Most popular posts of 2012

As another year comes to a close, let’s take a look back at some of the more popular articles that were posted to our blog in 2012. 

What does ‘no consideration’ mean?
by Catherine Schmitt

When someone says “no consideration” deed, what does it mean? Does it mean no transfer and recordation taxes?  No. It actually means that the property is being transferred via deed without money exchanging hands. Not all no consideration deeds are exempt from transfer and recordation taxes. There are a number of situations where a “no consideration” deed is appropriate and some of them are as follows… [Read More]

Maryland Homestead Tax Credit eligibility application deadline is Dec. 31
by Joe Gentile

For Maryland homeowners who wish to submit their one-time application to confirm eligibility for the homestead tax credit, the deadline is finally approaching. Every principal residence homeowner in Maryland should follow these steps to make sure that their property is registered and eligible for the homestead tax credit… [Read More]

Real estate taxes factor in homebuying decision
by Nikki Smith

A lot of folks think real estate taxes across the board are always higher in DC compared to Maryland or Virginia. While it’s true transfer (recordation) taxes paid at settlement are higher for DC purchases, those homebuyers pay a far lower annual property tax rate compared to Maryland and Virginia thanks to the Homestead Deduction… [Read More]

Say good-bye to the HUD-1 Settlement Statement
by Todd Ewing

Just barely two years since the title and mortgage industry was turned upside-down with regulatory changes to the Truth-in-Lending Act (TILA) and the Real Estate Settlement Procedure Act (RESPA), the CFPB will be releasing its proposed forms and regulations next month to replace the HUD-1 Settlement Statement, Good Faith Estimate, and Truth-in-Lending Disclosure… [Read More]

Deed transfers in Montgomery County… Explained
by Joe Gentile

Today we will switch gears by taking a look at deed transfers as they relate to spouses and domestic partners in Montgomery County, MD.  Keep in mind that this is solely for Montgomery County – each county in Maryland has different rules.  All of the scenarios below are solely for changing the title of the property – these transactions are not part of a refinance or a modification… [Read More]

Owner’s title insurance: Is it worth the price?
by Todd Ewing

While a homebuyer is required to pay for the lender’s title insurance premium, the owner’s title insurance is optional to the homebuyer, and sometimes homebuyers who are looking to shave dollars off their closing costs consider opting out of the owner’s title insurance policy… [Read More]

Owner’s title insurance: Seller fraud and HELOCs
by Todd Ewing

During our 16 years of business Federal Title has, on three separate transactions, paid out claims on owner’s title insurance policies due to a seller committing fraud by securing a home equity line of credit (HELOC) immediately prior to closing. These claims amounted to a total of $280,000… [Read More]

What is an Earnest Money Deposit?
by Joe Gentile

An EMD is essentially a good faith deposit to demonstrate to the seller that the purchaser is serious about the transaction and is willing to part with some money in advance of closing to prove his or her willingness to buy… [Read More]

3 reasons HELOCs create title headaches 
by Joe Gentile

Home Equity Lines of Credit (HELOCs) may be difficult to obtain in today’s market, but not too long ago, everybody had one.  Recently, a series of closings were delayed in our office due to issues with HELOCs, and I expect that dealing with HELOCs will only get worse… [Read More]

Owner’s title insurance: Encroachment from a neighboring property
by Todd Ewing

Just recently, during our underwriting review of an upcoming closing, our office discovered that the subject property — we will call it LOT 1 — was severely encroached upon by the improvements of the neighboring lot, which we will call LOT 2. I have included an actual copy of the location drawing below for your reference.