The Pronghorn Press - First Edition

2016 | EDITION 1

The

Pronghorn Press ~ A WYOMING AGENCY NEWSLETTER ~

INSURING ACCESS IN W YOMING By: Bill Boyles, State Underwriter-Wyoming

Once upon a time in Wyoming a cowboy was looking to buy a parcel of Wyoming heaven. Imagine his surprise when his favorite title company informed him there was no legally established “right of access to and from the land.” The cowboy was sure the title company folks were crazy!

Everyone knew there was a nice road to the ranch and it had been there forever. But, being a wise old cowboy, he decided to ask the seller about the road. The seller told him there was “an easement.” The seller and the cowboy decided they would inspect the easement, so they jumped in the pickup and drove to a gate where a nicely maintained road began. The road ran for several miles right to the little piece of Wyoming heaven.

The seller said, “Now this here easement means that you can ease on through the neighbor’s pastures, ease on down his road, ease on through his gates and you can ease on into the ranch.”

Page

In This Issue

1-2

Insuring Access In Wyoming

3

FIRPTA Foreign Investment In Real Property Tax Act

4

Wyoming Agency Team Contact List

4

First American Title Pass-Thru Marketing

Have you ever had a customer tell you a story like this? People believe that the existence of a road indicates the existence of a legally established right of access. This is simply not true.

In Wyoming, there may be thousands of miles of roads which are not legally established; insuring access should be approached with caution.

The majority of title insurance claims in Wyoming have an access issue associated with them.

Access falls into two categories, public and private. Each type has its own characteristics, and a thorough understanding of the nuances is required.

The subject of access is complicated and the purpose of this article is to touch on some of the basics.

Public rights of access fall into several categories. County roads are the first and provide the least restrictive rights of access. Except for safety reasons imposed by the county, no one can restrict the right of passage over a county road. Establishment of county roads is dependent on the county properly following statutory procedures.

The information contained in this document was prepared by First American Title Insurance Company (“FATICO”) for informational purposes only and does not constitute legal advice. FATICO is not a law firm and this information is not intended to be legal advice. Readers should not act upon this without seeking advice from professional advisers. First American Title Insurance Company makes no express or implied warranty respecting the information presented and assumes 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.

AMD: 03/2016

©2016 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF

INSURING ACCESS IN WYOMING CONT. “Driveways for Livestock” are also provided for under the statutes; the county commissioners can establish them “… for the purposes of providing driveways for livestock…” to a width not to exceed 500 feet. Did you know that?

City streets are established by cities through statutory procedures too. The right of passage over city streets is more restrictive than county roads, but still relatively unrestricted.

The right of access over state highways is more restrictive than county/city roads, as the right to enter or exit a state highway is controlled by the rules and regulations of the Wyoming Department of Transportation.

Interstate highways are federally funded state highways and are the most restricted roads in Wyoming. Entering and exiting interstate highways is highly regulated.

Public roads and streets can also be created through the platting process.

Other types of public access are roads over Bureau of Land Management (BLM), Forest Service and State lands.

Insuring access over these types of roads requires strong underwriting skills, as the rules and regulations associated with them are numerous and complex.

Roads across federal lands are public roads only in the same sense as the post office or the courthouse are public buildings. The use of these roads is only permitted by the government and this permission can be revoked at any time.

Roads across State lands are another matter. In a pamphlet published by the State of Wyoming, it is stated, “State of Wyoming lands are not public lands in the same sense as the federal lands managed by the federal land management agencies. Almost all of the 3.8 million acres of Wyoming’s state-owned land are trust lands granted to the state on its admission to the Union. These trust lands are managed to produce income for the support of the state’s schools and public institutions. The lands must be legally accessed and public users must comply with the regulations of the Wyoming Board of Land Commissioners.

The Board may close specific state land roads and areas to public use on a permanent, temporary or seasonal basis.”

which is attached to and belongs with some greater and superior right or something annexed to another thing more worthy and which passes as incident to it and is incapable of existence separate and apart from the particular land to which it is annexed.” Incorporeal right means “having no material body or form. It is a right that has no physical existence.” What? Essentially, appurtenant easements belong to land and not to a person. They are automatically transferred when the title to land is transferred.

The Wyoming Supreme Court defined the five essential qualities of an appurtenant easement.

1. The easement is incorporeal or not of a material nature.

2. The easement is imposed upon corporeal property and not its owner.

3. The easement confers no rights to participate in the profits arising from the property.

4. The easement is imposed for the benefit of corporeal property.

5. There must be two distinct estates, the dominant, the one to which the right belongs, and the servient estate, the one upon which the obligation is imposed. (Belle Fourche Pipeline Co. v. State of Wyoming 766 P2nd 537) When examining and insuring an AE, you should keep these five qualities in mind. AEs are what title companies want to insure and they are favored in law.

Easements in gross do not go with land, but belong to people. It is a personal interest to use another person’s land. Easements in gross do not automatically transfer with title to land. Here’s a fancy definition*: “Easement in Gross: It has been said that there is no such thing as an easement in gross. However it has been recognized that certain rights are impressed upon the land of one person in favor of another person and not in favor of a tract of land. These rights are easements in gross. An easement in gross is a personal interest to use the land of another person. It is vested in the person to whom it is granted. Example: The right to maintain a telegraph line across land. The right to maintain a sign on a lot.”

Easements in gross can be problematic to insure as they may not be assignable, transferred or inherited.

Exceptions to coverage may be necessary and as a general rule they are not favored in law.

If you’re faced with these situations, please contact the First American Title Underwriting Department, as special requirements and exceptions will be necessary.

Another way to gain access to land is through the use of a License. Like an easement in gross, a License is personal. What distinguishes a License is the ability of the grantor to terminate the permitted use at the grantors discretion.

Private rights of access are appurtenant easements (AE) and easements in gross. An appurtenant easement is defined in Black’s Law Dictionary as, “an incorporeal right

Private access across railroads is generally accomplished through the use of a License. We can discuss access across railroads in a future edition of the newsletter.

First American Title | The Pronghorn Press | 2016 - Edition 1

* 25 Am Jur 2d Easements and Licenses

Page 2

FIRPTA

Foreign Investment In Real Property Tax Act

What are the withholding requirements when a seller is not a U.S. Citizen or U.S. Resident?

DOES THE BUYER HAVE DEFINITE PLANS TO USE THE PROPERTY AS THEIR RESIDENCE*?

NO

YES

Buyer is required by law to withhold 15% of the purchase price.

What is the sales price?

NOTE: If the seller believes they may be eligible for an IRS Withholding Certificate, they should contact a CPA or tax attorney regarding application form 8288-B in order to obtain a determination from the IRS whether a lesser amount is due. *The buyer or a member of their family must have definite plans to reside at the property for at least 50% of the number of days the property is used by any person during each of the first two 12-month periods following the date of transfer. When counting the number of days the property is used, do not count the days the property will be vacant.

$300,000 or less

Complete buyer’s declaration for $300,000 residence exemption form.

More than $300,000, but not more than $1 Million

More than $1 Million

Buyer is required by law to withhold 10% of the purchase price.

Buyer is required by law to withhold 15% of the purchase price.

First American Title Insurance Company and its affiliates expressly disclaim any representations or warranties that the guidance provided herein will satisfy any statutory or regulatory obligations, or will guarantee or otherwise ensure compliance with any applicable laws or regulations, including but not limited to FIRPTA, or other federal or state statutes or regulations. [Agent] is solely responsible for ensuring that any services provided are in accordance with applicable law. It is [agents’] responsibility to review changes in laws, regulations and accounting practices that affect you and your business.

The information contained in this document was prepared by First American Title Insurance Company (“FATICO”) for informational purposes only and does not constitute legal advice. FATICO is not a law firm and this information is not intended to be legal advice. Readers should not act upon this without seeking advice from professional advisers.

First American Title | The Pronghorn Press | 2016 - Edition 1

Page 3

FIRST AMERICAN TITLE | WYOMING AGENCY TEAM

Amie Voss

Robert “Bob” Rice, Esq.

Bill Boyles

VP, Colorado and Wyoming Agency State Manager D: 303.305.3358 | C: 303.304.4397 abvoss@firstam.com 44 Cook Street, Suite 350 Denver, CO 80206

VP, Regional Underwriting Counsel D: 208.321.5180 | C: 208.841.3082 rrice@firstam.com 3540 East Longwing Lane, Suite 250 Meridian, ID 83646

State Underwriter - Wyoming D: 307.577.9821 | C: 307.871.2638 bboyles@firstam.com 120 North Center Street Casper, WY 82601

First American Title

FIRPTA

First American

Closing Information

Transaction Information

Date Issued Closing Date Disbursement Date Settlement Agent File # Settlement Agent Name & File Number Property

Borrower

Eagle Owner’s Policy vs.

Standard ALTA Policy Loan Information

Loan Type

Lender

Conventional FHA VA _____________

Loan ID # MIC #

Sale Price

We understand that your home is possibly the largest Loan Terms

Can this amount increase after closing? financial investment you will make, but the investment

is not just financial. Buying

a home is also an investment in the future for you and your family. That is why we offer the First American

Loan Amount Interest Rate

Eagle Owner’s Policy of Title Insurance. This Owner’s

Monthly Principal & Interest

FIRST-TIME

Policy provides more than safeguards for the title to

See Projected Payments below for your Estimated Total Monthly Payment

HOMEBUYER

DOES THE BUYER HAVE DEFINITE PLANS TO USE THE PROPERTY AS THEIR RESIDENCE*?

Loan Term Purpose Product

Seller Seller Name and Address

your property— it

provides you with peace of

mind.

Does the loan have these features?

FAQs

expanded title coverage for owners of one-to-four family residences, including condominiums. Coverages

Projected Payments

included in the Eagle Owner’s Policy offer the

Payment Calculation

YES

NewMy Home What is the sales price?

5 Post-Policy Adverse Possession

NOTE: If the seller believes they may be eligible for

Withholding Certificate, they should contact 5 Post-Policy Easement an byIRS Prescription a CPA or tax attorney regarding application form

$300,000 or less

5 Building Permit and Zoning Violations 8288-B in order to obtain a determination from the 5 Encroachment of Improvements *The buyer or aOnto member of their family must have

definite plans to reside at the property for at least Easements and Set-Backs 50% of the number of days the property is used by

two 12-month 5 Subdivision Violation any person during each of the first BEDROOM periods following the date of transfer. When

M E

do not count the days the property will be vacant.

O G

counting the number of days the property is used, 5 Restrictive Covenant Violations EXCITING

5 Structural Damage caused by Mineral

T Q R

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S J

Buyer is required by law to withhold D10%Nof the F C purchase price.

C

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More than $1 Million

Buyer is required by law to withhold G H15% Fof the Q U purchase price.

S

G N

I

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W S

H O M E CO M PA R ISO N

Mortgage Insurance

©2015 First American Financial Corporation and/or its affiliates. All rights reserved.  NYSE: FAF

Extraction or Easement Use by Others

5 Encroachment of Boundary Walls and Fences ABC Title Company

chart

©2016 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF

AMD: 02/2016

©2015 First American Financial Corporation and/or its affiliates. All rights reserved.  NYSE: FAF

AMD: 11/2015

OVERCOMING

Owner’s Policy Objections

Should I use a real estate agent? How do I find a good one?

DINING ROOM A good real estate professional can guide you through the entire GREAT ROOM process and make the experience much easier. All of the details involved in home buying, particularly the financial ones, can be KITCHEN REAL ESTATE AGENT mind-boggling. Start by asking your family and friends if they What is title insurance and why do I need it?

FAMILY ROOM can recommend an agent. for an agent who listens well andto homebuyers. This new An Owner’s Policy of title insurance protects the buyer against When TRID requirements go into effect, lenders will beginLook issuing a new Closing Disclosure BATHROOM your needs. The ideal agent knows the local area loss for title threats undiscovered at the of closing andPolicy ofunderstands form willtime list the Owner’s titleand insurance as an and “optional” owner’s well has resources contactspurchase. to help youWhile in your search. title insurance has never

Know Before F deadbolt Q C Z Z and P home X O J Jsystems C Zas WINDOWS Many homeowners choose to install smoke alarms, locks, security You Owe important lines of defense to ensure their peace of mind. An Owner’s Policy of Title Insurance is

If you can answer “yes” to these questions, you are probably ready to buy your own home.

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ROAD MAP TO

also an option homeowners choose to provide an added layer of security and protection.

Quick Reference Guide TRID RULE VARIATIONS/TOLERANCES Your home may be new to you, but every property has a history. There may be hidden

MASTER been required, this “optional” language could spur questions regarding the value of title insurance. Below are BEDROOM some of

The more knowledgeable you are about the home-buying process, the better prepared you are to make an informed decision. the more common “objections” to the purchase of an Owner’s Policy.

Once you have found the home of your dreams, contact our office so we can provide the protection you need and the service you deserve.

issues in the chain of title which could affect your ownership, such as:

MASTER BATH BEDROOMS

• Errors in Public Records

FLOOR PLAN

“I’m already paying for title insurance.”

ABC Title Company

“This is a foreclosure.”

PATIO

CLOSING DISCLOSURE FORMS

• Undiscovered Encumbrances

• UnknownBY Liens • Unknown Easements IF REQUIRED THE IF NOT REQUIRED BY • Illegal Deeds • Boundary/Survey First American, the eagle logo, First American Title, and firstam.com are registered trademarks or trademarks of LENDER, AND THEDisputes LENDER, IFAGENT OF FIRST AMERICAN TITLE INSURANCE COMPANY AN INDEPENDENT(EVEN POLICY-ISSUING defined as all calendar days except Sundays Firstand American Financial Corporation and/or its affiliates.

This charge is for a lender’s policy of title insurance, If you’re buying a foreclosure, the only attorney toPOOL • The Disclosure which protects your lender. This coverage is almost review the property’s backnew titleClosing and validity of the(CD) form will be heirs • UndiscoveredPAID Will TO AN AFFILIATE LANDSCAPING used for most real estate transactions closed with Federal holidays specified in• 5Missing U.S.C. 6103(a). always required, but does not offer protection for your foreclosure is the attorney who performed the bank’s a mortgage.

ItGARAGE replaces the HUD-1 Settlement • Changes to the CD after delivery to the buyer OR CARPORT OF THE LENDER) • Forgeries • False Impersonation of Previous Owner investment. Only an Owner’s Policy helps protect your foreclosure work. There could still befinal clouds on the Statement and Truth-in-Lending Disclosure. which require a new three business-day waiting Paid to a third party SOMETHING MEMORABLE • Section H – LE Paid to a third party NOT Paid toAPR the changes lender orbeyond allowable interests. In fact, your bank’s loan policy only covers title or outstanding• liens or debts that surface In most cases the may lender, not the settlement period include: (or an affiliate of lender or required to be used by the broker agent, will prepare and LIKE deliver the buyer CD. limits, loanmortgage product changes, or a pre-payment • Section H – CD the amount of the mortgage and only lasts until that after the transaction is complete.

DOES THIS FEEL HOME? An Owner’s Policy of broker) Title Insurance protects your for as mortgage required lender; theinvestment lender provides a long as you or your heirs have an • Section A – LE • The settlement agent is not permitted to send a penalty is added. debt is settled. An Owner’s Policy offers you protection Source: HUD.gov, Common Questions from First-time Homebuyers: www.portal.hud.gov/hudportal/HUD?src=/topics/common_questions to be used by the lender written list; AND • Section A –not CD First American Title Insurance Company makes no express or implied warranty respecting the information presented and copy of the CD to the real estate agent, but you • The settlement agent, the lender, is interest in the property.

Additionally, the title insurance company will, at its own expense, defend the title and “The sellers have lived there for decades.”

• Section B – LE assumes no responsibility for errors or omissions. First American, eagle logo, First Title,your and firstam.com fortheas long asAmerican you or heirs have AN anINDEPENDENT interest POLICY-ISSUING in the AGENT OF FIRST AMERICAN TITLE INSURANCE COMPANY are registered trademarks or trademarks of First American Financial Corporation and/or its affiliates. may request a copy from the buyer. responsible for completing and delivering the B – CD • Section will pay losses within The amount of time sellers owned the property property.

ABC Title Company • the The CD must be delivered to the buyer/ seller’s side of the CD. Settlement agents may the coverage of the policy if they occur. Unlike other insurance models, where premiums does not translate to borrower aBob worry-free transaction.

There days prior to the Smith at least three business elect to prepare a separate are CD paidfor onthe anseller. ongoing basis, title insurance is a one-time premium paid at the closing of your transaction.

“This is a brand new home.” could still be unsettled issues Executive that affect the property Account scheduled consummation date. Business days are Transfer Taxes 123 stemming Main Street from life estates, • Section E – LE title, including problems There are several title issues that could exist even with • Section E – CD Anytown, divorce ST 01234 settlements, Securing peace of mind is easy when you take a smart approach. We encourage you to thoroughly research your home equity lines, refinances, newly constructed homes. While the structure might O: 555.555.5555 | F: 333.333.3333 unpaid taxes, assessments and municipal utility bills. be new, the property on which it sits is not, and there CONTRACT CONSIDERATIONS options, reduce your risks and make informed decisions about the products and services offering the best protection.

C: 444.444.4444 | www.ABCTitle.com Lender Credits could be title issues that exist with the land. Not to Bob@ABCTitle.com • Allow at least 45 days for a normal contract-to• Allow multiple days between concurrent closings.

The peace of mind you’ll have from knowing • Sectionyour J – LE home and family is protected is well worth the investment.

“I’m only buying land.” mention that mechanics’ liens could exist resulting consummation time-frame.

• Schedule inspections early so reports and • Section J and Paid by Prepaid Interest First American Insurance Company makes no or implied warranty respecting the information presentedcan and be delivered to settlement There can be many• title issuesTitle affecting vacant Communicate with lender toexpress confirm borrower’s invoices Others column – CD from unpaid construction debts. Other potential issues assumes no responsibility for errors or omissions. First American, the eagle logo, First American Title, and firstam.com AN INDEPENDENT POLICY-ISSUING AGENT OF FIRST AMERICAN TITLE INSURANCE COMPANY rate lock is longor trademarks enough toAmerican meetFinancial contract weeks before anticipated are registered trademarks of First Corporation and/or its affiliates. agent at least two land. These include unclear property boundaries, include legal rights of access, easements, restrictions, Property Insurance Premiums consummation date. unrecorded deeds orobligations. the discovery of prior interests covenants, HOA liens or other issues that may affect Bob Smith Account Executive 123 Main Street Anytown, ST 01234 O: 555.555.5555 | F: 333.333.3333 C: 444.444.4444 | www.ABCTitle.com Bob@ABCTitle.com

©2015 First American Financial Corporation and/or its affiliates. All rights reserved.  NYSE: FAF

AMD: 12/2014

©2015 First American Financial Corporation and/or its affiliates. All rights reserved.  NYSE: FAF

AMD: 11/2014

ZERO

TOLERANCE

©2015 First American Financial Corporation and/or its affiliates. All rights reserved.  NYSE: FAF

due to omissions in wills and estate planning, divorce $ settlements and real estate taxation.

ABC Title Company

INFORMATION AND INVOICES •

ABC Title Company Bob Smith Account Executive 123 Main Street Anytown, ST 01234 O: 555.555.5555 | F: 333.333.3333 C: 444.444.4444 | www.ABCTitle.com Bob@ABCTitle.com

•

Bob Smith Account Executive In order to close on-time, the settlement agent will need the following information a minimum of 10 days 123 Main The consumer doesStreet The consumer selects prior to consummation: not select aAnytown, providerST 01234 a provider from the » Seller/Buyer/Borrower name and address » Real estate agent name, address,|license ID, O: 555.555.5555 F: 333.333.3333 so the lender lender’s list C: 444.444.4444 » Real estate broker(s) name, address email address and phone number| www.ABCTitle.com • Section C – LE chooses and license ID » Buyer/Seller creditsBob@ABCTitle.com • Section C – LE • Section B – CD Invoices should be submitted a minimum of 14 days prior to consummation and written • Section B –include CD

instructions indicating the payer and payee.* » Inspections (Pest, Roof, Home, AC/HT, Septic, Pool, etc.)

First American Title Insurance Company makes no express or implied warranty respecting the information presented and assumes 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.

» Home Warranty

AN INDEPENDENT POLICY-ISSUING OF FIRST AMERICAN TITLE INSURANCE COMPANY » AGENT Survey

» Hazard Insurance

©2015 First American Financial Corporation and/or its affiliates. All rights reserved.  NYSE: FAF

AMD: 09/2015

ABC Title Company Bob Smith Account Executive 123 Main Street * This may ST not 01234 be a complete list for every transaction, and some of Anytown, these items may not apply to all transactions.

O: 555.555.5555 | F: 333.333.3333 C: 444.444.4444 | www.ABCTitle.com Bob@ABCTitle.com * Not be a complete list for every transaction and some of these items may not apply.

First American Title Insurance Company makes no express or implied warranty respecting the information presented and assumes 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.

AMD: 10/2015

The consumer selects a provider NOT on the lender’s list • Section C – LE • Section C – CD

First American Title Insurance Company makes no express or implied warranty respecting the information presented and assumes 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.

» Real Estate Commissions » HOA Fees and Proration » Attorney Fees » Repairs » Seller Payoffs with Breakdown

Amounts placed into an escrow, impound, reserve, or similar account • Section F – LE • Section F – CD

AN INDEPENDENT POLICY-ISSUING AGENT OF FIRST AMERICAN TITLE INSURANCE COMPANY ©2015 First American Financial Corporation and/or its affiliates. All rights reserved.  NYSE: FAF

AMD: 12/2015

10% AGGREGATE

Recording Fees • Section E – LE • Section E – CD

TOLERANCE

VARIATIONS/TOLERANCES SUMMARY  Borrower was not allowed to shop = 0%  Borrower was allowed to shop but didn't = 10%  Borrower was allowed to shop and did = Unlimited

UNLIMITED TOLERANCE

ABC Title Company Bob Smith AN INDEPENDENT POLICY-ISSUING AGENT OF FIRST AMERICAN TITLE INSURANCE COMPANY Account Executive ©2015 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF 123 Main Street Anytown, ST 01234 O: 555.555.5555 | F: 333.333.3333 C: 444.444.4444 | www.ABCTitle.com Bob@ABCTitle.com 

First American Title Insurance Company makes no express or implied warranty respecting the information presented and assumes 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.

AMD: 05/2015

First American Title | The Pronghorn Press | 2016 - Edition 1

More than $300,000, but not more than $1 Million

Complete buyer’s declaration for $300,000 Wresidence W C G exemption form.

FIREPLACE O A D H Q I M R H I E V W B R M U FRIENDS R R T G O T N N V O Q M Y O Y I K FURNITURE F A D A L I W I S E O N O I D I Q GARAGE Bob Smith Escrow Buying a home for the first time canEstimated be overwhelming.

Our knowledgeable professionals can answer your title and I G G B T C L D F B R L C H N N D Account Executive Amountto canmaking increase over HOME closing questions and we are committed thetime home-buying experience a satisfying one for you. To help you 123 Main Street R P B U X X B E D R O O M G I E I begin your journey, here are some answers a few of the questions that first-time homebuyers may ask as they begin EstimatedtoTotal Anytown, ST 01234 HOUSE Payment their quest to purchaseFirsttheir slice ofMonthly the American dream.

American Title Insurance Company makes no express or implied warranty respecting the information presented and assumes O: 555.555.5555 | F: 333.333.3333 no responsibility for errors or omissions. First American, the eagle logo, First American Title, and firstam.com are registered E B R F H E C E H D Z Z C Q Z Q N ABC Title Company KITCHEN trademarks or trademarks of First American Financial Corporation and/or its affiliates.

C: 444.444.4444 | www.ABCTitle.com This estimate Bob includes In escrow?

Smith www.firstam.com Information is for training purposes only and is not and may not be construed as legal advice. No third party entity may rely upon Bob@ABCTitle.com P E R M F L M A S D O K A I U L Z provides a defense in the event of claims against the title Why should I buy instead of rent? Estimated LIVING Insurance anything contained herein when makingTaxes, legal and/or other determinations regarding its practices, and such third party should Property Taxes Account Executive with you an attorney to embarking specific course of action. pursuant to the terms of theHomeowner’s policy. 123Insurance A home is an investment.consult When rent, you write upon youranymonthly & prior Assessments First American Title Insurance Company and its affiliates expressly disclaim any representations or warranties that the guidMain Street ance provided herein will satisfy any statutory or regulatory obligations, or will guarantee or otherwise ensure compliance L A L S A R D G A A H Z Q F X U O MOVING check and that money is gone forever.Amount When can youincrease own your over time with any applicable laws or regulations, including but not limited to FIRPTA, or other federal or state statutes or regulations.

Other: Anytown, ST 01234 [Agent] is solely responsible for ensuring that any services provided are in accordance with applicable law. It is [agents’] How much money will I need upfront to buy a home? home, you can deduct the cost of yourSee mortgage loan interest page 4 for details responsibility to review changes in laws, regulations and accounting practices that affect you and your A business.

O: 555.555.5555 | F: 333.333.3333 NEWHOME See Escrow Account on page 4 for details.

You must pay for other property T X H O P I P W F C Y U V X R H HOME 1 HOME 2 HOME 3 HOME 4 5 In general, you need enough money to cover three expenses: from your federal income taxes and usually from your state costs separately.

C: 444.444.4444 | www.ABCTitle.com The information contained in this document was prepared by First American Title Insurance Company (“FATICO”) for inforthe earnest money (variable), down payment, and closing costs. taxes. You can also deduct the property taxes you pay as a mational purposes only and does not constitute legal advice.

FATICO is not a law firm and this information is not intended OCEANVIEW V Y O O E O E Y A E R M Q Y P O Bob@ABCTitle.com to be legal advice. Readers should not act upon this without seeking advice from professional advisers.C homeowner. In addition, the value of your home may go up over ADDRESS First American Title Insurance Company makes no express or implied warranty respecting the information presented and PACKING In addition to the mortgage payment, what other costs do I the years, building equity for you.

E K Y A G Z H A N J D K I A K E U assumes afforded no responsibility for errors or omissions.

Costs at Closing Available coverages may vary by jurisdiction, endorsement selection and exceptionsPRICE in policy. As with any insurance contract, the insuring provisions express the coverage by the title insurance policy First American, the eagle logo, First American Title, and firstam.com are ASKING trademarks trademarksdue of First American Financial Corporation and/or its affiliates. need to consider? and there are exceptions, exclusions and conditions to coverage that limit or narrow the coverage afforded by the policy. Also, some coverage may not be availableregistered in a particular area orortransaction to legal, AN INDEPENDENT POLICY-ISSUING AGENT OF FIRST AMERICAN TITLE INSURANCE COMPANY PLAYROOM regulatory, or underwriting considerations. Please contact a First American representative for further information. The services described above are typical basic services. The services provided to you may be BEDROOMS/BATHS S G P I V N B L K D E I L A I C S Utilities, property taxes, homeowners insurance, and How do I know if I am ready to buy Closing a home?Costs to the of your transaction the NO. location of the real property involved. / / / / / Includes $5,877.00 indifferent Loandue Costs +specifics $7,642.43 in OtherorCosts – $0 First American Company makes no express or implied warranty respecting the information presented maintenance costs in areLender a few Credits. of the expenses toTitle beInsurance considered.

You can find out by asking yourself a few questions: PORCH See page 2 for details.

SQUARE FOOTAGE and assumes no responsibility for errors or omissions. First American, the eagle logo, First American Title, and O W E I V N A E C O S P W N T S E AN INDEPENDENT POLICY-ISSUING AGENT OF FIRST AMERICAN TITLE INSURANCE COMPANY Additionally, there may be homeowner association or condo firstam.com are registered trademarks or trademarks of First American Financial Corporation and/or its affiliates.

N Do I have a steady source of income? Have I been RAINBOW FIRST IMPRESSION association dues. Includes Closing Costs. See Calculating Cash to Close on page 3 for details. to Close employed on a regular basis forCash the last 2-3 years? Is my M O V I N G H O L G Y E K M C S C current income reliable?

LOCATION ROOM How are pre-qualifying and pre-approval different?

N Do I have a good record of paying my bills? Do I have few H G U A A G P I X L N V K Q H H N Pre-qualification is an informal way to see how much you mayPAGE be 1 OF 5 • LOAN IDNEIGHBORHOOD SCHOOL outstanding long-term debts,CLOSING like carDISCLOSURE payments? # 0000000000 Homeowner’s have many options to consider able to borrow. A pre-approval is the lender’s commitment to X K I when R O determining S T G L the P T P T C E K L APPEALING STYLE N Do I have money saved for a down payment? Do I STAIRCASE lend to you. have the ability to pay a mortgage every month, plus LIVING ROOM bestCFPB possible protection to keep theirFhomes U K safe P EandI secure C A for O their M X families.

W O B N I A additional costs?

SWING

highest levels of protection available to homeowners.

Principal & Interest

AMD: 10/2014

Program not available in CA

NO

Buyer is required by law to withhold 15% of the purchase price.

5 Post-Policy Encroachments by Neighbors

5 Post-Policy Forgery

IRS whether a lesser amount is due.

The First American Eagle Owner’s Policy provides

Balloon Payment

Eagle Owner’s Policy Coverage

Subject to the conditions in the policy, covered matters include:

5 Vehicular and Pedestrian Access

Prepayment Penalty

your ownership and enjoyment of the property.

Log into AgentNet and access the Pass-Thru Marketing Program today!

Foreign Investment In Real Property Tax Act

What are the withholding requirements when a seller is not a U.S. Citizen or U.S. Resident?

This form is a statement of final loan terms and closing costs. Compare this document with your Loan Estimate.

Closing Disclosure

AMD: 09/2015

As an agent of First American Title, you have access to over 100 pieces of professionally designed marketing material that you can customize with your logo and contact information.

PROVIDING PEACE OF MIND

Purchase Transaction Page 1

Pass-Thru Marketing

Settlement Agent Provided Information for a

AN INDEPENDENT POLICY-ISSUING AGENT OF FIRST AMERICAN TITLE INSURANCE COMPANY ©2015 First American Financial Corporation and/or its affiliates. All rights reserved.

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