Sign Hawaii Affidavit of Title Myself

Document type sign affidavit of title hawaii myself

this is a video tutorial on title reports in this video I'm going to cover how a title report looks what happens when you order a title report the timeframe to do this in the contract I'm also going to show you what discrepancies or red flags look like in the title report so that you can find things that might cause you to delay your closing or things that you need to be aware of when you're looking at a title report typically the the escrow company that you're working with is going to be the ones to order the title report whenever you take a new listing you want to try to get a title report ordered as soon as possible so that you can see if there's anything within that title report that needs to be fixed like things like encroachments tax liens foreclosures a lot of information can be ascertained by ordering the title report anything that could cause you delays in your closing later should be cleared up before you even get a contract on the property so again when you take a listing the first thing you want to do is order a title report you can contact your favorite escrow officer or if you have a client that prefers to use someone like Old Republic or title guarantee you can always call a escrow officer that works within one of those companies to request a title report the title companies do have to pay to order these reports it is part of their service that they do provide it's a free service that they do provide us so it's good to maybe not try to try not to you know take advantage of this but anytime you have a new listing coming on the market a title company escrow company should be able to order that for you with free of charge okay so once you have a new listing and you have ordered the title report what kind of things are you supposed to be looking for Old Republic title guarantee fidelity national title first American title all of these title companies have a very different way of reporting the information it's all kind of the same information but it just looks different so I'm going to kind of show you a couple different title portes as we go through this tutorial and you'll kind of get an idea of why they look a little different I mean there is a real reason why they look different it's just that there are different companies and the way that they set up their title reports is a little bit different from each other so I want to teach you how to just look for the appropriate information what it is that you're looking for so that you can kind of take a look at a title report and kind of understand the flow of it what comes first what comes next that sort of thing and where to look for the defects so I'm going to start off here by showing you in the the actual purchase contract which I'm going to go to the internet for g2 the title section here is on your period of time where the buyer has to review and approve so in your contract there there is no time frame for the title report to be delivered to a buyer because title takes its time with getting that information so whenever it's actually delivered to the buyer this is the period of time that they would have to review and approve the title report and if they were not happy with the results of the title report they would have the opportunity to to cancel within this time period so whatever the days that you put in here whether you're representing a buyer or you're representing a seller this is a period of time that a buyer would have to do their due diligence with purchasing the property which is again why you want to do a title report when you do a listing that way you can get any kind of problems out of the way before you actually accept a contract now this section down here talks about title defects if the buyer is happy with moving forward and once the seller to cure any defects then there's a certain period of time that the buyer sorry the seller would have to cure those defects and so let's say this was 14 days and you've got a you've got a foreclosure proceedings or you've got encroachments things like that that need to be cleared off the title report you may or may not be able to get it done in this amount of time so again I want to stress that if you are a seller's agent to try to get that title report at the onset of a listing which is free it doesn't cost your seller anything to get that done so that you can find out if there's any kind of problems with that title and providing clear title to a buyer at the beginning of your the beginning of your listing okay so now what I want to do is I'm going to show you several different title reports the first one I'm going to show you is one that is cleans when that doesn't have any issues with it and then I'm going to show you a couple that do have issues so that you can identify I want to help you identify what those discrepancies or you know red flags look like so first we're gonna start off with Old Republic title and escrow of Hawaii and again I want to remind you that not all title reports look the same so when we do this when I might be showing you a different one that looks very another company where they look very different so just follow along with me where I can just show you how it is sort of set up so one of the first things we want to do is the first page always of a title report is going to have like they're kind of like a cheat sheet or something about them you know I'm Old Republic this is our company whatever and you kind of want to scroll through it here to get to the to the page where it talks about the property so especial notice the homebuyers we don't need that we're going to go to the preliminary report this is the beginning of a preliminary report and you can tell this by you'll see you know obviously you're the company that's ordered it who is the actual person who's running this report and who you can contact for more information they almost always will provide an order number whether you're an escrow or not and then of course the customer which would probably be you since you're the one that's ordering it and the property address then this is sort of a disclaimer period right here and then the date that they've that they're providing the the preliminary now why do they call it a preliminary report that's because it's not it's something that they're doing prior to your recordation of a different properties so they're just telling you that this is a preliminary report and that anything could change within the timeframe of you recording with a different person so let's say for example this report could be very well be clean nothing no problems with it but then a month later a lien could be slept on the property so it's a preliminary because it's not quite a final usually you'll get a final report when you're in escrow and you're conveying property to another party okay so I'm gonna go to the next page and this would be where they would talk about the the the tenure of the property which this is a fee simple property and the current owners of the property so one thing you want to look forward to is if you got a call from you know let's just say for example we've got Darrell Lee and Kathie Lee and let's say for example you have a look at Janet's Nelson calling you wanting to sell her mother's home and you've got names here that don't match the person that's calling you these are really good questions of course if you've got something in a trust is Janet the person that's supposed to be signing you need to be asking those questions are you the authorized signer for the trust should I be dealing with the trustee that sort of thing so a lot of times the person who's calling you to request you to sell their home may not necessarily be the people that are on title so you got to keep that in mind that when you're gonna be doing a listing agreement the names here are going to be the ones put on to the listing agreement so if for some reason you've got a situation where maybe you've got a divorce situation where both parties have to agree to sell a home and you've got people fighting back and forth you may have a little bit of a problem if you've got somebody who's passed away and let's say Darrell is calling you you wants to sell the house the wife's passed away but you still have the name on title you're gonna have to have Daryl or whoever you're working with provides some sort of death certificate or whatever to title so that they can fix the title report because you cannot transfer title the way that it is right now if someone has passed away also anyone that's been divorced you can't sell without the other party so you'll have to have some sort of quick claim deed or whatever and clear up that information so the most one of the most important parts about this is who is on title and this is the one of the first things that you're going to see in the title report the next section would be the description of the property which I think we passed that that might be it on another page just so this might be a little bit turn around that another title report that we may be looking at later so now here we are the next page where it talks about what's going to be covered so you know you how you have in the the purchase contract let's go back there it talks about seller agrees to convey the property with warranties vesting marketable title in buyer free and clear of all liens and encumbrances accept easements covenants conditions reservations and restrictions that would be something that you want to look for as well so that's would be down here but let's talk real quick about these taxes you're probably always going to see this come up first and the one thing you want to look at is is the buyer sorry is the seller current on the taxes if you see that there these installments have not been paid then you want to make sure that you remind your seller that they're going to need to be paid prior to closing so if they haven't been able to pay their bills and they're waiting to close so that they can get out of it that's not going to happen all these taxes will have to be paid prior to closing so you'll want to make sure you let them know that they have taxes that will be assessed during escrow and it will come out of their proceeds so that also could be another thing could happen is if they're way behind in their their property taxes there could very well be a lien to look for later in this document but like I said I'm looking at out clean I'm looking at a clean report so everything in here is going to be okay no problems but I just kind of want to talk about it you're probably always gonna see title to all minerals and metallic mines reserved to the state of Hawaii this is something that you probably learned in real estate school that any thing with regard to what's found underneath the land that could be of value to the state of Hawaii that's going to be something that is not covered by title insurance any kind of setbacks you're gonna that's gonna definitely be something that's put into the title report so that a buyer will understand that there's certain setbacks anything that you see here that has any kind of numbers to it maps and and and land court documents or documents that have a number to it all of those documents can be pulled they're not going to be part of the title report you'll have to specifically request them because it does cost money for the title company to pull those documents so they they're not always going to make those documents available to you if you do see something that you would like to see further you have to specifically request it covenants and conditions this would be something that would pertain to the Association maybe you're buying into a specific association that has covenants restrictions and things like that that all of those documents would have be filed within the Bureau of conveyances and can be given to you in in hard and hard copy so if you see down here where it says recorded in the Bureau of conveyances in book one five three four one page two eighty this document can be pulled from the Bureau of conveyances it's also considered document number one oh five four or five four three this document can also be retrieved from the Bureau of conveyances and the title company has really good access to that you theoretically could go down to the Bureau of conveyances yourself and pull this information but it's a big pain in the butt so you probably would want to just ask title to provide you with these documents whenever I order a title report I always ask in my email to the escrow officer please send a title report for tmk number blah blah blah and all recorded documents that are notated with in that title report that way I'm telling them give me everything I want to see it all even though you don't really need it just ask for it because you may end up needing to go back to that document at some point so you should be asking for it some title companies within their title report there will be links to these documents which is I think is awesome unfortunately older public doesn't do this I think title guaranty does it I think first American title does it I'm not sure but if they provide a link to this document I think that is very valuable because you don't have to have somebody go down to the Bureau and pull all this stuff I think these title companies have some sort of a computer system that they access and somehow they've made these files linkable with the bureau okay then you've got why I like Golf Course Community Association membership agreement so this was something I think that was probably part of this trans action but again something that is a document number that is provided within this title report that you can access maybe there's something in there you want to read you're going to see all of the mortgage information so if someone has a mortgage on their property you're going to be able to see all the details about it you're going to see what the amount owed is you're going to find out who the the bank is there might even be a mortgage document that you can access that you can you know maybe look up more information right at the regard of the mortgage they'll see I guess the elder pillar does do it they didn't do it on the others I'm not sure why they didn't link it to the other documents but do you see here this is linkable I can click this and open it so I could I actually have access to this too sometimes within the public record databases like Hawaii information real lists they may have also have linkable documents within them so some of these things can be easily accessed but if you don't have that you just ask your title company to send it to you that's not a problem but again you want to see when you're looking at a title report what kind of mortgages are your your going to be dealing with because if they go and sell their property they're going to have to pay off those mortgages sometimes you might find that there's like two mortgages on file here like you see there's one here too maybe they've paid this one off but it just hasn't come off the title report so when the title did their search they somehow picked it up but maybe it hasn't been completely cleared off the records with with the mortgage company so if that was the situation in your client says oh you know I've paid that mortgage off last year I don't know why it's still showing up in the title report all that would be necessary would be to show title that it was paid off there might be some sort of paper work that's necessary to provide to the title company and then they would just immediately erase it so if you have any proof of it like you see a lien on here you see any kind of encroachments or things like that and you have some sort of proof that it was remedied paid off whatnot all you have to do is provide that documentation to the title company and they will then clear everything off of the the title report so this is why we're doing this research ahead of time so that you can get this stuff remedy before you even have to give a copy of this to potential buyer okay so we've got a couple mortgages here like I said you can look at that information up and then if something wasn't Roni is he would just report it to title and have them take it out and then here we have let's see another note here with regard to the deed kay so this would be the information of when it was recorded prior to the you know the first page that we were on with the current owners this would be the deed from when the current owner purchased the property and sometimes that deed might be something that you would want to look at and then you get he would just ask for the document number okay so there really isn't anything else in here that I find that's of any kind of red flag to me everything looks fine looks normal to me so I'm just going to go ahead and go through the rest of this which talks a little bit more about the property the grantee grand tour again the deed that was conveyed when when our current owner bought it this is where the legal description of the property is so you might see this information even this two on the first page of a title report with a different title company so this just happens to be the way that Old Republic does it but you might see something a little bit different in the way that they organize it on the title report maybe with title guaranty or Force America title that sort of thing and then as you go through here you can read all of the information with regard to the title insurance and then the kind of exclusions or restrictions that this particular title company has and this would be something that your buyer would find of interest it has I wouldn't necessarily put use any of this information to how you're going to be marketing a property this is all something for someone who's buying the insurance for the title insurance for the property when they're buying I wouldn't necessarily call this a clear title report because it does have mortgages on file but if you were looking at a title report that was pretty much like this one that didn't have any mortgage on then I would consider it to be a clear title report that doesn't have any red flags so what I'm gonna do is I'm going to show you what kinds of red flags to look for and and what they actually look like within a title report so I'm gonna go pull one of those up right now and the one I'm pulling up right now has tax liens on it okay so this is the fidelity national title of escrow preliminary title report so like I said they have on their first page they've got you know they're they're like like little cover letter and then so this is the first page of the preliminary title report for fidelity national title so we've got like I said the pretty much person who's making the order the property address order number and then you've got V simple regular system this is also helpful when you're filling out the MLS sheet the title of the estate or interest which is the names of the people that are currently on title so see how this looks a little different from the Old Republic but again you're looking to see who's on title you want to make sure that you're working with the same people and then nothing's changed you don't have any people who've maybe passed away or divorces or maybe you've got somebody trying to under hand somebody with the trust type of a thing so these are really important things to look up the land description here is looks like they've got the legal description so where we have the legal description on the last page of the Old Republic when we've got more along the lines at the first or second page on the first american title so this again is the legal description of the property which does help sometimes when you're filling out information and we want to scroll through that to get to the the exceptions the except you want to look for when you're looking for any kind of discrepancies or red flags though on a title report you want to go to the exceptions that's gonna tell you where there's liens and encroachments and things like that but you might as well go through this and double-check things are all on the right on the right Paige so here we have the warranty deed information of when it when it conveyed the last time and if you want to go back and look at that warranty deed you've got the the record number here so again this is a title report that does show prior records that you can ask title to give to you now we're on the exceptions page and this is the area that you need to pay close attention to most of these items here are all standard things that the title company will put in their title report under exceptions that are not going to be covered by title insurance because there are typical exceptions to the rule and then you have again your property taxes these all need to be paid prior to closing then you've got your setbacks which I showed you in the other title report and then we come to the first red flag that I want to point out so when I'm looking through here I'm going to look for things that aren't normal that wouldn't typically be in an exceptions area which is an easement that's the first thing I see is easement so I want to make note of that because if there's any kind of easement on the property it could potentially cause a problem for a buyer depending on where the easement is located I had a deal one time where there was a electrical easement about a foot or two inside the property and it was an electrical easement that if any time Hawaiian Electric needed to come do any kind of work with regard to that that the area had to get into that electrical easement they'd have to come on to the property and there was a box there and it was it was actually a place that my client wanted to put a fence so unfortunately he couldn't build a fence along there what we did though was we called him why an electric and we wanted to find out if there was any way that they could maybe move the easement possibly which in some cases you may not be able to do that but as always it doesn't hurt to ask but actually it was found out that they were in the works of moving that easement and doing some underground electricity in front of my clients house so it just so happened that that was something that was going on and that it really was being moved because it isn't in a kind of a strange place and now that we are you know a little bit more sophisticated times the Hawaiian Electric and you know cable companies and things like that they are doing a little bit better job of trying to keep you know the wires and things like that away from the people's property so it just so happened that that's what they were doing and that may not happen for you but again something to think about any kind of an easement like a drainage easement any kind of easement that might potentially cause a buyer from wanting to purchase the property it needs to be it's a disclosure issue and against something that's not going to be covered by title insurance of course the Hawaiian Electric Company would own the easement and they're responsible for that easement and again if you wanted to find out what the what the what the language is for the like rules and regulations for Hawaiian Electric and and their responsibility for that easement would be located in this recorded document so if you were to ask the title company to provide you with this document Liebherr 502 1 page 2 to 4 they would then supply you with the actual easement of record and you can go through there and read it and find out what the ramifications are for that easement and and what the and what the liability and responsibility Hawaiian Electric has to that into that that easement so again that's something that you want to point out and you'll need to provide that easement record to a potential buyer as well as disclose it and as well as put it on the MLS there's a section in MLS where it says are there any easements on the property and one of the boxes to check is electric and that would be here Hawaiian Electric okay another easement apparently so there are two electrical easements on this property so just pointing out those two and then you've got your covenants and conditions which I showed you on the other one I'm going to cover an accoutrement agreement on a different one but I will just bypass that but you'll notice here that there is an encroachment agreement that's recorded with this particular property we have the mortgage which I talked about on the older public one and then we have a tax lien so we've got a tax lien here which is going to have to be remedied with the Bureau of sorry remedied at closing so this particular owner would then have to provide either a a lien release with whoever the lien is with maybe they have some kind of like like IRS tax lien the IRS would then provide some sort of a clearance that it has been paid for and then that all that would need to be done with that is to give that a copy of that to the tiler report and then they would then delete this or if it wasn't taken care of escrow would then have to handle that at closing because that tax lien would then that would have to take precedence over everything else and would have to be paid for so these are things that you want to take into consideration when you're doing what they call an estimated closing statement when you're doing your estimated closing statement you'll put things like whatever the mortgages you'll put like what a survey is gonna cost condo documents all of the costs that are going to be involved with selling this property you're going to want to include things like tax liens maybe there's like a home equity line of credit anything that you find that is owed according to the Tyler report with that need to be put on your estimated closing statements that you can provide an accurate net proceeds amount so again this would be something that you would want to do also if you notice that this tax lien is in excess of the mortgages like if you were to add this amount to all the mortgages that are owed and then you find out that you're very near the list price like let's say it's a million dollar list price and you've got like you know nine hundred thousand dollars of mortgages and now you've got a hundred thousand dollar tax lien you need to think in your mind okay he owes all this money how is he going to be able to pay for commissions so those are a lot of important things to consider when you're looking at these these exceptions on the title report okay so pretty much think that's it for this record now I'm going to show you what encroachment looks like on a title report okay we are now on another title report that shows a encroachment so notice here how it says that there is a structure position discrepancies as shown on or disclosed by the survey sketch dated January 27th prepared by Dennis Hashimoto as set forth or disclosed by the warranty deed so this sort of tells me that anytime I see land surveyor surveying and mapping and any kind of item like this that is located in the exceptions section of a title report and does not have any kind of recorded encroachment agreement here it tells me that there was a discrepancy found or encroachment found when this current seller purchased the property and so it tells me that it was just put on the title report but it was never remedied when they closed before so maybe that person when they were buying it decided to just go ahead and close that they didn't find it to be a big deal and they just closed or thought that they would handle it later well now that you're representing the seller and you've pulled the title report and you see that there wasn't there's a survey that was done that revealed an encroachment that did not have any kind of encroachment agreement that followed it that this is going to be a problem for you because it will most likely be that it will still show up on a new survey or maybe this tells you that you need to have a conversation with your seller as to that particular encroachment maybe there was an agreement made with the neighbor or maybe they've removed the encroachment maybe it was just a chain-link fence it could have been a rock wall that got destroyed to you know maybe put up a new rock wall and by putting up the new rock wall they followed all of the boundaries but again you're doing your job as pulling up a title report and you've noticed something that's your job is to find anything that looks different or that you think you may need to ask questions about so there this thing could be completely gone but your job is to find the discrepancy and find out what happened with that situation so one of the first things that I would do is ask my client yeah so when you purchase the property there was a approachment and it came up on the title report and then let your client answer oh yeah yeah that was up a couple years ago but we decided to take down that wall it's no longer there so if that's the case then you're not going to need to worry that when you do your survey for the new escrow that you're going to be doing with your client then that that wall isn't even going to be an issue anymore and then that will be taken off of the title report when we provide the new survey which would then show no encroachment or perhaps maybe there was a verbal agreement between parties that they would keep the wall there and that you know it wasn't a big deal but now you realize that if the encroachment still exists that this is going to be your problem having to actually get a recorded encroachment agreement so now what I'm going to do is I'm going to show you what recorded encroachment agreements look like now here we are on another title report that shows you how what to look for with regard to encroachment agreements so I showed you what an encroachment looks like this shows you what encroachment agreements on that have been recorded with like so on this particular title report were in the exceptions area and we've got agreement encroachment and license so this tells me that there is an agreement between parties with regard to an encroachment and if I wanted to go and look at that encroachment agreement it does provide me with the document number so I'm definitely going to request this of escrow and whatever encroachment agreements that I have I'm going to want to ask escrow to provide me and this is something that I'm going to of course bring up with the neighbor or sorry not the neighbor but the owner and ask if these encroachments are still in place and if those encroachments are and in fact if you order these documents they will show you the surveys on file so that you can actually look to see and then of course you're going to want to go to the property and just verify that those encroachments are still there and that these agreements are will always run with the land until the wall has been removed what whatever the encroachment is if it's a wall or some kind of structure that's encroaching on someone else's property or encroaching onto your property if you have an encroachment agreement in place they will always run with the land even even if somebody else buys it until that particular wall or whatever the thing that's encroaching is gone like if someone were to take it away demo it that kind of thing and if they were to redo a wall put up a new wall they would have to follow the proper boundaries and then of course once they do build a new wall the encroachment agreement no longer exists but if you've got a property that maybe he sold a couple years ago and there hasn't really been much done and all of the walls still are intact and still in place then you're going to want to make sure that you have these encroachment agreements with you because you're going to want to provide these to a buyer okay so again these documents are available for you to pull and when you do your new survey you're going to want to go through the survey and just kind of match up these encroachments to whatever the new survey finds because sometimes these new surveyors will sorry the surveyors when they come in they have new equipment now they have more sophisticated more precise measuring of land chances are that they may find a new encroachment and you'll have encroachment agreements for some of them but maybe you might need to go and get a new one for something that's just come up so that is of course all of the encroachments it within this particular title report so there were several here so again there were a lot so you want to make sure that you have encroachment this will help you get through your transactio okay so now I'm going to show you another title report that shows for a foreclosure okay here is a title report that shows another red flag and what you're looking for when you're when you're going through your title report is anything that is not normal and of course if there's something that pops up that doesn't look right that you're not sure about you can always contact the title officer or escrow officer that you're working with to maybe help explain something that you might see because a lot of this language is written by title companies that that they're working with their with their legal team and there might be a little bit over your head some of this stuff so you if you're not sure what to do you can always call your title company and ask or maybe even send myself or Karen or stuffin a copy of the title report and see if there's something in there that maybe you don't understand that could be just you could bring to someone's attention say hey can you help me understand this because they all do things differently these title companies the way they were things where it might look like it's a foreclosure it could very well look like something else could look like a bankruptcy it could just look like a tax issue but maybe there might be times where you're not really sure escrow companies and title companies are always very willing to help you understand whatever is in their title report so but I kind of understand what this is by looking at it kind of tells me that is the foreclosure proceedings so again when I notice things like this it may not necessarily be it might have been resolved but it definitely is something that I I will want to bring to the attention of my owner my seller and say hey you know I did a title report just to see what was going on there to make sure we can provide clear title to a buyer and I noticed that there was a pending litigation or look like a foreclosure situation can you just explain this and and let's see if we can get it cleared and then that way you can you can have a conversation with your client who will then go to their tax person or their their lender or whatever to get the appropriate documentation for you to provide to the title report so sorry the title company to delete that from the title report okay so I hope that I have done a good job with explaining the title report how to find problems of course if there's anything that comes up in your title report that is something that you're not sure if you're welcome to call and ask or again you can always contact the title company or escrow officer okay so that will conclude this video tutorial on title reports