"?

Often considered synonymous with "title defect," the term "cloud on title" refers to any issue with a title that may cause a reasonable buyer to hesitate before purchasing the property. Examples of common clouds include (but are not limited to):
Unpaid property taxesAn unsatisfied mortgage lienA pending lawsuit over ownership of the propertyAn improperly recorded deedAn improperly recorded easementImproperly recorded ownershipAny outstanding lien …

Title insurance is a crucial part of buying real estate, whether a home, business, or commercial or residential plot of land. Without title insurance, your right to use and occupy your new property may be hindered by rights and claims asserted by others - potentially even years after the closing date. Despite its incredible importance, title insurance is largely misunderstood (if it's understood at all) in the general community. Arrowhead Title, Inc. is here to educate you on our unique industry by filling you in on these interesting tidbits about title insurance.


Interesting Tidbits About Title Insurance

1.  Benjamin Franklin was the first person to come up with the concept of title insurance.

2.  Title insurance's primary focus is proactive, not reactive - it aims to prevent issues from ever arising in the first place.

3.  Title insurance is available in several other countries (not just the States). For example, it is used in Northern Ireland, Canada, Mexico, New Zealand, Austr…

When considering real estate options, there are several tax benefits that you may be eligible to take advantage of, including a 1031 exchange. Through a 1031 exchange, real estate owners can defer capital gain taxes when they sell a business or investment property and use the proceeds of the sale to purchase another property ‘similar’ to the first. Business owners and taxpayers who want to accomplish a wide range of business and/or investment objectives can reap many benefits by taking advantage of a 1031 exchange, take a look.


Preservation of Equity  A properly structured 1031 exchange provides taxpayers the opportunity to defer 100% of both federal and/or state capital gain taxes, as well as depreciation recapture taxes. This essentially equals an interest-free, no-term loan on taxes due until the property is ultimately sold for cash.
Leverage  Many taxpayers exchange from a property where they have a high-equity position or one that is “free and clear” into a larger and more valuabl…

During the home buying process, buyers typically have to go through the steps of getting a title insurance policy, whether it's the Owner's policy and the Loan policy, or just the Loan policy itself. One of those steps is to request for a title commitment to be completed and to review that report once the title insurance company sends it to you. But what exactly is a title commitment and what does it entail? This week, we'll go over in detail what it is and what information it provides to homebuyers and the title company.


What is a Title Commitment?
A title commitment is basically the title company’s promise to issue a title insurance policy for the property after closing. The title commitment contains the same terms, conditions, and exclusions that will be in the actual insurance policy. Almost every purchase and sale agreement contains language requiring the seller to provide the buyer with title insurance. At Arrowhead Title, we issue the title policy using forms distrib…

Title insurance may not be as well-known or as well-understood as other types of insurance, but it is equally (if not more!) important. Title insurance protects your property investments in the event that someone else decides to stake a claim on your personal property. Having an accurate, experienced title insurance company on your side during any commercial or residential estate transaction can make all the difference. Check out some of the benefits you'll reap by getting title insurance.


Background Information
By purchasing real estate, you are essentially purchasing the legal right to use and occupy the land. When you make this purchase, you are given the "title," to the land. The term "title" can refer to your rights surrounding the use and ownership of the land or it can refer to the physical document (the deed) that declares you the rightful owner.

Protection
Sometimes, title issues can arise. Titles can be limited by others staking claim over the property,…