In recent years, with the increase in bank owned/foreclosed properties being sold, we are seeing more instances where the Seller is using an Addendum to Purchase & Sale wherein it states that the seller agrees to provide, and the buyer agrees to accept, insurable title instead of the customary marketable title.

If you are considering purchasing a bank owned property, or any property where insurable title is mentioned, it is important that you understand the distinction between insurable title and marketable title because you may end up owning a property with a title defect that limits your ability to sell or refinance down the road.

Marketable title is understood to mean a title that has no defects or issues to which a reasonable buyer could object.  Marketable title is sometimes also referred to as being a ‘clean’ title.  In the real estate world, it is considered a better title because it has no defects that could potentially jeopardize a future sale or refinance of the property.

Insurable title is understood to mean a title that does have a defect or issue but a title insurance carrier has reviewed the title, made a risk assessment, and has agreed to insure the title without the defect or issue being resolved.  In essence, the title insurance carrier has agreed to insure over the problem so that the transaction can proceed.

The easiest way to understand this distinction may be to consider the quite common situation where a title search reveals an unrecorded/missing mortgage discharge from an earlier transaction.

If the Seller has agreed to provide marketable title, the missing discharge is a title defect that the seller must resolve in order to provide clear the title to the buyer.

However, if the Seller has agreed to provide insurable title, and a title insurance carrier is willing to provide title insurance coverage for the missing discharge issue, the new buyer cannot force the seller to fix the defect and the buyer will end up owning the property with the missing discharge defect still in place. When the buyer goes to sell or refinance the property in the future, that missing discharge issue will still exist, and depending upon the circumstances he/she may be forced to incur the costs of having to fix the problem and depending upon how long it takes to resolve the issue, may risk jeopardizing the sale/refinance transaction.    

Questions?   Give us a call.  603-431-8100.

Is it just me, or does anyone else get just a tad bit nauseous when they hear the word goal? These writers make it sound so easy, as if all you have to do is think one up, write it down on a post-it note and presto… It happens!

I believe reaching a goal has more to do with control. For example, if you got out of bed this morning and went to work because you wanted to, then you are in control of money. If you got out of bed and went to work this morning because you had to, then money is in control of you. It is almost impossible to control a goal that is controlling you. The bottom line effect is lack of money. The cause is thinking. Albert Einstein once said, “A problem cannot be solved at the level of consciousness in which it occurs.”

So here is the message that I really want to share with you. It is essential that we raise our level of consciousness to “Everything is Possible;” not just the goals we set for ourselves, but over and beyond… Everything is Possible. These are very powerful words that only hold true if you are brave enough to keep your thinking in forward motion. I refuse to sit on a mental couch that only offers a pessimistic view. I will not listen to anyone’s predictions except for my own because my prediction is that we have the ability to be more successful this year more than any other year that we have lived so far. I am the only one who knows what I am capable of. And the same goes for you.

As we create our success for 2011, looking back is not helpful nor is entertaining thoughts like:

• First Quarter is notoriously slow
• The housing market is slow to recover
• The economy is in the toilet

Those predictions only come true to those who are limited by them. Instead, reach for things that we have never reached for before…

Be fearless in earning NEW business. Take a swing even if you miss. Jump even if you fall, and keep getting back up even if you fear that you look stupid.

Be determined in hitting your daily activity numbers every day. Make more calls and even better calls every day. If you made 8 calls yesterday, make 10 today. Never-ever stop short of asking for what you want in life. “Everything is Possible.”

Facilitate action. Encourage more buyers to buy and more sellers to sell at a reasonable price. Certain thoughts and influences cause many of us to take action…it is human nature. Facilitate action by incorporating these responders:

• Savings
• Limited offer
• Flattery
• FREE
• Others want it
• Low risk
• One of a kind
• Makes life easier
• Easy to buy, use or own
• Highly recommended
• Trusted
• You can’t have it
• Recognition
• Status
• Vision of payback
• Fear of loss
• Needed by others
• Added value
• Move ahead

Realtor Bulletin, Kim Dickey, First American Title

The ability to negotiate is a big differentiator in the Real Estate business, especially in the current climate. Negotiation takes skill, practice, and knowing what tools to use and when to pull them out of your tool belt. Additionally and most importantly, negotiation is a “contact sport” that is best performed face to face. Why?

A good negotiator:

• Is like a surgeon; able to cut out the truth
• Is looking for areas of weakness in others to earn a better position for their client
• Creates solutions and smart options on the fly
• Knows that sometimes appearing vulnerable is a powerful technique for getting information
• Is a good listener who can read between the lines to hear what is not being said
• Can adapt to the emotional levels exhibited by all parties
• Can uncover the emotional bull’s-eye and keep people focused on their prize
• Is able to use humor, nurturing and skill to get back on track and stay on track
• Presents data and fact rather than opinion
• Never gives up

It is important to insist on face to face negotiations, yet some Realtors may be hard pressed to take time out of their day to negotiate.  If you see the value and benefit of negotiating face to face, make it your required business practice in 2011.  Become the change you want to see in the Real Estate world.  Develop your skills, improve your sales abilities and get into the game of face to face negotiating.

Realtor Bulletin, Kim Dickey, First American Title

Be aware when purchasing a property at foreclosure auction, most foreclosure contracts obligate a buyer to pay the entire transfer tax, contrary to the customary practice of a buyer paying only half the total amount due. In New Hampshire, for instance, the buyer of a property at foreclosure auction would pay the full $15.00 per thousand of the purchase price and in Maine, $4.40 per thousand.

Should you have any questions regarding this or any title matter contact your experts at Signature Escrow & Title Services at 603-431-8100.

Congratulations to Lynda Cadieux Ferland of Keller Williams Coastal Realty! Lynda has won a Signature Harvest Tote (valued over $100) including a gift certificate to the Galley Hatch, Dunkin’ Donuts, a gas card and much more. Thank you Lynda for being an active participant on our blog!

Let’s talk about RECOVERY. For the Red Sox fans out there, let’s imagine a time when you watched the Red Sox game and they were down. WAY down. So far down that you didn’t think there was a way they could recover so you decided to throw in the towel and go to bed. Then, the next day at work, you went in like any other day only to find out that you missed one heck of a comeback and the Red Sox won the game. How did they recover when their pitching efforts seemed to go south? They had a skill set, control and planning and got back into the game before the loss was too great.

That same ability to perform a RECOVERY is just as important in sales.

It would be naive to think we were capable of hitting our production goals every time. What goes up eventually does comes down. A true sales person knows how to stop the spiral, they know how to get back in the game and they know that consistency in their sales approach creates a winning season of production.

What steps should you take when your pitches aren’t landing in the strike zone and you feel a loss of sales momentum?

* Pull your calendar for the last three months and analyze the number of appointments you set. Most often you will see a decline in the number of appointments (which are opportunities to sell). This happens little by little until you find yourself reacting to the change in your momentum rather than being proactive.

* Go back to the basics of setting and reaching high daily activity numbers. Regardless of being busy or slow; make sure you are contacting a high number of prospects every single day. The more contact you make, the more appointments you will set.

* Connect the dots keeping in mind the Kevin Bacon Six Degrees of Separation theory: all individuals can be linked to one another based on the concept of the small world phenomenon. Almost everyone in your path knows someone who will buy or sell real estate in your lifetime. Don’t put yourself on the bench by leaving an interaction without asking; “Can you think of anyone who might have an interest in buying or selling real estate? Carry your prospect target list with you everywhere and show it to your customers. Ask everyone if they are familiar with anyone on the list. This can create a warm call rather than a cold call.

* Go to your favorite local book store and buy a sales book. Grow your skill and quiet your mind by learning from the successes of other successful people.

* Pitching is physically demanding, especially if the pitcher is throwing with maximum effort. Sales can be an equally draining experience. When you feel like your sales are off, go do something you are good at doing. It could be sports, music, art, etc. Once you lose your confidence, it takes longer to recover. This exercise will help you regain and balance your confidence and get you back into the game

Develop your RECOVERY plan and make it a part of your sales strategy. The better you pitch the better you sell.

Monique Shevlin, Co-Owner of Signature, will be attending the 2010 NHAR Convention. It will be held October 17-20 at the Omni Mount Washington Hotel and Resort in Bretton Woods, NH. Who else will be attending? Please comment on our blog to let us know who she can expect to see there.

Signature is keeping watch for what could be a growing trend in cities and towns charging a fee to provide tax status information on a property. For example, effective July 1, 2010 the City of Portland will charge a $25 fee to provide tax and municipal services status information on a property. These fees would become seller charges as the information is necessary to provide clear title to the buyer. We will keep you abreast of updates on these trends as they become more relevant to our geographic market area (Rockingham, Strafford and York Counties). Should you have any questions, please contact your Signature Representative.

Signature Escrow & Title Services, LLC sponsored a 1031 Credit Course for Real Estate Professionals on June 2nd at Kittery Estates. There was very high demand for the course and registration was full within 24 hours! Thank you to our presenter, John Hamrick of Edmund & Wheeler, Inc. QI and to our attendees for making this a successful event.

If you are interested in attending a similar credit course in the future, please contact us to be added to our mailing list.

Effective March 25, 2010.

As you may recall, last fall a new law, Chapter 162 – An Act to Protect Maine Residents from Home Fires and Carbon Monoxide, created new requirements relating to the installation of smoke and carbon monoxide detectors in all single-family and multifamily dwellings, multiapartment buildings and rental units. It also created a new buyer certification form to be signed at real estate closings.

The Maine Legislature recently amended this law by enacting Chapter 551 -Act to Amend the Law Pertaining to Smoke Detectors and Carbon Monoxide Detectors. This amendment revises the requirements for installation of smoke and carbon monoxide detectors and will, therefore, result in a new buyer certification form. Changes to the new law of particular interest to closing agents include the following:

• Buyer must now certify that buyer will properly install operational smoke detectors and carbon monoxide detectors, if they are not already present, within 30 days of acquisition or occupancy of the building, whichever comes later.
• A person has no claim for relief against a closing agent or lender for any damages resulting from the operation, maintenance or effectiveness of a smoke detector or carbon monoxide detector.

Download NEW Certification Form