Federal Tax Liens

Today, I posed a question to my underwriter. Does a Federal Tax Lien against a deceased person, also listing the heirs of the deceased, attach to the real property of the heirs. Here is his answer.

It should only attach to any real property they are inheriting out of th estate. Any real property that was theirs prior to and/or had nothing to do with the estate, should not be affected.

Just thought I would pass this along.

Jerry

Just Starting

I going to try an use this blog to answers questions regarding Title Insurance, Real Estate and Closings. What is my expertise you may ask. I have been in the title insurance business for 20 years and have owned a title company for the last 12 years. I have at one time been a licensed Real Estate Agent for a short period of time. I will be the first to admit that I am not the be-all or end-all of this industries knowledge.

I am constantly asked questions in regards to real estate and have decided to see if the blog can help anyone or at least help me to gather my thoughts in a clearer way.

For my first entry...any information here is from my own opinions and experiences in the industry. I am not speaking for any underwriters or other title insurance agents, but only for myself. Most, if not all of my opinions are based Utah law and practices.

Why title insurance? This comes right from the State of Utah Insurance Commission web site http://www.insurance.utah.gov/Companies_title.html.

There are two types of title insurance:

• Owners coverage
• Lenders, or mortgage, protection

Owners title insurance ordinarily is issued in the amount of the real estate purchase and lasts as long as the insured--or his/her heirs--have an interest in the property concerned. This may even be after the insured has sold the property. The amount of lenders title insurance decreases and eventually disappears as the loan is paid off. Most lenders require mortgagee title insurance as security for their investment in real estate, just as they may call for fire insurance and other types of coverage as investor protection.

Eliminating Risk Before Insuring
An important part of title insurance is its emphasis on risk elimination before insuring. This means the insured has the best possible chance for avoiding title claim and loss. Title insuring begins with a search of public land records for matters affecting the title to the real estate. The examination of evidence from a search is intended to fully report all material objections to the title. Frequently, instruments that don’t clearly pass title are found in the chain, or history, of ownership assembled from the records in a search. These need to be corrected before a clear title can be conveyed. Here are some examples of instruments that can present concerns:

• Deeds, wills, and trusts that contain improper vestings and incorrect names
• Outstanding mortgages, judgments, and tax liens
• Easements
• Incorrect notary acknowledgments

Through the search and the examination, title problems like these are disclosed so they can be cleared up whenever possible. But even the most careful preventive work cannot locate hidden hazards of title.

In spite of all the expertise and dedication that go into a search and examination, hidden hazards can emerge after completion of a real estate purchase, causing an unpleasant and costly surprise. Some examples include the following.

• A forged deed that transfers no title to real estate
• Previously undisclosed heirs with claims against the property
• Instruments executed under expired or fabricated power of attorney
• Mistakes in the public records.

Title insurance offers financial protection against these and other hidden hazards through negotiation by the title insurer with third parties, payment for defending against an attack on title as insured, and payment of claims.

Insist on Title Insurance
Because of title insurance, home buyers can enjoy complete protection against claim and loss. When title insurance is provided, lenders are willing to make mortgage money available in distant locales where they know little about market conditions. Only title insurance issued through members of the American Land Title Association offers the unique safeguards that are essential for secure investment by both real estate purchasers and lenders. Make sure you are fully protected. Insist on a title insurance policy.

If you have any questions you might feel are title, escorw or real estate related, I will try my best to get you an answer.

Jerry