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Bankruptcies

Business trusts

Clearing liens and judgments, including child or spousal support liens

Encroachment or off record easements

Establishing fact of death–joint tenancy Family trusts

Foreclosures

Physical inspection results–Encroachment, off-record easements

Probates

Power of Attorney–Use of, proper execution

Proper execution of documents

Proper jurats, notary seals

Recent construction

Transfers or loans involving corporations or partnerships

Last minute change in buyers

Last minute change in type of title insurance coverage

TAXES:

These are usually standard, showing the status of the

current tax year.

RED FLAG:

Postponed property taxes is a program put on by the

state for senior citizens. It allows the owner to postpone the

taxes until the property is sold or refinanced. The owner applies

to the state, and the state provides “checks” that the owner

uses to pay the taxes. The reason this is a red flag is because a

demand will need to be ordered from the state by escrow in

order to pay off the postponed taxes. It may take up to two

weeks to get a demand.

CC&R’S:

These are standard. The CC&R’s should be provided to

the buyer within the title report. The buyer should read these

thoroughly, especially if improvements to the property are

contemplated.

RED FLAG:

Some CC&R’s prohibit certain types of

improvements.

EASEMENTS:

These are also standard. Most easements in newer

subdivisions (20 years or less) are contained in the street. Some

subdivisions have nonexclusive easements over portions of the

property for such things as maintenance of side yards, access to

common areas (like golf courses), etc.

RED FLAG:

If improvements are contemplated (such as

construction of a pool or spa for example), then the buyer

should determine that there will not be any interference

to contemplated improvements. However, you should be

aware that easements are very difficult to get removed, and

your client may be better off with another property if an

easement interferes with his future plans for the property.

AGREEMENTS:

These commonly take the form of road

maintenance agreements, mutual easement agreements (like

a shared driveway) or improvement agreements, and will

bind the owner to certain actions. A copy of the agreement

should be requested from title and provided to the buyer.

It is the buyer’s responsibility to contact their own counsel

if they do not understand how the agreement would affect

them.

A “red flag” is a signal to pay attention! Below are some of the items which may cause delays or other problems within a

transaction and must be addressed well before the closing.

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RED FLAGS IN THE ESCROW / TITLE PROCESS