What is a Quitclaim Deed? 

A quitclaim deed is a legal document used to transfer ownership of property from one person to another. Unlike other types of title transfers, the process of using a quitclaim deed doesn’t require extensive paperwork or seemingly complicated legal procedures. That’s why it is sometimes used in straightforward title transfers such as doing a transaction with a trusted relative. At face value, it may sound like a quick solution for transferring titles, mainly because of its simplicity. It offers a straightforward approach, making it an attractive option for homebuyers looking for a hassle-free transfer of property. 

However, the surface benefits of a quitclaim deed are deceiving. In reality, the ability of the quitclaim deed to cut out the red tape is a double-edged sword. The steps the deed skips are the very things designed to protect the new owner! Suddenly, our earlier example of a straightforward transaction with a trusted relative isn’t so simple. If the original ownership is called into question, it could end in disaster for you. In effect, the quitclaim deed leads to unforeseen problems and potential disputes down the line. Let’s take a closer look at these issues. 

3 Red Flags of Quitclaim Deeds 

1. Lack of Guarantee and Legal Protections 

Using a quitclaim deed means accepting uncertainties about the ownership and limited legal protections. Unlike other warranty deeds or other policies, a quitclaim deed does not offer warranties or guarantees for the property title and instead transfers the property “as is.” This means the recipient of the property may not have any legal recourse if issues or disputes arise regarding the title’s validity. Thus, due diligence plays an important role in such transfers, which brings us to our next issue… 

2. Inadequate Due Diligence 

Due diligence plays a crucial role in any property transaction. Unfortunately, a quitclaim deed does not provide sufficient information about the property’s history. This means they do not have the benefit of having a title expert to conduct thorough research about the property’s potential problems, such as unpaid taxes, boundary disputes, or undisclosed restrictions. 

Using a quitclaim deed could put you at risk of facing overwhelming, and potentially expensive problems down the line.

3. Limited Recourse and Legal Remedies 

In the event of a dispute, there are limited recourse and legal remedies available. If issues arise after the transfer, resolving them can be challenging and may involve a lengthy and costly legal process. This is because the lack of warranties and guarantees in a quitclaim deed leaves the recipient responsible for any financial and legal consequences resulting from undisclosed problems or disputes. 

The Role of a Professional Title Company 

Using a quitclaim deed is risky. There is a better way. Seeking the assistance of a professional title company like Millennial Title means working with experienced professionals. They’ll guarantee a smooth transfer process by conducting thorough research, identifying potential issues, and providing the necessary legal protections so you have peace of mind. 

Trust Perpetual Title to Have Your Interests at Heart 

While a quitclaim deed may seem like a convenient option for transferring property titles, the dangers involved can lead to significant problems in the future. When you choose a title company like Perpetual Title, you ensure a secure and reliable transaction.  

Don’t take unnecessary risks with your property transfer—opt for the safeguards and assistance only a title company can provide. Reach out to Perpetual Title today to learn more about our professional services and how we can help you navigate the complexities of the title transfer process. 

The post The Dangers of Using a Quitclaim Deed first appeared on Perpetual Title.

What is a Closing Disclosure? 

A Closing Disclosure is a five-page document which outlines the final terms of your mortgage loan. It includes important information such as the loan amount, interest rate, monthly payments, and other closing costs. 

This document provides transparency and clarity to homebuyers about the costs from the lender associated with their mortgage loan before they go through with the purchase. This saves them from any surprises or hidden fees that may arise during the closing process.  

What to Look for on Your Closing Disclosure 

Under federal law, homebuyers must receive the Closing Disclosure at least three business days before the closing date. This gives homebuyers ample time to review the document and ask any questions they may have before finalizing the mortgage loan. Here are some of the key things to carefully look through as you make sure the Closing Disclosure is correct and matches your agreed upon mortgage loan application. 

1. Closing and Transaction Information: This is located at the top of page one and will include the names of the parties involved in the transaction and where the property is located. Double check that there are no spelling errors in your name, and that the property address is correct.  

2. Loan terms: This section includes important information such as the loan amount and the interest rate.  

3. Projected payments: This section outlines your estimated total monthly payments—including principal and interest—as well as any additional costs such as mortgage insurance or property taxes.  

4. Costs at closing: This section includes closing costs such as loan origination fees, title insurance, and appraisal fees. 

Perpetual Title Tip: Check out the American Land Title Association’s Closing Disclosure example for a visual guide on what to expect.  

What if There are Errors or Discrepancies in the Closing Disclosure? 

If you notice any issues on your Closing Disclosure, contact your lender immediately to get them corrected. It may delay your closing if there is a material change in the costs.  It’s crucial if you want to avoid issues down the road. If material changes need to be made, you’ll have three additional days before closing day to review the revised document. 

Millennial Title is Here to Help 

Understanding the Closing Disclosure is crucial for a successful closing day. By reviewing the document carefully and asking any questions you may have, you can be sure you’re fully informed about the costs associated with your mortgage loan. If you have any questions or concerns about the Closing Disclosure or the homebuying process, don’t hesitate to reach out to Perpetual Title for assistance. 

The post What is a Closing Disclosure and What to Do if There’s an Error? first appeared on Perpetual Title.

10 Home Buying Tips Every First-Time Homebuyer Should Follow 

1. Determine Your Budget 

Before you start shopping for a home, it is essential to determine your budget. This will help you narrow down your search and avoid wasting time looking at homes out of your price range. You can determine your budget by calculating your monthly income, expenses, and debts. You should also factor in the down payment— the National Association of Realtors lists 8% as the median down payment for homebuyers aged 23-31—closing costs, and other expenses associated with purchasing a home. 

2. Understand Your Needs vs Wants 

We’re not always honest with ourselves when it comes to what we need vs want in a home. Think through your priorities before looking at your options. What do you absolutely need? Maybe it’s extra bedrooms because you plan on having children, or a yard space for your dog to safely play in. Then, think about what would be nice to have in addition afterwards. It’s possible to get the best of both worlds, but establishing the difference between these two factors will help you find a home that realistically meets your criteria.  

3. Get Pre-Approved for a Mortgage 

Getting pre-approved for a mortgage makes the home buying process smoother. It will give you a clearer picture of how much you can afford as well as establish you as a serious buyer. According to Forbes Advisor, “Many real estate professionals won’t take on buyer clients if they haven’t already been pre-approved.” Thus, pre-approval is an important step and stepping-stone into the next part of the home buying process. 

4. Find a Real Estate Agent 

A real estate agent can help you navigate the home buying process and find the right home for your needs and budget. They can also provide you with valuable information about the local housing market, schools, and other amenities in the area. Remember, you can’t rely on the seller’s real estate agent to have your interests at heart. When choosing a real estate agent, make sure to do your research and find someone who is knowledgeable about the area you’re looking at. 

5. Research the Neighborhood 

When buying a home, research the neighborhood to ensure that it’s a good fit for you and your family. Consider factors such as the crime rate, schools, public transportation, and proximity to grocery stores and restaurants. You can also talk to neighbors and visit the area at different times of the day to get a better sense of what it’s like to live there. 

6. Attend Open House Tours 

Attending open house tours is an excellent way to get a feel for different homes. It will also give you an opportunity to ask questions and learn more about the homes you are interested in. When you go, make sure to take notes and ask the real estate agent any questions you may have. 

7. Get a Home Inspection 

No one wants to buy a home only to be caught by a nasty surprise. Getting a home inspection will help you identify any potential issues with the home before you make an offer. A home inspection can also give you leverage during price negotiations. 

8. Negotiate the Price 

Once you have found a home, it’s time to negotiate the price. Your real estate agent can help you with this process and ensure that you get the best deal possible. When negotiating price, consider factors such as the home’s condition, local housing market, and the seller’s motivation to sell. Try not to go over your budget if you must be competitive in your offer. You may love the home, but extending past your reach causes unwanted financial difficulties down the line. 

9. Buy Homeowner’s and Title Insurance 

These two things are must-haves if you want to protect your home from unforeseen issues. Your homeowner’s insurance is required by the lender and will pay for things that happen during ownership, such as repairing or rebuilding your house after a disaster. Title insurance protects you from things that happened before buying the property, such as failed property tax payments by the previous owner.  

10. Close the Deal 

Once you have agreed on the terms of the sale, it’s time to close the deal. This involves signing a contract and paying the down payment and closing costs. Carefully read through all the paperwork before signing to ensure you don’t agree to anything you aren’t aware of. Remember that your real estate agent can help explain any questions you may have during this process.

One Extra Tip: Enjoy Your New Home! 

Using these 10 home buying tips, you’ll be well on your way to finding the perfect place to call yours. At Perpetual Title, we’re here to support you through every step of the home buying journey, even the steps that come after closing. Continue your path to success by learning the dos and don’ts of what to do after closing. 

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We should first note that these are backed by various points of data. Each location on this list is chosen due to the following variables:  

Housing affordability: How do home prices compare to similar cities. Are they higher or lower? 

Housing inventory: Is there a significantly higher inventory of houses compared to comparable markets? 

Job market performance: Is the job market growing to attract buyers? 

Renter’s financial capability: Are renters able to buy a median-priced home? Is that percentage of renters higher than 15.1%, the national average? 

Migration gains and population growth: Which locations have the most movement and growth? 

5 of the Hottest Real Estate Markets of 2023 

1. Dallas, Texas 

Median Home Price: $342,900 

Dallas is a jewel for many aspiring homeowners for a number of reasons. With one of the strongest local economies nationwide, no state income tax, and it being fairly within the national average for cost of living, residents are stretching their paychecks further. On top of this, Dallas has thriving food and art scenes to explore via a wide network of public transportation, bike trails, and walkable neighborhoods, making it possible to live in the city without a car.  

2. Jacksonville, Florida 

Median Home Price: $282,260 

With gorgeous waterfront views and warm weather, Jacksonville is 874 square miles of land just waiting to be called home. Home to major national brands such as Fidelity Investments, Johnson & Johnson, and the Mayo Clinic as well as having a growing tech sector, a large military base, and the Jacksonville Port Authority, Jacksonville is teeming with a well-paying job market. This city is also a great choice for growing families with plenty of museums, art walks, and markets to visit along with the Jacksonville Jazz Festival, the Jacksonville Zoo, and the Arboretum and Botanical Gardens. 

3. Knoxville, Tennessee 

Median Home Price: $280,000 

Located in the foothills of the Appalachian Mountains is Knoxville, Tennessee. With a 10.4% lower cost of living than the national average, it’s considered an extremely affordable place to call home. Additionally, the University of Tennessee is located in Knoxville, giving the mid-sized city a college town feel. Not far from the Great Smokey Mountain National Park and just off the beautiful Tennessee River, Knoxville is a gem for those who enjoy outdoor recreational activities.  

4. Chattanooga, Tennessee 

Median Home Price: $300,000 

Nicknamed the Scenic City, Chattanooga offers picturesque views with plenty of hiking and biking trails to take in nature. With a growing economy and the cost of living being 13.5% lower compared to that of the national average, Chattanooga was rated the 3^rd best place to live in Tennessee by U.S News. Intersecting a rich history and a focus on all things local, this city has a little something for everyone: be it museums, shopping boutiques, or a vibrant nightlife. 

5. Miami, Florida 

Median Home Price: $510,000 

Famous for its sunny weather, sandy beaches, and exciting leisure activities, Miami is a hub of art, music, and culture. Home to the headquarters of American Airlines, Precision Response Corporation, Royal Caribbean, Office Depot, and more, Miami has a healthy job market. After work, residents can enjoy time on the beach or water, Everglades National Park, the Wynwood and Design District, or one of Miami’s many sports teams.  

Wherever You Are, Perpetual Title is Here to Help 

With direct licensing in 23 states and able to help with closings in all 50, Perpetual Title is your closing solution wherever you are in the United States. Need help in Florida? Reach out to our office in Tampa. From sea to shining sea, Perpetual Title is here for you. So, whether you’re looking at real estate in one of the hottest markets of 2023 or somewhere else entirely, let an experienced member of Perpetual Title help you at your next closing.  

The post 2023’s Projected Hottest Real Estate Markets first appeared on Perpetual Title.

Real Estate Technology Trends to Watch

Videos

One of the more popular of real estate technology trends appears to be video property tours. From YouTube and Facebook to Instagram and TikTok, realtors are finding a majority of clients by displaying home interiors in digital walkthroughs. In this manner, remote buyers can view all features of the property before committing and moving out, thus providing a more comfortable and secure experience. In addition to live viewing, potential buyers can also find real estate videos featuring timelapse on construction, wherein they can see previous renovations and length of the remodel online. With this feature, buyers can better appreciate the property’s value before they buy, ensuring the quality of their home is worth investing in. Immersive, engaging and fun, videos will enhance the real estate industry by visually enticing buyers to homes wherever you list.

Video tours allow buyers to tour remotely which is convenient for those who cannot visit in person.

Virtual Reality (VR)

People often associate virtual reality with video games; however, as real estate technology trends adapt, so too has the real estate industry grown to include virtual reality tours of homes for buyers. Yet, this isn’t limited to just inside the home. Thanks to VR imaging and sophisticated videography, potential buyers can now explore outside the home for a full inspection of the acreage. Google 360 services already offer such views to major businesses, and now realtors can invite homeowners to view properties from anywhere at any time with augmented virtual reality from their websites. If that wasn’t amazing enough, real estate websites also feature virtual staging options! Before real estate agents would stock a home with rented furniture to display the home; today, virtual reality technology can simulate custom furniture, wall colors, and flooring renovations to buyers according to their preferences. Rather than having to imagine their home design, buyers can visually lay out remodeling ideas on screen. Current real estate technology trends predict 50% of home sales in 2023 will occur via VR tours and staging, so its important agencies start implementing such features now.

Drones

Real estate technology trends of 2023 are using drones to feature home properties and surrounding highlights to buyers. Using the drone’s built-in camera lenses, real estate agencies can take 360° photos and videos to show properties from above, highlighting the full beauty of the home as well as the surrounding landscape. Since drones aren’t indoor friendly, most exterior images highlight the property exterior and amenities within the area to buyers, giving them an idea of what schools, shops, businesses, and natural landscapes to look forward to upon moving. After years of utility on the market, drones have become a much cheaper and more convenient tool to display real estate properties to buyers, saving realtors time and money from using a photographer.

Drone photography captures the entire property for the potential buyer to see.

Social Media

Realtors can count on social media to be a constant, reliable type of real estate technology trend to reach homebuyers. Facebook, Twitter, Pinterest, and even LinkedIn ads are a popular means to advertise real estate properties to homeowners and businesses. Each channel not only raises awareness across various buyers, but helps to list home prices, layout features, amenities, and other characteristics. Some platforms even allow buyers to bid on properties like a market auction, guaranteeing closings in no time.

Blockchain and NFTs

Of the lesser-known real estate technology trends for 2023, few know the growing reliance on blockchain and NFT technology to secure real estate transactions. Mostly used in cryptocurrency, blockchain serves as a digital ledger to track transactions and activity across a network, stored in coded “blocks” that connect and store information. As real estate companies move into 2023, many lean on blockchain technology to store vast amounts of data on properties from titles, payments, client information, and much more. Due to its complex design, real estate blockchain transactions are quite secure, nearly eliminating title insurance or transaction fraud risks while also limiting disputes from its contractual transparency. Fast, efficient, and secure, blockchain presents an easier means to close transactions between parties; in that same vein, though, real estate technology moves towards blockchain’s NFT utility, too. While blockchain eases the transaction process between parties, NFTs—non-fungible tokens—create a means for clients to track, manage, and exchange their title property deeds through unique digital tokens too complicated to clone. Blockchain NFTs allow realtors to complete real estate remote closings entirely online.

Data Analytics

Data analytics continue into 2023’s top real estate technology trends for helping to keep real estate agencies and properties relevant within the fluctuating housing marketing. A strong source for buyer activity and property data, data analytics help realtors to identify sale opportunities, create personalized marketing campaigns for their audience, and determine price ranges within their covered area. Moving into 2023, real estate technology hopes to include AI predictive software into data analytics, which will allow agencies to market and adapt their business strategies according to market trends and buyer behaviors online.

Analytics provide insight into data that can be used to forecast future opportunities.

eSignatures

Most agencies have moved to the real estate technology trend of eSignatures, going into exclusively digital contracts. Incorporated with other digital contract trends, eSignatures automate legal closings with simple digital markers for clients. In turn, real estate companies will save a great deal by cutting down on paper documents, and thus streamlining the sale transaction and official title exchange within seconds.

ID Authentication

One of the newer real estate technology trends coming of 2023 are identification tools. Individuals who have a smart phone or computer may have unlocked their devices via fingerprint or facial recognition scanning; well, the same technology seems to be growing in popularity with realtors and buyers. For customers remotely closing on a property on their phone, computer or tablet, identity authentication technology goes a step further to ensure security from title record and payment fraud between parties. In short, scanning technology enables buyers to access important digital data from realtors without the frustration of security codes and questions impeding the process.

Revolutionize Your Real Estate Experience with Millennial Title

Perpetual Title offers a variety of new, innovative tools that will carry real estate technology trends into 2023 and beyond. From blockchain smart contracts to crypto closings, rely on Perpetual Title’s team of real estate professionals to securely close the property.

The post A Look Into the Future: 8 Real Estate Technology Trends to Watch in 2023 first appeared on Perpetual Title.

Benefits of Staging Your Home

There are many benefits to staging your home for prospective buyers including: 

Increased Desirability.  

Staged photos can initiate the interest of the buyer in the home and push the homebuying process forward. 

Implements Buyer Urgency

A properly staged house can not only increase desirability but also shorten the length of time on the market. A study from the Real Estate Staging Association found that staged homes spend 72% less time on the market. Buyers are more likely to make a quick offer on a home they consider attractive and looks move-in ready.  

Buyer’s Expectations

Due to the oversaturation of home shows and real estate sites, buyers develop certain standards for what they want their home to look like. If your home is not staged, then it can leave buyers feeling underwhelmed and uninterested. However, if your home is staged, it can meet or possibly exceed the buyer’s expectations.  

Improved Visualization

Before you make a large investment, you want to make sure that it is the right decision for you. Staging gives buyers the chance to imagine living in your home.  

Increased Value in Home

Staging isn’t exactly cheap, but it can increase the dollar value by 1% -5% from buyers. This may not seem like a lot but 5% of a $500,000 home is $25,000.  

 Just by giving your kitchen a facelift it makes a huge difference

Staging Tips

Start with Curb Appeal

First impressions matter! Buyers first see your house’s exterior, so it’s extremely beneficial to give them a positive impression of your home before they even step foot inside. Try power washing the siding, cleaning the gutters, or pulling weeds! These small upgrades can make a dramatic difference.  

Give the Kitchen a Facelift

Kitchens can make or break a home. Consider changing out older, outdated appliances and décor with more modern options. Corroded faucets or hard water stains are significant turn-offs for buyers.  

Depersonalize and Remove Unnecessary Clutter 

Staging allows buyers to visualize them living in your home. However, they are not going to be living in YOUR home. Remove clutter and personalized items from all rooms to give a blank slate for prospective buyers to emotionally connect with. 

Rethink placement

Do not be afraid to move furniture around. Minor changes can make the space more inviting and visually appealing.  

Add potential office space.  

Today, more people are choosing to work from home or homeschool their children, so having a built-in workspace is a huge plus for buyers.  

Show off Storage

Storage always ranks high on a buyer’s wish list. Do yourself a favor and show off your decluttered closets and large kitchen cabinets. Buyers will definitely appreciate the extra space.  

Amp up the Lighting 

Great lighting is one of the easiest ways to make your home appear more warm and inviting. Increase the wattage in your light fixtures and aim for a total of 100 watts for every 50 square feet.  

Time to Fluff the Pillows!

Overall, staging your home can greatly benefit both buyers and sellers. Staging your home will highlight your home’s strong suits, downplay shortcomings, and ideally appeal to the largest possible pool of prospective buyers.

We hope that this blog was informative and helped in your home selling process. For more information regarding the home selling process, contact us today.

The post How Staging Your Home Can Lead to a Faster Sale first appeared on Perpetual Title.

1. Prepare for Home Inspections

Home inspections are a standard part of the buying and selling process. Home inspectors will notify both parties of potential issues and items to repair. To prepare for the home inspection, sellers can take charge and minimize any delays by completing the following:

• Clean out gutters
• Repaint the exterior if weathered
• Caulk around windows, doors, and chimney
• Repair any broken pavers, bricks, or loose railings
• Test smoke and carbon monoxide detectors
• Ensure crawlspace and attic are accessible
• Inspect plumbing fixtures for any leaks
• Replace any burnt out lightbulbs indoors and out

2. Provide Pertinent Information to Your Realtor and Title Company

• Current Mortgage Statement for payoff
• HELOC or Equity Line statement
• Personal Information (social security number)
• Homeowners Association contact information (if applicable)
• LLC or Trust documentation (if applicable)

3. Moving Preparations

As the buyer finalizes items on their end and a closing date has been set, it’s time to pack up your belongings for the move. One way to alleviate some of the stress is by hiring a reputable moving company in the area. We recommend gathering at least three names so that you can compare quotes.

4. Leave Essential Documents and Manuals for Buyer

Collect essential documents such as manuals, receipts, and warranties in a folder for the buyer to easily access.

5. Collect all Remotes, Keys, and Garage Door Openers

Many buyers will change the locks, but until they can make a trip to the home improvement store, they will need the keys. The buyer will also need any remote controls for ceiling fans and garage doors to get full use of the house. Set these aside in one location so they’re easy to find.

6. Clean the House Thoroughly

Once you’re all packed, now it’s time to clean! No one wants to move into a dirty house, yourself included. So, whether you hire a professional cleaning service or do it yourself, the buyer will appreciate being able to move right in without having to get to work immediately.

Cleaning your home when it is vacant is much easier than with moving boxes everywhere.

Once the Closing is Scheduled

7. Notify Change of Address

Be sure to notify friends and family of your upcoming move. You should also fill out a change of address form on the USPS website to ensure your mail is rerouted.

8. Inform Utility Companies

Electric, gas, water, cable, and any other utility companies will need to be notified of your move. Unless they are informed, they will keep charging you even after the new owner moves in. We recommend gathering all your utility bills, phone numbers, and websites in one place to make canceling your services more efficient. Many companies will also allow you to do this online and even input a specific date for the last day of service.

Ask that the utilities be transferred out of your name, not turned off. That way your buyer can have them transferred into their names with ease.

9. Personal Walk Through

Walk through your home one last time to make sure you do not leave anything behind. Check closets, drawers, sheds, and all the nooks and crannies for your personal items. If you’re considering leaving behind any personal property that may be useful to the new owner, just check with the real estate agent.

10. Cancel Insurance

Once the closing has occurred, contact your insurance provider to cancel your homeowners insurance. There’s no reason to keep paying for insurance that you do not need! However, be sure to wait until ownership has been transferred because until then you will be financially liable for any issues.

Closing Day!

With your documents in order, moving completed, and the house ready for the new buyer, the final step in the process is closing day! Before you make your way to the closing table, be sure to have the following items with you:

• License or Government-Issued photo ID; all individuals on the purchase and sale agreement will need to bring their ID.
• House keys, keypad access codes, garage door openers (don’t forget the one in your car).

With closing completed, it’s time to celebrate the sale! While selling a home can be a complex process, Perpetual Title’s experienced and knowledgeable team is here to address all your questions and concerns in the closing process. If you would like to learn more about our closing process or to schedule your next closing remotely or in one of our offices, please contact our team!

The post Remember to Do These 10 Things When Selling a House first appeared on Perpetual Title.

Definite Don’ts

Rack up Credit Card Debt

A new home means new furniture, right? Not necessarily. While some purchases may be justified, please do not go overboard and rack up hundreds or even thousands of dollars in credit card debt. We recommend creating a budget for your post-closing spending so you don’t get in trouble before that first mortgage payment is due.

Forget Tax Breaks

One of the greatest benefits of homeownership is the tax breaks that come along with it including the homestead exemption. The amount you receive will vary by your state. Some counties also offer tax exemptions for homeowners, so be sure to confirm with your county’s assessor’s office whether you’re eligible.

Begin Renovation Projects…Yet

The home inspection report you received before closing will list all the potential problem areas within the home that the prior owner did not address. From resealing windows and cleaning gutters to painting walls and replacing flooring, the list of renovations and issues to fix can be overwhelming. Instead of jumping into a renovation project as soon as you walk in the door, determine the priority items of what should be completed first.

Throw Away Mail

Changing your address after you move can be a headache. If you receive the previous owner’s mail, do not throw it away; just call USPS to let them know and they will help you sort things out.

Ignore Your Neighbors

Introduce yourself to your neighbors when you move in! Keeping your landscape tidy, decorating for the holidays, and showing others that you’re friendly is a good first step in familiarizing yourself with the neighborhood.

Keep your landscape tidy to make a good first impression with your neighbors.

Must Do’s After Closing on a House

Store Documents in a Secure Place

Along with your birth certificate, social security card, passport and other official papers, your closing documents should be added to your fireproof safe for safekeeping. These documents can also be stored on a secure cloud-based website or software such as Google Drive or Dropbox.

Change Locks and Update Keypad Codes

We highly recommend changing your locks and updating garage keypad codes for security purposes. While one of the contingencies at closing is to return all keys to the buyer, it could be possible that there is a key out there that is unaccounted for. Changing your locks and updating the keypad codes provides peace of mind in knowing that you have the only keys that can access your new home!

Deep Clean Before Moving in

The home should be clean upon closing, but in some cases a deep clean may be required. You can either hire a professional cleaning company to come in or you can do it yourself. Some tasks to consider include:

• Steam clean carpets
• Clean included appliances
• Scrub tile grout
• Wash all windows, inside and out.
• Clean and polish wood floors

Check Utility Systems including the HVAC and Water Heater

Familiarize yourself with your home’s utility systems so you know how they all work. Replace the furnace and AC filters to save money, improve air quality, and eliminate any odors. Ensuring that your vents are clean and both systems are running properly so they’re ready when you need them. You can also take the time to drain your water heater and adjust the settings to extend the water heater’s life and improve your energy bill.

Celebrate, of Course!

Homeownership is a milestone worth celebrating and while there are things to do, even after closing, the tasks above are very important and will improve the overall experience for you and your family. So, while you will probably see your to-do list grow over the years, owning a home is an investment worth making. To learn more about the home buying process and Perpetual Title’s escrow and title services, contact our team. We are licensed to close in more than 20 states across the country and can help you make homeownership a reality.

The post Homebuyers: Do This, Not That After Closing on a House first appeared on Perpetual Title.

What is a Warranty Deed?

When a property is sold, a warranty deed is a legal document that is used to transfer ownership of the property from the seller to the buyer. A warranty deed, provided by the seller, guarantees to the buyer that the property is owned by the seller, free and clear of any title defects, and does not have any outstanding debts, including mortgages. This document is issued as part of the title search and includes details such as the address, description of the property, information about the parties involved, and the date of the transaction.

Understanding Deeds of Trust and Mortgages

A Mortgage is an instrument pledging real property for a loan. This is a two-party instrument: The mortgagor (debtor) grants the mortgage to the mortgagee (lender). A mortgage explains the details of the loan including the principal balance, maturity date, and interest rate information. Mortgages can be foreclosed judicially or nonjudicially, though they are usually foreclosed judicially.

Deed of Trust is a three-party instrument: The grantor (debtor, mortgagor) gives Deed of Trust to a trustee as security for a debt owed to the beneficiary (a.k.a lender, mortgagee). Like a mortgage loan agreement, the deed of trust explains the details of the loan including the principal balance, maturity date, and interest rate information. The trustee is given the power of sale allowing the trustee to foreclose nonjudicially.

With a deed of trust or a mortgage, they can only be released after satisfaction by the beneficiary or mortgagee. However, a few states have granted the power to release to the trustee.

This map shows where a deed of trust, mortgage loan, or both are accepted.

Deed of Trust, Mortgage, and Warranty Deed: Key Difference

Depending on where you are purchasing a home, you may encounter one or all these documents, however, each of them plays an integral role in the home buying process with vastly different purposes.

A deed of trust or mortgage only secures that Promissory Note of the lender against the property. A warranty deed conveys the legal title to the buyer and warrants that a property is owned and able to be sold without any encumbrances and liens. A warranty deed is only used in a purchase transaction whereas a deed of trust and mortgage can be used in a purchase or refinance.

If you have additional questions regarding warranty deeds, deeds of trust, mortgages, or any other paperwork associated with the home buying and selling process, contact the team at Perpetual Title today.

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What is a 1031 Exchange?

Section 1031 of the Internal Revenue Code allows investors to avoid paying capital gains taxes when they sell and reinvest the earnings of the sale into a property or multiple properties of like kind and equal or greater value. By reinvesting, investors will defer the capital gains tax from the sale.

For example, an investor purchases a property in 2015 for $200,000, then by 2020, the property appreciated to $500,000 and the investor decides to sell. The sale will have a capital gain tax of $300,000 and the tax will need to be paid on that gain. However, if the investor decides instead to utilize a 1031 exchange, they can invest the $300,000 they earned into another property and defer the capital gains tax on that sale.

Benefits of 1031 Exchange: Why Should Investors Use it?

While a 1031 exchange may look like a tax loophole, it is a perfectly legal process that allows investors the opportunity to reinvest, build their portfolios, and more. Here are 5 benefits of 1031 exchange transactions:

Reset Depreciation

When declaring taxes from rental income, investors can claim depreciation as an expense toward their deductions. Typically, when selling your rental property, you would have to calculate its depreciation and pay the taxes associated. With a 1031 exchange, the depreciation is carried over into the replacement property and is deferred until the new property is sold.

Increase Cash Flow and Free up Capital

Between tax savings and building wealth through capital appreciation, owning property that produces positive cash flow will grow your assets quickly. You can leverage your assets to get a more expensive replacement property by using your proceeds of the exchange toward a down payment or even consider exchanging for a commercial or rental property to earn a monthly income.

Utilizing a 1031 exchange allows investors to avoid capital gains tax by reinvesting the money earned from the sale.

Diversify Portfolio

By purchasing properties through a 1031 exchange, you can diversify your portfolio by branching out into different markets or types of properties. Owning a single asset or several of the same type exposes you to more risk in the event that the market crashes.

Consolidate Properties

On the other hand, for some investors, owning multiple properties can be costly and time-consuming, especially if the ROI isn’t high enough. Investors can utilize the 1031 exchange to swap these properties for something that is less maintenance and easier to manage.

Transfer Assets and Profits to Beneficiaries Tax-Free

In the event of death, the property and profits associated will be transferred to the designated beneficiaries tax-free.

Perpetual Title Protects Your Investment

As your partner, Perpetual Title recognizes the importance of profitable investment strategies. At Perpetual Title, we understand every aspect of real estate investing as well as its potential risks and rewards. From completing your title work and issuing policies, the team at Perpetual Title is here to ensure your investments remain protected now and in the future. To learn more about title and escrow services, contact us today.

The post Investing in Real Estate? 5 Benefits of 1031 Exchange first appeared on Perpetual Title.