Michelle smith broker guide

Michelle Smith RE/MAX equity group 971-22-9655

First American Title Broker Guide to Title & Escrow

FIRST AMERICAN TITLE - GRESHAM BRANCH 1205 NE Division Street Gresham, OR 97030 OFF ICE 503.667.1333 | cs.portland@firstam.com www.firstampdx.com

Table of Contents Life of an Escrow

3

Frequently Asked Questions About Title Insurance

4

Title Insurance - The Title Process

6

What is Escrow

7

Escrow Questions and Answers

8

Communication is Key

9

Did You Know? Deeds

10

Did You Know? Easements

11

CCR’s

12

Common Ways to Hold Title

13

Terms You Should Know

14

Customerily Who Pays for What?

15

Impound Reserve Chart

16

CostsFirst™

17

Financial Stability and Integrity First American Title is backed by unparalleled financial stability and integrity.

We are convenient: local, statewide, national and global.

We have complimentary Courtesy Signings for our direct operations in the State of Oregon.

We are one of the largest title insurers in the State of Oregon with operations in the majority of the counties.

We have been in the business for over 125 years and have the strength of an industry leader to prove it.

We have experienced professionals, resources, tools, and innovation to meet and exceed all of your title and escrow needs.

We are the oldest and only title insurance company in Oregon capable of underwriting directly.

LIFE OF AN ESCROW The Buyer

The Seller

The Escrow Officer

The Lender

Chooses a real estate agent.

Chooses a real estate agent.

Gets pre-approval letter from lender and provides to real estate agent.

Accepts buyer’s offer to purchase.

Upon receipt of order and earnest money deposit, orders title examination.

Accepts buyer’s application and begins the qualification process. Provides buyer with Loan Estimate.

Makes offer to purchase. Upon acceptance, opens escrow and deposits earnest money.

Finalizes loan application with lender. Receives a Loan Estimate from lender.

Completes and returns opening package from First American Title.

Schedules inspections and evaluates findings. Reviews title commitment/preliminary report.

Provides all requested paperwork to lender (bank statements, tax returns, etc.) All invoices and final approvals should be to the lender no later than 10 days prior to loan consummation.

Completes and returns opening package from First American Title, including information such as forwarding address, payoff lender contact information and loan numbers.

Orders any work for inspections and/or repairs to be done as required by the purchase agreement.

Escrow officer or real estate agent contacts the seller to schedule signing appointment.

Documents are recorded and all proceeds from sale are received.

Requests necessary information from buyer and seller via opening packages.

Reviews title commitment/ preliminary report.

Upon receipt of opening packages, orders demands for payoffs. Contacts buyer or seller when additional information is required for the title commitment/preliminary report.

All demands, invoices, and fees must be collected and sent to lender at least 10 days prior to loan consummation.

Coordinates with lender on the preparation of the CD. Reviews all documents, demands, and instructions and prepares settlement statements and any other required documents.

Orders and reviews title commitment/preliminary report, property appraisal, credit report, employment and funds verification.

Collects information such as title commitment/preliminary report, appraisal, credit report, employment and funds verification. Reviews and requests additional information for final loan approval.

Underwriting reviews loan package for approval.

Coordinates with escrow officer on the preparation of the Closing Disclosure, which is delivered to buyer at least 3 days prior to loan consummation.

Delivers loan documents to escrow.

Lender (or escrow officer) prepares CD and delivers to buyer at least 3 days prior to loan consummation.

Schedules signing appointment and informs buyer of funds due at settlement.

Upon review of signed loan documents, authorizes loan funding.

Escrow officer or real estate agent contacts the buyer to schedule signing appointment.

Once loan is consummated, sends funding package to lender for review.

Buyer consummates loan, executes settlement documents, & deposits funds via wire transfer.

Prepares recording instructions and submits docs for recording.

Reviews all documents, demands, and instructions.

Prepares settlement statements and other required documents.

Documents are recorded and the keys are delivered!

Practices vary by state and are subject to local laws and customs.

Documents are recorded and funds are disbursed. Issues final settlement statement.

Frequently Asked Questions

About Title Insurance What Is Title Insurance?

A title insurance policy protects the insured against any loss suffered as a result of the title to land not being as insured in the policy. For a one time premium the title policy provides protection as long as the buyer owns the property. The seller customarily provides an Owner’s Title Insurance Policy to the buyer; the buyer provides a Lender’s Title Insurance Policy to the lender. Unlike other kinds of insurance, title insurance insures against past events, affecting the rights to real property, rather than unforeseen future events.

Why Is Title Insurance Important?

You need title insurance because any home, no matter how new or apparently secure, is built on land as old as the earth itself. Undoubtedly, this land has had many previous owners.

Claims against any one of these persons can be filed against the property and against you as the present owner. Such hazards as fraud, missing heirs, old liens and many others can, and sometimes do, arise like ghosts out of the past. Title insurance protects you against these claims and title defects (it makes your home safely yours). Your title insurance policy is your shield of protection and will defend your ownership against loss.

Your protection and peace of mind last as long as you and your heirs remain in ownership.

How Much Does Title Insurance Cost?

Unlike the annual premiums of most other forms of insurance, you pay a one-time premium for title insurance. The premium will depend on the type of coverage you and/or your lender request.

Who Is Covered?

There are two basic types of title insurance policies: an Owner’s Policy and a Lender’s Policy.

Owner’s Policy: Owner’s title insurance, which the seller typically pays for at closing, is issued generally for the amount of the purchase price.

It protects the purchaser and the purchaser’s heirs as long as they own the property.

Lender’s Policy: Most lenders require title insurance as security for their investment in the property. The borrower typically pays for the Lender’s Policy, which is issued for the loan amount.

How Does A Title Company Eliminate Risks?

Title insurers conduct an examination of the public records looking for matters affecting the title to the real property. These records can include, among other things: - Deeds - Civil and Probate court records - Easements - Maintenance Agreements - Assessments - Debts and other burdens - Restrictions on the property An important part of the title insurance process is eliminating risk prior to insuring, thereby reducing the possibly of claim or loss. However, even the most careful examination cannot disclose “hidden hazards” to title.

What Are Some Hidden Hazards?

Hidden hazards can emerge after completion of a real estate purchase creating an unpleasant and sometimes costly surprise. Some examples are: - Forged deeds, releases or wills.

- Undisclosed heirs claiming an interest in the property.

- Documents executed under an expired or fabricated power of attorney.

- Mistakes made in the public record - Deeds executed by persons of unsound mind - Gaps in the “chain of title” - Invalid divorces - Fraud While many of these hidden hazards might not be revealed as a result of a routine title examination, they are covered under the terms of a title insurance policy. First American Title Insurance Company will defend the insured owner against an attack on their title and cover the cost of any settlement, including attorney fees.

What is a Title Commitment/ Preliminary Report Based on the results of the title examination, First American Title will issue a Title Commitment / Preliminary Report that includes the following: - Names of buyers and sellers - Type and amounts of coverage to be issued - Legal description of the property - Easements, liens, judgments, and existing loans - Map of the property - Copies of pertinent documents disclosed in the title report or commitment - An agreement to issue a Title Insurance Policy upon payment of the premium, subject to the terms and conditions as stated

Things to Look For on Title Reports Pending Action Before title insurance can be issued on a subject property, a civil action affecting the property will generally need to be dismissed or settled. A pending divorce may not need to be finalized prior to closing of a sale or loan, however there may be special circumstances. Be sure to check with your First American Title Office for further information.

Taxes And Assessments Be sure to look for any special circumstances such as exemptions or classification designations that could change the tax amount as a result of a sale or loan, then disclose this to the buyer.

Vesting Your seller should be vested in the property. If they are not in title, look for a real estate contract as an exception. If one does not exist, check the legal description to make sure it is the same as on the purchase and sale agreement.

Joint Use Driveways, party walls and access easements may require a joint maintenance agreement by the lender. The title report will show if one has been recorded.

Extended Coverage

What Are Some Exceptions To The Title Policy?

The following are some items which are typically not covered by title insurance: - Taxes or assessments not shown by the public record - Errors due to poor surveying, such as faulty boundary lines - Limitations on land use, such as laws against farm animals - Exceptions may also be added to your policy.

Examples include: - Easements, right of way and other legal obligations noted in the deed or other public records - Restrictive covenants or agreements limiting uses to your property

If an extended coverage policy is requested, an ALTA survey of the property might be required. If there is a question on encroachment, lien rights or other matters, these must be cleared prior to closing. A supplemental report will be issued if these matters are cleared by an Inspection of the property.

Legal Description The legal description should always be compared to the legal description on the purchase and sales agreement to ensure all property being conveyed has been included and thereby covered in the preliminary commitment.

Identity Matters Judgments and Liens may be eliminated with an identity affidavit if they do not affect the party in question. If they do affect the party, but have been paid and not satisfied of record, a release should be recorded or filed to eliminate the matters from record.

Deed Of Trust Deeds of Trust which are paid off require a reconveyance from the trustee or a court-ordered release to remove it from record.

In rare circumstances, upon proof of payment and indemnification acceptable to the title company, these encumbrances may be eliminated as exceptions to the title policy coverage.

Title Insurance

The Title Process Four essential services are performed during the title process.

Title Search and Examination When buying a home, prospective homebuyers or their real estate professionals consult a title company or agent. These highly trained title professionals conduct a search and examination of the public records to find and isolate title risks. As the records are generally indexed by name and not by property location, finding pertinent information can be tedious. The title industry invests millions of dollars to duplicate records and index them into geographic title databases to make the process more efficient.

Records that may be searched: tax, court judgment, deed, encumbrance, mortgage, federal and state records.

Real property characteristics that may be evaluated: zoning, location, survey issues, improvement type, etc.

Potential risks that may be identified: prior defective deeds, unreleased mortgages, mechanics’ liens, tax judgments, outstanding child support liens, access rights, utility and right-of-way easements, water and sewer assessments, improperly indexed documents,

Curative Actions During the title search and examination, title defects are found in more than one out of three residential real estate transactions.

These defects are remedied or otherwise addressed by title professionals as a matter of course – a process that can be difficult, as well as costly. Homebuyers are often unaware that this important work is being done behind the scenes to protect their interests.

The corrective work performed by title professionals also helps to uphold the integrity of the land records upon which our property registration system is built.

Settlement / Closing Services In many parts of the country, the title professional also conducts the settlement and/or closing. For most transactions, the process requires more than 100 time-consuming steps, including the following: Settlement: review contract or escrow agreement, handle monies, pay off any prior mortgages, coordinate property inspections, prepare settlement statement, and dozens of additional tasks.

Closing: gather parties to review and finalize documents, close the transaction, and submit pertinent documents for proper recordation.

The Title Insurance Policy When a property’s title is determined to be in insurable condition, the transaction can close and a policy of title insurance can be issued. Among other things, the policy insures against certain title risks that are undiscoverable from public records, such as forgery, fraud, and lack of capacity in prior transactions.

Two categories of residential title insurance are available: Owner’s Policy An Owner’s Policy protects the homeowner from enumerated title risks for as long as the policyholder owns the property. We also offer various extended policies and expanded coverages to address title issues that may arise after the policy date, including false claims by identity thieves, neighbors building encroachments, and more.

Loan Policy A Loan Policy is generally required by lenders (and purchasers of loans in the secondary mortgage market) to provide insurance that their mortgage liens are valid and enforceable, and that they have priority over other liens or claims. Extended policies and expanded coverages are also available to lenders.

What is Escrow?

“Escrow” is a term that describes the neutral third-party handling of funds, documents, and tasks specific to the closing (or settlement, as it is also known), as outlined on the real estate purchase agreement or sales contract. The purpose of escrow is to facilitate the transaction by managing the disbursement of funds and documents.

Other parties may be brought into the escrow by virtue of the instructions and requirements of the buyer and seller, i.e., the lender, lien holders, real estate agents, contract vendors, etc. In order for the seller and buyer to complete the transaction it may be necessary to receive money and documents from these other parties. Said parties will deposit their items of value along with their written instructions which confines the items to the escrow until their conditions have been met.

The Escrow Agent Remains An Impartial Third Party.

First American Title provides professional escrow settlement services unsurpassed in our industry.

Placing your escrow with First American Title provides: financially responsible and licensed custodian to A safeguard funds and documents xpertise in handling complicated transactions, E especially in today’s challenging environment “clearing house” for the payment of all liens and A other encumbrances single point of contact for coordinating the flow of A documents and funds n impartial third party to assume responsibility for the A many tasks involved in closing

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Escrow Questions & Answers How is escrow opened?

As soon as the buyer and seller execute the purchase agreement, the real estate agent(s) will open escrow. At that time, the buyer’s “Earnest Money” check will be deposited.

What information do the buyer and seller have to provide?

The buyer must inform the escrow officer and new lender of the manner in which the buyer will hold title to their new house so that all documents can be prepared correctly. The manner in which the buyer holds title can have tax and legal consequences.

We suggest you consult your attorney or tax advisor to assist you in your decision.

What happens after the borrower submits the loan application?

The lender will begin the qualification process including verification of information submitted on the application, a credit report, and appraisal of the value of the property.

The lender will require that the borrower obtain hazard/fire insurance and flood insurance, if the property is in a specific type of flood hazard zone.

It is also a requirement of the lender that the borrower furnish a policy of title insurance, which protects the lender’s security interest in the property. The Escrow Officer will order this title policy as part of the escrow process.

Once the loan is approved, the lender will coordinate with the escrow officer on the preparation of the Closing Disclosure (CD).

This federally required form must be delivered to the buyer at least three business days* prior to loan consummation (typically the signing date). In addition, the escrow officer will prepare an estimated settlement statement and tell the buyer the balance of the down payment and closing costs required to close escrow. *For the purposes of the Closing Disclosure, “business day” is defined as every day except Sundays and Federal legal holidays

What do the parties need to bring with them when they come to the title company to sign? › Identification in the form of a valid driver’s license or I.D. card, or current valid passport. Identification is required so the signing party’s identity can be verified by the notary public. Lenders may also have additional identification requirements. › A cashier’s check for the balance of funds needed to close the escrow, made payable to First American Title. A wire transfer of funds directly to the escrow trust account can also be arranged and is the preferred method of providing “good funds”.

When is “close of escrow”?

When all the conditions of the lender and those contained in the escrow instructions have been satisfied, the lender will forward the loan funds to the escrow trust account. The funds in the escrow are disbursed to the entitled parties. The escrow officer will arrange for the documents to be recorded. Escrow is now “closed.”

Communication is the Key to a smooth title transaction.

If you can answer YES to any of these questions, please contact your Title Officer Are the principals names common, misspelled, missing middle initials or shown as nicknames?

Is only the address provided when there is actually bare land or other property included in the transaction?

Will there be any property line adjustments, partitioning or subdividing of the land?

Are your principals using a Power of Attorney? Is it specific to the property?

Are any of the parties in title incapacitated or deceased?

Has a change in marital status occurred for any of the principals?

Is the property now vested in or will the property be transferred to a trust, partnership, corporation or LLC? Is this a short sale?

Is one of the parties responsible for child/spousal support?

Are any of the parties involved in a bankruptcy?

In our ever-changing world of real estate, there is always one truth that remains constant: YOU CAN NEVER OVERCOMMUNICATE.

Did You Know?

Deeds

Did you know the essentials for a valid deed?

1.

The instrument must be in writing.

2.

The parties must be properly identified.

3.

The grantor must be competent to convey title.

4.

The property must be adequately described.

5.

here must be words of conveyance T (i.e. “grant, bargain and sell�)

6.

The deed must be signed by the grantor

7. The 8.

deed must be delivered (intent to convey)

Did you know the requirements for recording a deed in Oregon?

1.

he deed must be properly acknowledged by T signing the document in the presence of a Notary Public.

2.

he deed must show the name and address T of the person to whom the tax bill is to be sent.

3.

The actual consideration, or sale price, must be shown.

4.

he deed must contain a proper legal T description of the property being conveyed.

5.

he deed must contain land use disclaimer T language

The deed must be accepted (intent to accept)

Did you know that if there is a Land Sale Contract on a property there should also be a fulfillment deed prepared at the same time? The deed should be held in a collection account or by an attorney until the contract is paid in full. At that time the fulfillment deed should be recorded in the County where the property is located.

Did You Know?

Easements

Did you know an easement is a non-possessory interest in the land of another which entitles the holders of an interest in the easement to a private use (such as, right of way, sewer line, etc.) across another’s land? An easement will pass with the transfer of property to the new owner.

Appurtenant Easement An appurtenant easement is for the benefit of another parcel of land, such as the right to cross Parcel A to reach Parcel B. For an easement to exist there must be a least two parcels of land in separate ownership: Dominant estate – the land to which the easement is appurtenant, i.e., the land which benefits

uu

Servient estate – the land over, through or under which the easement exists, i.e., the land which is burdened.

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Easement In Gross An easement in gross is an easement for the benefit of a person or company, rather than for the benefit of another parcel of land. Such easements are usually used for public utilities, as in power lines crossing the properties.

Road Maintenance Agreements If these are recorded, they will show on your Preliminary Title Report. You should review these thoroughly.

Many lenders, particularly, FHA and VA, may have specific requirements regarding the language contained in Road Maintenance Agreements. If there is no recorded Road Maintenance Agreement ORS105.170 et seq provides mandatory maintenance provisions.

CC&R’s Covenants, Conditions & Restrictions

What are CC&R’s?

CC&R’s are typically established in the formation of a planned community or a condominium, and “enforced” through a homeowner’s association. CC&R’s affect the use, alteration, improvement, repair and maintenance by setting community standards for the collective enjoyment of individual units and shared common areas.

Restrictions may apply to paint colors, parking, pool use and lawn maintenance. CC&R’s are intended to maintain some orderly continuity to the character and livability of the neighborhood. Violations of CC&R’s are enforceable through civil action only.

Homeowner’s Associations Condominium and planned community Homeowners Associations (HOA’s) are regulated by statute. The distinction between condominiums and planned communities involves the ownership of common areas. In a condominium community, each unit owner owns an undivided percentage ownership of the common area.

In a planned community the common area is owned by the Homeowners Association. The condominium and planned community statutes govern matters such as the penalties an HOA may impose, meetings, record requirements, and liens.

Developments that have mandatory HOA membership but do not contain any common areas do not fall within the statutory definition of either condominiums or planned communities. In most of these developments, restrictive covenants are recorded against the property (commonly referred to as “CC&R’s”), which empower the HOA to control certain aspects of property use within the development, often including oversight and approval authority over the construction of new homes and alterations of existing ones.

When a person buys a home in such a development, the person receives a copy of the CC&R’s and agrees to be bound by their terms. Thus, the CC&R’s form an enforceable contract between the homeowners as a whole and the individual homeowners.

Whether or not to live in a development governed by CC&R’s and an HOA is an individual choice. Therefore, all prospective homebuyers should be advised to thoroughly read any CC&R’s recorded against the home and make sure they can live with the conditions and restrictions contained therein prior to close of escrow.

Common Ways to Hold Title

The following information is provided for informational purposes only and is not intended to replace legal advice from your attorney or tax consultant.

As An Individual Man/Woman – An individual may hold title in his or her name alone whether they are

married or unmarried. If the individual is married their spouse has no rights in the property (i.e. Jane Doe, an individual) during the lifetime of the owner.

Tenants by the Entirety/Married Couple – Oregon Revised Statutes (“ORS”) 93.180 provides that a conveyance to a married couple is presumed to create a tenancy by the entirety which is a survivorship estate as between the two parties, i.e. the title passes automatically from a deceased party to the survivor, unless they express a specific intent to hold it in a different manner. (i.e. John Doe and Jane Doe husband and wife or John Doe and Jane Doe tenants by the entirety) Registered Domestic Partners – House Bill 2007 provides that persons of the same sex who comply with the registration provisions are afforded the same privileges, immunities, rights and benefits afforded to married persons. Individuals may take title as tenants in common (see below) or they can take title in a survivorship estate similar to a tenancy by the entirety. (i.e. John Doe and Fred Buck as Oregon registered domestic partners with the right of survivorship)

Survivorship Estate – ORS 93.180 provides that two or more individuals may take title in a survivorship estate; i.e. title automatically passes to the surviving person(s), if they state the intent to do so (i.e. John Doe, Fred Buck, Mary Shelley with rights of survivorship) Tenants in Common – ORS 93.180 provides that a conveyance to two or more persons who are not married

are presumed to be tenants in common, that is each has an equal, or as otherwise stated, undivided interest in the property (i.e. John Doe, Fred Buck and Mary Shelley tenants in common)

Entity – A recognized legal entity may hold title to real property, examples are Partnership (general or

limited), Limited Liability Company, or Corporation. The grantees name should be exactly as registered with the State of Oregon or other state where the entity was created.

Representative Capacity – Title to real property may also be held by an individual or entity in their capacity acting on behalf of others, e.g. John Doe, Personal Representative of the Estate of Mary Shelley, deceased, John Doe, Trustee of the Mary Shelley Trust, etc.

TERMS YOU SHOULD KNOW A PPR A I S A L An estimate of value of property resulting from analysis of facts about the property; an opinion of value.

DEED RESTRIC TIONS Limitations in the deed to a parcel of real property that dictate certain uses that may or may not be made of the real property.

A N N UA L PE R C E N TAG E R AT E ( A PR ) The borrower’s costs of the loan term expressed as a rate. This is not their interest rate.

D I S B U R S E M E N T DAT E The date the amounts are to be disbursed to a buyer and seller in a purchase transaction or the date funds are to be paid to the borrower or a third party in a transaction that is not a purchase transaction.

BENEFICIARY The recipient of benefits, often from a deed of trust; usually the lender.

C LO S I N G D I S C LO S U R E (C D) Closing Disclosure form designed to provide disclosures that will be helpful to borrowers in understanding all of the costs of the transaction. This form will be given to the consumer three (3) business days before closing.

E ARNEST MONE Y DEPOSIT Down payment made by a purchaser of real property as evidence of good faith; a deposit or partial payment.

E ASEMENT A right, privilege or interest limited to a specific purpose that one party has in the land of another.

C LO S E O F E S C R O W Generally the date the buyer becomes the legal owner and title insurance becomes effective.

ENDORSEMENT As to a title insurance policy, a rider or attachment forming a part of the insurance policy expanding or limiting coverage.

CO M PA R A B L E S A L E S Sales that have similar characteristics as the subject real property, used for analysis in the appraisal. Commonly called “comps.”

HA Z ARD INSUR ANCE Real estate insurance protecting against fire, some natural causes, vandalism, etc., depending upon the policy. Buyer often adds liability insurance and extended coverage for personal property.

CO N S U M M AT I O N Occurs when the borrower becomes contractually obligated to the creditor on the loan, not, for example, when the borrower becomes contractually obligated to a seller on a real estate transaction. The point in time when a borrower becomes contractually obligated to the creditor on the loan depends on applicable State law.

Consummation is not the same as close of escrow or settlement.

DEED OF TRUST An instrument used in many states in place of a mortgage.

IMPOUNDS A trust type of account established by lenders for the accumulation of borrower’s funds to meet periodic payments of taxes, mortgage insurance premiums and/or future insurance policy premiums, required to protect their security.

L EG A L D E S C R I P T I O N A description of land recognized by law, based on government surveys, spelling out the exact boundaries of the entire parcel of land. It should so thoroughly identify a parcel of land that it cannot be confused with any other.

LIEN A form of encumbrance that usually makes a specific parcel of real property the security for the payment of a debt or discharge of an obligation. For example, judgments, taxes, mortgages, deeds of trust.

LOA N E S T I M AT E ( L E ) Form designed to provide disclosures that will be helpful to borrowers in understanding the key features, costs and risks of the mortgage loan for which they are applying. Initial disclosure to be given to the borrower three (3) business days after application.

M O R TG AG E The instrument by which real property is pledged as security for repayment of a loan.

PI T I A payment that includes Principal, Interest, Taxes, and Insurance.

P O W E R O F AT TO R N E Y A written instrument whereby a principal gives authority to an agent. The agent acting under such a grant is sometimes called an “Attorney-in-Fact.”

R ECO R D I N G Filing documents affecting real property with the appropriate government agency as a matter of public record.

S E T T L E M E N T S TAT E M E N T Provides a complete breakdown of costs involved in a real estate transaction.

TRID TILA-RESPA Integrated Disclosures

Customarily Who Pays for What

In Oregon

FHA .

Conv

VA

Cash

FHA .

Conv

VA

Cash

Estimated Seller’s Cost Real Estate Commission 1/2 Transfer Tax (WA County) Reconveyance/Release Fee Prepayment Penalty (if applicable) Owner's Title Insurance Escrow Fee Tax Proration Lien Search (if applicable) Mortgages & Encumbrances Any Property Tax Due Buyer's Lender Fees (varies by lender) Other TOTAL Seller pays full escrow fee.

NOTE: Utilities handled outside closing.

Estimated Buyer’s Cost Appraisal Fee Loan Origination Fee/Discount Credit Report Recording Fee Tax Proration Reserve Set-up (if applicable) Mortgage Insurance (if applicable) Escrow Fee Lender's Title Insurance Fire Insurance 1 Year Flood Insurance (if applicable) Flood & Tax Certifications 1/2 Transfer Tax (WA County) Prepaid Interest HOA Fees (if applicable) VA Funding Fee TOTAL Seller pays full escrow fee.

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Impound

Reserve Chart FUNDING MONTH

MONTHS OF IMPOUNDS

January

3 to 4

February

4 to 5

March

5 to 6

April

6 to 7

May

7 to 8

June

8 to 9

July

9 to 10

August

10 to 1 1

September

11 to 1 2

October

12 to 1 3

November

1 to 2

December

2 to 3

These amounts are estimates only.

Subject to lender regulations.

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Estimated Closing Costs Net Sheet available in:

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CostsFirst

™

BY F I R S T A M E R I CA N T I T L E Get the closing costs you need, when you need them.

CostsFirst™ is entirely web based and a full version of the app is available for most mobile devices.

Not available in all areas.

Quick and easy online access Email, print, or save a net sheet for Buyer, Seller, Short Sale and Refi Calcuate fees outside of your area based on property zip code Save time with customizable closing cost settings which can change based on the property zip code Make updates to saved files Includes Closing/Consummation Date Timing Calculator

Visit www.CostsFirst.com or contact your local First American Title representative for more information.

CostsFirst™ trademark is used with permission. iPhone is a trademark of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc.

NOTES

NOTES

First American Title Insurance Company, and the operating divisions thereof, make no express or implied warranty respecting the information presented and assume no responsibility for errors or omissions. First American, the eagle logo, First American Title, and firstam.com are registered trademarks or trademarks of First American Financial Corporation and/or its affiliates.

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