EMPIRE WEST TITLE AGENCY - Amazon S3...three weeks, it is imperative that you price it correctly to...

E M P I R E W E S TT I T L E A G E N C Y

B R A N C H L O C A T I O N S

C O R P O R A T E H E A D Q U A R T E R S

4808 N. 22nd Street, Suite 100 | Phoenix, AZ 85016 | Phone: (602) 749-7000

Empire West Title Agency provides title insurance, escrow and settlement services to real estate professionals, residential and commercial clients, lenders, builders, developers, attorneys and consumers. Empire West is part of the ET Investment family of companies and is one of the largest and fastest growing title agencies in the country. Empire West offers a full line of title and escrow services, as well as a variety of other related services including Short Sale Processing, Builder Development, Investor Website, Default, Foreclosure and Account Servicing.

We provide customized services to all of our clients and tailor our tools and products to meet the specific needs of our customers. Empire West has assembled a group of committed partners that are dedicated to providing our customers with products and services that will set them apart from the competition. You can trust that Empire West and our partners will provide you with the highest level of professionalism, integrity and accountability.

Our sales and escrow teams are highly experienced and understand the critical demands of your business. In Arizona alone we have nearly 120 employees, 18 physical branch locations and an average employee experience of 15 years. We are here to support you and your transactions from start to finish. Our aim is to exceed our clients expectations. Management, escrow, sales and title production all work in tandem to support our customers and ensure their success. We care and are committed to serving our clients both professionally and personally and believe in creating valuable and long lasting partnerships with our customers. Contact us today to find out how Empire West can partner with you to increase your success! Your success is our success.

Surprise14239 W. Bell Rd., Suite 204

Surprise, AZ 85374Phone: (602) 749-7110

Tempe (Broadway)2151 E. Broadway Rd., Suite 116

Tempe, AZ 85282Phone: (602) 749-7160

Val Vista225 E. Germann Rd., Suite 170

Gilbert, AZ 85297Phone: (602) 749-7100

Ahwatukee4505 E. Chandler Blvd., Suite 120

Phoenix, AZ 85048Phone: (602) 749-7120

Arrowhead17505 N. 79th Ave., Suite 112

Glendale, AZ 85308Phone: (602) 749-7131

Camelback Commercial4808 N. 22nd St., Suite 100

Phoenix, AZ 85016Phone: (602) 749-7000

Dana Center Default Services4808 N. 22nd St., Suite 100

Phoenix, AZ 85016Phone: (602) 749-7000

Flagstaff403 N. Agassiz St., Suite 1

Flagstaff, AZ 86001Phone: (928) 774-3351

Gilbert3303 E. Baseline Rd., Bldg. 5, Suite 111

Gilbert, AZ 85234Phone: (602) 749-7170

Goodyear1616 N. Litchfield Rd., Suite 260

Goodyear, AZ 85395Phone: (602) 749-7130

Hayden Park10611 N. Hayden Rd., Suite D104

Scottsdale, AZ 85260Phone: (602) 749-7080

Main Escrow4808 N. 22nd St., Suite 100

Phoenix, AZ 85016Phone: (602) 749-7000

Maricopa19756 N. John Wayne Pkwy., Suite 106

Maricopa, AZ 85139Phone: (520) 233-2244

Mesa6642 E. Baseline Rd., Suite 104

Mesa, AZ 85206Phone: (602) 749-7180

North Central5225 N. Central Ave., Suite 103

Phoenix AZ 85012Phone: (602) 749-7140

Prescott600 W. Gurley St., Suite 200

Prescott, AZ 86305Phone: (928) 778-5044

Raintree4808 N. 22nd St., Suite 100

Phoenix, AZ 85016Phone: (602) 749-7152

San Tan21321 E. Ocotillo Rd., Suite 105

Queen Creek, AZ 85142Phone: (602) 749-7060

Scottsdale Ventura8777 E. Via de Ventura, Suite 399

Scottsdale, AZ 85258Phone: (602) 749-7030

Sedona3000 W. State Route 89A

Sedona, AZ 86336Phone: (928) 282-0280

225 E. Germann Rd., Suite 170Gilbert, AZ 85297

Phone: (602) 749-7050

101-West1850 N. 95th Avenue, #186

Phoenix, AZ 85037Phone: (602) 749-7143

Prescott Valley8133 E. State Route 69A, Suite A

Prescott Valley, AZ 86314Phone: (928) 778-8102

T A B L E O F C O N T E N T S

Considering A For Sale By Owner 1

Why You Should Sell With A Realtor 2

How To Determine Your Listing Price 3

14 Ideas To Stage Your Home 4

Top 10 Mistakes When Selling Your Home 5-6

What Paperwork Should Be Accessible? 7

The Appraisal Process 8

Home Inspections 9

A Home Warranty 10

Closing Costs - Who Pays What 11

The Life Of An Escrow 12

Who Does What? 13

An Overview of Closing Costs 14

Glossary 15-18

Important Numbers 19-20

Moving Checklist 21-22

Notes 23

Locations 24

Why You Should Sell With A Realtor 2

14 Ideas To Stage Your Home 4

What Paperwork Should Be Accessible? 7

Home Inspections 9

Closing Costs - Who Pays What 11

Who Does What? 13

Glossary 15-18

Moving Checklist 21-22

Locations 24

C O N S I D E R I N G AF O R S A L E B Y O W N E R

Statistics show that selling your home with the assistance of a professional real estate agent will garner you a higher profit, enough to cover the commission as well as put more money in your pocket.

Most buyers today work with a buyer’s agent to represent their interests. If you choose to sell your home on your own, you will be negotiating with a professional and relying on your own skill to finalize a contract. Not only could you end up selling your home for less money, you could leave yourself open to potential legal problems unless you have the contract vetted by an experienced real estate attorney.

FSBO transactions can be successful, of course, but 90 percent of homeowners prefer to work with a professional rather than risk an unsatisfactory home selling experience.

If you choose to go this route, request Empire West Title Agency to help you map out the FSBO Guide you will need to sell your home on your own.

What FSBO Sellers Need to Know About Real Estate Rules and Regulations

To sell your house by yourself, you must learn the legal rules that govern real estate transfers in your state, such as who must sign the papers, who can conduct the actual transaction, and what to do if and when issues are discovered that slow down the transfer of ownership. Review these questions before deciding to sell on your own.

• Do you have experience with protecting your rights in a real estate transaction?

• Do you understand the escrow process and what is required of you and the buyer?

• Are you experienced enough in real estate law to write a legally binding contract?

• Are you able to accurately explain contingencies and legal disclosure requirements?

• Do you have a complete online and print marketing plan for your property and can you be sure it is reaching your target audience for maximum exposure?

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W H Y Y O U S H O U L DS E L L W I T H A R E A L T O R

For most sellers, a real estate agent’s services, market knowledge, and network of industry experts are worth the cost. Consider the following benefits of using a REALTOR® before you decide to attempt to sell your own home.

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A REALTOR® has access to market data about recent sales and other homes on the market that can be used to price your home appropriately. Studies show that homes priced right when they’re first listed sell more quickly and for a higher price than those that linger on the market.

A REALTOR® can show your home when you aren’t available, respond to inquiries from potential buyers and their agents, and get valuable feedback from visitors - all things that save you time.

A REALTOR® can look at your home objectively and suggest ways to improve its appearance - from staging to minor repairs - so it appeals to more buyers.

Buyers typically prefer to look at a home without the seller present so they can feel more comfortable exploring the rooms and visualizing themselves in the property. At a FSBO sale, the seller must be present.

A REALTOR® can screen visitors to your home, which provides a measure of safety that FSBO sellers don’t have. In addition, check to see if the buyers are legitimate and can afford to purchase your home. A REALTOR® can help you avoid wasting time showing your home to unqualified buyers.

REALTORS® have professional marketing expertise, contacts with other REALTORS® who work with buyers and the support of a brokerage that can market your home more widely than you can as an individual.

A REALTOR® can help you negotiate a contract that not only garners you an appropriate price for your home, but that meets your needs for a closing date. In addition, a REALTOR® can make sure your contract is in compliance with all local regulations.

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H O W T O D E T E R M I N EY O U R L I S T I N G P R I C E

Q. How do I determine my home’s listing price?

A. Value is a relative term. You need some basis of objectivity - and you can find it by having your REALTOR® compare hour house against other similar houses in like neighborhoods. Your REALTOR® will work together with you to factor in all the important aspects of your home and price your home effectively. Using the Multiple Listing Service (MLS), the REALTOR® will prepare a Comparative Market Analysis (CMA) which involves a survey of homes that are on the market and those that have recently sold and are similar to yours. Your REALTOR® will then advise you on the additional value (or deficit) of your home’s unique features, and factor that into the equation. Depending upon how anxious you are to sell (and how fast you need to close), your REALTOR® can suggest different strategies to help you get top dollar for your home.

Q. Doesn’t it make sense to price my home higher because buyers will negotiate the price

down?

A. Because virtually 100% of today’s home sellers have their home marketed on the internet, today’s home buyers can shop online anonymously. When perusing online, home buyers are able to compare your home against other homes to see if they feel your home’s price and features are a value. If you price a home too high, many buyers will make the decision to not even view your home in person. Your home could remain on the market for months, while you continue to pay your mortgage, basically eroding any profit you were hoping to make by pricing it higher. The best strategy is to price it correctly so that prospective buyers searching online believe that their offer will be considered.

Q. Does it make sense to test the market with a higher price for a short period of time?

A. Because newly listed properties typically attract the most interest from buyers during the first three weeks, it is imperative that you price it correctly to attract buyers. When looking online, buyers are going to compare your home with other homes on the market. If they do not perceive your home’s price and features to be a value, they will not make an appointment to see your home, thereby causing it to languish on the market. The longer the home stays on the market, the less you can expect to receive for a selling price because buyers feel that a seller will take less for a home that has been on the market for a long time. Additionally, if you do happen to get the price you want for your home, you will run the risk of it not appraising for the full price.

Q. If I list my home at or below the market, won’t buyers think there is something wrong

with it?

A. Because buyers have access to a wealth of information online, they often have a keen sense of a home’s real worth. Your home will presumably have a number of photos showcasing it to prospective buyers, and they will be able to see the quality of your home online. Additionally, buyer’s agents will know it is priced realistically and they will let their clients know.

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1 4 I D E A S T OS T A G E Y O U R H O M E

To make the best impression, keep your home

clean, neat, uncluttered and in good repair. Please

review this list prior to each showing:

Let the light in. Raise shades, open blinds, pull back the curtains and turn on the lights.

Clear all clutter from counter tops.

Keep everything clean. A messy or dirty home will cause prospective buyers to notice every flaw.

Close the windows to eliminate street noise.

Clean trash cans and put them out of sight.

Send pets away or secure them away from the house and be sure to clean up after them.

Get rid of odors such as tobacco, pets, cooking, etc., but don’t overdo air fresheners or potpourri. Fresh baked bread and cinnamon can make a positive impact.

If possible you, your pets, and your children should be gone while your home is being shown.

Keep the garage door closed and the driveway clear. Park autos and campers away from your home during showings.

Hang clean attractive guest towels in the bathrooms.

Make beds with attractive spreads.

Check that sink and tub are scrubbed and unstained.

Stash or throw out newspapers, magazines, junk mail.

If you must be present while your home is shown, keep noise down. Turn off the TV and radio. Soft, instrumental music is fine, but avoid vocals.

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T O P 1 0 M I S T A K E S W H E NS E L L I N G Y O U R H O M E

Getting Emotionally InvolvedOnce you decide to sell your home, it can be helpful to start thinking of yourself as a businessperson and a home seller, rather than as the home's owner. By looking at the transaction from a purely financial perspective, you'll distance yourself from the emotional aspects of selling the property that you've undoubtedly created many memories in.

Also, try to remember how you felt when you were shopping for that home. Most buyers will also be in an emotional state. If you can remember that you are selling not just a piece of property but also an image, a dream and a lifestyle, you'll be more likely to put in the extra effort of staging and perhaps some minor remodeling to get top dollar for your home. These changes in appearance will not only help the sales price, but they'll also help you create that emotional distance because the home will look less familiar.

Not Hiring an AgentAlthough real estate agents command a hefty commission (usually 5-6% of the sale price of your home), trying to sell your home on your own, especially if you haven't done it before, is probably ill advised. A good agent will help you set a fair and competitive selling price for your home that will increase your odds of a quick sale. An agent can also help take some of the high emotion out of the process by interacting directly with potential buyers, so you don't have to and eliminating tire kickers who only want to look at your property but have no intention of putting in an offer.

An agent will also have more experience negotiating home sales than you do, potentially helping you get more money than you could on your own. Further, if any problems crop up during the process—and they commonly do - an experienced professional will be there to handle them for you. Finally, agents are familiar with all the paperwork and pitfalls involved in real estate transactions and can help make sure the process goes smoothly.

Setting an Unrealistic PriceWhether you're working with an agent or going it alone, setting the right asking price is key. Remember the comparable market analysis you did when you bought a home to figure out a fair offering price? Buyers will do this for your home too, so as a seller you should be one step ahead of the game.

Absent a housing bubble; overpriced homes do not sell. Don't worry too much about setting a price that's on the low side because, in theory, this will generate multiple offers and bid the price up to the home's true market value. In fact, underpricing your home a bit can be a strategy to generate extra interest in your listing.

Expecting To Get Your Asking PriceAny smart buyer will negotiate, and if you want to complete the sale, you'll have to play the game. Most people want to list their homes at a price that will attract buyers while still leaving some breathing room for negotiations. This will allow the buyer to feel like he or she is getting a good value and allow you to get the amount of money you need from the sale. Of course, whether you end up with more or less than your asking price will likely depend on whether you're in a buyer's market or a seller's market and on how well you have staged your home.

Skimping on Listing PhotosSo many buyers look for homes online these days, and so many of those homes have photos that you'll be doing yourself a real disservice if you don't offer photos as well. At the same time, there are so many poor photos of homes for sale that if you do a good job, it will set your listing apart and help generate extra interest. Good photos should be crisp and clear, should be taken during the day when there is plenty of natural light available, and should showcase your home's best assets. Consider using a wide-angle lens if possible - this will allow you to give potential buyers a better idea of what entire rooms look like.

Selling your home—especially if you've never done it before—can be surprisingly time-consuming and emotionally challenging. To ensure that your home selling experience is set up for success, here are 10 common mistakes to avoid.

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T O P 1 0 M I S T A K E S W H E NS E L L I N G Y O U R H O M E

C O N T.

Not Being Properly InsuredWith the above-average number of people who will be on your property, you want to make sure you are insured in case someone has an accident on the premises and tries to sue you for damages. You also want to make sure that there are not any obvious hazards at the property or that you take steps to mitigate them (keeping the children of potential buyers away from your pool and getting your dogs out of the house during showings, for example).

Trying to Hide Significant ProblemsAny problem with the property will be uncovered during the buyer's inspection, so there's no use hiding it. Either fix the problem ahead of time, price the property below market value to account for the problem, or list the property at a normal price but offer the buyer a credit to fix the problem. Realize that if you don't fix the problem in advance, you may turn away a fair number of buyers who want a turnkey home. Having your home inspected before listing it is a good idea if you want to avoid costly surprises once the home is under contract.

Not Preparing Your Home for SaleSellers who do not clean and stage their homes are throwing money down the drain. If you can't afford to hire a professional, that's OK - there are many things you can do on your own. Failing to do these things will not only reduce your sale price but may also prevent you from getting a sale at all. For example, if you haven't attended to minor issues like a broken doorknob, a potential buyer may wonder whether the house has larger, costlier issues that haven't been addressed. Have a friend or agent with a fresh pair of eyes point out areas of your home that need work. Because of your familiarity with the home; you may have become immune to its trouble spots. Decluttering, cleaning thoroughly, putting a fresh coat of paint on the walls and getting rid of any odors will also help you make a good impression on buyers.

Not Accommodating Potential BuyersIf someone wants to view your house, you need to accommodate this person, even if it is inconvenient for you. And yes, you have to clean and declutter the house before every single visit. A buyer won't know and won't care if your house was clean last week if it isn't clean when he or she views it. It's a lot of work, but stay focused on the prize.

Signing a Purchase Contract With an Unqualified BuyerIt's more than reasonable to expect a buyer to bring a pre-approval letter from a mortgage lender (or proof of funds for cash purchases) showing that he or she has the money to buy the home. Signing a contract with a buyer whose purchase of your home is contingent on the sale of his or her own property may also put you in a serious bind if you need to close by a particular date.

The Bottom LineEven if you do all of these things when selling your home, it's best to prepare mentally and financially for less-than-ideal scenarios. The house may sit on the market for far longer than you expect, especially in a declining market. If you can't find a buyer in time, you may end up trying to pay two mortgages, having to rent your home out until you can find a buyer, or in dire situations, in foreclosure. However, if you avoid the costly mistakes listed here, it will go a long way toward helping you put your best foot forward and achieving that seamless, lucrative sale every home seller hopes for.

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W H A T P A P E R W O R KS H O U L D B E A C C E S S I B L E ?

How Should Disclosure Be Done?

In many states, including Arizona, sellers are required to complete a Seller disclosure form.

These forms cover everything from appliances to roofs, plumbing, flooring, termites, and some

even require disclosure with regard to zoning changes or new bonds and assessments, which

will affect the Buyer’s valuation of the property.

Legalities of Home Preparation

Some sellers make a severe mistake and try to cover up problems that exist with a home. An

example is painting an interior wall to cover up a discolored area caused by a leak in the exterior

wall or roof. This is an example of withholding pertinent information and falls under the laws of

seller disclosure.

Maintenance and Home Improvement Records

Have available all of the records with regard to maintenance service work, warranty work, or

improvements that you have made throughout the ownership of the home. Of particular interest

will be roof replacement or repair, appliance repair, plumbing service and electrical work. If you

have kept up with the proper service and maintained good records, most Buyers will see that as

a very strong positive for the house.

Utility Bills

Most potential Buyers will want to know the approximate monthly utility bills. If you have all of

the bills for gas, electricity, propane, sewage, garbage and water for the previous year, have

them available. If you have not saved your bills, call each of the utility companies and ask for a

printout of your bills for the previous 12 months.

Warranties

Have available all warranties that are still in effect for appliances or other items for the home.

This is especially important for roofs, pools, spas, electrical and major appliances.

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T H EA P P R A I S A L P R O C E S S

What Appraisers Look for During the Home Appraisal Process

Knowing what an appraiser will look for during the appraisal process can help you better prepare your home for the appraisal. Here are a few key features of your home that an appraiser will be interested in:

• Exterior

Before even entering your home, the home appraiser will inspect the outside of your property. This involves looking at the structure of your home and inspecting the foundation and roof to determine what materials they are made from and what condition they are in. The appraiser will also look for any damage to your home, such as leaks, cracks or defects that may have gone unnoticed when the house was built.

• Interior

As with the exterior, the appraiser will consider the materials used in the construction of your home; their condition is very important. The main construction of your home, including the walls, flooring, windows, and doors, will be carefully inspected to determine quality and identify any damage or defects. The condition of lighting fixtures, kitchen appliances and plumbing will also influence the appraiser’s estimate.

• Property

The appraiser will consider the overall size of your home. A larger property is often more desirable to buyers because it gives them the possibility of building an addition to the home in the future. A home with many bedrooms and bathrooms will also have extra value since a greater number of people can live in the home.

• Extra Features

Amenities that contribute to the comfort and safety of a home will greatly improve the appraised value. Appraisers will take into consideration all the extras that your home offers, such as air conditioning, fireplaces, security systems, or smoke detectors. Outdoor amenities, such as a swimming pool, garage or gazebo, could also lead to a higher appraisal.

• Improvements

Improvements that you have made since you took ownership will influence the appraised value of your home. While inspecting the interior of your home, the appraiser will pay attention to upgrades that you have made to your kitchen and bathrooms especially. A new oven, stove, sink or bathtub is a big plus when determining your home’s value. Because the appraiser might not notice all the upgrades that you’ve made, it is important to provide him or her with a list of improvements before the appraisal.

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H O M E I N S P E C T I O N S

The standard Arizona Association of Realtors® Purchase Contact contains a provision that allows the buyer to have the subject property physically inspected within the first ten days of acceptance of the contract by the seller. It is the seller’s obligation to provide the buyer with access to the property during this ten day inspection period for whatever inspections the buyer requires. Once a purchase contract has been signed, the buyer can hire a professional inspector of their choosing for the inspection.

Home inspections are a critical part of the home buying and selling process. Knowledge in the field of property inspection has become invaluable, espcially in light of stricter legislation on both a state and national level.

How a home inspection works:

A typical home inspection includes a check of a house’s structural and mechanical condition but can also encompass tests for radon gas, detection of wood-destroying insects and other services requested by the buyer. Inspections do not cover cosmetic aspects of the home, like clean carpets and fresh paint. Back in 1976, the American Society of Home Inspectors (ASHI) standardized the home inspection process and established Standards of Practice dictating what must be inspected as well as how far the professional home inspector needs to go to report their findings.

According to ASHI, the standard home inspector’s report will cover the condition of the home’s heating system; central air conditioning system; interior plumbing and electrical systems; the roof, attic and visible insulation; walls ceilings, floors, windows and doors; the foundation, basement and structural components.

Once the home inspection is complete, the inspector creates a report for the home buyer detailing all that was found. This report will note problems requiring immediate attention and conditions that could lead to more serious issues over time.

Sellers can consider having a home inspection before listing the home, to determine in advance which items need to be addressed and avoid “hidden costs” that may cause buyers to cancel a contract later on in the transaction.

To locate a professional home inspector, use ASHI’s “Find a Home Inspector” locator at www.ASHI.org.

Common Types of Inspections

• General

• HVAC

• Structural Pest Control (termite)

• Chimney

• Hazardous Materials

• Well & Septic

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A H O M E W A R R A N T Y

A home warranty is an insurance policy that covers a variety of mechanical, electrical, and plumbing items, as well as some appliances, inside the home. Optional coverage is available for more expensive systems such as air conditioners, refrigerators, pools and spas.

The Seller may purchase a home warranty plan prior to selling to protect against repairs needed during the listing period, and the Buyer may be able to assume the policy at the close of escrow. Or the Seller may offer to purchase a home warranty policy for the Buyer. Offering a home warranty plan may provide these benefits: • Increase the marketability of your home by reassuring potential Buyers. • Help sell your home faster and at a higher price. • Ward off potential disputes after the sale for repair and/or replacement of covered items.

Most home warranty plans can be paid for at the close of escrow. A copy of the invoice is presented to Empire West Title Agency, and it becomes part of the Seller’s closing costs.

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F O R S A L E

First impressions have a major impact on potential Buyers. Try to imagine what a potential Buyer will see when they approach your house for the first time and walk through each room. Ask your Realtor® for advice; they know the marketplace and what helps a home sell. Here are some tips to present your home in a positive matter:

p r e p a r i n g

• Mow and edge the lawn regularly, and trim the shrubs

• Make your entry inviting: Paint your front door and buy a new front door mat.

• Paint or replace the mailbox, if needed.

• If screens or windows are damaged, replace or repair them.

• Repair or replace worn shutters and other exterior trim.

• Make sure the front steps are clear and hazard-free.

• Make sure the door bell works properly and has a pleasant sound.

• Ensure that all exterior lights are working.

• Check stucco walls for cracks and discoloration.

• Remove any oil and rust stains from the driveway and garage.

• Clean and organize the garage, and ensure the door is in good working order.

• Repair or replace loose knobs on doors and cabinets.

• Shampoo carpeting or replace if very worn. Clean tile floors, particularly the caulking.

• Brighten the appearance inside by painting walls, cleaning windows and window coverings, and removing sunscreens.

• Repair leaky faucets and caulking in bathtubs and showers.

• If doors stick or squeak, fix them.

• Make sure toilet seats look new and are firmly attached.

• Repair or replace loud ventilating fans.

• Replace worn shower curtains.

• Rearrange furniture to make rooms appear larger. If possible, remove and/or store excess furniture. • Remove clutter throughout the house. Organize and clean out closets and pantry.

• Make sure all kitchen appliances are clean and working properly

• Avoid extension cords in plain view.

• Keep washer and dryer clean and empty.

• Air conditioners/heaters, evaporative coolers, hot water heaters should be clean, working and inspected if necessary. Replace filters.

• Check the pool and/or spa equipment and pumps. Make sure all are working properly and that the pool and/or spa are kept clean.

• Inspect fences, gates and latches. Repair or replace as needed.

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C L O S I N G C O S T SW H O P A Y S W H A T

This chart indicates who customarily pays what costs

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T H E L I F EO F A N E S C R O W

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W H O D O E S W H A T ?

This chart indicates who customarily pays what costs

THE ESCROW OFFICER

• Receive signed Purchase Contract; prepare escrow instructions

• Receive and deposit buyer’s earnest money into an escrow account

• Serve as the neutral agent and liaison/ communication link to all parties to the transaction

• Order Title Commitment to determine status of title to property

• Request beneficiary’s statement or pay-off demand related to existing financing

• Comply with lender’s requirements as specified in the lender’s instructions to escrow

• Secure releases of all escrow contingencies or other conditions required

• Request the title insurance policy

• Prepare or secure the transfer deed or other documents necessary to complete the transaction

• Arrange appointments for buyer/seller to sign documents

• Request and receive purchase funds from the buyer and loan funds from new lender

• Distribute funds as authorized by the instructions supplied by the seller, buyer, and lender, including charges for title insurance, recording fees, real estate commissions and loan payoffs.

• Close escrow pursuant to instructions provided by seller, buyer and lender

• Record the deed and any other documents

The Seller:• Deposit the executed Deed to the buyer with the escrow holder

• Deposit evidence of inspections and any repair work as required

• Deposit required documents such as addresses of mortgage holders, homeowner association contacts and lien holders

The Buyer:• Deposit funds required, in addition to any borrowed funds, to pay the purchase price with the escrow holder

• Deposit funds sufficient for the home and title insurance.

• Approve inspection reports, title insurance commitments, etc., called for by the purchase contract

The Lender (if applicable):• Deposit the proceeds of the loan to the purchaser

• Direct the escrow holder on the conditions under which the loan funds may be used

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A N O V E R V I E WO F C L O S I N G C O S T S

Below is an overview of the types of closing costs you may incur on your loan. Some are one-time fees while others recur over the life of the loan.

APPRAISAL FEEThis is a one-time fee that pays for an appraisal, a statement of property value required on most loans. The appraisal is made by an independent appraiser.

CREDIT REPORT FEEThis one-time fee covers the cost of a credit report processed by an independent credit reporting agency.

DOCUMENT PREPARATION FEE There may be a separate, one-time fee that covers preparation of the final legal papers, including the note and deed of trust.

LOAN DISCOUNT Often called “Points”, a loan discount is a one-time charge used to adjust the yield on the loan to what market conditions demand. One point is equal to 1% of the loan amount.

LOAN ORIGINATION FEE This fee covers the Lender’s administrative costs in processing the loan. It is a one-time fee and is generally expressed as a percentage of the loan amount.

MISCELLANEOUS TITLE CHARGESThe title company may charge fees for a title search, title examination, document preparation, notary fees, recording fees, and a settlement or closing fee. These are all one-time charges.

MORTGAGE INSURANCE PREMIUMDepending on the amount of your down payment, you may be required to pay a fee or mortgage insurance (which protects the Lender against loss due to foreclosure). You may also be required to put a certain amount for mortgage insurance into a special reserve account (called an impound account) held by the Lender.

PREPAID INTERESTDepending on the day of the month your loan closes, this charge may vary from a full month to just a few days interest. If your loan closes at the beginning of the month, you will probably have to pay the maximum amount. If your loan closes near the end of the month, you will only have to pay a few days interest. Your first payment will usually be 30 days after the date pre-paid interest is paid through.

TAXES AND HAZARD INSURANCEBased on the month you close, property taxes will be prorated between you and the Seller. You will also need to pay an entire years hazard insurance premium upfront (Homeowner’s Insurance). In addition, you may be required to put a certain amount for taxes and insurance into a special reserve account (impound account) held by the Lender.

TITLE INSURANCE FEESThere are two title policies; a homeowner’s title policy (which protects the new homeowner) and a Lender’s title policy (which protects the Lender against loss due to a defect in the title). These are both one-time fees.

14

G L O S S A R Y

AgencyA legal relationship in which someone (principal) hires someone else (agent) to represent them to a third party.

AmendmentAn alteration, addition, or correction to an agreement that does not change the principal idea or essence of the original agreement.

Amortized LoanA loan that is completely paid off, interest and principal, by a series of regular payments that are equal or nearly equal. Also called a Level Payments Loan.

AppraisalOpinion as to value of property; a conclusion resulting from an analysis of facts affecting fair market value.

AppreciationAn increase in value of real estate.

Assessed ValueValue placed on property by the Central Appraisal District as a basis for taxation.

AssessmentsSpecial impositions on property to pay the cost of a local work of improvement, e.g. sidewalks, curbs, sewers, street lighting.

AssessorCounty official who determines the assessed value of property for tax purposes.

C.C. & R.’sThe Covenants, Codes, and Restrictions of a subdivision or master planned community. These regulations grant the association the right to enforce certain aspects of the community. (Example: Exterior colors or plantings).

Chain of TitleA summary or digest of the conveyances, transfers, and any other facts relied on as evidence of title, together with any other elements of record that may affect the marketability of the title.

ClosingThe final settlement of a real estate transaction between the Buyer and Seller.

Cloud on TitleSemblance of title, or a claim appearing on some legal form, that is in fact invalid.

CondominiumA system of individual fee ownership of units combined with joint ownership of common area of the structure and the land.

Conventional MortgageA mortgage securing a loan made by investors without governmental underwriting.

15

G L O S S A R Y

Counter-OfferA rejection of an offer by a seller along with an agreement to sell the property to the potential buyer on terms differing from the original offer.

Deed Written instrument which, when properly executed and delivered, conveys title of real property.

Deed of TrustA written instrument used in Arizona in place of a mortgage to secure the lender’s rights.

DisclosureTo make known or public. When dealing with real property, all disclosures should be in writing.

Discount PointsAdditional charges made by a lender at the time a loan is made. Points are measured as a percent of the loan, with each point equal to one percent. These additional interest charges are paid at the time a loan is closed to increase the rate of return to the lender so as to approximate the market level.

Earnest Money DepositDown payment made by a purchaser of real estate as evidence of good faith.

EasementCreated by grant or agreement for a specific purpose, an easement is the right, privilege or interest which one party has in the land of another. (Example: rights of way, pipelines, roads, driveways, and utility companies).

EncumbranceAnything that affects or limits the ownership of real property, such as mortgages, liens, easements or restric-tions of any kind.

EquityThe interest or value that an owner has in real estate over and above the liens against real property.

EscrowThe deposit of instruments and funds with instructions (the Contract) to a third neutral party (Escrow Agent) to carry out the provisions of an agreement or contract; when everything is deposited to enable carrying out the instructions, it is called a complete or perfect escrow.

Fair Market ValueThe price at which a willing Seller would sell, and a willing Buyer would buy, neither being under abnormal pressure.

FHA LoanA loan guaranteed by the Federal Housing Administration.

Impound AccountAccount held by the lender for payment of taxes and/or insurance against the real property.

16

G L O S S A R Y

Legal DescriptionA description of land that complies with government surveys to thoroughly identify a specific parcel so that it, and its boundaries, cannot be mistaken for any other.

LienA form of encumbrance that usually makes property security for the payment of a debt or discharge of an obligation. (Example: Judgments, taxes, mortgages, deeds of trusts, etc.).

MortgageAn instrument recognized by law by which property is hypothecated to secure the payment of a debt or obligation; procedure for foreclosure in the event of default is established by statute.

Mortgagee’s Title PolicyA policy required by the Lender to ensure that the Lender has a valid lien. It does not protect the Buyer. It can also be required for 2nd mortgages.

Origination FeeA fee charged the borrower by the lending institution.

Owner’s Title PolicyA policy that insures the Buyer against loss due to any defect of the title, not accepted to or excluded from the policy.

Personal PropertyAny property which is not real property, e.g. money, appliances, cars, boats, furniture, etc. In real estate, anything not permanently attached to the building is considered personal property.

PITIA payment that includes Principal, Interest, Taxes, and Insurance.

Power of AttorneyA legal “instrument” whereby a principal gives authority to another to act for them. A specific form must be used in Arizona to create a Power of Attorney.

Promissory NoteFollowing a loan commitment from the Lender, the borrower signs a note promising to repay the loan under stipulated terms. The promissory note establishes personal liability for its repayment.

Quit Claim DeedDeed that conveys whatever present right, title, or interest the grantor may have. A deed operating as a release.

Real PropertyLands, buildings and appurtenances (immovable property).

17

G L O S S A R Y

RecordationFiling for record in the office of the County Recorder for the purpose of giving constructive notice of a title, claim, or interest in real property.

Special AssessmentLegal charge against real estate by a public authority to pay cost of public improvements such as: Streetlights, curbing, sidewalks, street improvements, etc.

S.P.D.S.Also referred to as “SPUDS,” is the Seller’s Property Disclosure Statement. Sellers are required to fill out a form to disclose any problems that they are aware of that affect the property regardless if they occupied the property or not.

SubdivisionA parcel of land that has been divided into smaller parts.

Termite inspectionAn inspection required by the Lender to show that the property is free and clear of active termites.

Time is of the EssenceA term that demands punctual performance in a binding agreement.

TrustFiduciary relationship in which one party (trustee) holds title to property for the benefit of another party (beneficiary).

VA LoanA loan guaranteed by the Veteran’s Administration.

Warranty DeedA deed used to convey real property that contains warranties of title and quiet possession and the grantor agrees to defend the premises against the lawful claims of third persons.

1031 ExchangeA method enabling property owners to trade an investment property for another investment property (or properties) without paying capital gains taxes on the transaction.

18

I M P O R T A N T N U M B E R S

UTILITIES

APS .......................................................602.371.7171

Century Link ..........................................800.244.1111

Cox Cable ............................................602.277.1000

Garbage & Trash ....................................623.974.4791

Rural Metro Fire Department .................480.627.6200

Salt River Project (SRP) .........................602.236.8888

Southwest Gas .....................................877.860.6020

APACHE JUNCTION

Fire Administration ...............................480.982.4440

Police Department (Non-Emergency) .....480.982.8260

Water Utilities .......................................480.982.6030

City Website .................................................ajcity.net

AVONDALE



Water Utilities .......................................623.333.2005

City Website ..........................................avondale.org

BUCKEYE



Water Utilities .......................................623.349.8700

City Website .......................................buckeyeaz.gov

CHANDLER



Water Utilities .......................................480.782.3700

City Website .......................................chandleraz.gov

GILBERT



Water Utilities .......................................480.503.6800

City Website ..........................................gilbertaz.gov

GLENDALE



Water Utilities .......................................623.930.3190

City Website .......................................glendaleaz.gov

GOODYEAR



Water Utilities .......................................623.932.3010

City Website ......................................goodyearaz.gov

LITCHFIELD



Water Utilities .......................................623.935.9367

City Website ...................................litchfield-park.org

MARICOPA



Water Utilities .......................................520.568.4452

City Website ...................................maricopa-az.gov

19

I M P O R T A N T N U M B E R S

MESA



Water Utilities .......................................480.644.4444

City Website ............................................mesaaz.gov

PARADISE VALLEY



Water Utilities

• City of Phoenix ...................................602.262.6251

• Arizona American Water ......................800.383.0834

• Berneil Water ......................................480.966.5804

City Website .........................ci.paradise-valley.az.us

PEORIA



Water Utilities .......................................623.773.7286

City Website ..........................................peoriaaz.gov

PHOENIX



Water Utilities .......................................602.262.6251

City Website ...........................................phoenix.gov

QUEEN CREEK



Water Utilities .......................................480.358.3450

City Website ......................................queencreek.org

SAN TAN VALLEY


Pinal County Sheriff (Non-Emergency)....480.420.8689

Water/Johnson Utilities .........................480.987.9870

City Website ....................................santanvalley.com

SCOTTSDALE



Water Utilities .......................................480.312.2461

City Website ....................................scottsdaleaz.gov

SUN CITY



Water Utilities .......................................480.895.2965

City Website ..........................................suncityaz.org

SURPRISE



Water Utilities .......................................623.222.6000

City Website ........................................surpriseaz.gov

TEMPE



Water Utilities .......................................480.350.8361

City Website ..............................................tempe.gov

20

M O V I N G C H E C K L I S T

Before You Leave

Obtain movers guide from your local post officeUpdate credit card, other accountsFor any subscriptions, give notice of your new address as soon as possible, ideally six or eight weeks noticeNotify friends and relatives

Bank

Locate branches of your bank close to your new homeIf necessary, arrange to transfer funds to a new bank. Be sure to cancel any automatic payment or direct deposit

Insurance

Notify companies of new location for coverage:Life InsuranceHealth InsuranceAuto Insurance

Utility Companies

Cancel gas, electricity, water, telephone, municipal services, internet & cable TVGet refunds on any deposits made

Children

Register in schoolTransfer school recordsArrange for daycare

Records

Ask doctor and dentist for referrals; getprescriptions, eyeglasses, X-rays, if appropriateGet copies of birth certificates, medical records and children’s school records

Pets

Ask about regulations for licenses,vaccinations, tagsConsult a veterinarian about moving the petObtain all records

Don’t Forget!Empty and defrost freezer & clean refrigerators

Have appliances serviced before moving

Clean and/or repair furniture, rugs, and curtains

Plan for special care needs for your infants & pets

Obtain all personal records from lawyers & accountants

Obtain relocation package from real estate agent or Chamber of Commerce

Make arrangements for cable TV and internet

Find out about tax deductible moving expenses

Discuss with your moving counselor: insurance coverage, packing and unpacking labor, arrival day, various shipping papers, method and time of expected payment

Find a legal way to dispose of items moving companies are not allowed to move, like propane tanks and ammunition

Make arrangements for moving your plants. Moving companies do not typically assume responsibility for them

Arrange for storage, if needed

Make sure to have the things with you that you will need right away when you arrive-a lamp, bowls, utensils, bathroom tissue, snacks, coffee pot, etc.

Assemble packing materials

If you’re driving a long distance, have car serviced & checked for the trip. Let a close friend or relative know the route and schedule you will travel, including overnight stops. Pack a day or two worth of extra clothing in case of delays.

21

M O V I N G C H E C K L I S T

Moving Day

Make a list of every item and box loaded onto the truck

Take jewelry, family photos, and important documents with you - or mail them to yourself by registered mail

Carry an assortment of toys for children (if needed)

Double check closets, drawers, &shelves to be sure they are empty

Turn of all appliances and lock all doors and windows

Leave all old keys needed by new tenant or owner with Realtor® or neighbor

Let the movers know how you can bereached

At Your New Home

Check off all boxes & items as theycome off the truck

Install new locks

Check on telephone, gas, electricity,water & trash pickup

Check pilot light on stove, hot waterheater & furnace

Ask mail carrier for mail that may have been held until your arrival

Register car within five days after arrival in state or a penalty may apply when getting new license plates

Arrange for medical services: doctor, dentist, etc.

Utilities

Electricity

Gas

Water

Cable/Internet/Phone

Cell Phone

Trash

Financial

Employment

Banks

Credit Cards

Loan Agencies

Insurance

Investment Broker

Government

Social Security

Department of Revenue

DMV (License/Registration)

USPS Mail Forwarding

Voter Registration

Business License Office

C H A N G E O F A D D R E S S C H E C K L I S T

Memberships

Professional Associations

Magazines/Subscriptions

Gyms

Churches

Community Groups

Country Clubs

Alma Maters

Civic Organizations

Licensing Boards

Any Other Memberships

Services

Home (Lawn, Delivery)

Housekeeping

Childcare

Doctors

Lawyers

Accountants

Vet/Groomer

Other

Business Cards

Friends/Family

Newspaper

22

N O T E S

23

85282

8528185034

85018

85008

85256

85259

85268

85255

85264

85215

85204

85201

85233

8538885379

85335

8535185381

85345

85225

85286

852058521

3

8520

3

8520

2

8530

3

85301

85033 8503185016

850218505185302

85304

8530685053 85023 85022

85251

85250

85028

8503285254

85054

85050

850248538285373

85375

85374

85383

85260

8525885253

85257

85009

8530

5

8501

7

8501

5

8501

485

020

8503

7

8522

4

8521

0

85207

85297

85212

85296

8529585226

85048

85339

85041

85043

85353

85323

8539285395

85338

85340

85355

85307

85029

85308

8502785310

5

8523485209

85208

85120

85220

85206

85040

85044 85284

85283

8585

852066

85251850

0144

5

74

82

85

85

L O C A T I O N S

86336

86303

85139

85142

85239

85138

86301 86314

86305

Sedona

Queen Creek

51Maricopa

Prescott

86017

86001

8585copcararMMMarricop

24

314

C O M P A N Y H E A D Q U A R T E R S6 0 2 . 7 4 9 . 7 0 0 04 8 0 8 N . 2 2 N D S T R E E TS U I T E 1 0 0P H O E N I X , A R I Z O N A 8 5 0 1 6W W W . E W T A Z . C O M

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