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FAQ

We have comprised a list of frequently asked questions here. If you don't see your questions here, e-mail me and I'll get you the answer.

1. What is a tax proration?
Real estate taxes are paid one year in arrears. Therefore, we deduct the taxes for the current year which is not yet payable by the seller and give it to the buyer by means of a credit. This is done because, the first tax bill that the buyer receives is for a period of time that the seller was the owner.
2. Why do I need a title exam and a title policy?
A title exam is a search of the county records, laws and court decisions which disclose facts regarding ownership of a particular property. The title exam will list items affecting that property. The title policy is a policy of insurance based on the title exam. A policy is provided to the buyer and their lender insuring against defects in the title.
3. What is an escrow?
An escrow is the act of a disinterested third party. This third party handles the documents and funds of the buyers and sellers, and distributes them in accordance with escrow instructions set forth in the purchase agreement or other written instructions.
4. What is a HUD 1 settlement statement?
This is a form created by the Department of Housing and Urban Development that the escrow agent prepares in accordance with the disbursement of the transaction. It reflects the money that was deposited and disbursed at the closing and lists the charges and credits assessed to each party to close the transaction.
5. What do I need at closing?
The seller is asked to bring a picture ID with them. The buyer is asked to bring a picture ID, a cashier's or certified check to cover downpayment and closing costs, and any other outstanding loan conditions such as hazard insurance.
6. What is a joint and survivorship deed?
This is a deed which is used when two or more people are taking title to the property. This is a warranty deed which creates ownership by each party listed as tenants in common with the right of survivorship. Upon the death of one of the owners, their interest transfers to the surviving owner(s).
7. What is a general warranty deed?
This is the most common form of deed used in Ohio. With this form of deed the grantor (seller) fully warrants good and clear title of the property to the grantee (buyer), subject to exceptions listed in the deed. This type of deed is used when there is one buyer and can also be used with multiple buyers.
8. What is dower interest?
The State of Ohio is considered a dower interest state. Dower interest is a non-monetary interest of a spouse in the real estate.
9. What are the different types of title insurance and who do they protect?
Title Guaranty - Assures that the Title Company has properly searched the Public Records and the title is in the name of the Buyer(s) subject only to certain items, such as Mortgages, Liens, Restrictions, and Easements. The title company guarantees to the buyer that it has not overlooked anything. Owner's Fee Policy - This policy protects the Buyer(s) against loss by virtue of defects, liens, encumbrances and other matters of public records as well as hidden defects that cannot be discovered by any title examination. Examples of hidden defects are forgery, fraud, missing heirs, outstanding dower interest, etc. Loan Policy - This policy protects the lender by guaranteeing that the lender's mortgage is the first and best lien on the property.
10. Why is the signing date and closing date sometimes different?
In an escrow closing, the buyers and sellers come in at different times and sometimes different dates to sign their appropriate documents. Once all documents have been signed, money deposited, and loan conditions complied with, the escrow agent is authorized to record the transaction with the county. The day that the documents are recorded with the county is the closing date. That is also the date that the buyers become the owners of the property.

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