Closing Disclosure Form (HUD1) – FORM

New forms, new ways for Fort Myers and Cape Coral Closings. The Consumer Financial Protection Bureau (CFPB) has issued new rules nationwide for closing loans. The new rules and forms will allow consumers to better understand what they are getting into in terms of the loan and obligations.

The new  form will now have to be given to the client three business days before they close on the loan. This replaces the HUD1/settlement statement.

Take a look at the new CLOSING DISCLOSURE FORM for changes.

The new rule and forms go in to effect as of August 1, 2015.

Still time to review and get to know these so you feel comfortable. Call Jennifer Ferri at Title Junction today for a FREE review – 239-415-6574.

Loan Estimate Form (GFE) – FORM

New rules across the board even for Cape Coral and Fort Myers closings. The Consumer Financial Protection Bureau (CFPB) has released a new rule regarding disclosure for loans. This rule produced new forms that will replace existing ones to help consumers make clearer decisions before closing on a loan.

This form will now be given to clients by their lender within  three business days after a loan application is submitted.

Rule Effective starting August 1, 2015.

The new LOAN ESTIMATE FORM is available to view here.

Need assistance navigating through the rules, the process or the document, call Jennifer Ferri today @ 239-415-6574.

The NEW Loan Estimate Form and Closing Disclosure Form

Just when you thought you knew everything, it all changes again. This will effect those who are in Cape Coral or Fort Myers as well. On November 20, 2013, the Consumer Financial Protection Bureau (CFPB) issued a rule to replace existing federal mortgage disclosures with new ones that are easier to understand.

The rule improves the way consumers receive information about Cape Coral or Fort Myers mortgage loans, both when they apply and when they’re getting ready to close. When you apply for a mortgage, you get disclosures that explain the terms. The new mortgage forms will help you understand your options and avoid costly surprises at the closing table.

The rule states that consumers must receive their Closing Disclosure three business days before closing on the loan so they have time to review it. The final rule also limits the circumstances in which consumers will have to pay more for settlement services than the estimate they received.

The Final Rule includes the new Closing Disclosure Form that will replace the current HUD-1 & Closing Statement.

This rule is effective August 1, 2015. The final rule applies to transactions for which a  mortgage broker/lender receives an application on or after that date.

Have a look at the new Loan Estimate Form and the Closing Disclosure Form.

Title Junction is here to answer any questions you have and guide you along in the process. Call me today for the answers you need most!


Real Estate Title Info & More: Key Details About For Sale By Owner Property Transactions

When it comes to person to person selling, the Internet truly has changed everything.  It seems like no matter what it is you’re looking to offload, you can simply take an ad out on a website dedicated to posting an promoting your items and casually wait for interested parties to contact you.  Sellers have quickly learned that size of merchandise proves no obstacle; both large and small wares alike can be advertised with the same straightforward ease, unilaterally affecting a wide range of industries.

Even the Florida real estate industry has experienced a huge surge of person to person selling.  Recent trends have shown that the state has shown a steady uptick in Fort Myers/Cape Coral for sale by owner listings.  Empowered with the virtually endless online promotional opportunities, Floridians have recognized that a Cape Coral/Fort Myers for sale by owner process is to employ the help of a professional real estate title insurance agency.

What Real Estate Title Insurance Is… And Why You Need It

It’s no secret that residents can quickly garner online attention and interested buyers with their Cape Coral for sale by owner properties.  However, it’s critical to keep in mind that not using a realtor does bring with it some specific factors that will require focus and consideration throughout the process.  Both buyers and sellers must ensure that all the necessary paperwork and legal requirements of the transaction are met.  Both sides of the sale are learning that the best way to meet all necessary mandates throughout the Cape Coral/Fort Myers for sale by owner process is to employ the help of a professional real estate title insurance agency.

Understanding some of the basic facts about real estate title insurance can help determine if these services make sense for your Fort Myers/Cape Coral for sale by owner property.  In its simplest form, real estate title insurance offers third party approval that the title of the house and land involved in a Fort Myers for sale by owner transaction has no concerning red flags associated with it.  A diligent real estate title insurance firm will dig back to the property’s origin and ensure there are no liens, unpaid taxes or other possible weak links that could disrupt the sale.  Teaming with a provider that specializes in real estate title insurance is not only the best way to keep your transaction on track, lender facilities often require it before they’ll agree to loaning out the funds needed for purchase.

A Qualified Real Estate Title Insurance Firm Will Offer Comprehensive Services

When searching for a qualified real estate title insurance firm, it’s important to remember to look for a wide range of service offerings to ensure all your transactional needs are met.  Escrow management is always a crucial consideration that often requires third party navigation to avoid unexpected glitches.  Additionally, even the most straightforward Cape Coral for sale by owner transaction is full of legal documentation.  Always look for an agency that offers Cape Coral/Fort Myers notary services and even access to consultation to completely streamline the paperwork process and ensure you’re precisely following the law.

5 To Do’s Prior To Listing Your Fort Myers For Sale By Owner Property

Now that you’ve decided to sell your home in Florida or Fort Myers for sale by owner, what do you need to do?  Selling a home for sale by owner takes more than just putting a For Sale sign up in the yard.  These tips can get you started on the path to a successful Fort Myers for sale by owner home sale.

Before Putting Your Home On The Market

Tidy Up The House – There’s prep work to be done before a home even goes on the market.  First, make sure everything is in working order.  Then give your house a special glow – deep clean the carpeting, put a coat of fresh paint on the walls, tidy up the yard and remove clutter.  These little touches are inexpensive and easy for you to do and give buyers a great first impression of your home.

Think About Pricing – Once you’re home is in tip-top shape, it’s time to think about price.  Most sellers have a number in mind when they go to sell their home, but in order for the property to sell it must be priced correctly.  Your price needs to reflect actual buying conditions and purchase prices in the area in which you are selling.  This might not necessarily be the price you’re looking for, but if you’re serious about selling, it is a must.

Advertising Your Florida Or Fort Myers For Sale By Owner Property

List Your House Online – Once you have settled on a price for the home, start advertising.  Get a sign for your yard and put an ad in the local paper, but don’t neglect advertising online to reach the greatest number of potential buyers.  You can advertise your home on sites like Craigslist and you local newspaper, but your best bet is to get the house into the Multiple Listing Service (MLS).  You can also search for sale by owner sites like and on which to list your home. 

Use Social Media and WOM – Don’t underestimate the power of networking and word of mouth (WOM) either.  Let anyone and everyone know your house is for sale.  Put the word out on LinkedIn and Facebook and to colleagues and friends.  The more exposure you can get the better.

Prepare For Closing – In the meantime, gather all the forms and paperwork necessary for your sale to close.  You’ll want to have the title to your property, any mortgage documents you may have, and make sure your tax ID and identification forms are current.  This is especially important if you are a foreign seller, a non-US resident selling property in the United States.  If that is the case, you must become familiar with FIRPTA, the Foreign Investment in Real Property Tax Act.  FIRPTA is an IRS law which states that 10% of the purchase price of the home must be paid to the IRS upon closing.  In order for this to happen, the foreign seller must have a tax ID number.  If you don’t have one of these, apply for one right away, preferably before your home goes on the market or immediately following.

By putting forth a little effort beforehand you can turn your Florida or Fort Myers for sale by owner process into a hassle free transaction.

I’m Buying A Home – Do I Really Need A Realtor?

With Cape Coral and Fort Myers for sale by owner (FSBO) transactions becoming more and more popular with sellers, we see a lot of buyers asking whether or not they really need representation when purchasing a home. The short answer is, it depends. If you choose not to enlist the help of a buyer’s agent, you’ll need to familiarize yourself on today’s real estate market, make lots of phone calls to FSBO sellers and listing agents, be prepared to do research on pricing, and be able to understand the legalese in your purchase agreement and closing documents.

On the flip side, a Realtor can help you navigate the entire process – from starting your home search online, to recommending trusted inspectors and contractors, right up until you get the keys at the closing table.

At the end of the day, it really is your choice! Here’s some information to help you navigate your options.

What A Buyer’s Agent Does

A buyer’s agent is a licensed Realtor that represents you, the buyer, throughout the home buying process. Most of the time, a friend, neighbor or family member will be more than happy to give you a referral to an agent that they have used in the past with success. If not, you can find a realtor online.

Some key responsibilities of a buyer’s agent:

 Refer you to a lender for pre-approval to see how much buying power you have before beginning your home search.

→  Look for properties that match your criteria. While there are many online sites that allow buyers to search on their own, a Realtor has access to additional listings and information about the status of properties.

→  Communicate with the listing agent or seller to schedule a time to show you properties.

→  Provide valuable area and neighborhood knowledge.

→  Research comparable homes and help you determine a fair offer on a home you’re interested in.

→  Prepare offers, communicate with the seller’s agent, deliver deposits and handle the negotiations on your behalf.

→  Give you a checklist of items to complete during your due diligence period, and offer recommendations for inspectors and other resources.

→  Will often be present at closing to help you navigate the closing documents and finalize the sale.

 Breaking Down The Commission Issue

Here’s something that confuses a lot of people. Often times, buyers assume that they are the one paying their Realtor’s commission out of their closing costs. In reality, the seller is responsible for paying the listing agent a predetermined commission, and from that the listing agent is responsible for paying a commission to the brokerage who brought the buyer to the table. So the seller actually pays all commissions in a standard real estate transaction.

If you don’t have a buyer’s agent, the seller saves a bit of money by not having to pay a brokerage a commission. If you have a buyer’s agent and are working with a FSBO seller, the seller should pay your brokerage a commission directly at closing, unless you negotiate that you, the buyer will pay your realtor. And if it’s a FSBO seller and a buyer with no representation, there is NO commission involved whatsoever.

Still Going It Alone?

If you choose to represent yourself when buying a home, we won’t hesitate to caution you about the importance of a professional title search and subsequent title insurance to safeguard your investment. The average person could spend countless hours trying to trace a property’s title to ensure it’s totally clear of liens, unpaid taxes, judgments or any other obligations to third parties. Failure to find just one small infraction could lead to hefty penalties down the road once you’re the rightful owner of the home.

This is where a title insurance company can be a valuable resource if you represent yourself. A title company can also provide escrow services, act as a notary public and perform witness courtesy closings, all the while ensuring your paperwork is in order and your closing goes off without a hitch.

How To Select A Title Insurance Agency

Between contract negotiations, title searches and home inspections, selling a home can be nerve-wracking. To add to your tension level, once you’ve accepted the offer, everything is out of your hands. A title insurance agency will get involved at this point and start the background work needed to get the closing to fruition. However, there is no reason for you to feel completely out of the loop at this point. By selecting a title insurance agency that you feel comfortable with and who has a friendly and knowledgeable staff, your closing fears can be alleviated.

You Have The Right To Choose Your Title Insurance Company

In Lee County, Florida, sellers have the right to choose which title company handles the real estate closing. At our Cape Coral title insurance agency, we often see sellers who have been referred to us by their realtor or friends and family. Indeed, many times sellers do simply go with whichever agency is recommended to them. This usually works out just fine, but if you are ever uneasy about a title insurance agency or feel like you won’t get the service you desire throughout the closing process, you should shop around and find a different agency to handle the closing.

What To Look For When Selecting A Title Insurance Agency

When selecting a title agent to handle your closing, you will want to check their level of experience. The company you choose should be licensed in the state in which you are purchasing. Ideally, you will live nearby so you can easily drop materials off at the agency or pick things up if you need to. The company should have appropriately sized staff for the amount of business they do.

It is also helpful to have as many services housed under one roof as possible. An agency that can provide escrow services and notary services will make things much easier for you. With title insurance, escrow and notary services under one roof, you can rest assured that all necessary paperwork and forms will be on hand at closing time.

In-House Florida And Cape Coral Notary Services

Throughout Florida and in Cape Coral, notary services are necessary at any real estate transaction, which is why we have a full-time notary public signing agent on staff in our office in Fort Myers. Notary publics must sign and witness many documents in a real estate transaction which is why it makes sense for title agencies to have them on staff.

Above all, the agent and supporting staff should be approachable. You should feel comfortable asking questions and contacting the agency with any concerns you have. You are selling a home or property, and you should be confident and comfortable with the entire closing process.

Understanding Your Real Estate Title Search Report

As part of your property purchase in Fort Myers or Cape Coral, a real estate title search was likely done on the property.  The report provides important information about the property and it’s allowed uses.  Understanding the report is essential for your enjoyment of the property.

Conducting A Title Search

More often than not, a real estate title company, like Title Junction, performs the title search.  Title Companies have extensive experience doing these searches, are familiar with the records that need to be searched and where those records are located.  It helps to have a local real estate title company perform the search for you since they are knowledgeable about local practices, laws and regulations.  In many cases, the property could be filed under different names.  It may be filed under the current owners name, the property tax ID number or the property address.  A local real estate title company will be familiar with these idiosyncrasies.

What’s Involved In A Title Search?

Real Estate title searches consist of detailed research into the history of a property.  The research will include an examination of past ownership and mortgages, surveys, maps, easements, taxation values, zoning, rights-of-way and flood zone status, to name a few.

The main objective of a title search is to determine if there are any not readily obvious restrictions on the property that would prevent the buyer’s full use of it.  Some of the more common restrictions are tax or contractor liens, which may negate the sale of the property until the liens are paid in full.  Other restrictions that a buyer might not be aware of ahead of time could include limitations on use put in place by a homeowners association or right-of-way or easement usage.

Title Searches Safeguard Your Purchase

The main objective of a title search is to make sure the property is legally available for sale by the seller.  A title search will reveal the current and past owners, reveal any outstanding liens against the property and identify anyone who may still have claim to the property.  Ensuring the property is available for sale safeguards your investment.  Most mortgage lenders will require a title search to safeguard their own investment in the property.

What To Expect From Your Report

Your title report will likely consist of the following, or similar, categories:

~ Deed information
Deed information will indicate who currently has ownership or interest in the property.  You should expect to see the name of the current owner in this section.

~ Tax Information
The tax information section will provide you with the most recent year’s property tax amounts and whether or not they’ve been paid. Along with and tax certificates that may have been issued. Taxes are paid to the county where the property is located; Lee County for Fort Myers and Cape Coral.

~ Liens or Judgements
Outstanding liens or judgments against the property will appear in the Judgments and Liens section.  Hopefully, nothing will appear in this section but if it does, take note.  These are the items that you will want taken care of before closing on the property.

~ Mortgage/Deed of Trust
Under the Mortgage/Deed of Trust section you can expect to see the outstanding mortgage amounts owed by the current owner.  Once the sale has been completed, these mortgages will cease to exist and your own mortgage amounts would appear if a new title search were conducted.

 Interpreting a real estate title report is a simple process, but it is a vital one.  You’ll want to make sure you understand what you are reading and ensure any discrepancies are rectified before you close on the property.

FIRPTA (Foreign Seller) “Cheat Sheet”

What is FIRPTA?

FIRPTA is the acronym for Foreign Investment in Real Property Tax Act of 1980 that deals with the disposition of a US real property interest by a foreign person or a foreign corporation.

 How do I deal with a FIRPTA transaction?

If the seller is a non-resident alien meaning no social security number or resident alien card (green card).  Proceed as follows:

Property sale price is over $300,000.

     1. Foreign Seller must have a tax ID number or ITIN (Individual Tax Identification Number).  If the seller does not have an ITIN they are to see an IRS approved acceptance agent to fill out a W7 form and bring the original to the title agent.  The original W7 form, a check in the amount of 10% of the sale price, Form 8288 signed by the buyer and a copy of the HUD-1 must be sent to the IRS within 20 days of closing.  If the seller does have an ITIN send a check in the amount of 10% of the sale price, Form 8288 signed by the buyer and a copy of the HUD-1 to the IRS within 20 days of closing.

2. Foreign buyer purchasing from a Foreign Seller- both parties must have an ITIN.  If the buyer does not have an ITIN they are to see an IRS approved acceptance agent to fill out the W7 form, and then bring the original to the title agent.  The original W7 form for the byer must be submitted to the IRS with the documents listed above.

Property sale price is $300,000 and under.

1. The 10% does not have to be withheld if the seller is a non-resident alien and the buyer signs an affidavit stating the purchase price is $300,000 or less, the property will be their personal residence, the buyer or buyer’s family member will occupy the property at least 50% of the number of days the property is in use during each of the first two 12 month periods following the date of purchase and the buyer is a U.S. citizen.

2. If the buyer refuses to sign the affidavit 10% must be withheld and sent to the IRS.  If this is the case follow the same steps for properties over $300,000.

FIRPTA withholding does not apply to anyone who is a US Citizen or a resident alien as they will have a Social Security Number.

 FIRPTA withholding is not a tax, it is just that, a withholding.

The 10% withholding is never taken from the buyer’s funds, it is a seller charge only.  We always suggest the foreign seller seek the advice of an accountant prior to closing.

Quick Tips To Ensure Your Home Is Ready To List

For many, being prepared to sell your home might seem quite the task, but following these simple steps will ensure an easier entrance to the market.

Make An Inspection Checklist

What You See:

     ~ If you have loud paint, dated lighting or overly eclectic décor, consider repainting walls a neutral color, updating old light fixtures and storing certain personal possessions while your home is on the market.

     ~ De-clutter and clean. While this sounds obvious, a messy home is a major turnoff to potential buyers.

     ~ Kitchens and bathrooms are a make or break factor in selling your home.  Small updates you should attend to in those areas might include fixtures, faucets, cabinet hardware, lighting, painting and even decorative staging.

What You Get:

     ~ Do you know which of your appliances you’d like to take with you or leave on the property? What about play sets or above ground pools? Buyers want to know what is staying when viewing a property.

     ~ Make sure you have a thorough knowledge of the condition of electrical components, plumbing system and roof wear and tear. These are essential details to have a grasp on because all of these factors will come up in a buyer’s inspection. Better yet, find and fix problems before potential buyers notice and demand them as part of the agreement. On the flip side, remember that you can exercise the right to exclude specific items or consider an ‘as is’ sell to protect yourself.

How Are You Planning To Sell Your Home?

For homeowners in Cape Coral and Fort Myers, for sale by owner (FSBO) transactions are becoming more and more popular. If you go this route, be sure to do your research and understand your legal responsibilities first.

If you choose to do a for sale by owner, a title company can assist with closing your home by ordaining the property’s legal owner, observing any mortgages, liens, judgments or unpaid taxes that must be fulfilled pre-dispatch as well as pinpoint existing leases, restrictions or easements connected to your home. The title company will complete all the pressing documents and will correct any problems. Upon completion, the parties will then trade off paperwork and close the deal.

If you choose to use a listing agent, you will sign a listing contract with your Realtor of choice. Your Realtor then researches the market value of your home to help you determine a selling price. Their next step is listing, marketing and showing your property. The listing agent relays any offers to you, handles the offer negotiations based on your input, and moves all the paperwork through the transaction. You pay for the listing agent’s services via a percentage commission (usually 4 to 6 percent) or a flat fee. The buyer’s agent is also paid out of that fee.

If you’ve weathered the market downturn and are finally ready to sell your home in today’s rebounding economy, follow these simple steps to get your home ready to list.