Tag Archive for: vesting

Real Estate Contract Names

WHAT IS THE IMPORTANCE OF A NAME?

Real Estate Contract

 

To assist with avoiding delays with closings, consideration should be given for consistency of name spelling and vesting choices for the real estate transaction.

A buyer changes the way they want to take title to the property-this can result in the need for a last minute addendum, a new title search of the name change (liens in the Buyer’s name can attach to the property as well as compliance with the Patriot Act), a short sale being postponed if the approval was for a different name variation such as an individual verses a Trust.

A misspelled name –can cause issues for the Buyer upon a resale or refinance of the property. It can also cause issues for any loan documents in conjunction with the purchase of the property. Contracts that have been faxed may cause errors due to lack of legibility which can offend clients.

Uniformity of names-use proper legal names to avoid inconsistency with Robert verses “Bob”, use of middle initials to be consistent with loan documentation assures smooth closings without the need for aka’s or “also known as” and dual signatures required.

Note: No legal advice or suggestions are being given as to the preferred or recommended way to handle. Please call us if you have any questions on the above matter.

 

Vesting or Taking Title on Deeds

naples-florida_title_deed_insurance

Multiple Party Deed

A few ways in which more than one party may hold title are as follows:

Tenants by the Entirety:  Only a husband and wife may hold title in this manner.  Provided the couple remains continuously married, the surviving spouse becomes the 100% owner of the property upon the death of their spouse.

Tenants in Common:  Title can be held by two or more individuals or legal entities in equal or unequal percentages.  Upon the death of one of the owners, their interest passes under the term of their will and not automatically to the other people with whom they are in title.

Joint Tenants with Rights of Survivorship:  Title must be held in equal interests (ie:  50/50 or 25/25/25/25) by individuals.  Title passes automatically to the co-owners upon the death of any owner.

Life Estate with Remainder Interest:  Title passes automatically to the holder of the remainder interest upon the death of the holder of the life estate interest.

Note:  No legal advice or suggestions are being given as to the preferable or recommended way to hold title.  Consult with an attorney prior to deciding how to hold title.  The above is an excerpt only from an Underwriting Manual.