One of the few times I told my father he did something wrong involved him buying a couple of lots from an old gentleman allegedly at the same price the man had purchased the lots several years before. The lots are in a subdivision in the mountains in a very desirable location overlooking a major river. I asked him what attorney he had used, whether he had a title search done, and if he had purchased title insurance. When he told me that he hadn't purchased title insurance, the warning bells and alarms started going off in my head.

EVERY SO OFTEN AT THE CLOSING TABLE, A BUYER WILL ASK ME WHAT MY ROLE IS IN THE CLOSING PROCESS. 

It’s a valid question since our very first face-to-face interaction may be at that table. Up until this point, we may have only been communicating through phone calls and emails. 

Assuming we are representing the buyers, and a lender is involved, here’s a brief overview of the process our office goes through during a real  estate closing:

As those of us in the eastern region of North Carolina recover from Hurricane Matthew and assess the damage to our property, we may find the roads in and out of our homes need substantial repair in order to traverse the roadways.  The question of who is responsible for repairing the roads may be more significant and urgent now.  

Is That My Dirt? Riparian Rights, Erosion, Avulsion, and Owning Land by Rivers and Streams

After experiencing Hurricanes Fran and Floyd, like many others, I felt we would never see that much rain again at one time.  I was mistaken.  The sea of water Hurricane Matthew brought to eastern North Carolina is hard to comprehend, but I will say I have a new respect for Noah’s Ark.   All of the water brought many questions about erosion and rights, so I thought now is a perfect time to write about Riparian Rights and… who owns the dirt.  

I always recommend a buyer of real property spend the money to purchase an owner’s title insurance policy.  If a buyer is getting a loan to purchase the property, 99% of the time the lender is going to require a lenders title policy, and the buyer can obtain an owner’s policy with little or no additional cost. The buyer only pays an owner’s premium once and it covers them and their heirs as long as they own the property.  If an owner refinances, they have to purchase a new policy for their lender, but their policy continues without reissue. 

Almost all subdivisions, at least those started in this millennium have restrictive covenants attached to the real estate.  Restrictive Covenants can dictate what color your house can be or what kind of flowers can be planted around your mailbox and can even dictate the breed of dog prohibited from living in the subdivision.  It is important to know the restrictions that apply, ideally prior to signing the offer to purchase, but realistically prior to the expiration of your due diligence period.  

Congratulations on selling your house… you even made a little money out of the transaction.  There are still a few things to do other than cashing your proceeds to make sure there are no surprises while you are on your tropical vacation.  These tips may save you some time and money down the road.

We defined what a title insurance policy is in Part One, and you have more questions:

How does it work?  How do you file a claim? Who do you need to notify?

I have heard more real estate agents use this phrase than I can remember when referring to whether a house will get a termite infestation.  North Carolina is a beautiful state from the coast to the mountains.  She has rivers and streams, rolling hills, pine trees, and termites.  Our state has an abundance of termite’s two favorite things, wood and water. 

Termites

As you are sitting in traffic waiting for the lady or gentlemen in the reflective vest with the walkie-talkie to turn the stop sign to “slow”, have you ever wondered how the land was obtained for the road or the widening of the road? 

This thought probably does not cross everyone’s mind, but it has crossed mine lately.

I always recommend a buyer of real property spend the money to purchase an owner’s title insurance policy.  If a buyer is getting a loan to purchase the property ninety-nine percent of the time the lender is going to require a lenders title policy and the buyer can obtain an owner’s policy with little or no additional cost. Further, the buyer only pays an owner’s premium once and it covers them and their heirs as long as they own the property.  If an owner refinances they have to purchase a new policy for their lender but their policy continues without reissue.