As we enter into the robust spring market, please remember that this is an estimated tax billing period until the June bills come out. Here are a few things to keep in mind:

•Signature will update tax information as close to the closing date as possible in an effort to get the most up-to-date information.

•If the property being transferred is newly constructed, the prorated amount on the HUD does not likely account for a fully assessed property.

•Remind buyers that their tax escrows will be recalculated based on an actual bill, once fully assessed.

•Urge buyers to connect with their new tax office to have tax bills directed appropriately.

•June tax bills may still be sent to the seller – should they receive it they are to forward it to the buyers right away.

•All parties sign the Compliance/Proration Agreement form at closing stating that any variation in the next tax bill is not the responsibility of any party other than buyer and seller.

Plot plans are required on all new construction.
What can you do to make sure your closing isn’t delayed?
Contact the settlement agent as soon as construction (i.e. porches, decks, outside stairs, etc) is complete so the final plot plan can be ordered. If a foundation certification has been done by the builder/seller, provide it to the settlement agent as it may help to reduce the buyer’s cost of the final plot plan.

Lot line adjustments are, very simply, when a boundary line is adjusted. We, at Signature, are uncovering many instances where lot line adjustments are not being completed. We often find that survey/plan revisions are being recorded without the necessary deeds being transferred or partial releases being obtained. In most cases, deeds are needed to complete the adjustment in order to properly identify, on record, the newly created boundaries. Additionally, if there is a mortgage on any of the lots involved, partial releases need to be obtained from the mortgage holder and recorded at the registry of deeds.

Steps needed to complete a lot line adjustment:

• Record the new plan
• Prepare and record deeds to properly transfer and identify the properties involved
• Obtain and record Partial Releases from mortgagors, if any, affecting the subject properties

One issue that we have seen time and again is a simple issue of tenancy-or lack thereof-on a deed. It is imperative that tenancy be specified on a deed. Two types of tenancy exist:

- Joint Tenants with Rights of Survivorship -if one party were to pass away, their interest would automatically transfer to the other title holder.

- Tenants in Common -if one party were to pass away their interest would be transferred to their heirs NOT the remaining person on title.

If neither is specified on the deed, is the surviving owner(s) must go through the probate process. This may take considerable time, since either a Will (or if no Will exists, state law) determines who gets the deceased person’s share of the property.

We urge sellers AND buyers to review the deed that is being signed at the table. Check not only your names for accuracy but the tenancy as well.

Signature is pleased to welcome Erin Bryant to the team. Erin brings seven years of settlement, real estate sales and management experience to her position at Signature. Her talents include establishing relationships with key partners and conducting closings with a high level of knowledge, organization and energy. She will be conducting closings for Signature and will be based in both York and Portsmouth. Erin can be reached at ebryant@signaturetitle.com.

When the tax bill arrives, who owes what – and when? How is the bill pro-rated between the Buyer and the Seller?

ANSWER:
This can be tricky…
If a tax bill is due at the time of the closing or within 60 days following the closing, the amount of the bill (or estimated bill) is usually charged in full to the Seller.

That tax bill amount is then pro-rated between the Buyer and the Seller. This means the Buyer is charged an amount on the Settlement Statement – and the Seller is credited with that same amount. The amount charged to the Buyer and credited to the Seller represents the Buyer’s share of this bill. The actual amount of the pro-ration depends on the tax period covered by the bill. The Buyer will owe the Seller from the day of closing through the end of the current tax period.

NO CURRENT TAX BILL DUE?
When no current tax bill is due at closing or within 60 days of closing, the reverse is true.

At closing, the Seller can be charged for his or her portion of an ANTICIPATED future tax bill. At closing, the Buyer receives a credit for the same amount. Then, when the tax bill DOES arrive, the Buyer is responsible for paying the bill in full – because the Seller will have already paid the Buyer for his or her share of the bill.

A WORD OF CAUTION
Cities and towns can take several months to update ownership records. Therefore, it’s very likely that the first tax bill issued after the closing will be issued in the Seller’s name. The Seller should immediately forward any tax bill received to the Buyer for proper payment. If the Buyer knows that a tax bill may be coming due and has not yet received it, contact the appropriate city or town office for a duplicate copy (just in case the original bill was mailed to the Seller in error or not forwarded on to the Buyer).

Written by Kim Dickey, First American Title Insurance

I was curious one day and asked our sales team to tell me “What Floats their Boat in Sales”. I received some very inspiring answers; the most inspiring response came from Felicia Bessey in New Hampshire. She said three things float her boat in sales: having a wishbone, a backbone and a funny bone.

I thought her statement said it all.

The wishbone is all about good luck. How much do you depend on luck for your sales success? Thomas Jefferson said,”I am a great believer in luck, and I find that the harder I work, the more I have of it”.
We have to work hard so we are prepared for our “chance of luck” and be constantly looking for and be ready for opportunities. Keeping a positive attitude is important because positive energy attracts positive energy… and energy attracts luck.

What does having a backbone mean? Your backbone is your central source of support and stability; “having a backbone” means having fortitude and determination. Being successful in sales certainly requires having a “never give up attitude”, making one more call, not going home until you have met your daily activity numbers, never letting an excuse enter your mind and standing tall at the end of the day as an example for others. That’s having a backbone.

The funny bone is funny unless you whack it on something. Hitting it just right can bring you to your knees; not making your sales and financial goals can have the same result. The good news is humor breeds success. Humor is infectious. The sound of roaring laughter is far more contagious than any cough, sniffle, or sneeze. When laughter is shared, it binds people together and increases happiness and strengthens relationships. Strong relationships can lead to increased sales success.

No bones about it…it takes a wishbone, a backbone and a funny bone to be successful. Let your work, strength and humor drive your actions.

Signature is pleased to welcome Kayla Mathon to its dedicated and experienced team. Kayla will be assisting Attorney, Shawn Poliquin, with registry research, processing of title commitments, legal descriptions and title policies which, in turn, shortens the turnaround time for title searches/commitments to clients. Kayla’s analytical approach and great attention to detail have already made her a great asset to the Signature Team. Welcome, Kayla!

Now that certified checks are becoming a thing of the past, the funding question remaining is – Should a buyer bring a bank check or send a wire for the closing?

Signature is seeing an increase in wire activity as wire transfers are being requested by sellers (including banks and 3rd party companies) for their proceeds and/or payoffs.

If the seller requests proceeds in the form of a wire, the buyer(s) will be required to wire their funds for the closing.  This will ensure a smooth closing for all parties.

Should you have questions about wire transfers or funding for a closing, please contact a Signature representative.

These important questions should be considered when selling a home as to alert you to special circumstances surrounding the transaction.

• Has there been a change in marital status or name change since purchasing the property?
• Is anyone currently on title deceased?
• Is the property in a trust?
• Is anyone on title currently incapacitated (dementia, Alzheimer’s, disabled)?
• Will a Power of Attorney be used or needed?
• Do any of the sellers signing NOT have a photo ID or driver’s license?
• Is the seller only selling a portion of their property?  If yes, a survey with a new legal description would need to be provided.
• Is the property a mobile home/manufactured housing?

If there are special circumstances, please let your title agent know as soon as possible to ensure a smooth transaction for all.