W ELCO ME TO T H E IN D U STRY A Field Guide
A Publication by Monarch Title and Closing Company
A BOUT MON A RCH Monarch Title Company, Inc. is an authorized title insurance agent, offering
Maureen Dalton,
Chuck Bowman,
Thom Howard,
Tricia Bartolacci,
Wes Moxley,
Renee Wiliams, Final Policy Coordinator
Title Abstractor
Marquitta McElfish
Isabella McGlasson
Lisa Pryor,
Brittany Gall,
Jake Bowman,
MTC Board Chair
CEO
Jon Dalton,
Executive Vice President
a full range of closing services and title insurance throughout Missouri. With over 30 years of experience in title insurance and real estate closings, we are committed to providing fast, accurate, and hassle-free closings. Our closing offices are conveniently located in Columbia,
Accounting Manager
Title Production Manager
Sarah Eagon,
Assistant Vice President
Jefferson City, Boonville, and Brookfield. It is our mission to provide exceptional service in every phase of your real estate and closing transactions.
H E L LO!
Branch Manager, Boonville
Rex Hicks
Monarch Title’s greatest reward is our customers successful closing. That means we take great pride in doing the job the right way, the first time. Our success is based on thorough communication on a regular basis and in a timely manner, and always working
Processor
Closing Assistant
Escrow Closer
collaboratively with our customers - this is our number one priority. Our mission and goal is to exceed your expectations and provide ‘Service with Distinction’. Feedback received from each of our valued customers is welcome to help us continue to exceed your expectations and make us your title company of choice.
Monarch Title Company
Escrow Closer
Escrow Closer
Christy Lyon,
Branch Manager, Jefferson City
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Our success
CONTENTS
is based on
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thorough
Getting Started in the Industry 5
communication
The Best Practices
on a regular
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basis and
Industry Tips
in a timely manner, and always working collaboratively with our customers. Monarch Title Company
7 Common Terminology 9 Interview With an Agent 12 Transactions & Relationships 13 Closing: Start to Finish 15 Real Estate FAQ
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CONGRATUL ATIO N S! You’ve passed your tests and become a certified real estate agent. Becoming a successful Realtor is more than just leads and marketing. Generating income will rely on much more than just the relationships you build with potential clients. To be able to provide the best service to your clients, you must build rapport with lenders, title insurance, and other real estate agents in the area. As a real estate agent, you will act as the intermediary between clients and the agents and brokers that they need to close the sale. Your title agent is arguably the most important relationship you will build - aside from your client. The title indicates the legal owner of a property. Title documents also show the property’s history of ownership, boundary lines, and define how the property is intended to be used. The title agent is your extended business partner, acting as an agent for all parties, so choosing a title company that will provide exemplary customer service during the entire process is key. Your title agent will see your sale through from start to finish, ensuring that the title is clear and clean. They will also be able to provide your buyer with title insurance in case the legality of the title is called into question. Throughout the selling process, your client, or the buyer, will defer to you for recommendations as to the agent they should use. Your relationships with reliable, trustworthy agents will be the key to smooth closings. A smooth closing means happy buyers who can provide recommendations and facilitate new leads. As a new real estate agent, establishing yourself in the market is essential. Remember, the relationships you form will define your success in the industry.
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BEST PRA CTICES Every industry has operating standards, and in real estate, there are a number of best practices that agents should adhere to. As a real estate agent, your success is built on relationships, so being an agent that other agents want to work with is key.
Do
•
Provide contact information and give any special instructions or oddities of
Don’t
•
the deal upfront.
• •
Communicate, communicate, communicate. Ask for status and updates throughout the process and get to know the process a title company goes through to bring
Make promises as to closing dates without discussing with your title company.
•
Come to the closing table with problems or questions that should have been handled prior to the closing.
•
Be afraid to hold agents accountable and give feedback in a constructive way.
the closing to the table.
• •
Review how agents are set up from a technological standpoint. Research other agents and partners. Are they proactive, do they have a stellar reputation in the community, do they communicate clearly and in a timely manner?
• •
Get the Authorization for Payoff signed at time of contract. Send the Commission amounts at the time of the contract.
Monarch Title Company
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IN DUSTRY TI PS Navigating a new industry can be challenging, but you don’t need to start completely afresh. We’ve compiled a list of tips that will help you get your foot in the door and on your way to a successful career.
Understand the closing process.
Establish relationships in the community and with other agents.
Build a strong relationship with your title agent.
Prepare clients for closing by asking questions the settlement agent will ask.
Find a mentor to guide you.
Coach, advise, and educate your clients.
Create value and build trust.
Be a problem solver and always be willing to help the customer by providing solutions.
Provide constant contact and communication with all parties throughout the process.
Be proactive.
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INDUSTRY TE RM IN O LO GY Many terms in real estate are nationally universal. These definitions are for general purposes and should not be used for legal purposes.
Cc CONDITIONS
Refers to provisions in deeds and other real estate instruments that make a particular right contingent upon the occurrence of some future event.
Ll LIEN
The liability of real estate as security for payment of a debt. Such liability may be created by contract, such as a mortgage, or by operation of law, such as a mechanics lien.
LOAN POLICY
Dd DEFECT
A blemish, imperfection, or deficiency. A defective title is one that is irregular and faulty.
Ee EASEMENT
A right held by a person to enjoy or make limited use of another’s property.
ESCROW
Technically, this term strictly refers to a deed delivered to a third person to be held by him until the fulfillment or performance of some act or condition by the grantee. In the title industry, it means the depositing with an impartial third party (typically an escrow agent or title company) of anything pertaining to a real estate transaction including money and documents of all kinds. The money and documents are to be disbursed and delivered to the rightful parties by the escrow agent or title company when all conditions of the transaction have been met.
ESCROW AGREEMENT
A written agreement usually made between buyer, seller, and escrow agent, but sometimes only between one person and the escrow agent. It sets forth the conditions to be performed incident to the object deposited in escrow, and gives the escrow agent.
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A policy of title insurance issued to the mortgage lender insuring temporary conditional pledge of property to a creditor as security for the payment of a debt that may be cancelled by payment.
Oo OWNER’S POLICY
This policy is purchased for a one-time fee and protects a homeowner’s investment in a property for as long as they or their heirs have an interest in the property. Only an owner’s policy protects the buyer should a covered title problem arise with the title that was not found during the title search. Possible hidden title problems can include errors or omissions in deeds, mistakes in examining records, forgery, and undisclosed heirs.
Pp POWER OF ATTORNEY
A legal instrument authorizing one to act as another’s agent or attorney.
PRELIMINARY TITLE REPORT
A report prepared prior to issuing a title insurance policy that shows the ownership of a specific parcel of land. It includes information about liens and encumbrances that will not be covered under a title insurance policy.
PREMIUM
The amount payable for an insurance policy.
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PROBATE
A legal procedure in which the validity and probity of a document, such as a will, is proven.
Rr RECORD TITLE
The aspects of a title that appear in the public records as distinguished from unrecorded title aspects and interests.
REFINANCE RATE
The reduced rate for a loan policy issued on the new loan in a refinance transaction in which the original loan was previously insured within some period of years.
REISSUE RATE
When referring to title insurance, the reissue rate is the reduced rate for an Owner’s Policy of title insurance issued on a property that was previously insured within some period of years.
RISK RATE
When referring to title insurance, the risk rate is a rate that does not include the cost of researching the title or the cost of conducting the closing.
Ss SIMULTANEOUS ISSUE RATE
When referring to title insurance, the simultaneous issue rate is the reduced rate for a loan policy or owner’s policy issued on the same property or loan at the same time as another policy. The term usually refers to a loan policy issued at the same time as an owner’s policy when a property is purchased.
SPECIAL WARRANTY DEED
A deed that warrants the title only with respect to acts of the seller and the interests of anyone claiming by, through, or under him.
Tt TAX LIEN
The lien that is imposed upon real estate by operation of law that secures the payment of real estate taxes.
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TITLE
(1) A combination of all the elements that constitute the highest legal right to own, possess, use, control, enjoy, and dispose of real estate or an inheritable right or interest therein. (2) The rights of ownership recognized and protected by the law.
TITLE COMMITMENT
An offer to issue a title insurance policy. The title commitment will describe the various conditions, exclusions, and exceptions that will apply to that particular policy.
TITLE COVENANTS
Title Covenants ordinarily inserted in conveyances and in transfers of title to real estate for the purpose of giving protection to the purchaser against possible insufficiency of the title received. A group of such covenants known as “common law covenants” includes: (a) covenants against encumbrances; (b) covenant for further assurance (in other words, to do whatever is necessary to rectify title deficiencies); (c) covenant of good right and authority to convey; (d) covenant of quiet enjoyment; (e) covenant of seisin; (f) covenant of warranty.
TITLE DEFECT
(1) Any possible or patent claim or right outstanding in a chain of title that is adverse to the claim of ownership. (2) Any material irregularity in the execution or effect of an instrument in the chain of title.
TITLE EXAMINATION
To peruse and study the instruments in a chain of title and to determine their effect and condition in order to reach a conclusion as to the status of the title.
TITLE INSURANCE
Insurance that protects purchasers of real estate and mortgages against loss from defective titles, liens, and encumbrances.
TITLE PLANT
(1) In many areas, synonymous with abstract plant. (2) A geographically filed assemblage of title information which is to help in expediting title examinations, such as copies of previous attorneys’ opinions, abstracts, tax searches, and copies or take-offs of the public records.
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I NTERV I EWS W I TH A G E N TS Renee Williams,
Senior Final Policy Coordinator
Years as a Monarch Agent: 5.5 | Contact: renee@monarchtitle.com
How can Monarch Title Company help new real estate agents? Monarch has years of experience helping real estate agents understand the closing and escrow process. When you work with Monarch, you can rest assured that we will let you know what we can do to help your sales.
What does Monarch Title Company offer real estate agents? We are available 24/7. We still respond to those late night emails even while you are sleeping. We work before 8 a.m. and after 5 p.m.!
What kind of technology do you use to ensure efficient transactions? SoftPro software is a real estate, title, and escrow software. SoftPro manages the entire process from order entry all the way through to the closing, escrow documents and final title policy.
Does teamwork play a role at Monarch Title Company? Teamwork plays a huge part around here. Teamwork makes everyone’s job less stressful and problem-solving easier.
How will Monarch provide insight for my clients (buyers)? Monarch will identify if there are any defects to title and insure that a lien is enforceable using a process that meets the buyer and lender expectations.
How will Monarch help me through the escrow process? We stay on top of the process and help translate the language to help give you a clear understanding, so that your transaction runs smoothly and you and your buyer are able to close quickly.
And remember . . . communication is key!
Monarch Title Company
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IN TERVI E WS WITH AGENTS
Lisa Pryor,
Escrow Closer
Years as a Monarch Agent: 4 | Contact: lisa@monarchtitle.com
How can Monarch Title Company help new real estate agents? The more an agent understands the basic process of the title company, the better they can gather information for us (which cuts down on emails and delays) and prepare their client for what to expect with time frames and paperwork. We provide agent education for those things on a regular basis both individually and in short classroomtype luncheons. And we are always available for any questions via phone, email, or in person.
What does Monarch Title Company offer real estate agents? We offer support in helping the transaction go smoothly. We sponsor open house events and provide classes for changes in the industry.
What kind of technology do you use to ensure efficient transactions? Because we value prompt, immediate service, our main forms of communication are texting, phone calls, and email. We often communicate after business hours, so having all of our information available on our phones is essential!
Does teamwork play a role at Monarch Title Company? Teamwork is VITAL at Monarch. We work well as a team and recognize that no one can know everything. We rely on each other daily for problem-solving, communication, improvement of processes, and most of all to keep the mood lighthearted.
How will Monarch provide insight for my clients (buyers)? It’s important to us that our clients are confident that the property they are buying has been thoroughly researched. We are here to provide the peace of mind and insurance they deserve. We also are available to answer any questions before, during, or after the transaction. Many people don’t understand why they need title insurance, so we help simplify the steps and explain the importance of it.
How will Monarch help me through the escrow process? As stated above, we are big on communication. We provide forms that may be needed prior to closing, and keep you informed on what is needed and required. We know it’s important for you to keep your client informed, so we do our best to keep you up to date on how things are going. If we are waiting on lender figures or a signed form or invoice, we let you know.
And remember... having a general knowledge about the title process will assist you in better serving your clients. You don’t have to know the intricate details, just a general understanding of our process. Many times knowing what additional forms are needed when signing the contract, speeds up the process and lessens e-mails.
Monarch Title Company
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Christy Lyon,
Branch Manager, Jefferson City
Months as a Monarch Agent: 8 | Years in the Industry: 23 | Contact: christy@monarchtitle.com
How can Monarch Title Company help new real estate agents? One of the most important ways Monarch supports agents is through training. We will go over how to read and understand our documents, as well help you understand what information we look for from the start of the process. This will help expedite getting title work out and make the whole process a smooth experience.
What does Monarch Title Company offer real estate agents? We excel in our customer service relations, and if an agent calls for help, we will go above and beyond to get an answer or provide the service needed.
What kind of technology do you use to ensure efficient transactions? Email, fax, Internet searching, and texting. We find that many agents prefer texting to calling or emailing, so we work with individual communication styles.
Does teamwork play a role at Monarch Title Company? Teamwork is a huge part of who we are at Monarch Title Company. No one person can know everything, which is why without the entire Monarch team we would not be as successful as we are.
How will Monarch provide insight for my clients (buyers)? Here at Monarch we will help explain the whole process to your buyers. We will walk them through the process step-by-step if needed to make them feel comfortable with the decisions they are making and help them to understand what it is that we do.
How will Monarch help me through the escrow process? Once Monarch receives the contract, we can accept the escrow funds and begin processing. We are also big on communication and will start communicating with the proper parties in advance of closing to collect all the information needed to make the whole process as seamless as possible.
And remember . . . our team at Monarch is dedicated to providing you with the best possible experience in your real estate transaction.
Monarch Title Company
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TRANSACTIONS
COMMUNICATION
T RA NS PA R E N CY
TRUST
H O NEST Y
RELATIONSHIPS
Monarch Title Company
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CLOSING: START TO F IN ISH Once your buyer has found their home, the closing process begins. Closing on a home doesn’t have to be a stressful experience. Familiarize yourself with the major steps of the closing process so that you can be prepared to guide your buyer through any problems that may arise. On average, the closing process takes about 45 days.
Submit a Mortgage Application
Lock Interest Rates
The mortgage application and approval
Interest rates are known to fluctuate,
process can often be lengthy. Advise
so it is wise to advise your buyer to lock
your buyer to get preapproved to speed
their rates so they aren’t subject to the
up the process.
market’s changes.
Negotiate for Your Buyers
Contract
As the real estate agent, it is important that
Write and sign the contract.
you advocate for your buyers. There are a number of costs associated with closing, yet you can greatly reduce or eliminate some of these costs through negotiation.
Open an Escrow Account
Get Title Insurance
This is the first step in closing. Your
Your title agent will ensure that the home is
escrow agent will hold onto the money
clean of any claims to the property. The title
and documents involved with the sale as a
insurance will protect both your buyer and
protection to both the buyer and seller.
lender from any issues that may arise.
Complete a Home Inspection
Have the Property Appraised
A home inspection is essential. If there is
An appraiser will examine your home and
damage or issues with the property, you’ll
ensure that it is valued for at least the
need to renegotiate with the seller.
price of purchase.
Finish With Closing Documents
Complete a Final Walkthrough
It is essential that you and your buyer read
You and your buyer will need to complete a
through the documents carefully. Make sure
final walk through 24 hours before closing.
all your buyer’s questions are answered and
After you have inspected the property,
they understand what the documents entail.
the money in your escrow account will be deposited toward your down payment.
C
Monarch Title Company
LO
G: SIN
STA RT TO F
INI
SH
COMPLETE!
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REAL ESTATE FAQ What happens at closing? During closing, the keys are officially handed over to your client and the deed is placed in their name. As the real estate agent, you must prepare clients for the final step. Make sure they are aware of any documentation they need to bring, prepared with a cashier’s check or wire transfer, and aware of additional closing costs. There is copious paperwork, so be sure to read through every page and advise your clients on any concerns or questions that may arise.
What do I need to bring to closing or to tell my clients to bring? Payment in the form of cashier’s check or wire transfer. Documentation for the title or loan company. Valid photo ID.
How much does the title and closing cost? Closing costs vary greatly, but the standard amount clients should expect to pay is between 1% to 5% of the loan amount. Title insurance generally runs between 0.5% to 1% of the loan amount or sale price.
What is a CPL? A closing protection letter is an agreement between your lender and title insurance underwriter. In the letter, the title company agrees to ensure the lender, taking on the responsibility for any non-compliance with the loan agreement.
Monarch Title Company
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BROOKFIELD
COLUMBIA
JEFFERSON CITY
BOONVILLE
111 E. Broadway, Ste. 100 Columbia, MO 65203 573-441-0725
305 E. McCarty, Ste 300 Jefferson City, MO 65101 573-556-6214
515 E. Morgan St. Boonville, MO 65233 660-882-2888
titles@monarchtitle.com | closer@monarchtitle.com
MONARCH TITLE OF NORTHERN MISSOURI, INC.
614 W. Lockling Brookfield, MO 64628 660-258-3939 brookfieldclosers@monarchtitle.com orders_brookfield@monarchtitle.com