The below article was written by Jordan Winter, originally published in an internal company newsletter.

I officially met Charles Ward when I began working for Attorney’s Title Group in 2020. I was still supervising the title curative and post-sale departments for Wilson & Associates at the time, but ATG needed help, and I had some time. I had worked with Charles a few times before on post-sale files, but that was just through an email from time to time. Over our few prior interactions, though, I could tell Charles had boundless knowledge in real property title. When I began working full time at ATG in 2021, Charles trained me on their title processes. He always seemed to have the answer, and I appreciated his willingness to let me pick his brain on a title question. I knew Charles had worked at the firm a long time, but it wasn’t until I started working with him on a daily basis that I truly understood how lucky the firm was to have him and how lucky I was to learn from him. Now on the brink of retirement, I find it fitting to take a brief look back on Charles’ career and the 30 years he has dedicated to the W&A and ATG.

Charles is a Little Rock native and attended Hall High School (shout out to the class of 1973). His first jobs growing up were a local paper route and a bagger at a grocery store. I’m sure he hit the front porch every time and double-bagged like the best of them! After high school, he went on to Fayetteville where he graduated from the U of A in 1977. Graduating college in four years delighted his father, he said, as he likely wasn’t going to foot the bill for another year. After college, Charles wasn’t exactly sure what he wanted to do in life (like many of us), so he began working at a bank. He chose not to pursue a career in banking, however, and in 1981 he began law school at UALR, graduating in 1984. He served as a law clerk for Wilson & Associates during his last year of law school.

We all get busy. Life throws curveballs, and sometimes, the little things like home maintenance can fall by the wayside. When was the last time you truly inspected your roof? Or gave your HVAC system a thorough check-up? If you're drawing a blank, you're not alone.

However, regular home maintenance is crucial to not only retaining your home's value and avoiding costly repairs, but it’s also important in keeping it safe for you and your family. Let's explore why you should prioritize home maintenance and what inspections to add to your to-do list.

Why Home Maintenance Matters

Your home needs regular care and attention to remain at its best. There are a few key reasons why you should prioritize home maintenance.

• Prevent Expensive Disasters: Home maintenance means you're regularly inspecting your property. Routine inspections help identify and address minor issues before they escalate into major, expensive repairs. A leaky roof left unchecked can lead to more significant water damage, while a neglected HVAC system can skyrocket your energy bills or cause it to malfunction when you need it the most.
• Protect Your Investment: Your home is likely your most significant financial asset. Proper maintenance ensures you get the best possible return on your investment. A well-maintained home is more appealing to potential buyers and can significantly increase your property's resale value. It's a competitive market, with an increasing number of older homes for sale. To boost your property's appeal, keep it well-maintained.
• Enhance Your Family's Safety and Well-being: A well-maintained home is a safe home. Regular checks for potential hazards like fire risks (faulty electrical wiring, clogged chimneys), carbon monoxide leaks, and water damage protect your family, pets, and/or belongings.

Attorney's Title Group is proud to announce that Robbie Wilson was again voted as one of Little Rock’s Best Lawyers in the December 2024 edition of Soiree magazine. Robbie was recognized in the Commercial Real Estate category.

The Little Rock Best Lawyer list is composed of 113 individuals who are determined via a two-component voting system of peer review voting and voting by the readers of Little Rock Soiree and Arkansas Business magazines. The expertise of lawyers is used to determine who should be on the list, and readers votes and experiences with the lawyers determine how individual lawyers rank.

Congratulations to Robbie on this well-deserved achievement.

Buying a house is an exciting milestone, but the journey doesn't end at closing. While you may have budgeted for the down payment and closing costs, new homeowners can face several other expenses that are often overlooked. Planning for these expenses can help you manage your finances better and enjoy your new home without stress.

1. Home Maintenance and Repairs

Home maintenance is an ongoing expense that many new homeowners underestimate. From routine tasks like regular lawn care and gutter cleaning to unexpected repairs like fixing a leaky roof or replacing a broken HVAC system, these costs can add up quickly. Setting aside a pre-determined amount (for example, 1%) of your home's purchase price annually for maintenance and repairs is wise. Some buyers opt in for additional options, such as a home warranty, as an added way to prepare for home repair expenses; however, that cost also needs to be factored into your planning. Don’t forget to consider future cosmetic updates or items such as furniture and housewares you may need.

2. Homeowners Insurance

Homeowners insurance is a necessary expense, but costs can vary widely depending on your location, the age of your home, and the coverage you choose. You may also need additional coverage for events like floods or earthquakes, which can significantly increase your insurance premiums. Also, this cost isn't fixed – there is some potential that it may rise annually.

At Attorney’s Title Group, we believe that every real estate transaction is a journey, and each individual involved plays a crucial role in its success. From real estate agents and mortgage lenders to home buyers and sellers, your partnership is essential to ensuring a smooth and efficient process. We're committed to fostering strong relationships with all of our partners and customers, recognizing the unique value that each brings to the table.

The Importance of Real Estate Agents

Real estate agents are the front-line professionals who guide clients through the complex world of buying and selling property. The expertise, knowledge, and dedication of a real estate agent are invaluable to buyers and sellers. We understand the importance of their role and strive to provide agents with the tools, resources, and support they need to succeed. By offering timely communication, efficient processing, and personalized service, we aim to make their job easier and more rewarding. Our goal is to ensure that the real estate agents we work with feel well represented before, during, and after each closing.

The Role of Mortgage Lenders

Mortgage lenders are the financial architects of real estate transactions, providing the necessary funding to make homeownership a reality. Their careful evaluation of loan applications and adherence to regulatory guidelines ensure the stability and security of the transaction. We value our partnerships with mortgage lenders and work closely with them to streamline the closing process and minimize delays for our mutual customers. By maintaining open lines of communication and providing timely updates, we help to protect their interests and ensure a smooth closing experience.

ROGERS, AR (August 21, 2024) – Attorney’s Title Group, LLC, (“ATG”) has announced that it has hired Kris Conant as a closing agent in their Northwest Arkansas location.

Kris is an experienced real estate professional with a proven track record of success in the title and closing industry. Kris has honed her skills in managing complex transactions and delivering exceptional customer service.

“We’re very excited to welcome Kris on board. Her experience and knowledge will be invaluable as we continue to expand in the Northwest Arkansas area,” said Robbie Wilson, co-managing partner of Attorney’s Title Group.

In addition to implementing ATG’s high level of customer service and delivering exceptional title and closing services, Kris will be working closely with the ATG operations team to ensure that the client experience with Attorney’s Title Group is first rate. Prior to her time in the title industry, Kris worked for 10 years in customer service and retail management. Her background in customer service and retail management has equipped her with a deep understanding of client needs and a commitment to building lasting relationships.

As the name indicates, the “as-is” clause in a real estate transaction means a property is being sold in the current condition, as it exists, with any faults and defects. This brings with it some benefits but also some risks that must be considered.

The benefits to consider are usually pretty clear, some of them being:

• A reduced price: Since the buyer will be responsible for any repairs, an “as-is” property will typically be priced lower, and depending on circumstances, sellers may even still consider lower offers than the listing price.
• Expediency: An “as-is” property will likely require much less paperwork and negotiation time because the seller isn’t obligated to fix any problems beforehand. That means that the inspection would solely serve as an informational tool to understand the property’s condition, and the costs associated with any repairs.

While “as is” doesn’t always mean a home is in disrepair, the risks of buying an “as-is” property could be quite considerable, and they need to be considered before entering into any such contract.

• Hidden issues: The most common problem is, of course, the hidden issues that could come up with the property, including electrical issues, plumbing issues, roof leaks, mold problems, or even foundational cracks.
• While buying a home “as-is” doesn’t mean you’re giving up your legal rights as a buyer, depending on the state in which the property is located, there might be limited seller disclosure, which means the seller might not be obligated to disclose all known issues with the house. That means you could purchase a property with many more problems than you know. Again, this is dictated by state regulations so be sure to ask your real estate agent about the disclosure laws and what information you’re entitled to as the borrower.
• Problems with financing: “As-is” properties are sometimes more challenging to get mortgages for because there is an increased risk of major repairs. Most loan types will require that the property meets certain livability standards, known as “minimum property requirements.” That means you might need to put down a much larger down payment, pay cash, or secure a special loan program. This sometimes depends on the level of repairs needed. It’s important to discuss with your lender before taking any additional action.
• Resale issues: An “as is” property might be challenging to resell in the future, particularly if all the issues aren’t addressed when you purchase the property.

Real estate fraud is becoming an increasingly common way for criminals to steal someone’s property, and while it is less common than other types of fraud, title fraud is a form of real estate fraud that homeowners need to be aware of. Home title fraud is essentially the forging of a deed to transfer ownership of property away from the true owner in order to profit from the theft of the property.

The steps to commit title fraud, sometimes known as deed fraud, generally follow a similar pattern:

• Scammer identifies a property they want to acquire or that they deem as an easy target for committing title fraud (such as vacant properties).
• They forge any necessary real estate documentation, such as a deed, which transfers ownership to them, and have it filed on record with the county.
• The new “owner” either sells the property or takes out a home equity line of credit loan against the property. The true property owner may only discover they no longer own their property when they get a notice of the new mortgage or when a bank begins the process to foreclose on the property.
• The scammer may commit identity theft to steal a homeowner’s identity and transfer the deed to their name (meaning they fraudulently act as the homeowner and then transfer the property to themselves).

Arkansas Money & Politics ("AMP") released its 2024 "Most Admired Companies" list in which readers throughout Arkansas nominated companies in multiple business categories. The criteria used for nominations included financial soundness, bold innovation, brand awareness, quality of product, outstanding people, and social responsibility.

Attorney's Title Group is honored to have been selected as the "Most Admired Title Company" in Arkansas. This recognition is a testament to the dedication and hard work of our team, as well as the loyalty of our customers.

To learn more and see other companies listed, visit AMP online at the following link, or pick up the June 2024 edition of Arkansas Money & Politics.

https://armoneyandpolitics.com/amp-most-admired-companies-2024/

NORTH LITTLE ROCK, AR (May 7, 2024) – Attorney’s Title Group, LLC, (“ATG”) has announced that it is opening its newest office location in North Little Rock. The office is located at 5600 JFK Boulevard, Suite 3, and will be managed by Shirley Worthy.

Worthy began her career in real estate as a real estate agent in 2003. She became a licensed real estate broker in 2016, at which time she began instructing real estate courses. She has a wealth of real estate knowledge, and is also very familiar with North Little Rock, Sherwood, Jacksonville, and surrounding communities.

“We are very excited to join the North Little Rock community. Between Shirley’s background in real estate and her involvement with different organizations in the area, we are confident that this location will thrive,” said Robbie Wilson, co-managing partner of Attorney’s Title Group.

Attorney’s Title Group also offers remote, concierge closings at real estate offices, banks, and businesses. The company is headquartered in West Little Rock, with additional offices in downtown Little Rock, Conway, and Rogers. Attorney’s Title Group welcomes all businesses and homeowners in the North Little Rock area to experience the “Attorney’s Title Group Difference.”

At Attorney’s Title Group, communication is one of our top priorities. Offering convenient closings is equally important. A few years ago, we implemented the use of CloseSimple as an enhanced method of communication with real estate agents, lenders, buyers, and sellers to keep everyone updated of each step of the closing process.

Now we’re taking it a step further to make things even easier for our customers. We’re excited to announce ATG Portal. In addition to sending buyers, sellers, real estate agents, and lenders proactive communication throughout the entire process, ATG Portal is a secure platform to see and share everything related to your closing. This includes updates at each milestone of the process, plus on-demand access to important closing documents.

The ATG Portal allows all parties to digitally interact with all of their transactions in one place and on any device. It is web-based, so it is easily accessed from a computer, smartphone, or tablet. More importantly, it’s secure.

With the ATG Portal, buyer/seller interviews can be completed quickly, documents can be reviewed in advance, wiring instructions can be verified, and documents can easily be reviewed after closing is complete.

Fraud in the real estate industry is constantly evolving. Scammers are continuously searching for vulnerabilities to exploit, putting buyers and sellers at risk. Lately there have been several alarming stories of in real estate fraud in the news, shedding light on the need for heightened vigilance.

Real Estate Fraud Tactics Evolving with Technology

From wire fraud to social engineering schemes, fraudsters have long targeted real estate transactions. One of the more common forms of wire fraud is when a scammer impersonates a title company or real estate agent to get a buyer to transfer funds into a fraudulent account. Recent advancements in technology, such as the use of generative AI, have added a new layer of complexity to these fraudulent activities. AI tools like chatGPT are being employed to mimic voices, enabling scammers to spoof phone numbers and execute more convincing social engineering tactics.

Generative AI has led to a rise in realistic-sounding voice messages and deceptive emails, making it increasingly difficult to distinguish between genuine communications and fraudulent attempts. Scammers use this technology to manipulate victims into transferring funds or disclosing sensitive information, exploiting the trust inherent in traditional communication channels.

Real estate transactions can be complex and intricate processes. Whether you're buying your dream home, selling a property, investing in real estate, refinancing your loan, or engaging in any type of real estate transaction, numerous key players are involved. These individuals or entities play a vital role in ensuring a successful and legally sound transaction. Let's dive into who these key players are and how they work together harmoniously to close the deal.

Buyers and Sellers

At the heart of every real estate transaction are the buyer and seller. The buyer is the party looking to acquire the property, while the seller wants to part with it. These two individuals or entities are the primary decision-makers in the deal. They negotiate the terms, agree on the purchase price, and ultimately decide whether to move forward with the transaction.

Real Estate Agents

Real estate agents act as intermediaries between the buyer and seller. They help market the property, find potential buyers, and facilitate property showings. For buyers, agents can assist in locating suitable properties and negotiating on their behalf. They know the market, they know how to negotiate, and they keep you informed every step of the way. Their expertise in the local real estate market is invaluable when buying and selling a home.

You’re about to close on your dream home. Then you meet with the title company and learn that the title search discovered that the property is subject to an easement.

What is an easement?

An easement gives another party the right to access your property and to use it, or a part of it, in specified ways. An easement agreement between two parties outlines the specific use of the property, along with any applicable payment and termination information. These easements are usually transferred when the property is sold. Though they are not always common knowledge, easements are more common than some may think, and it’s important to be aware of what they are and how they work.

In essence, an easement is a grant of a nonpossessory property interest that gives the easement holder the right to use someone else’s land. This might be something like a utility company needing to come in and repair water or sewer lines or trim trees that impede power lines.

Sometimes, easements can be to the property owner’s benefit. Using the example above, you will want the local power company be able to access the power lines on your property to restore power in the event of an outage after a severe storm.

Attorney's Title Group is proud to announce that Robbie Wilson was voted one of Little Rock's Best Lawyers in the December edition of Soiree magazine. Robbie was recognized in the Commercial Real Estate category.

The Little Rock Best Lawyer list is composed of 113 individuals who were determined via a two-component voting system of peer review voting and voting by the readers of Little Rock Soiree and Arkansas Business magazines. The expertise of lawyers is used to determine who should be on the list, and readers votes and experiences with the lawyers determine how individual lawyers rank.

Congratulations to Robbie on this well-deserved achievement.

Buying and selling a home will be the largest financial decisions many people will make, so thinking about how and when to save money on the purchase or sale of a home makes sense. Without knowing all of the details, it can seem like selling and buying a home on your own is the way to go. After all, why spend money on a commission for a real estate agent when you can DIY? While selling or buying a home on your own can seem tempting, using a real estate agent actually makes more sense, financially and logistically, when you start to consider the potential roadblocks of doing it on your own.

Lower Sales Price

Homes sold by owners without a real estate agent often sell for less. According to the National Association of Realtors, in 2022, the median home sale price for homes sold by owners was just $225,000 compared to a median price of $345,000 for agent-represented sales. A real estate agent has the knowledge and experience to price your home correctly, market it effectively, and for both buyers and sellers, negotiate the best possible deal. Something else to consider: If you do try to save money on a commission by selling or buying a home without professional help, you’ll be responsible for all the leg work (which is a lot). Remember the saying, “Time is money?” When selling your home without a qualified real estate professional, expect to spend dozens of hours showing your home (or arranging times to view homes if buying), collecting information and paperwork, learning the details needed to comply with the law, and ensuring you have everything you need to close.

Attorney’s Title Group (“ATG”) previously announced its expansion into Northwest Arkansas and the hiring of Rick Long as the new Director of its Northwest Arkansas operations.

The firm has officially opened its doors in Rogers in the Village on the Creeks center. The address is 2102 S. 54th Street, Suite 2, Rogers, AR 72758. They are hosting an open house on Thursday, November 9th, from 11:00 AM-2:00 PM. Details can be found on the Attorney's Title Group Facebook page at the following link: https://fb.me/e/O6CRJRYF.

Attorney’s Title Group offers remote, concierge closings at real estate offices, banks, and businesses. Attorney’s Title Group welcomes all businesses and homeowners in the region to experience the “Attorney’s Title Group Difference.”

Buying a home or piece of property is a really big deal. Once you’ve found the perfect place, you start envisioning yourself in it. You think about where to place furniture and hang pictures. You may envision hosting guests, celebrating important milestones, and making memories in this special place. Buying real estate is a truly exciting experience.

Going Beyond the Exciting Part

While finding and falling in love with a property is exciting, there are some less-than-exciting parts of the process, too. This includes familiarizing yourself with some of the documents and terminology that you may come across on your real estate journey. Though understanding terms like “grantor” and “grantee” isn’t the fun part – and not always necessary when you’re working with a trusted real estate professional – knowing the details is helpful in fully understanding your real estate transaction.

In broad terms, a grantor is the individual who transfers ownership to another person or entity, and the grantee is an individual who receives the transfer of the property. To simplify it, in a real estate transaction, the grantor is the seller and the grantee is the buyer. While much of this is straightforward, the obligation for each party depends on the specific transaction. The grantor may be the seller of a home, the landlord of a rental property (lessor), or a borrower who gives the mortgage (mortgagor). The grantee is the buyer, the lessee in a rental transaction, or the lender/mortgagee.

LITTLE ROCK, AR (August 7, 2023) – Attorney’s Title Group (“ATG”) has announced that it is expanding into Northwest Arkansas and has hired Rick Long as the new Director of its Northwest Arkansas operations.

Long brings a wealth of experience to Attorney’s Title Group. His background in title, construction, and banking will be beneficial to the company as it expands into the Northwest Arkansas region.

“We are glad to welcome Rick into this new position, and we’re excited about what it means for the continued growth of ATG. Rick’s experience and knowledge of the industry will be a big asset as we expand our footprint,” said Robbie Wilson, co-managing partner of Attorney’s Title Group.

In addition to implementing ATG’s core policies of customer service, Long’s role as director will include managing Northwest Arkansas business development, conducting closings, and working with the ATG operations team to ensure that the client experience with Attorney’s Title Group is first rate.

“At Attorney’s Title Group, we’re always focused on providing the best white-glove experience possible,” said Jack Harvey, the firm’s director. “We are confident that Rick will help us continue to provide excellent customer service to the Northwest Arkansas community.”

It can pass the bar exam, write your kid’s college essays, and have a close personal relationship with a New York Times journalist. Across industries, some are wondering if they can be replaced by AI. The real estate business is no exception.

What is AI?

Artificial intelligence (AI) creates mechanisms that can analyze and process data, find patterns, and make decisions based on what those mechanisms learn. While there is still much dispute about how close AI can come to simulating human intelligence, learning, and decision-making, it’s a rapidly evolving technology with the potential to upend how almost everything is bought and sold.

Faster, More Efficient

The upside of AI is, principally, speed. For buyers, sellers, and real estate professionals, it involves a quicker way to analyze market trends, see property listings in target markets, and get comparable prices. Real estate professionals can use the consolidation of vast amounts of data for marketing purposes, negotiating deals, and providing their clients with personalized advice.

LITTLE ROCK, AR (May 1, 2023) – Attorney’s Title Group is excited to announce our participation in the Little Rock Regional Chamber’s national talent recruitment campaign, Little Rock Love Connection. Inviting both former Arkansans and potential newcomers to love Little Rock, Attorney’s Title Group will be among the list of businesses eligible for customized job matching. Interested applicants can visit movetoLR.com to submit an application to be matched and qualify for a $10K signing bonus.

“Central Arkansas has so much to offer, which is why we’re committed to helping people call it home. We know that this campaign will help people discover the excellence of living and working in Little Rock,” said Robbie Wilson, Co-Managing Partner. “Whether you are a match for ATG or another partner in this campaign, we hope we can be a part of welcoming you back to Little Rock.”

Cash incentive-based talent recruitment campaigns are gaining popularity nationwide to bolster local workforces for expanding economies. The Little Rock Love Connection campaign takes a unique approach by inviting Arkansas natives, as well as newcomers, to “come home” while also allowing current residents to act as matchmakers and potentially earn $501 for every successful match.

Ownership of real property comes in a variety of forms, with the four most common types being:

• Sole ownership by a natural person or a limited liability company or corporation
• Tenancy by the entirety, which applies to ownership by a married couple. Upon the death of the spouse first to die, full ownership vests in the surviving spouse.
• Joint tenancy by two or more persons, which means each of the owners holds equal interests, all must receive their interest at the same time, and all must acquire their interest by the same deed. When one joint tenant dies, their interest transfers to the remaining owner(s). Upon the death of the last joint tenant, the property passes to that last tenant’s heirs.
• Tenancy in common, which can be equal or unequal ownership between two or more people. When one of the tenants in common dies, their share goes to their heirs.

What’s the Difference Between Joint Tenants and Tenants in Common?

The main difference between these two forms of shared ownership is that joint tenants have a right of survivorship, while tenants in common do not.

With joint tenancy, owners hold equal shares of a property with the same deed acquired at the same time. When one joint tenant dies, their interest passes to the remaining joint tenants. This is known as a right of survivorship. The marital rights of a spouse of a joint tenant do not attach to the joint tenant’s interest. At the death of the last surviving joint tenant, he or she can dispose of the property as they wish in their will.

So you’ve fallen in love with a house—and its sparkling dining room chandelier. Is that chandelier yours when you close on the deal? It depends. On the other hand, if you are the seller and want to hold onto the sparkling chandelier, there are some important things to consider.

Fixtures: A Brief Definition

A fixture is personal property attached to real estate property. While the definition varies from state to state and should be addressed in a purchase agreement, if the object needs nails, screws, bolts, glue, pipes, or cement to install in the home, it is usually considered a fixture, which means it conveys with the sale.

Determining What is a Fixture and What Isn’t

Something like a curtain rod purchased by the homeowner may be personal property at first, but once it is affixed to the wall, it becomes a fixture of the home. There are several grounds for determining what can be considered as real property (items attached to the property) versus personal property (sometimes called “chattel”). Sometimes a real estate agent may use a process called “MARIA” to help a homeowner determine what can stay and what can go. Below are some of those guidelines:

Investing in out-of-state property appeals to people for a variety of reasons. If you live in a market with stratospheric housing prices, it’s likely crossed your mind to invest in a lower-cost area. Or maybe you want a place for your college-age child and roommates who can subsidize a mortgage with rental payments, or a vacation home to enjoy or rent out when you’re not there.

An important consideration when investing in real estate is the return on investment (ROI). For many people thinking about markets outside their own, factors like lower purchase prices, reduced property taxes, housing regulations favorable to rentals, and potential appreciation rates can lead to a great return. While out-of-state investing may be appealing, it also comes with challenges.

It’s always a good idea to look before you leap. Below are some caveats.

Get to know the market intimately. In your own neighborhood, you likely know where the best shopping and school districts are located—and which areas are less desirable. This is not always the case in an unfamiliar area. Familiarize yourself with the area in which you plan to purchase property.

In the transfer of real property, title insurance is a way to protect buyers and lenders from losses or damages as a result of liens, encumbrances, or defects in the chain of title or ownership. There are two types of title insurance: owner’s title insurance and lender’s title insurance.

The cost associated, also known as the premium, is paid on a one-time basis, typically at closing. The amount of insurance under an owner’s title policy will be the purchase price paid by the buyer. The amount of insurance under a lender’s title policy will be the amount of the buyer’s mortgage.

A seller’s clear title—or an understanding of why the title is not clear—is necessary to close any real estate transaction. The title company will do a deep search of the title records to uncover anything that might prevent the buyer from receiving a clear title. If title defects or clouds on the title are found, the title company will require documentation be filed in the title records to remove the defect or cloud.

Title insurance is a valuable tool because it results in greater protection of what is likely the single largest investment someone will make in their lives.

You’re excited about the purchase of a new home. Congratulations! To make it happen, you’ll need the help of an experienced closing agent at a reputable title company in the critical step of funding the loan and tying up loose ends. The title company will oversee the closing process and make sure everything happens in the right order at the right time. The following are a few frequently asked questions.

What exactly is “funds disbursement”?

Receiving and disbursing funds for the sale is a key component of the settlement and closing process. The closing agent at a title company will work with the lender and/or you, the buyer, to facilitate the funds disbursement process. The title company where you’ll be closing will need a few things before they can assist you in closing on your house.

What does the title company need in order to close?

A title company must have approval from the lender to get to closing. The title company also needs lenders’ funds and funds from you, if applicable. If you are using a lender, your lender will provide your final cash to close amount. If it is a cash purchase, the title company will work with you prior to closing regarding the funds needed. These funds will go into an escrow account overseen by the title company.

Attorney’s Title Group (“ATG”), a real estate title and closing company based in Little Rock, has announced the opening of their new office in Conway later this month. The new location, at 685 Shelby Trail, Suite 102, will be the company’s second office in Arkansas, and will be managed by Lisa Fields, a closing agent who currently works in the Little Rock office. Lisa has a strong background in real estate and title, including 10 years of experience as a landman in addition to positions at mortgage banking and title companies.

“This has been a dream of mine for quite some time. I am super excited to bring ATG’s amazing real estate services to my friends and neighbors in the Conway community that I know and love so much,” said Lisa Fields.

Attorney’s Title Group provides residential and commercial title and closing services, real estate refinances, title insurance, title curative legal work, document preparation and review, REO services, and 1031 qualified intermediary services. The company focuses on providing their customers with personalized, concierge-style “white-glove” service and high-touch communication.

If you’ve decided to sell your house and move to a new place, you probably don’t want to sit around for months on end waiting for your house to sell. Preparing your home so it feels welcoming and fresh to prospective buyers is one of the best ways to sell it faster, no matter the market.

Upgrades

If you’re able to afford upgrades, spend your money wisely. For example, some potential buyers might avoid a pool or a newly added sunroom because these things can mean additional costs and ongoing maintenance.

On the other hand, most buyers will appreciate energy-efficient improvements or updated kitchen appliances and counters. Fresh, neutral-colored paint and flooring also help. Potential buyers will be checking out the attic and basement, so if those or any other stairways don’t have handrails, it’s worth adding them—they’re a practical upgrade, and they’ll help protect you in case of a stumble.

Put Your Home’s Best Foot Forward

Potential buyers want to envision themselves living in the new space, and they want to see a better version of themselves there: more organized, more relaxed, happier. Encourage them by making sure your home is neat, in good repair, and ready for them to envision it with their own tastes and personality.

Little Rock, AR (August 24, 2022) – Attorney’s Title Group, an affiliate of The Wilson Law Group, is pleased to announce that Robert M. Wilson, III has been named Co-Managing Partner of Attorney’s Title Group. Robert (Robbie) M. Wilson, III currently serves as partner at Wilson & Associates and Supervising Attorney of Attorney’s Title Group. He will be co-managing with the current Managing Partner of Attorney’s Title Group, Jennifer Wilson-Harvey.

“Robert has shown an amazing ability to develop businesses and influence people. The culture he has helped establish at Attorney's Title Group is inspiring, and I am very proud of his accomplishments, both personal and professional. He is the right person to lead the firm into the future," said Jennifer Wilson-Harvey, CEO and Managing Partner of the firm.

Robbie received his education from Tulane University (B.A. 2009) and the University of Arkansas School of Law (J.D. 2013). He is licensed to practice law in Arkansas, Tennessee, and Mississippi, and is also licensed to practice before the 8th Circuit Court of the United States. He serves as the central Arkansas representative of the Arkansas Bar Association Young Lawyers Section, is a fellow of the Arkansas Bar Foundation, is a board member of the Pulaski County Bar Foundation, and is a member of multiple state, local, and national legal, banking, and real estate associations. Robbie was named partner of the firm in 2019 and serves on the firm’s Executive Committee. Robbie’s dedication and vision for both Wilson & Associates and Attorney’s Title Group has resulted in substantial business growth across the Wilson Law Group. He continues to grow Attorney’s Title Group within the real estate industry and as a pillar of the local community; notably, his leadership has led to the implementation of community-oriented programs which reduce closing fees for veterans, first responders, and teachers.

Did you know that eco-friendly energy upgrades can make your home more sellable? According to a National Association of Home Builders (NAHB) survey, 57% of buyers will pay up to $5,000 more to save money on utilities – and energy upgrades are a key way to reduce those bills. To help you increase your home’s sale value, here are five energy upgrades to consider.

1. Install Energy-Efficient Appliances

Out of over 200 features listed in the NAHB study, 81% of respondents listed ENERGY STAR rated appliances as either non-negotiable or highly desirable. For sellers, one fairly cost-effective way to improve your home’s value – and increase its energy efficiency – is to switch out old, less efficient appliances like dryers and refrigerators for newer models.

2. Change to a Tankless Water Heater

Tankless water heaters offer two benefits: they take up less space than conventional systems, and they’re more efficient. Both advantages will appeal to buyers, thereby increasing your home’s value over time.

Email spoofing and wire fraud has been in the news again lately, so we're re-visiting one of our older blog posts to share some information on the subject.

In this article we’ll discuss some best practices to avoid being scammed when dealing with real estate transactions.

Good Funds

As real estate agents know, wiring is a common practice in real estate transactions. For those new to the industry, wiring money is one of a few ways to pay with “good funds,” or immediately available money. Other examples of good funds are cashiers’ checks, certified checks, and anything that is immediately collected. The idea is that no one wants to wait three days for a real estate closing, and a lot can go wrong in that time.

Spoofing Real Estate Professionals’ Emails

If you haven’t heard the term “spoofing,” it’s time to learn. Fraudsters find ways to forge emails with the name of a trusted person in the “from” column, and the contents of the email usually have detailed instructions for wiring a large amount of money. Usually these “spoofed” email addresses are “from” various people in a current real estate transaction, and generally at a key point in the process where funds will change hands. We have even heard of people trying to intercept the selling company, spoofing the seller’s email, convincing the title company to wire out the seller’s money to the wrong place.

Ah, the smell of fresh-cut lumber. The notion that you, and only you, will be the first person to live in a house. For many, buying new construction is much more appealing than inheriting someone else’s taste in bathroom tile and paint colors, never mind aging plumbing or an old roof.

Buying a house always comes with some level of risk, and for many, the prospect of a shiny new home seems like a safer bet than a fixer-upper. But before you make a builder your new best friend, there are some things to consider.

Look at the Neighborhood

What are you looking for in a community? While you may fall in love with your dream kitchen, how will you fit in? If you are empty-nesters, for example, you may not relish the noise and excitement of young families. If you do have young children, you’ll want to make sure you are close to their activities, or you’ll find yourself constantly on the road for soccer practices and dance recitals.

If you’re comfortable doing so, knock on a few doors and ask how people like living there, and look at how the homes on the street appear to be holding up, especially those that are a few years old.

Consider Your Timeline

It’s a real estate fairytale: What looks like a teardown is coaxed back into beauty by gifted contractors and designers. In the space of 30 minutes of viewing, we witness a transformation and a happy ending for the renovators and the new homeowners.

Over the past decade, we’ve seen TV shows and real-life examples of houses that have been remade, sometimes with more speed than seems believable.

If you’re in the market for a new home but have no DIY talent or interest in renovating, a property that’s already been updated can be very appealing. That said, how can you make sure it’s not just a quick spackle-and-paint job but actually a real value?

Here are some critical things to consider:

Water, water. Kitchens and bathrooms are well-known to be the biggest costs when it comes to renovations. Turn on all the faucets and look at how they well they work in terms of water pressure and temperature. Smell the water and look at the color. (Note: Brown is not good.)

Find the hot water heater. Is it new, a couple of years old, or ready for the Smithsonian? A replacement can be an expensive fix if you don’t plan for it. Look at the pipes around the heater and others that are exposed elsewhere in the house. Ensure they are newly replaced.

Buying or selling a home—a large investment for many people —is a decision that demands real estate expertise. The first phone call many people make is to a real estate agent who is also a friend.

While it seems like a good idea in the first place, engaging in a real estate deal with a close friend can also present risks to both parties and to the relationship.

Downsides for Agents

First, consider some of the potential negatives when representing a friend.

• Personality conflicts. It’s entirely possible to enjoy someone’s company at a dinner party and yet still not mesh well in something as critical as a real estate transaction. Think carefully about whether this person will cede control to your professional expertise, or if they will second guess you at every turn.
• Higher expectations. A friend may assume that you’ll go the extra mile for them—and chances are you will—but late-night phone calls and constant texts may be more than your friendship can support.
• Constructive criticism may not fly. Your friend may not appreciate hearing that their barking dog or clutter level are putting buyers off, or that their wish list for a home in their price range is unreasonable.

Anybody who’s been through the sale or purchase of a home knows that “under contract” is just that: It doesn’t mean a deal is done. Seasoned real estate professionals can tell you there are common reasons why transactions get called off at the eleventh hour.

Getting a Good Real Estate Agent is Key

Avoiding the majority of last-minute house heartbreak can boil down to having an experienced real estate professional involved. They will:

· Negotiate on their party’s behalf throughout the transaction

· Confirm bank appraisal results

· Work with the home buyer (if applicable) on getting approval for a mortgage, if needed

· Follow up with attorneys as they review/prepare key documents

Now, on to the potential pitfalls that can keep a house from changing hands.

Inspection Issues

Inspections are a part of due diligence for both sellers and buyers; both must act in good faith to avoid nixing a deal. If you’re a seller, it’s key to hire a reputable home inspector who will produce a solid report so you can be upfront and avoid surprises for a buyer.

If you are a buyer, get your own inspection and look for red flags, including but not limited to: mold, pest infestations, foundation and structural issues, and roof leaks or damage.

Have you decided to sell your home? Now you’ve got another important choice to make: which renovations or repairs to undertake before putting the house on the market. Keep these considerations in mind as you make your list of pre-listing “DOs” and “DON’Ts.”

First Things First: Factors to Consider

There are few, if any, absolutes about fixing up a home for sale. Before you even contemplate a kitchen upgrade or a paint job, do your homework and get your real estate agent’s input on these crucial considerations:

● The Overall State of the Market. Whether it’s a buyer’s or a seller’s market will greatly influence how quickly your home may sell, and for how much, with or without improvements.

● The Look of Local Competition. A Comparative Market Analysis can tell you the value of recently sold similar homes in your area and help you crunch the numbers on renovations. It’s also smart to attend nearby open houses to scope out the competition for yourself.

Attorney’s Title Group is excited to announce our newest closing agent, Lisa Fields. Lisa was previously serving as closing assistant before accepting the position as closing agent. Lisa has a strong background in real estate and title. She worked as a landman for 10 years completing title work, curative, leasing, and due diligence for several petroleum exploration companies for the purposes of oil and gas exploration in Arkansas. When those companies exited the state, she then worked in various positions at mortgage banking and title companies, applying the knowledge and skills learned from her experience as a landman. Prior to joining Attorney’s Title Group in May of 2020, Lisa worked for three years in the Title Curative department of Wilson & Associates.

Check out this brief Q&A with Lisa to get to know her better:

Q: What was the best vacation you have ever taken and why?

A: The best vacation I have ever taken was with my family and our close friends to the South Rim of the Grand Canyon. I can still close my eyes and remember how beautiful and surreal the views were, absolutely breathtaking! The annual stargazing party just happened to be taking place one of the nights we were there. Hundreds of telescopes set up looking up at the clear night sky. I could see the rings on Saturn!

The weather in Arkansas can be unpredictable. When it comes to winter, there is always some chance of experiencing 65-degree temperatures and snow in the same week. To be on the safe side, it’s a good idea to take advantage of the warmer temps to prepare your home for the possibility of winter weather. The following tips will help prepare your home for warmth and safety during the colder months.

Indoors

Seal any cracks and openings. Drafts through windows and doors can cause heat loss and increase your energy bills. Feel around doors and windows for air leaks (or use a candle) to determine if there are any openings where heat can escape and cold air can enter. Add caulk or weather-stripping around the openings. Use heavy-duty plastic or a window insulator kit to further seal windows. It’s also helpful to cover other openings to your home, like pet doors.

Reverse ceiling fan blades. In the warmer months, ceiling fans rotate counterclockwise. Use the sliding button (near the fan blades) to switch the blade rotation of your ceiling fan so that they rotate clockwise to push the warm air down from the ceiling.

Cover bare floors. Hardwood, tile, and laminate flooring can cause your house to lose heat, not to mention cause cold feet! If you don’t have carpet, consider adding rugs over areas with bare flooring to keep your floors and feet warm.

Marketing a home with a few good years (and not a lot of maintenance) on it can be daunting. While some buyers are great at seeing potential, some lack vision—seeing past the pink bathroom tile or dated floral wallpaper, for example, can be a real stretch for the non-designers among us.

A home that needs repairs may take longer to sell than one that has been well-maintained. But major upgrades can run into tens of thousands of dollars. So, with a given property, how do you decide between selling it as-is or investing in fixes? There are a few key questions to ask.

Who’s your buyer (and where)? Again, while there are a special few who can see the charm and potential in an older home, most can’t envision how an outdated space could work once it has been updated.

Much depends on the neighborhood. Is there a preponderance of teardowns followed by new builds? If so, the land represents the real value, and work on the property isn’t always necessary to generate a return on the investment. If it’s an area where older homes are routinely rehabbed, some judicious changes could bring a higher yield from the market.

Finally, if a turnkey buyer is your target—and an actual possibility—then you’ll be looking for a general contractor and looking at months on the project and, to do it properly, a significant financial outlay.

With the spooky season approaching, it seems like a good time to revisit the “haunted house” statute. A question that agents have asked in the past: Do I have to tell a potential buyer that a property might be a “haunted house”?

In 2009, this was a legal gray area. Does the Realtor owe a duty to the buyer to make an inquiry about past events in the house? Can a buyer sue a Realtor for psychological damages if past events weren’t disclosed and the buyer claims the house is haunted?

The answer to both questions, as of 2010, is “no." In 2010, the legislature definitively passed Statute 17-10-101, otherwise known in the industry as the “Haunted House Statute.” This statute defines houses as psychologically impacted if there was a homicide, suicide or felony on the property. It further states that this is not a material fact of information to disclose during a real property transaction, and that a Realtor cannot be sued as a result of not disclosing, inquiring, or releasing information if a property is psychologically impacted.

What it means for the buyer: Since this information is not legally available from the agents, there are a few alternative paths if this would impact your purchase:

Are you considering selling your home and buying a new home? If so, you have two options: sell your current home before buying a new one or buy a new home before selling your current home. This can be a complicated decision. Whichever way you choose to proceed, you will want to have a solid plan and steady cash flow to keep the conveyancing process running smoothly. The first thing you should do is reach out to your real estate agent and lender to discuss your options, as they’ll be able to work with you on strategy and timing. Beyond that, the following are a few considerations when buying and selling a home simultaneously.

Selling Your House Before You Buy

From a cash flow perspective, it is more convenient to sell a house before you buy another property. Not only will you know exactly how much you can afford to spend on a new home, but also you will already have the funds available to close.

Choose your settlement date wisely. Ideally, you should settle and close your new property on the same day. If this is not possible, be sure to plan in advance where you’ll stay until you can move into your new home. You might:

• Opt for a short-term rental
• Stay with friends or family
• Ask your buyer if there is any flexibility – would they be willing to negotiate the settlement date?

The real estate market is booming right now. Sellers are scrambling to get their properties on the market while buyers face fierce competition, often resorting to cash offers over the asking price. The result is often a lightning-fast round of negotiation in hopes of winning the contract. Unfortunately, in the haste to secure the deal, it can be easy for sellers and buyers to lose focus of how important their real estate contract terms are.

All real estate contracts must be in writing and contain certain provisions, including:

• An identifying description of the parties
• A legal description of the property
• The purchase price of the property
• Legal consideration and mutual assent

In addition to the terms listed above, many real estate contracts contain a force majeure provision. The force majeure clause protects parties who cannot perform their contractual obligations due to circumstances beyond their control. Often, circumstances that invoke force majeure are labor strikes, raw materials shortages, riots, natural disasters, and “acts of God.”

After all of the work involved with house hunting, inspections, packing, and preparing to move, closing on your new home should be something to celebrate! But discovering major problems with your home after closing can cause a major headache. While maintenance is an expected part of homeownership, the presence of significant damage or environmental concerns might have caused you to rethink purchasing the property in the first place.

What Types of Hidden Damage Could You Find?

Most home inspections can uncover hidden issues before closing, such as an unstable foundation or water damage. However, inexperienced or unqualified inspectors can potentially overlook major problems, which can leave you with expensive home repairs on your hands after you’ve just been handed the keys. Some of the most common types of damage that may be missed at inspection (or due to lack of inspection) include roof leaks, defective appliances, faulty heating or air conditioning units, and flooring issues.

Additionally, environmental pollutants are not only costly to remedy but can cause health problems for you and your family. Some of the most common types of environmental threats in a household include mold, lead paint, carbon monoxide, radon, pesticides, and volatile organic compounds. Indoor air quality is a huge threat to your family’s well-being, so obviously, these types of problems will need to be addressed immediately.

When we purchase a home, we want to make it a comfortable and unique space for our family to live – but it’s important to remember that a home is also an investment. When making improvements to your property, take a moment to consider whether each project will help add value to your home in the long run. If you’re planning to sell your home one day, the following types of renovations might do more harm than good.

• DIY home improvement projects: After streaming hours of HGTV during the pandemic, it can be easy to assume anyone with a hammer and an idea can renovate their home. While some projects can be tackled by a first-timer, some bigger renovations may need the help of a professional. You may feel satisfied with your handiwork, but potential buyers and home inspectors can usually spot shoddy or unskilled workmanship. Before embarking on a DIY project, It’s important to do a little research first.
• Converting the garage into living space: Especially for growing families in older or smaller homes, it can be tempting to maximize your space to lounge and play – and one of the most obvious places to start is the garage. While converting an existing garage space might initially seem like the best idea, many homebuyers may have opposite preferences and would choose a home with a garage to a larger living area. Again, this is something you should research and then evaluate the pros and cons before making your final decision.
• Unusual wallpaper, lavish light fixtures, or other highly personal touches: Sure, you might love jungle-themed or brightly colored floral wallpaper, but think twice before using it to cover your whole bedroom. Even with wallpaper becoming more popular again, wild and quirky patterns are only likely to appeal to a select few, and can potentially make your home harder to sell. The same goes for trendy light fixtures that quickly go out of style, as well as other fixtures and materials that seem exciting in the moment. It’s important to make your house uniquely “you” but for more permanent fixtures, also consider what would appeal more universally to buyers in the future.
• A high-end kitchen: While a newly remodeled, up-to-date kitchen is a boon for the value of any home, it is possible to overdo it when doing a major kitchen remodel and selecting only the most high-end options. On average, a complete high-end kitchen remodel costs more than $60,000 but has a resale value of about $20,000 less, meaning you won’t come close to recouping your costs. Instead, turn your focus only toward replacing the items that really need it, and go for mid-range appliances and fixtures instead of the top-of-the-line stuff.

At Attorney's Title Group, communication is important to us. Part of our concierge-style service is to ensure all parties involved in the closing process receive direct, reliable communication. We're excited to now be able to provide even better communication with the technology we've recently implemented.

If you’ve ever ordered a pizza from Domino’s you know all about their Pizza Tracker and how it helps customers know where their pizza is at as it’s being made. You can track everything from when the dough is being tossed, when the toppings are added to when the pizza enters the oven, and as it leaves for delivery. If you can track the status of your pizza, you should be able to track the closing process.

After months of hard work, we have recently unveiled CloseSimple, a way to help us communicate with agents, buyers/sellers, and everyone else involved in the closing process with a visual Pizza Tracker for Title™.

We’ll also be able to send short text messages to agents to notify them of completion along the way (since we know a text is often easier to read than an email).

We're looking forward to using CloseSimple on your closing! Please contact us if you have any questions.

Buying a home can be an exciting time of change and opportunity for a family, but when you have kids, this can add a layer of complexity to the process. Not only do you have to account for the needs and desires of the adults in the household, but certain considerations must be made for the happiness and well-being of the children as well. This may ultimately impact the size and location of the home you choose to buy. Here are a few important factors to consider.

Research the Quality of Area Schools

Perhaps the most important factor to mull over when buying a home with kids is where they will be attending school. Is the home located within the boundaries of your preferred school district? This is important not only for your children’s education, but it can help you sell your house later as well. Data shows homes in high-performing school districts typically sell faster and go for a higher price. To simplify the process of searching for a home, it might be helpful to determine the boundaries of your desired school district before you begin narrowing down your favorites.

Pay Attention to the Home’s Size and Floor Plan

Make sure your future home is the right size for work, play, relaxation, and storage. Is the kitchen big enough for family meals? Are there enough bathrooms to avoid feeling overcrowded? Particularly if your family is still growing, it may be wise to choose a bigger home that will allow everyone to have the breathing space they need. When looking at the home’s layout, you may also wish to consider whether you will want certain rooms to serve different functions – for instance, it would not be ideal for the home office to be directly adjacent to the children’s play area.

Over the last 10 years, technology has transformed and bolstered the real estate industry, making transactions more efficient and convenient for agents and homebuyers alike. Technological advances such as electronic signatures, virtual home tours, and online home listings have become so ubiquitous that they now seem almost essential for any potential homebuyer – but looking to the future, there are still many exciting ways technology can continue to empower the real estate sector over the next decade.

Consumers Want Seamless Online Sales

The development of secure financial digital tools has allowed easy data access and transfer, making it possible to move home sales entirely online. As this technology becomes faster, safer, and less expensive, asset transfers that occur in a completely virtual environment are likely to become more common. Additionally, notarization has also started to migrate online due largely to the development of more secure programs. As the rest of the home-buying process goes virtual, it makes sense that over the next 10 years, notarization and other transactional aspects will follow.

Purchasing a home or another piece of property is an expensive and often life-changing decision that should not be taken lightly. Before making such a major purchase, it is essential that you perform due diligence, which simply means you are being responsible and doing your research on the property prior to signing any documents or contracts. That way, you have full knowledge of any issues that may arise, and you can feel good about your investment.

Regarding real estate, performing due diligence includes several primary duties. A few of the basic items include:

• Know the market: Before you purchase a home, get to know the neighborhood and the typical value of the surrounding homes. Talking to residents can help you learn more about the area. It’s best not to rush into a decision.
• Get an inspection and appraisal: An appraisal determines a property’s value, and different types of inspections can help spot problems with plumbing, electrical, the roof, appliances, the foundation, drywall, and many other vital things. Inspectors also look for threats such as wood-destroying organisms, lead-based paint, and radon gas. Knowing a property’s true value – as well as any major repairs it may require (or risks it might create) – can help you make an informed decision about your purchase.
• Find the best deal for financing: Many buyers don’t take the time to get several bids for mortgage financing, but doing so could help you get a better deal and save you thousands of dollars in the long run.
• Find out what kind of insurance you’ll need: Homeowner’s insurance is a must – it will cover losses from natural disasters, theft, fire, and other causes. However, some homes are costly to insure due to their location in an area where flooding, earthquakes, or tornadoes are common – and in some cases, certain properties cannot be insured at all. Before buying a home, find out how much insurance will cost, and shop around to see who can offer you the best price.

In home design trends, as in life, sometimes it feels like change is the only constant. While only a year ago, breezy living rooms and kitchens that promote family togetherness were all the rage among homebuyers, the COVID-19 pandemic has prompted many people to reconsider what they desire in their dwelling.

For starters, we’re all spending a lot more time at home these days – probably a little more than we’d like, as many jobs, schools, and activities shift to a virtual environment. Our lives will probably look this way for a while, so it should come as no surprise that homebuilders and real estate agents are beginning to consider how our homes can accommodate our changing way of life.

One key feature that’s seeing a decline in popularity is the open floor plan. Homebuyers are again starting to favor walls and doors between rooms that allow each family member to work, study, and live in their own space. In this same vein, home offices have become more desirable – and it’s likely a bonus if these dedicated workspaces are equipped with noise control. Separate spaces to keep kids occupied while parents work are also in demand, along with home gyms and breakfast nooks.

If there’s any insight to gain from 2020, it’s this: the home buying market is resilient. Despite the fact that home buying slowed earlier in the year, the market has started to rebound. This rebound is partly due to low mortgage interest rates allowing first-time homebuyers to purchase when they may not have been able to before the pandemic. Another driving force behind the rebound: millennial homebuyers. In 2019, millennials made up 38% of homebuyers.

Regardless of the buyer’s generation, these are some of the upgrades and trends a buyer may be looking for in the search for their next home.

Smart Home Features

There used to be a time when smart home features were out of reach for some people, but now, with companies like Amazon, Google, and Ring, smart home features are more affordable. Tech savvy or not, some homebuyers are more interested in homes with smart home security, smart thermostats, smart speakers, and smart lighting upgrades that can be controlled from a cell phone.

Attorney's Title Group is excited to announce that we are moving to a new location. Beginning November 1st, we will be in our new location at 5315 Highland Drive. The new location provides us with more space and added convenience to better serve our valued clients.

It’s true that 2020 has brought a lot of change to our lives, but we think this will be a good change. Our address is changing, but our phone number, email address, website, and excellent customer service remain the same.

We hope you’ll drop by soon to see our new space.

For sellers, an “open house” means more visibility since buyers can swing by and view the home without making an appointment. An open house can be a fantastic way to have multiple home showings in a condensed period of time. Like many other things complicated by COVID-19, the pandemic poses another problem for realtors: Open houses may not always be feasible for some prospective homebuyers. With stay-at-home orders being passed in many states, in-person showings and open houses were down as much as 40%-50% in April.

As Americans are getting back to work, buyers and sellers are returning to the market. While open houses are starting to get going again, some realtors are relying on technology to conduct digital home walkthroughs, virtual open houses, and even “virtual staging.”

Digital Walkthroughs and Virtual Staging

Virtual staging is the use of software to add digital enhancements like furniture and other furnishings to the image of a property. Instead of temporarily bringing in furniture and other decor to make a home appear more attractive to potential buyers, some realtors are using digital technology to the same end. This saves realtors and sellers money on purchasing or renting furniture and moving it in and out, all while limiting the amount of person-to-person contact involved.

Residential communities with a governing document (such as a bill of assurance or declaration of covenants, conditions and restrictions) foster a cohesive, clean, neighborhood atmosphere. They spare property owners some responsibilities while also requiring those property owners to follow certain rules and regulations. A BOA will have its own set of rules, regulations and procedures. The BOA can help you better understand your role and responsibilities as a homeowner in your community.

In general, a BOA will typically include the following items:

• Minimum square footage requirements for houses;
• Minimum setbacks from the lot line for the front and sometimes the side of the house;
• Easements for utilities;
• Dedication of streets to the public;
• An Architectural Control Committee to ensure a general uniformity of appearance;
• Creation of a homeowner’s association (HOA) to enforce the BOA, manage green spaces and common areas, and to file liens against homeowners who are delinquent in paying annual HOA assessments

Bills of Assurance aren’t mere suggestions for residents. Once you buy a property in a community with a BOA, you agree to follow the rules accordingly. There’s no way to opt out, and if you disagree with a particular rule, you’ll have to work together with your neighbors to change it. Bills of Assurance are powerful, and challenging the documents could be time-consuming and expensive.

The vocabulary of real estate can be complex. A person could spend years carefully studying definitions without fully understanding the entire scope of the real estate industry. While brushing up on terminology never hurts, there are really only a few key phrases you need to know while buying or selling a home. Understanding the difference between property deeds and property titles, for instance, can help immensely when you decide to put your house on the market.

Your title is the legal ownership of your home. Title gives you control over the property and allows you to reside there. A homeowner might think that the “title” to her house is like the certificate of title for her car – a government issued document that gives the name of the owner. While you might expect the term “title” to refer to a specific piece of paper or document, it is actually a collection of rights you assume when purchasing a home. Some of the rights include:

• Right of possession, meaning that the house is yours
• Right of control, allowing you to use the property as you’d like
• Right of exclusion, granting you the power to welcome or forbid guests from entering
• Right of enjoyment, giving you the freedom to sip tea on your porch at midnight or play soccer in the backyard
• Right of disposition, granting you the ability to sell the home

Every day, we do little things to protect ourselves and our loved ones. From buckling up before driving to locking doors before going to bed, the smallest of actions can go a long way towards keeping safe. Insurance provides similar protection – it’s why we invest money in auto and health coverage each month. While not as well-known as other types of insurance coverage, title insurance is just as important. It protects buyers and lenders from the financial losses that sometimes occur when defects or disputes arise during the home buying process.

Any time a buyer and seller enter into an agreement over the sale of a property, title insurance is needed. A title agent works to uncover any liens, claims, encumbrances, or conflicts that must be cleared up before property can transfer owners. Most real estate contracts require the seller to purchase an owner’s title insurance policy for the buyer. The amount of the owner’s policy will be the price the buyer paid for the property. The policy will include a description of title defects that are covered by the policy and a list of “exceptions” that describe the matters that are not covered by the policy. Although the seller usually pays for the buyer’s owner’s policy, lenders who finance the buyer’s purchase typically require the buyer to buy the lender a policy to protect the lender from title defects. Even the most minor of mistakes can have massive financial ramifications for the lender, so lenders often refuse to proceed without title insurance.

When you’re a party to a commercial real estate transaction, whether buying or selling, it’s crucial to perform environmental due diligence on the property. Properties can have any number of hidden environmental liabilities that can cost a fortune, devalue the property, or turn into a legal nightmare.

What is environmental due diligence?

Environmental due diligence occurs when environmental professionals assess the property for all known or potential risks of environmental contamination. Such contamination may include:

• Hazardous building material on the property (e.g., asbestos, lead-based paint, etc.
• Actual or potential groundwater or soil contamination beneath the property
• Potential for contamination to migrate to the property from another

Due diligence experts will also investigate whether the property is compliant with state or federal environmental regulations.

How does performing environmental due diligence protect me?

Under the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (CERCLA), a buyer who performs satisfactory due diligence may avoid inheriting legal responsibility for the property’s environmental problems. Without due diligence, a new owner may be liable for resolving their property’s environmental issues even if they didn’t know about them or cause them.

That perfect dream home or promising investment property you’ve purchased can turn into a nightmare if a property dispute arises. Real estate disputes can cover a range of issues and have devastating consequences if not handled quickly and skillfully. Here are three common property disputes and what to do if you encounter them.

1. Boundary Line Disputes

Where does your property end and your neighbor’s begin? It’s common for property owners to disagree about this issue, particularly when there’s a fence, tree, or wall on the boundary line. If you’re in a boundary line dispute, compare property deeds with your neighbor. These documents should reflect the exact specifications of your land. If it’s still unclear, visit your local county recorder’s office and request a map of your property, which should indicate where your property ends. If the issue is still unresolved, you should hire a knowledgeable real estate lawyer before the situation gets out of control.

2. Title Issues

When you purchase property, you must make sure the title is clear and error-free. Among other things, you must be certain the presumed owner has the legal right to sell the property or know whether there are any liens, encroachments, or other encumbrances attached to the property. Before buying, do your research on the title at the country recorder’s office and check the authenticity of the documents.

On our last blog post we covered “cloudy” titles, or clouds on title, and some effective ways to avoid or cure them. In this post we’re going to cover one of those potential solutions: the scrivener’s affidavit.

A scrivener’s affidavit is a common method of “curing” a sick or cloudy title. To break the term down even further, an affidavit is a written statement of facts made by a person who has personal knowledge of those facts. A scrivener’s affidavit is an affidavit made by a scrivener or (in more modern terms) the preparer of the deed. In layman’s terms, when a deed has certain technical defects or factual inaccuracies, a scrivener’s affidavit is a good way to fix those defects and inaccuracies.

For example, if a deed fails to state the marital status of an individual grantor a scrivener’s affidavit can supply the missing marital status. If a grantor’s name is given as ABC company but omits the “Inc” if it’s a corporation, or the “LLC” if it’s a limited-liability company, then the scrivener’s affidavit can supply the missing abbreviation. But the most common use of a scrivener’s affidavit is to correct a typographical error in the legal description. If a deed description has an incorrect lot number or has a typo in the course or distance call in the description, a scrivener’s affidavit is an easy way to correct the error.

Cloudy, clouded, or the more common term, cloud on title is a colloquialism for a defect on a title (or an apparent defect) that can have short or long-term ramifications on the property and its owner. This article will give you a brief overview of cloudy titles, some real-world examples, and some best practices to avoid any serious trouble.

Minor Title Defects

Let’s start with an example of a cloud on title that is relatively minor, meaning in this case, there is no actual cloud – the record title simply makes it appear like there might be a cloud. Say John and Mary take title as husband and wife, and John dies, leaving Mary as the sole owner. When Mary sells the house, she deeds the property to a buyer as Mary Seller, grantor. The “cloud” in this case is that Mary signs and makes no mention of John. Someone looking at the deed that only knows the documents and not the story can tell that John’s name and signature is missing. Without John’s signature, Mary can’t pass good title to the buyer, because John is also an owner.

But since John is deceased, she can in fact pass good title to buyer, because she’s the sole owner. The title simply didn’t clear up the issue. A good solution would be to add some language to the deed that clarifies Mary’s right to sell on her own, something like “I, Mary Seller, surviving spouse of John Seller, deceased Grantor” convey the title to the buyer. This answers the question on paper of “Where is John?” If something like this were to happen to you or your client, the options are to file a second deed adding the phrase to clear up the loose end, or you could do the same thing with a scrivener’s affidavit, which adds additional information left out of the original deed.

Here’s a run-down to keep in your back pocket for your clients: Government Conservation Easements and how they work for your client. Knowledge is power, and a savvy Realtor has answers to even the most mundane questions.

So, What’s a Conservation Easement?

A conservation easement is just a set of restrictions and regulations that a landowner voluntarily imposes on his or her land for the purpose of conserving and protecting wildlife, habitat, historic structures or any other conservation-oriented goal. A notable example in Little Rock is the Quapaw Quarter, which features over 200 historic structures, all registered with the National Registrar of Historic Places. These homes and businesses have restrictions on major alterations to the structure, and the owners may qualify for tax credits for conserving the historical integrity of the building.

How Does a Landowner Grant an Easement?

Easements can be granted to a public agency (such as a state agency or the federal government) or a private organization. A rural landowner with wetlands or wildlife, often a farmer, for example, may approach the federal government and try to negotiate a conservation easement to protect the wildlife and wildlife habitat. If successful, the landowner is compensated on a per acre basis.

Involving minors in real estate transactions can be a tricky business, and it’s a common enough practice that more often than not, you’ll need a title agency and a lawyer to clear the title. In our real-world example this week, we’ll show how you can do both in one place.

Minor Real Estate Issue

As property or interest in property can be inherited by the children of the prior owner, naturally there will be the occasional case involving one or more minors. We encountered one such case, wherein the previous owner had passed with no will, and his property passed to his children, one of whom was a minor, and the minor’s mother. After some time, the family decided to pass the home to an aging relation that had been paying the mortgage on the home.

A property interest can be passed from one family member to another through a quitclaim deed, and in the case of the two adult children and the mother, it would have been a simple enough request. But the minor involved couldn’t legally sign to grant their interest to the grantee. Under Arkansas law, persons under 18 years of age are minors and do not have the legal capacity to enter into contracts or convey real estate by deed. One way to get around this minor problem is to ask a court to appoint a guardian. And when you’re disposing of real estate in which a minor is the owner or a co-owner, a court must appoint and authorize a guardian to sign the contracts and deeds necessary to dispose of the minor’s interest. A typical title agency in Arkansas would have sent the family to speak to an attorney, who would then advise the minor to go to court to ask that the mother be appointed guardian.

Inspections are so ingrained in the process of buying and selling Real Estate that at times they are taken for granted. It’s important to remember the purpose of the inspection is not to put an extra step between a buyer and their prospective property – it’s to prevent the buyer from acquiring a house without full knowledge of its condition. As attorneys we can and have advised buyers on best practices with their inspections and follow-up on repairs, but in place of legal advice, here are some best practices for Realtors and their clients.

Inspect your Inspection – Seriously

Page 4 of the IRSA must be signed by the buyer before closing, and that signature is agreeing that once closed on the deal, they warrant that they are completely satisfied with the property as is. From a legal stance, they also lose the right to go after the seller and their agent if they feel there was a disclosure issue. All recommendations in this blog post refer to the period of time before this signature is on page 4. Once the buyer signs, it’s very difficult to argue with an inspection.

In a typical Real Estate purchase, there will always be two inspections. The first one, performed by a professional inspector hired by the buyer, happens within ten business days of the contract. That inspector is going to check the fixtures, structure, foundation, etc., and will come back with an inspection report detailing the condition of the house. The buyer and the agent then come up with a repair list to negotiate with the seller.

What is a General Power of Attorney?

A power of attorney is a delegation of authority by one person (usually called the principal) to another person (usually called the attorney-in-fact or agent). The attorney-in-fact is authorized to sign the name of the principal on legal documents, and the signature of the attorney-in-fact is binding on the principal. Attorneys-in-fact can sign deeds, mortgages, real estate contracts, and a variety of legal and financial documents in this manner.

A common use of this power (and relevant to our field) is during real estate closings. For example, if a husband and wife sell their house, but the husband is out of town at closing, he might sign a power of attorney authorizing his wife to represent him legally on paper. In this case, the wife would sign every document twice at the closing: once as herself, and again as her husband.

Durable and Limited Powers of Attorney

An important note about the duration of this power though: a power of attorney becomes invalid or terminates when/if the principal no longer has legal capacity to sign their name themselves. Say the principal develops dementia or Alzheimer’s, progression would eventually cause them to lose their legal capacity to sign contracts. In this case the agent’s power of attorney becomes null as well. The exception is a durable power of attorney: it survives a principal’s legal incapacity. In this case the attorney-in-fact will retain power to sign, even after the principal loses capacity to write their own name.

Subdivisions, Property Owners Associations (POAs), and Home Owners Associations (HOAs) exist for many reasons, whether a neighborhood is trying to maintain property value, safety, or uniformity. If you’re moving or working in one of these areas, here are a few examples of what type of restrictions are placed on everything from your shrubs to your satellite dish.

The Legal Stuff – Bill of Assurance

Also known as covenants, conditions, and restrictions, a bill of assurance is typically filed by a developer of residential subdivisions that defines what homeowners in that subdivision can and can’t do with their property. The subdivision may have an architectural control committee that approves the designs of residential structures and landscaping. There may be minimum and maximum requirements and restrictions for the size of houses. Or there may be restrictions on the number of stories that a house may have, or the height of the house. Minimum requirements for the size, usually expressed in terms of square footage, are also common. There could be restrictions on the distance between the house and a lot line. An example of this would be a bill of assurance that states residents may not be within 20 feet of the lot line, and similar requirements may well set distance requirements that vary from the front of the house, to the back of the house, to the sides of the house.

Chances are, Realtors already understand disclosure, and what it means for all parties involved. This article is for educational purposes, and for those that want to up their game in their real estate communications. This blog piece will cover the basics of our Principal Instructor, Scott Jones’s message to his students when instructing agents training to pass or renew their Real Estate license.

Disclosure by the Books

SECTION 8. AGENCY DISCLOSURE.

8.1 Seller or lessor agents.

“(a) (1) In any real estate transaction in which a licensee is acting solely as agent for a seller or lessor, the licensee shall disclose to a potential buyer or lessee, or to the buyer’s or lessee’s licensed agent, the licensee’s agency relationship with the seller or lessor. Such disclosure shall be made in a timely manner under the particular circumstances so as to avoid to the extent possible eliciting or receiving from the prospective buyer or lessee information which would reasonably be expected to remain confidential and not disclosed to the seller or lessor, such as, for example, information concerning the real estate needs or motivations, negotiating strategies or tactics, or the financial situation of the potential buyer or lessee.

Selling a home can be a simple process, or a tricky minefield. Just when an agent thinks they know everything about the property, the title work comes back with a left hook. One such unpleasant surprise can come in the form of liens on a property.

Imagine you’re the selling agent and you’ve got the deal in the bag. The paperwork begins and a title search is ordered. The search comes back that the seller has judgement liens on the property from an old credit card in the amount of $3,000. The seller, having just used his life’s savings to prep for this big move, does not have $3,000. The deal falls apart, leaving the agent wondering how to avoid this problem.

Property liens can be anything from debt to taxes to child support and more. They can be a massive headache because sometimes the seller isn’t aware they exist, they require a title search to find, they aren’t amended by bankruptcy, and they stick with you through life and afterwards. Here’s what you can do if an unexpected lien shows up on a title commitment.

Verify the Lien and Try to Pay It Off

Here’s what to expect when a closer calls you about a lien. They’ll tell you the amount owed, where the lien comes from, and advise you that the seller must pay it off at closing. Your first step as mouthpiece between the title company and the seller is to verify the lien actually attaches to the seller. Since a title search is done via name, a common name like John Smith might pull a lien from a guy that lives in another part of the state. If it is for sure the seller’s lien, they have to figure out how to clear it before closing can proceed. The simplest way to is to pay it at closing out of the seller’s proceeds, but other options might be contacting the party that placed the lien and negotiating. For instance, sometimes the seller has more than one property, and can ask the government for a partial release as to the property being sold. In other cases the debtor might be willing to reduce the lien to a manageable amount and that lower amount can be paid at closing.

We’re entering the season where continuing education (CE) grinds to a halt in favor of summertime client relationship management. Buyers spend the warm months browsing for homes, and so Agents spend their time showing houses, networking, and hoofing it around town for work, not trapped inside taking classes. Apart from giving Agents a breakdown of CE best practices, we also wanted to take this time to point out some common mistakes that mean downtime or decreased value for Agents.

Busy Seasons for Continuing Education in Real Estate

The busiest months for CE are December, January, and February. There are a few reasons for this: In all 3 months, the weather is cold and the Real Estate market is slow, meaning more free time to pursue education for Realtors. But since CE has to be accounted for every year, there are typically two types of Realtors: those that want to get the class done, and those that hold off until December.

Don’t Wait to Educate

Those that wait until December have a chance to run into issues. An Agent can always do CE online, but if you wait too long, you run the risk of there being no classes available. If an Agent fails to fulfill their CE hours for the year, their license is put on inactive status until they’ve completed the 7 hours required. And even though you can typically take the whole thing in one day, downtime is not an ideal situation in this business. If you ever want to get busy in this business, try to take a vacation or try to take a class. The moment you attempt to disappear, people start showing up, which is why people typically do CE in the wintertime. Our recommendation? Don’t wait – get it done in January.

Not every close call is a difficult one, but when problems arise it helps to have a fleet of attorneys at your back during crucial transactions like the purchase of property.

Some years ago, a seller and buyer came to us about a piece of rural property. The survey on the 5 acres came back, and showing on the north boundary of the seller’s property, there sat a water well that was half on the property, and half on his neighbor’s property. After some investigation, we found that his neighbor had been the one to erect the well there. And whether knowingly or unintentionally, he put it directly on top of the property line.

Obviously, the title insurance policy would have to reflect the encroachment, and we informed both parties of that fact. It was a problem, yes, but it needed to be a known issue on paperwork, or problems would crop up with the well in the future. The buyer didn’t like that idea at all, for several reasons.

We brainstormed how to solve this problem. One option would be for our seller to give an easement to our neighbor to the north. That would allow the neighbor to legally use the 5-10 feet of the seller’s property for his water well to be on, and that would formalize the situation, and make it above board. The easement would be recorded at the courthouse and everyone would be aware, and instead of an unauthorized encroachment, it would be authorized and legitimate. In fact, being attorneys, we could prepare the easement document in-house if needed. That wasn’t a good option for the buyer.

When it comes to closing a property, there are a lot of moving parts (Realtors, buyers, sellers, lawyers, closing companies, lenders, etc.). With so many parties, effective cooperation becomes paramount. This week we share three qualities in a Realtor that make our job as title agents easier:

• Communicative — When it comes to closing a house, the ability to remain responsive and available for discussions and/or updates concerning clients is a necessary quality in a Realtor, but it isn’t enough to communicate at convenient times. We appreciate Realtors who are willing to take time to discuss their client’s needs and what is in their best interest, even if it’s inconvenient or beyond the normal call of duty. Knowing that the buyer/seller trusts the agent makes our job much easier, and speeds up the closing process.
• Collaborative — Collaboration between all parties can be easy when the process proceeds smoothly. But as problems crop up, collaboration can easily slip to the back burner. We respect Realtors who handle these problems directly and keep the closing group in the loop. Our best piece of advice for bad situations is to share the news. Let the closer know; often they can point you in the right direction, or possibly spare expenses that accrue as the close date nears.
• Organizational — Staying organized during the buying/selling process can be difficult. As the closing company, we appreciate Realtors who take the initiative to help themselves and all parties stay organized. It is very helpful if the Realtor makes sure all contracts and addendums are consistent in names, addresses, etc. Even better, an info sheet with all pertinent details (whether they are the buying or selling agent) can be incredibly helpful.

Each year, approximately 20% of homebuyers fail to protect themselves by not getting owner’s title insurance. Unfortunately, this leaves them exposed to serious financial risk—causing endless worry and regret.

If you’re thinking of buying a home, here’s what you need to know to protect yourself and your property rights, so you can rest assured once you’ve purchased your home.

Looking For Potential Threats

During the home-closing process, your title professional will help transition the home from the seller to you, the homebuyer, by examining public records. Generally, if a problem is discovered, the title professional works to resolve them before you purchase the home.

However, even after a title search is performed and you purchase your home, problems could arise that threaten your ownership rights. Examples include:

• Undiscovered tax liens
• Forged signatures in the chain of title
• Recording errors
• Undisclosed easements
• Title claims by missing heirs* or ex-spouses

Getting owner’s title insurance protects your property rights from threats like these. Here’s a real-life example of how it works.

Whether you’re looking for a “wow factor” or added value, repairing a home before it’s sold is a tricky business. The end goal when making repairs and modifications to a for-sale home is usually to shorten the time of the sale and/or maximize the return on investment for the homeowner.

Paint and flooring tend to be the knee-jerk upgrade, which often upgrades the overall appeal to a pre-owned home. But if you occupy the property, that may not be a workable solution. Here are some simple tips you can follow while you’re in the home, that won’t break the bank, and give your home that special touch.

Clutter

Decluttering your hidden spaces and hot spots is #1. It is absolutely true that emptying closets to bare essentials creates a more impressive display than a full closet. Some homeowners may think that showing how much storage space they have is a plus, but buyers want to see there is more than enough room for their needs – not that it meets yours.

Walkway Space

Make sure traffic patterns in the home are clear. Bear in mind that when prospects look at a house there will generally be at least 3 people: husband, wife and agent – maybe even kids and in-laws as well. A smart seller wouldn’t want them to feel bottlenecked trying to get across the dining room into the living room. Be sure furniture doesn’t partially obstruct walkways, that rugs are neat, and doors are open and inviting.

Homebuyers with intent to move in are often buying at some key point in their life, whether they’re starting a family or are downsizing for space (or they won the lottery and need a house to prove it). Each type of homebuyer will have their own priorities when moving, and each person will have their own individual preferences. But historically a Realtor can make some assumptions based on the family’s needs. A parent of very young children, for example, might look for nearby parks, quality schools, low traffic-roads, etc. A couple with grown children might want to downsize their yard for minimal upkeep in their golden years.

Just as the oldest adage in real estate value is location, location, location, so do schools remain the biggest determinate of homebuyers decision making. Schools, whether it be proximity or a different-sized tax bill, make all the difference in the purchasing decision of a home. The empty-nester may choose to sacrifice school district quality for a smaller millage in their tax bill, while the young family will gladly pay the tax and likely the price of the home so they know they can avail their children the best education without the private school tuition.

The difference between joint tenancy and tenants in common is very important for partners buying real estate to learn, and therefore for its Realtors to learn. These two terms are similar, but very different ways that two or more parties can buy property together. Today we’re going to talk about the difference, and the benefits of both.

Tenants in Common

The most common kind of co-ownership is tenants in common, and this is in fact the default in our home state of Arkansas. Hypothetically, if party A and party B want to purchase a property together to utilize as a rental property, both A and B own rights to the property as tenants in common. This has a lot of legal implications to their partnership, should they sell the property, or should either party pass away.

If either party is married, their spouse has marital rights to the property through their dower, or courtesy rights. Meaning, if both A and B intend to sell the property, and party A has a spouse, that spouse has to be present to sign away their marital rights to the property when A and B sign. Have you ever heard the saying “it takes one to buy, two to sell”? This is where that saying comes into play.

If you’re in the business of buying and selling commercial property, you’re likely very familiar with zoning, and the issues that can crop up with the process. If you’re not familiar, zoning is the process of categorizing the uses for a piece of real estate. The most common distinguishable zones that Realtors deal with are Residential, Commercial, and Industrial. Typically, each zone has its own uses and prohibitions; for example, a residential home can’t be turned into a gas station, or vice versa. These laws exist for the safety of the residents as much as the value of the land.

For Realtors, the property is usually listed as it should be, and you needn’t second-guess the sign. However, every great once in a while a property will be mislabeled, resulting in a tangled mess. One such example happened locally, where a property that had been advertised as commercial was in fact not allowed to be used for commercial purposes. Through a number of resells, the property had picked up a “commercial” tag with the Realtors, but was actually originally owned by a tax-exempt institution, and was zoned as “Institutional,” prohibiting the property from being used for commercial purposes.

These companies are mentioned so much in the Real Estate Industry, sometimes we take for granted that not everyone knows what they do and why they do it. Here’s a brief overview to fill in the gaps.

A considerable number of homebuyers don’t have the money outright to buy a house in cash, and therefore must take out a loan. In this case, a Realtor can make some recommendations as to where to look for a loan, and a lot of times it’s going to be the buyer’s local, trusted bank. The Realtor might even go so far as to take them to the bank and help the process along. But what the Realtor doesn’t always know is that their local bank is playing a shorter game than 30 years.

This is where companies like Fannie Mae and Freddie Mac come into play. The bank makes a loan for a 30-year mortgage and sells it to these companies, getting back their money up front. The local bank can then use this money to make and sell another loan, trusting that the slow collection of the loan money is being handled by a larger company playing a longer game.

This is all part of the Real Estate ecosystem: the local banks don’t run out of money, but they get the assurance that buyers will still take out loans with them. Knowing the market adds value to a Realtor’s clients, and sometimes even the most basic knowledge can mean the difference between a flop and a trusted connection.

Buying a house doesn’t always have to mean getting the property as is. When a buyer finds a fault or concern with the real estate, they have the ability to negotiate repairs before the property trades hands. But where does the buck stop when it comes to checking that repairs have been made, or knowing when there’s an issue in the first place?

Examples of Deals Gone South

An example of a complex issue with repairs comes from our own state. A buyer had a house inspected, and the inspector found issues with the flooring in the bathroom. A leaky fixture had flooded the floor often enough to rot the wood, resulting in an unsafe bathroom. The buyer astutely negotiated repairs of the floor before purchase, which the seller agreed to. Repairs were made, the inspector returned to verify that they had been made, the contractor verified they’d been made to the seller, and the buyer moved forward and purchased the property.

Some time later, the buyer (now homeowner) starts remodeling said bathroom, to find that the floors had only been partially repaired: there was still water damage and rotten wood beneath the tiles. The contractor had only repaired a portion of the floor, whether by mistake or intent, and the homeowner had purchased the house as is with repairs having been made. The inspector representing the buyer had checked off on the repairs. The seller was under the impression that repairs had been made. Who’s at fault for the bathroom floor? When are you free of your duty to do repairs?

Pitching a house by the price per square foot is a popular and dangerous habit. While it might provide a close approximation of the market value of the property, it can go disastrously wrong if that approximation is inaccurate, and you’ve already signed a contract.

The Intention of Price Per Square Foot

Square footage is a valuable piece of information that some Agents (of both buyers and sellers) tend to rely on when they’re negotiating. MLS provides an estimate of square footage on real estate, and similarly, Agents throw price per square foot at buyers, then give the caveat: “Don’t rely on this; it’s more of an estimate to give you a market idea for what a house is worth.” The benefit (in the short-term) to the Agent is that they give buyers a smaller figure representing a fraction of the house, versus giving them the whole lump sum. Unfortunately, that short-term benefit can backfire into failed negotiations, because square footage is always an approximation until an appraisal confirms it.

Sticky (and Personal)

If, for example, negotiations go forward, and a contract is signed, often that contract says nothing about price per square foot, and as long as the house appraises for the total amount negotiated, there’s no recourse for the buyer. Negotiations are not based on square footage, but on the total amount. In a sticky situation, an appraisal can come back and find there are fewer square feet than the initial approximation. At that point, the total price is still the same, but the division of that price becomes lower, and jacks up the price per square foot, making the property look very different to the buyer.

Title to land and possession of land are related, fundamental concepts regarding real estate that overlap considerably, but are not identical. Title is about ownership of land; possession is about, well, possession of land. A person who receives title to land, whether by way of deed or inheritance, has title to the land and the sole right of possession. Title also has its burdens – namely that the person with title owes the property taxes and has to pay for insurance and maintenance. But the right of possession that goes along with title allows the title holder to do with the land pretty much whatever he/she pleases (subject to local zoning and land-use regulations). The owner may prefer to do nothing with the land or may want to develop the land. It is the owner’s choice, depending of course on the owner’s pocketbook and budget.

Possession of land is probably the primary right acquired with title. The owner of the land has the ability to transfer the right of possession of the land to someone else. The most common example of this transfer of the right of possession is a lease. If the owner transfers possession to a lessee or tenant under a lease agreement, ownership of the real estate and the right to possess the real estate have been separated. The payment of rent by the lessee or tenant is essentially a payment for the right of possession. The tenant, now having the exclusive right of possession, may do all those things with the land that previously were the right of the owner to do. They may farm the land, if it is agricultural land, or may operate a business, or may use the land as a residence, or for any other purpose. When the lease expires or terminates, the right of possession will automatically revert to the owner.

A plethora of Internet fads are making the rounds in the short time we’ve all migrated to the World Wide Web. Everything from crafts on Etsy, to tutorials on YouTube, all the way to important things like personal taxes with TurboTax, have taken on a very do-it-yourself (DIY) feel. While the Internet might be a very handy tool utilized to give users more power over their affairs, some things need a professional eye to avoid hard financial wakeup calls.

Take trusts, for example. If you aren’t familiar with trusts, they’re a financial agreement wherein an individual places personal assets (or trusts them) in the care of a trustee, like an attorney or a bank. Assets associated with trusts can be anything from insurance policies, real estate, to good old-fashioned cash. Sounds great, right? In the hands of an experienced financial expert, they certainly can be great when managed properly. But if you or your client needed the definition to understand a trust, it’s probably not something you/they should DIY right out of the gate, and here’s why:

1. Trusts are not a one-size-fits-all kind of process. Real estate trusts are set up differently than others, and the laws surrounding them are state-based. In fact, real estate trust laws vary from state to state more than other laws generally do. If your DIY trust is not set up to state regulations, you could invalidate the process.
2. The forms associated with setting up trusts are very specific, and must be completed properly. If you don’t know which line to put something on, or you follow the wrong regulations, you might walk away with a trust that’s not valid, or, worse, does something completely different than you intended.
3. Let’s not forget industry jargon. If a trustor-to-be just learned what a trust is, they might not know other key terms, such as settlor, trustor, and beneficiary. One misplaced word means an invalid trust, or a trust that doesn’t work very well for the trustor.

We have seen numerous deals over the years hit a snag based on the misconception or miscommunication of what stays with a home and what is leaving with the seller. The answer begins with knowing the difference between real and personal property.

In the broadest sense, real property is ownership of real estate, and the bundle of rights associated with owning the real estate. Another way to think of it is that it’s immovable property, like a garage, a tree, or a permanent shed.

Personal property is ownership of anything which is not real estate, or things which can be moved and are not affixed to the property. Most buyers and sellers intuitively know the difference between what is real and what is personal property.

The lines blur when sellers begin converting personal property to real property by affixing the personal property to the real property. These items are known as “fixtures”. Fixtures, such as ceiling fans, chandeliers, toilets, etc. transfer with the property and the buyer acquires the rights to the fixtures at closing.

When the parties have different expectations and those expectations are not communicated to the other parties, issues arise. The sellers are within their rights to exclude certain fixtures from staying with the home and the buyers are within their rights to ask for personal property to stay with the home. This can all be part of the contract negotiations. The key to transparency is ensuring that all parties are on the same page. A little communication can avoid big misunderstandings.

Working around the holidays can be mind-numbing for anyone. Between prepping for family, decorating, and shopping, it’s a wonder we get anything done in December. For an industry as seasonal as real estate, it might be an ideal time for a little holiday break, right? According to expert real estate agents: wrong. Here’s why, and some best practices for staying on your game during the holidays.

Excuses, Excuses

As we get into the spirit of giving, the holidays afford agents a convenient excuse to contact a client just to wish them well. Sending holiday cards, holiday emails, even having holiday-inspired parties and open houses can be a great way to remind leads that you’re available, present, and ready to help. For past clients, this can be a warm “Thank You” for working with you.

Deck the Halls (to Sell Them)

Rarely does the inside of a seller’s house look as good as when it’s decorated and ready for relatives to arrive. While the grass might be yellow and the shrubs bare, the holiday decorations add a homey warmth that might appeal to a shopping family, and a decked hall shows well.

Watch for Pre-Semester Buyers

Last month we crafted an informational piece about proposed Commission Regulation 10.5, the contents of which would impose strict regulations on advertising any brokerage activities in Arkansas. After some deliberation, the Commission has decided to begin training on best advertising practices for Agents and Brokers, and why those practices are important.

Initial Proposed Changes

The proposed regulation would have required disclosure of the brokerage firm’s name, contact number, and address (depending on how much of that information is displayed for the agent). In all cases the brokerage firm’s information would have been required to be displayed as prominently or more prominently than the agent’s information.

Update on Regulation 10.5

The Real Estate Commission has changed course, and instead of changing the regulation at this time, they want to approach it through a training posture. Starting in 2019, the continuing education (CE) for Real Estate Agents will involve 3 hours of advertising best practices, and why they’re important for Agents and their clients.

“It is important to remember that all agency agreements are between the Principal Broker and the client (Buyer or Seller),” explains Scott Jones, Principle Real Estate Instructor for ACES Real Estate School. “For the protection of the public, the Commission will want to see the Principal Broker’s contact information listed,” says Scott, “because if there’s an unresolved issue, the public needs to know that there is a responsible party that they can contact.”

Halloween is just around the corner, and Realtors want to know: Do I have to tell a potential buyer that a property might be a “haunted house”?

In 2009 this was a legal gray area. Does the Realtor owe a duty to the buyer to make an inquiry about past events in the house? Can a buyer sue a Realtor for psychological damages if past events weren’t disclosed and the buyer claims the house is haunted?

The answer to both questions, as of 2010, is “no." In 2010 the legislature definitively passed Statute 17-10-101, otherwise known in the industry as the “Haunted House Statute.” This statute defines houses as psychologically impacted if there was a homicide, suicide or felony on the property. It further states that this is not a material fact of information to disclose during a real property transaction, and that a Realtor cannot be sued as a result of not disclosing , inquiring, or releasing information if a property is psychologically impacted.

What it means for the buyer: Since this information is not legally available from the agents, there are a few alternative paths if this would impact your purchase:

• Ask politely – The Realtor might consent to an inquiry, with no fear of legal repercussions.
• Check local news – A savvy researcher can find past events for a property if the events made the news or are in local publications.

With the recent uptick in email spoofing and wire fraud, we thought it would be a good topic to explain in further detail. In this article we’ll discuss some best practices to avoid being scammed when dealing with real estate transactions.

Good Funds

As Realtors know, wiring is a common practice in Real Estate transactions. For those new to the industry, wiring money is one of a few ways to pay with “good funds,” or immediately available money. Other examples of good funds are cashiers’ checks, certified checks, and anything that is immediately collected. The idea is that no one wants to wait 3 days for a real estate closing, and a lot can go wrong in that time.

Spoofing Real Estate Professionals’ Emails

If you haven’t heard the term “spoofing,” it’s time to learn. Fraudsters find ways to forge emails with the name of a trusted person in the “from” column, and the contents of the email usually have detailed instructions for wiring a large amount of money. Usually these “spoofed” email addresses are “from” various people in a current real estate transaction, and generally at a key point in the process where funds will change hands. We have even heard of people trying to intercept the selling company, spoofing the seller’s email, convincing the title company to wire out the seller’s money to the wrong place.

Chances are, Realtors already understand disclosure, and what it means for all parties involved. This article is for educational purposes, and for those that want to up their game in their real estate communications. This blog piece will cover the basics of our Principle Instructor, Scott Jones’s message to his students when instructing agents training to pass or renew their Real Estate license.

Disclosure by the Books

SECTION 8. AGENCY DISCLOSURE.

8.1 Seller or lessor agents.

(a) (1) In any real estate transaction in which a licensee is acting solely as agent for a seller or lessor, the licensee shall disclose to a potential buyer or lessee, or to the buyer’s or lessee’s licensed agent, the licensee’s agency relationship with the seller or lessor. Such disclosure shall be made in a timely manner under the particular circumstances so as to avoid to the extent possible eliciting or receiving from the prospective buyer or lessee information which would reasonably be expected to remain confidential and not disclosed to the seller or lessor, such as, for example, information concerning the real estate needs or motivations, negotiating strategies or tactics, or the financial situation of the potential buyer or lessee.

If you’re new to “The Realty Blog” or just looking to take a stroll down memory lane, this week’s blog is a quick snapshot of some of our most popular posts from the past year. The experts at Attorney’s Title Group write these blogs to bring forward important real estate topics that are not always discussed. We’re pleased that The Realty Blog reaches you and that you take the time to read it. Should you have a burning Real Estate question, please ping us in the comments box below! Now, enjoy some Blog snippets from the past year:

What Qualifies a “Bedroom”?

We all know what a bedroom is, right? At first glance it might seem like an obvious, common-sense piece of information for any Realtor or real estate expert. But if you look deeper into state real estate laws, you might find some conflicting opinions. To qualify as a bedroom here’s what a room needs:

1. At least 70 square feet of space, measured at least 7 feet in any given direction.
2. Two means of egress (escape), usually a door and window. There are some arguments to be made here for outside doors and skylights, but the window is more traditional.
3. A 7-foot ceiling, but again this depends on state codes of safety.
4. Heating/Cooling

What You Need to Know About Proposed Regulations on Real Estate Advertising

This is a snapshot of what we know about Commission Regulation 10.5 (currently on the Governor’s desk as of September 7, 2018), the contents of which will impose strict regulations on advertising any brokerage activities in Arkansas. As more information becomes available, we’ll do our best to update as soon as possible.

Principle Broker Responsibility

The first part of the proposed regulations deals with the responsibility of the Principle Broker to any given agent. That Principle Broker is expected to supervise any and all advertisements related to brokerage activities included but not limited to: signs, cards, websites, ads both digital and traditional, and social media. Furthermore, the Supervising Broker is expected to create their own policy internally that regulates advertising, based on this regulation.

Disclosure of Principle Broker Contact Information

A considerable portion of the proposed regulation deals with disclosure of the brokerage firm’s name, contact number, and address (depending on how much of that information is displayed for the agent). In all cases the brokerage firm’s information will be required to be displayed as prominently or more prominently than the agent’s information. Other specifications moderate both prominence and authenticity of the information, even down to the proximity of the agent’s information.

We all know what a bedroom is, right? At first glance it might seem like an obvious, common-sense piece of information for any Realtor or real estate expert. But if you look deeper into state real estate laws, you might find some conflicting opinions.

NAR’s Code of Ethics

First let’s look at what Realtors go by and work our way through a digital snapshot of the ethical and legal implication of a bedroom, an incredibly valuable asset to property value. According to the NAR’s code of ethics, a Realtor might consider a room a bedroom if it has two means of egress and a closet. Typically, this means a door, a window, and a closet. The benefits? Having two means to exit the room under dire circumstances keeps the bedroom safer for its inhabitants. The downside is that a Realtor might not consider a room a “bedroom” because it was built without a closet for whatever reason (i.e. when armoires were popular).

Surprisingly enough, most state laws do not require the closet to fit the definition.

The Basic Definition of a Bedroom

To qualify as a bedroom here’s what a room needs:

Subdivisions, Property Owners Associations (POAs), and Home Owners Associations (HOAs) exist for many reasons, whether a neighborhood is trying to maintain property value, safety, or uniformity. If you’re moving or working in one of these areas, here are a few examples of what type of restrictions are placed on everything from your shrubs to your satellite dish.

The Legal Stuff – Bill of Assurance

Also known as covenants, conditions, and restrictions, a bill of assurance is typically filed by a developer of residential subdivisions that defines what homeowners in that subdivision can and can’t do with their property. The subdivision may have an architectural control committee that approves the designs of residential structures and landscaping. There may be minimum and maximum requirements and restrictions for the size of houses. Or there may be restrictions on the number of stories that a house may have, or the height of the house. Minimum requirements for the size, usually expressed in terms of square footage, are also common. There could be restrictions on the distance between the house and a lot line. An example of this would be a bill of assurance that states residents may not be within 20 feet of the lot line, and similar requirements may well set distance requirements that vary from the front of the house, to the back of the house, to the sides of the house.

From ensuring everyone arrives on time to keeping all the paperwork in order, the closing process has always been complex. In 2018 eClosures are a rising trend in the way Realtors handle real estate. EClosures allow for lenders to review questions ahead of time and expediate the closing process for all parties involved. In 2017, the National Notary Society published the Model Electronic Notarization Act 2017, which details the specifics of what is necessary to execute an eClosure versus a traditional one. The major obstacle that the new digital age of closing faces? It must be signed into law by individual states. Only a year later, multiple states have now made their first eClosure.

Two states in particular, North Carolina and Mississippi, have both experienced success with eClosures. North Carolina was able to execute its first eClosure in May 2017 through its already-existing legal infrastructure, creating their eClosing Program. This program allowed North Carolina to create a standard for eClosings effectively and safely. Almost every county in the state can close by e-signature today.

Today we’re going to talk about an important, often hidden, part of our team. The man behind the title work, who’s signature ends up on most of the paperwork, but our regulars have not met. Before he was “The Title Guy” he had a hand in several ground-breaking movements in Arkansas real estate law.

In 1987, Arkansas passed the Statutory Foreclosure Act. Charles Ward, our underwriting counsel and title expert, was the primary draftsman. This Act was a brand-new procedure for how to foreclose a mortgage, and though it’s been amended over the years, it’s still the primary way that lawyers foreclose in Arkansas.

Arkansas’s title insurance industry used to be regulated by the Arkansas Title Insurance Agents’ Licensing Board. A licensing protocol was created by Charles to license title agents in Arkansas. He also served as an informal advisor to the board of directors. When regulation of title insurance was transferred to the Insurance Department in 2007, a new licensing process was created, and Charles assisted in the drafting of the initial licensing exams.

“I actually testified before a House of Representatives Committee once,” reminisces Charles. “They were reviewing a bill I’d written, and I testified as an expert.” Since his beginnings in law in 1984, Charles has represented builders, homeowners, buyers, developers, bankers, landlords, and tenants regarding residential and commercial real estate matters.

Everyone and their grandma has a computer these days, and the instant connectivity has led to the rise of do-it-yourselfers. While For Sale By Owner (FSBOs) has been around for longer than the internet, now it’s even easier to Google “how to sell your house”, and even download and print forms to complete the process. But should you?

Why FSBO’s Occur

The internet would have you believe the main reason a homeowner will list their home will be to avoid paying agent commission. In the experience of Scott Jones, Arkansas Real Estate Broker, Principal Instructor and ATG closing attorney, it’s not always that simple. “My experience with FSBO’s is typically they don’t want to deal with agents,” he explains. “They’ve had a bad experience in the past; the agent might have done a bad job, or the seller thought the agent did a bad job or didn’t earn the commission.”

Another reason besides commission and agent hostility is control. The seller of a FSBO controls who sees the house and when they see it. The commission being off is just an added benefit.

Why FSBO’s Aren’t Recommended

Agents and brokers know this, but statistics show that a house listed with an agent will sell for more than a FSBO. An owner might sell a house every 7 years, versus an agent who lists properties and watches the market for their livelihood. Even a new agent has more experience and knowledge of the market than a first-time seller.

A reverse mortgage is very much what it sounds like: the lender takes out a mortgage on a house, but instead of giving the owner a lump sum of money for the loan amount, the lender instead makes a monthly fixed payment to the borrower (owner of the property). It’s a relatively recent tool for supplemental income, so let’s break down what that means, and what the outcomes may be.

How to get a reverse mortgage

Take everything you know about homebuying and reverse it in this case. In a traditional mortgage the buyer (homeowner) pays a lender (generally a bank or other financial entity) a monthly fixed rate to buy a house, rather than pay the full amount up front. In the case of a reverse mortgage, the homeowner has paid off their mortgage, and is slowly selling it back to a lender. To initiate this, a homeowner would contact a trusted lender and check their interest rate. More on how to do that smartly later.

How does a reverse mortgage play out?

A reverse mortgage lets homeowners tap into the asset value of their house as a means to support their monthly living expenses. Typically, the arrangement is set up so that as long as at least one of the owners is living in the house, the payments to the borrower will continue. When the last surviving borrower moves out or passes, the lender will call the loan due. In the case of the owner(s) passing, it’s the children who have to either give the house to the bank or try and sell it.

This week we explore the last three decades and how amenities handled the boom and recessions that followed:

1990’s

In the 1990’s the economy started to improve under the Clinton administration, leaving the developmental dark of the 80’s behind Interest rates were good, and the market rates were blowing and growing. Since housing was no longer static, developments popped back up, becoming innovative and robust. Chenal and Rahling Road reigned as king in this time, marking big changes in housing. In some of the gated communities in Chenal, houses went from 2,000 square-feet to as large as 4,500 – 5,000 square-feet, with 4 and 5 bedrooms. In another developmental shift, the open concept gained popularity. The living room and the dining room were hanging on as separate rooms, but the family rooms kept getting bigger and bigger.

2000 – Present

Then, of course, during the housing crash in 2008-2009, housing values peaked and then fell off, in some cases very dramatically. Housing started to shut down again and went through at least 5 years of no growth. Building screeched to a halt. Construction drives housing styles. When new construction slows down, innovation also falls.

1950’s — 1990’s: The Evolution of Housing in Little Rock

HGTV and new neighborhoods, like Pleasant Valley and Chenal, have changed the perception of housing amenities throughout the years in Little Rock, leading consumers to want bigger and better houses. Before these neighborhoods, houses had few amenities, or at least, very different views of what constituted a “nice house”. This week we explore the evolution of Little Rock housing over the decades, and where we might be heading.

1950’s

Cammack Village, Kingwood, parts of the Heights, a beautiful part of the Little Rock landscape in 2018, had rather meager amenities in the 1950s. GI’s were coming home from World War II and starting families. As a result, the typical house in those days was 3-bedroom, 1-bath (or perhaps a half bath) in those neighborhoods. Typically, the size would be 1,000 square feet, while the pricing was in the low teens, $12,000-$14,000. The 30-year mortgage wasn’t yet the standard, with most terms closer to 10-15 years. The bigger houses still had a larger kitchen, and the laundry was outdoors, because people had help, especially in the Heights and Hillcrest.

Whether you’re downsizing, hopping an RV to Florida, or relocating, buying and selling property after retirement requires a lot of planning. Here are some circumstances, best practices, and key terms to be on the lookout for.

Selling After Passing of Spouse

People in their Golden Years may face circumstances and decisions they might not have had to face before; one of them is the passing of the spouse. Normally when a spouse passes, the living spouse assumes full ownership of the property, assuming both names were on the deed. If only one spouse’s name is on the deed, when that spouse passes first, the non-owning spouse does not assume full ownership of the property. Instead, ownership passes by inheritance to the children of the deceased, or however that person’s last will and testament directs the property be vested. Most of the time it will be to the non-owning spouse, but if not, the non-owning spouse still has some inherent rights to the property (such as the right to inhabit). However, they can’t sell or borrow money on the property unless the children (or other persons) sign to make appropriate changes.

Trusts

One option to consider when you’re retired, or nearing retirement, is to put the property into a trust (as an estate planning tool). The owner should consult an estate planning attorney or consultant to learn all the details and ensure it’s a good idea under their circumstances. As with any long-term planning, the more thought, effort, and research put into the process, the safer the outcome is likely to be. Always consult a professional.

This week, ATG answered seven (7) questions that came from Millennials, the market’s future home-buyers. This is our insight into the most common questions you might run into as an agent working with this age group.

How much does it cost to hire a Realtor and title company?

This is always the most popular question, and our answer is this: There’s no set cost. In general, 5-6% of the sale price goes to the Realtors, which is split between the listing and selling agent. Typically, the seller pays the commission payment on the back-end. So in most cases for your Millennial home-buyers, there’s no upfront cost, and the seller pays after closing.

Why should I want to get a house? More people are living in apartments and it’s cheaper to live there, right?

This is a big assumption. When most people look at buying a home, it’s an investment. Ideally, you buy it now at an affordable price that will appreciate over time. While living in an apartment, your money is going into someone else’s pocket. Unless you’re moving a lot, living in a house will create greater value than paying someone else’s mortgage.

What are some common mistakes/pitfalls that I should avoid?

Commercial Closing is “Easier”

Buyers of commercial property are often surprised at how much simpler the closing process is compared to residential. Residential buyers have a stack of papers to sign at closing from their lender, a stack which the law requires to be disclosed at closing. As a result, more protection is required by the agent, thus more paperwork. There is not nearly as much disclosure in a commercial property. Generally, if you’re buying or selling commercial property, you’re already an experienced agent, and don’t need that protection.

Grab an Attorney

Commercial transactions usually involve more money than residential. For that reason, parties involved in a commercial transaction are, more often, represented by attorneys than in a residential transaction. Advise your buyer/seller to have legal representation.

Surveys and Audits Required

Surveys are obtained on a commercial property more than residential and are needed to disclose easements the buyer/seller might need to be aware of, where the property’s access is to a public road lies, and to assist the buyer in determining whether the property is fit for the intended business. In addition to this, there are also environmental audits and assessments that take time and are necessary for the businessman/woman to decide if the property is a good fit.

“Arkansas Taxes are the Simplest in the Nation!”

Said no one, ever.

Have you ever wondered why Arkansas pays taxes in arrears (meaning 2018’s taxes will be paid next year) and why they are so confusing? We can help with that! The current theory is that during Reconstruction, after the Civil War, carpetbaggers traveled to the South (with actual carpet bags) and aimed to scrounge up resources from the Southerners. They bought up land for delinquent taxes and took up positions of authority. The Farmers and locals realized the benefit of allowing later tax payments so that they could harvest the latest crop, sell it, and then pay for their taxes. In addition, farmers typically purchased seeds and labor in both March and April, so they were less likely to pay their taxes in full. At that time, it made more sense to pay taxes at the end of the harvest, rather than the beginning.

While the days of Reconstruction and carpetbaggers have been supplanted with the modern-day luxuries of smartphones and cars, Arkansas continues to pay its taxes the following year. This introduces complications when buying or selling a house. Say, for instance, that you are selling me your house. You owe the taxes from January through today. However, next year you’re going to receive a bill for the whole year and I, the buyer, am responsible for payment. You, as the seller, will give me a buyer credit in the closing for that first of the year. When the bill comes the following year, I pay the whole year, but as the seller you gave me a credit on my HUD statement, I got a credit, I get the whole bill.

Selling a home can be a simple process, or a tricky minefield. Just when an agent thinks they know everything about the property, the title work comes back with a left hook. One such unpleasant surprise can come in the form of liens on a property.

Imagine you’re the selling agent and you’ve got the deal in the bag. The paperwork begins and a title search is ordered. The search comes back that the seller has judgement liens on the property from an old credit card in the amount of $3,000. The seller, having just used his life’s savings to prep for this big move, does not have $3,000. The deal falls apart, leaving the agent wondering how to avoid this problem.

Property liens can be anything from debt to taxes to child support and more. They can be a massive headache because sometimes the seller isn’t aware they exist, they require a title search to find, they aren’t amended by bankruptcy, and they stick with you through life and afterwards. Here’s what you can do if an unexpected lien shows up on a title commitment.

Verify the Lien and Try to Pay It Off

Here’s what to expect when a closer calls you about a lien. They’ll tell you the amount owed, where the lien comes from, and advise you that the seller must pay it off at closing. Your first step as mouthpiece between the title company and the seller is to verify the lien actually attaches to the seller. Since a title search is done via name, a common name like John Smith might pull a lien from a guy that lives in another part of the state. If it is for sure the seller’s lien, they have to figure out how to clear it before closing can proceed. The simplest way to is to pay it at closing out of the seller’s proceeds, but other options might be contacting the party that placed the lien and negotiating. For instance, sometimes the seller has more than one property, and can ask the government for a partial release as to the property being sold. In other cases the debtor might be willing to reduce the lien to a manageable amount and that lower amount can be paid at closing.

We often get the question, “What does the Realtor do at the closing?” We try to clean up those questions in this post.

Contract

The first thing the Realtor does is send the contract to the closing company. The contract lets the closing company know what the purchase price is, who’s paying for the closing costs, and miscellaneous things like termites, surveys, etc. This contract is the closing company and the Realtor’s guideline to following through on the close effectively.

Closing Sheet

The next thing a Realtor is going to do is send over the closing instructions or closing sheet. The broker particularly wants to see this sheet to understand minute details like commission slips, bonuses being paid, and anything else that’s not initially in the contract between the buyer and the seller.

Miscellaneous Tasks

After these things have been communicated to all parties, the Realtor has a duty to make sure things are happening. If there’s supposed to be a survey, a warranty purchased, things of that nature, the Realtor tracks and assists in their execution.

Settlement Statement

What is a General Power of Attorney?

A power of attorney is a delegation of authority by one person (usually called the principal) to another person (usually called the attorney-in-fact or agent). The attorney-in-fact is authorized to sign the name of the principal on legal documents, and the signature of the attorney-in-fact is binding on the principal. Attorneys-in-fact can sign deeds, mortgages, real estate contracts, and a variety of legal and financial documents in this manner.

A common use of this power (and relevant to our field) is during real estate closings. For example, if a husband and wife sell their house, but the husband is out of town at closing, he might sign a power of attorney authorizing his wife to represent him legally on paper. In this case, the wife would sign every document twice at the closing: once as herself, and again as her husband.

Durable and Limited Powers of Attorney

An important note about the duration of this power though: a power of attorney becomes invalid or terminates when/if the principal no longer has legal capacity to sign their name themselves. Say the principal develops dementia or Alzheimer’s, progression would eventually cause them to lose their legal capacity to sign contracts. In this case the agent’s power of attorney becomes null as well. The exception is a durable power of attorney: it survives a principal’s legal incapacity. In this case the attorney-in-fact will retain power to sign, even after the principal loses capacity to write their own name.

Closing a sale on a property is a complicated, many-headed beast. What works for one Realtor may not always be the best-case scenario with another. And when it comes to commission checks, you want to lock down specifics on as soon as possible.

Who Cuts the Commission Check?

There are exceptions to this rule, but traditionally the title company that is closing the seller of a property cuts the commission checks for both the selling and listing agents. This is the case for practical reasons: the selling party has all the pertinent information already on hand, and once the closing proceeds, all the minute details have already been cemented by all parties involved.

Are There Exceptions to the Rule?

Yes, as in any situation, there are some alternative routes that follow legal procedures and are agreed upon by all parties. In some cases, for example, a title company representing the buyer will try secure the check early to make their agent happy. This is generally done to keep an agent close to the title company, and of course, they want to take care of their agents. In this case, the title company representing the buying agent will call the seller’s title company and confirm that they can go ahead and disperse the check. And, generally, that’s not an issue.

Recently there’s been a bit of buzz online about “Coming Soon” listings, and where they fall legally (and ethically) in a Realtor’s toolbox. While this topic has been an issue for numerous years, with the increased use of social media, they’re becoming more prevalent, raising difficult questions for Realtors. Here’s the long and short of what constitutes legitimate “Coming Soon” listings.

Legitimate “Coming Soon” Listings

So first let’s discuss the legitimate reasons a Realtor might have for listing a property as “Coming Soon.” Say you have a seller that’s willing to sign today, but the property has important repairs that need to be done. In this case, the property can be listed in the MLS, but advertised as “Coming Soon.” In this case the listing makes perfect sense: you can’t show the house because there are repairs being made and it’s not quite ready to be shown to potential buyers either for aesthetic reasons or potential hazards the repairs might impose. But you have the property duly listed on the MLS and you have a written listing agreement giving authority to advertise the property and spelling out your arrangement with the seller.

Illegitimate “Coming Soon” Listings

There’s no doubt technology has simplified many aspects of our lives, and while fads come and go, the pre-internet era is a abstract concept to the younger generations. Luckily, some of us are still here to reminisce about being a Realtor some 40+ years ago. Here are 5 things Realtors managed without back in the day:

1. Common Lockboxes

“When I first got into this business, there was no common lockbox,” says Randy Bueter, Managing Partner of Attorney’s Title Group. “I had a ring of keys probably 4 inches in diameter and I had to know which Realtor used which key.” Mr. Bueter goes on to explain the level of security that is afforded with current methods. “These days the box tracks who opened it, and when they opened it; now we have a record of who accessed those keys.”

1. MLS

Pre-internet means pre-MLS, the database for listings that is a Realtor’s bread and butter in today’s tech-savvy world. And according to Mr. Bueter, Little Rock was one of the last cities in the country to establish an MLS system, run by a decision-making board of Realtors. “In the 80’s it took years to get Realtors together to decide if they wanted a common MLS, that way we knew what was on the market. Now you can just go online and do a search in seconds,” Mr. Bueter chuckles.

Here’s a run-down to keep in your back pocket for your clients: Government Conservation Easements and how they work for your client. Knowledge is power, and a savvy Realtor has answers to even the most mundane questions.

So, What’s a Conservation Easement?

A conservation easement is just a set of restrictions and regulations that a landowner voluntarily imposes on his or her land for the purpose of conserving and protecting wildlife, habitat, historic structures or any other conservation-oriented goal. A notable example in Little Rock is the Quapaw Quarter, which features over 200 historic structures, all registered with the National Registrar of Historic Places. These homes and businesses have restrictions on major alterations to the structure, and the owners may qualify for tax credits for conserving the historical integrity of the building.

How Does a Landowner Grant an Easement?

Easements can be granted to a public agency (such as a state agency or the federal government) or a private organization. A rural landowner with wetlands or wildlife, often a farmer, for example, may approach the federal government and try to negotiate a conservation easement to protect the wildlife and wildlife habitat. If successful, the landowner is compensated on a per acre basis.

How Uncle Sam can help your duck season!

Duck hunters know about government programs that preserves and creates habitat. They know they need a federal stamp in addition to their state license to legally harvest waterfowl in designated seasons. But how many know there are programs to subsidize the cost of having a recreational hunting ground or duck club?

The Federal Natural Resource Conservation Service, NRCS, will purchase conservation easements that fit hand in glove with wetlands ideal for fishing and waterfowl. The farm owner or purchaser of land in a wetlands area can partner with NRCS by selling an easement to NRCS, which commits the landowner to leave the land in its natural state in perpetuity. The owner can hunt, fish and use the land for recreational purposes as long as they do not cut timber or clear the restricted land. This restriction is no real burden on the outdoorsman and the payment for the easement greatly subsidizes the holding cost or acquisition cost of the land.

If you own wetlands or want to buy wetlands, look into partnering with Uncle Sam. He won’t want to take his duck limit and you won’t have to listen to his stale stories around the campfire.

As you well know, buying and selling a house involves a lot of moving parts and communication, especially when it comes to the closing. While most Realtors bring their own process and experience to the table, they also have to take into account the wide range of priorities the buyer, seller, lender, and title agency bring as well.

And while we’ve faced these challenges time and time again, no two closings will be the same. For example, one buyer needs hand holding because it is their first house, or another seller can only be reached at certain times of the day based upon their job demands. Any way you look at it – it almost always comes down to communication.

What You Should Do:

As a title company, Attorney’s Title Group wants to underscore the importance of Realtor communication during the Closing process, and we recommend the following tips:

1. Identify and address problems (even the slightest) as early as possible to avoid hang-ups in the close. For example: problems with funding can crop up in the final stage of the close after the title search has been produced. Knowing about these issues ahead of time can help the title company secure funding in a timely fashion.
2. Have an open line of communication with all parties. Should a problem arise, it’s best to have a contact number at least for every party involved.
3. Produce a checklist (we call it a closing sheet) to give to all available parties. This should include contact information for all involved, fees, steps, and flexible deadlines.

Realtors – Learn How a Bad Marriage Can Impact a Closing

Title issues with married (and divorced) couples are some of the most common problems we run into in this business. What most people don’t know about property ownership is that even though a couple can buy a house in one spouse’s name, the other spouse shares interest in the property via marital rights. Which means that even if he’s not on the note, the husband has to sign when the house is sold, even in the event of divorce.

The most common scenario is something akin to this, but the problem can usually be resolved by simply contacting the husband for a separate signature. But in the event the two are no longer married, it can get a little sticky. Say a spouse doesn’t want their ex to know where they’re currently located after a divorce or separation; the signing process can get bogged down with the simple technicality of the LOCATION of the final signing. Or, worse, say the owner spouse has remarried, and was awarded the property in full, per the divorce. When the awarded-owner sells (with their new spouse), the ex must be present to sign away their rights to the property interest. Sometimes this is easy. On rare occasions, though, the ex can refuse to sign until they are paid a fee for their portion of the interest.

Your long home-buying journey is almost over. You found the home you love, the seller agreed to your offer and now it’s time for closing. Of course, there’s a lot to think about right now, and the last thing you want is something to go wrong. So make sure you work with an experienced closing agent to help ensure the details come together and everything runs smoothly.

As soon as the seller accepts your offer, the behind-the-scenes work begins. You can expect closing to happen within 30 to 90 days.

1. Select a Closing Agent

If you are working with a real estate agent, with your permission, he or she may place an order with a closing agent as soon as your sales contract is accepted. The closing agent can be a title company, an escrow company or a settlement company.

Most homebuyers rely on their real estate agent to select a closing agent—someone they work with regularly and know to be professional, reliable and efficient. However, you can choose your own closing agent if you wish. The closing agent will oversee the closing process and make sure everything happens in the right order and on time, without unnecessary delays or glitches.

2. Draw up an Escrow Agreement

Buying a home is an exciting and emotional time for many people. To help you buy your home with more confidence, make sure you get owner’s title insurance. Here’s why it’s so important for you.

1. Owner’s Title Insurance Protects Your Largest Investment

A home is probably the single largest investment you’ll make in your life. You insure everything else that’s valuable to you—your life, car, personal property, health, pets, jewelry, etc.—so why not your largest investment? For a one-time fee, owner’s title insurance protects your property rights for as long as you or your heirs* own the home.

2. Reduces Your Risk

If you’re buying a home, there are many hidden issues that may pop up after purchasing it. Getting an owner’s title insurance policy protects you from legal title discrepancies. Don’t think it will happen to you? Think again. Here are just some of the many situations that you’ll be protected from if you have owner’s title insurance.

Unforeseeable title claims, such as:

• Forgery: making a false document
  • For example, the seller misrepresents the identity of the person selling the property.
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As the world turns and the digital age evolves past the need for paper documents, a common question arises from our brokers: Do I have to keep paper records?

AREC regulation 10.7 requires brokers to maintain records for at least three years. Fortunately, Regulation 10.7(b)(3) amends the age-old rule to allow for electronic records. But these electronic records must be maintained and the broker must be capable of producing a copy of them for Commission inspection when requested. So don’t bother filling your file cabinet, but be sure to keep digital copies of all records just in case.

Ownership of land by two or more persons is called a co-tenancy. There are two basic kinds of co-tenancies. One is a tenancy in common. A tenancy in common consists of two or more tenants in common. Unless the deed vesting title in the tenants in common provides otherwise, each tenant in common will own a fractional share of the land. If there are two tenants in common, each will own a fractional one-half interest. If there are three, each will own a fractional one-third interest, and so on. A tenant in common can transfer his or her interest to other parties. At the death of a tenant in common, the fractional interest will pass to his heirs or as directed by a will.

The second basic kind of co-tenancy is called a joint tenancy with right of survivorship. Each tenant of a joint tenancy will own a fractional share of the land, like a tenant in common. The main difference between the two co-tenancies is that a joint tenant usually cannot freely transfer his fractional interest and, at the death of a joint tenant, the fractional interest will not pass to his heirs but will pass instead to the remaining joint tenants.

What you need to know about Contracts for Deeds:

• A contract for deed is a way property can be purchased by a buyer who doesn’t qualify for more conventional mortgage financing.
• With a contract for deed the buyer pays the purchase price to the seller in monthly installments of principal and interest (much like a mortgage payment) over the course of anywhere from a few years to 15 or 20 years or more.
• The seller will not deliver a deed to the buyer until the purchase price is paid in full. This puts a buyer at a disadvantage. He may spend years paying for property before he receives a deed.
• If the buyer fails to make the monthly payments, the contract may be terminated by the seller. The buyer will then forfeit all previous payments made to the seller and buyer’s rights in the property will be terminated.
• A contract buyer can protect his investment in the property by recording the contract in the land records. This will notify other parties that the buyer claims an interest in the property.
• The consequences to a buyer of defaulting under a contract for deed can be harsh, but if he is diligent about making timely payments he will eventually be the owner of the property.

The law that requires certain contracts to be in writing in order to be enforceable is called the:

(a) Written Instrument Law

(b) Parole Evidence Law

(c) Statute of Limitations

(d) Statute of Frauds

Answer: (d)

The Statute of frauds was first enacted in England in 1676, with the purpose of preventing fraud and perjury. It requires certain real estate contracts to be in writing to be enforceable. Examples of contracts that must be in writing are real property conveyances, listing agreements, and long-term leases. Real estate contracts that convey an interest in real property fall in this category, with the exception that a lease of one year’s duration or less may be oral. All other contracts to buy, sell, exchange, or lease interests in real property must be in writing to be enforceable. In addition, listing agreements in most states must be in writing.

Would you like to learn more about the legal side of real estate? Then connect with us! We’re Attorney’s Title Group. We’re not your typical title company. We are attorneys who specialize in real estate closings.

If I sign an Exclusive Buyer’s Agreement with a buyer client and show a home listed by another agent in my office am I a Dual Agent?

Yes, you are a Dual Agent. The buyer and the seller are both clients of your Broker, thus as a sub-agent of your Broker you represent both the buyer and the seller. Even though you may never actually meet with the seller, you must still follow the rules of Dual Agency by disclosing the dual agency relationship to your buyer and ensuring the buyer gives informed, written consent to the dual agency. Also, be careful not to disclose any personal, financial or other confidential information about the parties.

Riparian rights concern properties abutting moving water such as streams and rivers. If a property abuts a stream or river, the owner’s riparian rights are determined by whether the water is navigable or not navigable.

If the property abuts a non-navigable stream, the owner enjoys unrestricted use of the water and owns the land beneath the stream to the stream’s midpoint. If the waterway in question is navigable, the waterway is considered to be a public easement. In such a case, the owner’s property extends to the water’s edge as opposed to the midpoint of the waterway. The state owns the land beneath the water.

• A living trust allows the trustor, during his or her lifetime, to convey title to a trustee for the benefit of a third party. The trust charges the trustee with all necessary responsibility for managing the property, protecting its value, and securing whatever income it may produce. The trustee may also be ordered to sell the property at a given point. The beneficiary receives all income and sales proceeds, net of the trustee’s fees. A living trust may involve personal property as well as real property.
• A land trust allows the trustor to convey the fee estate to the trustee and to name himself or herself the beneficiary. The land trust applies only to real property, not to personal property. The agreement, or deed in trust, grants the beneficiary the rights to possess and use the property, and to exercise control over the actions of the trustee.

We have seen numerous deals over the years hit a snag based on the misconception or miscommunication of what stays with a home and what is leaving with the seller. The answer begins with knowing the difference between real and personal property. In the broadest since, real property is ownership of real estate and the bundle of rights associated with owning the real estate. While personal property is ownership of anything which is not real estate. Most buyers and sellers intuitively know the difference between what is real and what is personal property. The issue arises when sellers begin converting personal property to real property by affixing the personal property to the real property. These items are known as “fixtures”. Fixtures, such as ceiling fans, chandeliers, toilets, etc. transfer with the property and the buyer acquires the rights to the fixtures at closing.

Issues arise when the parties have different expectations and those expectations are not communicated to the other parties. The sellers are within their rights to exclude certain fixtures from staying with the home and the buyers are within their rights to ask for personal property to stay with the home. This can all be part of the contract negotiations. The key is communications and ensuring that all parties are on the same page. A little communication can avoid big misunderstandings.

My client has mistakenly violated the setback requirement on their new home; what can they do?

We have all had the situation arise in our careers when a client calls and says they accidentally built a permanent structure on their property too close to the property. Now they being ordered to tear it down or move it.

Most cities have a Board of Zoning Adjustments. The Board hears appeals from owners who wish to use land in a manner that is not entirely consistent with existing ordinances. One such owner appeal may be in form of asking for a variance. A zoning variance allows a use that differs from the applicable ordinance for a variety of justifiable reasons. Such reasons may be: compliance will cause unreasonable hardship, the use will not change the essential character of the area, and the use does not conflict with the general intent to ordinance. The Board has the power to grant the above property owner a variance due to the unreasonable hardship that removing the nonconforming building would cause an unreasonable hardship.

In this instance, an owner may petition the Board for a variance in hopes that they will not be forced to move or tear down a structure.

Client vs. Customer: What duties are owed to an open house visitor?

We have all faced this situation: a couple comes into our open house and begins to ask questions about the property and real estate in general. We politely answer their questions and gather information. But as agents, what duties do we owe someone that comes into our open houses?

To answer this, we must establish whether this couple in our open house is a client or merely a customer. A client is someone with whom we have formed an agency relationship with, either orally or through a written document. To this client, we owe the duties of skill, care, diligence, loyalty, obedience, confidentiality, accounting, and full disclosure.

As agents, we also owe duties to customers. To these customers, we owe the duties of honesty, fairness, reasonable care and skill, and disclosure. To these open house visitors, be vigilant to disclose any agency relationship you have with the seller and what that means to them. Also, be wary of any actions that might lead the open house visitor to believe you represent them through an implied agency agreement. Remember to always treat everyone with honesty and fairness.