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What Does a Home Inspector Look for Outside the Home? 

It’s often easy to forget that when purchasing a home, the outdoor structures are just as important to be inspected as the home itself. The inspector will look at the condition of everything on the grounds from sheds to retaining walls.  

General Landscaping 

No, an inspector won’t assess how immaculately kept the landscaping is; however, they will check to make sure plants like trees and shrubs are in overall good health. They will also ensure pathways are easily accessible and identify any spots with standing water concerns. 

Home Structure 

A building is more hazardous than a home if it doesn’t have a solid structure to support it. The inspector will search for damage or flaws in the walls all the way down to the foundation itself. If the inspector notes problems with things like bent walls or cracked foundation, you may want to reconsider purchasing.  

Roof 

You’ll thank your inspector for overseeing the condition of the roof, especially during harsh weather like rain and snow. They will make sure everything is sealed down tight and that there are no defects in the roof that cause leakage or poor insulation. This part of the inspection includes shingles, gutters, chimneys, and even skylights.  

Exterior 

The exterior of the home includes everything from the siding and trim to the windows and doors. The inspector will examine the state of the siding and frames while also looking for any signs of rot. They’ll also make certain all openings are securely sealed, an important part of keeping energy bills low. 

What About the Inside of Your Home?

Just like the exterior structure of the home, the interior also needs to be inspected. Once again things like structural damage and flaws to the walls will be on the inspector’s list, as well as the addition of proper insulation. 

Heating, Ventilation, and Air Conditioning (HVAC) 

The inspector will determine if there are any issues with your HVAC system regarding everything from carbon monoxide leaks down to the overall working order of it all. It’s important to note, however, that inspection of heating and cooling systems are typically done only in the appropriate months. So, if you’re getting an inspection in Summer, be aware that you may not receive a report on heating. The same goes for cooling in the colder seasons.  

Electric 

There is nothing quite as annoying as flicking on a light switch only for nothing to happen. That is why a home inspector will review that all wiring, outlets, and switches are correctly functioning and that the electrical box is operational. For rooms like the kitchen and bathroom, the inspector will verify that there is ground-fault circuit interrupter protection for any outlet within 6 feet of a sink.  

Plumbing, Sewage, and Water Damage 

If it’s connected to a pipe, it will most likely be inspected. Inspectors will oversee that there are no issues with water flow, pressure, and temperature, as well as sufficient drainage and flushing. They will also keep an eye out for any leaking pipes and possible water damage. 

Purchasing a new home is an exciting and important milestone in a person’s life. That’s why it’s so crucial to thoroughly think through everything before making a final decision. Don’t regret purchasing a home. Schedule a home inspection and open your eyes to all the facts.  

The post What Does a Home Inspector Look For? first appeared on Express Title Company.

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Our 8 Musts for Fall Home Maintenance 

Whether you’re a longtime homeowner or this is your first autumn in your new home, following these tips will help you know what to do. 

Tip 1 – Seal Air Leaks

The cold weather means higher heating bills. However, the simple task of sealing air leaks on your doors and windows can help you reduce your heating bill and keep the cold air and moisture out. Go around your house and identify gaps and cracks that allow drafts. You can use a candle and hold it up to windows and doors and see if the flame flickers. If it does, then that means there is a gap there. Just be careful when handling the fire.

Tip 2 – Clean Gutters

Cleaning your gutters will ensure that rainwater and melting snow can flow from your roof. If rain runoff is trapped in your gutters due to the debris, then it could cause greater issues to your roof. Safely remove leaves, dirt, and any other debris from your gutters. Once the debris is removed, rinse and flush the gutters with a regular garden hose.

Tip 3 – Inspect Your Roof

While cleaning your gutters, be sure to also check the roof itself for any debris like large sticks or any overgrown tree branches that may fall or puncture your roof. Also, examine for damaged or missing shingles to prevent further damage from leaks. With that in mind, if you can’t access your roof to see if there is any damage, you can also check your attic space and see whether the rafters are broken.

Tip 4 – Check Your Furnace

Now is a great time to get your furnaces before the temperatures dip. You should replace the air filters in your furnace to extend your furnace’s life, reduce your energy bill, and improve indoor air quality.

Tip 5 – Examine Your Humidifier

With winter weather comes dry air. The lack of humidity can be harsh on your skin and lungs, and it can cause wooden structures in your house to become susceptible to cracking. If you already have a humidifier, now is a great time to check to make sure it’s ready for the months ahead.

Tip 6 – Remove Garden Hose

Once the roof and gutters are clean, your garden hose can be stored for the season. Removing your garden hose before the cold arrives prevents ice from forming from within the hose and your home’s water line. Because the ice expands, this could cause the hose as well as the pipes inside your house to burst.

Tip 7 – Prune Plants and Trees

Before the winter cold comes, get your plants ready for the harsh weather by pruning them and removing any dead branches or buds. For plants that are prone to the cold, cover them with sheets of burlap or canvas or relocate them.

Tip 8 – Fertilize Your Lawn

Fall is the best and most important time to fertilize your lawn because supporting root growth in the fall makes the lawn healthier and greener in the spring. The fall has morning dew that provides moisture that helps the grass absorb the fertilizer, which helps the grass withstand the harsh winter.

Whether you are a new or experienced homeowner, take time to prepare your home for the coming winter. Even a little maintenance effort for your home will benefit you as you will lower your utility bills and prevent major repair bills down the road.  

The post Hello Autumn: 8 Musts for Fall Home Maintenance  first appeared on Express Title Company.

Find out What Escrow is in Real Estate 

How This Law Change Impacts Maryland Real Estate Agents 

 According to the Senate Bill 425: 

Authorizing a licensed title insurance producer to pay compensation for the provision of real estate brokerage services to associate real estate brokers, real estate salespersons, or certain business entities on behalf of a real estate broker in accordance with written disbursement authorization provided by the real estate broker. 

This new law change provides an understanding that title companies can pay compensation to real estate licensees on behalf of the real estate broker, along with a written disbursement authorization provided by the real estate broker. This allows the continuation of the “pay at the table” option that is provided by some real estate and title companies, including Express Title.  

Contact Express Title Today! 

In Maryland, this new legislation has changed the way real estate agents get paid, which means by October 1, 2022, Express Title Company can pay agents directly at the time of closing, with of course the permission of the real estate broker.  

Express Title is a multi-jurisdictional settlement company that conducts real estate closings. We know that successful real estate agents rely on knowledgeable and experienced title insurance professionals. Our team is prepared to exceed expectations and help realtors and homeowners get through the transaction process efficiently. We invest and provide guidance to help you succeed. Contact us Today! 
 

The post Maryland Law Change to Benefit Real Estate Agents  first appeared on Express Title Company.

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What is 1031 Tax Exchange? 

A 1031 tax exchange gets its name from Section 1031 of the U.S. Internal Revenue Code, which allows you to avoid paying capital gains taxes when you sell an investment property and reinvest the proceeds from the sale. The 1031 tax exchange allows you to swap out an investment property for another of equal or greater value and defer capital gains or losses that you otherwise would pay at the time of the sale. If you are looking to upgrade properties without being charged taxes for the proceeds, then you can use the 1031 tax exchange. 

Role in Commercial Real Estate 

1031 tax exchange offers solutions that can be used for various commercial real estate properties, including apartments, hotels, office buildings, gas stations, parking garages, and much more. In commercial real estate, a 1031 tax exchange allows you to delay paying capital gains on a property sale, so technically you can buy bigger or better commercial properties without paying capital gains taxes. It’s an investing strategy that can help you accumulate wealth.  

Capital gain tax can have a huge impact on a deal’s profit margin, it can dramatically decrease it. Upon selling a commercial property, profits can impose a huge tax burden that can hinder profits. For example, let’s say you purchase a commercial property for $1 million and sell it for $1.5 million, then the financial gains subject to tax would be $500,000. That’s where the 1031 tax exchange comes in, minimizing the impact of taxes on the deal. With this method, you can use that $500,000 to buy one or more investment properties without having to pay taxes at the time of the sale.  

What Investors Should Know 

• It is possible to do a 1031 tax exchange with a single property or sell multiple properties in exchange for one or more commercial properties. 1031 tax exchange can be used multiple times, there’s no limit, if correctly executed. 
• It’s impossible to avoid capital gains taxes completely, a 1031 exchange delays the payment of these taxes until the investment is liquidated. 
• You can only perform a 1031 tax exchange between investment properties therefore you can’t use it on personal properties.  
• The equity of the new commercial property should be equal or greater value to the equity of the original asset.  
• You will have bigger buying power. 1031 tax exchange allows you to use money that would otherwise be paid to the IRS to invest in a new commercial property with a higher value. 

Protect Your Commercial Real Estate with Express Title 

The 1031 tax exchange strategy offers many benefits especially for commercial real estate investors looking to increase profit margins. If you are interested in learning more about the commercial real estate industry and title insurance, our team at Express Title can assist you. We can help you understand more about this industry, and help you make the right decisions to support your financial growth.  Contact us today! 

The post 1031 Tax Exchange and its Role in Commercial Real Estate  first appeared on Express Title Company.

 Click Here to Find Out the Top 4 Benefits of Homeownership 

Common Real Estate Scams

1. Escrow Wire Fraud  

This happens when fraudsters get ahold of an email or phone number and give instructions on where to wire money. There are fake websites created by scammers to make them seem legit. Therefore, it is important to carefully read through information regarding payment for an indication of fraud. For example, a fake document may try to impersonate our website as exprestitle.com when it’s actually expresstitle.com. Did you spot the difference? Just one “s” was missing, and this vital detail could lead you to a fake site run by cyber criminals.   

The best way to protect yourself from this type of scam is to review the original documents you received from us and your lender. Also, don’t click on links or messages without verifying that they are real by comparing them with original documents.   

2.Fake Listings and Rental Scams  

When searching for a home, you can find one you like with images and an address provided. However, some scammers can post pictures of properties that don’t exist, aren’t available, or aren’t owned by the person listing them. These scammers may charge you to see the house and disappear once they receive the money. Other scammers might charge buyers for the house without the chance to view it in person. Once the scammer receives the money, they disappear, leaving the buyer losing a huge sum of money for an unavailable house. And surprise, surprise! The seller won’t respond to the email.  

How to prevent this? First of all, always be cautious when making these kinds of purchases. Before starting any business dealings, verify that the seller indeed owns the house by conducting research online. Verify that the real estate agent is legitimate by taking a picture of their license and researching them online. Always see the house, the real estate agent, and the actual owner of the property before purchasing the house. Do not pay digitally or in cash. Instead, use a check to make the transaction because it will serve as an automatic receipt. 

3. Faulty Home Inspection  

A thorough house inspection is a necessary procedure in the process of purchasing a new home. Having a third party evaluate the condition of the house is important to determine the value of the house and identify possible hazards in the house, like leaks or mold. It is important to have a knowledgeable expert conducting the inspection, or else the buyer might end up paying a lot of money later for damages from before they owned it. However, some unqualified scammers pose as house inspection companies. Looking to make money, these scammers are inexperienced in-house inspections and will not provide the full inspection the buyer needs. Other home inspection scammers might be qualified and provide a full house inspection, but they might have additional hidden fees that will make the cost of home inspection much higher than the original price.  

A real estate agent usually knows a couple of good home inspection companies but doesn’t immediately assume that they will be the best companies. Conduct your own research on the recommended companies and look for reviews, experience, and reputation to ensure you get a high-quality home inspection for a reasonable price.  
 

4. Home Mortgage Scams 

Some mortgage scams can come from seemingly legitimate companies. The trick comes in the interest rates. In advertisements, the companies may advertise low-interest rates and no closing costs. As customers apply for the mortgage, they realize that suddenly the rate has increased, or they don’t qualify for the closing cost benefits advertised. This is a scam by the company which leaves customers feeling cheated. But why can’t the customer just pull out of the mortgage? Some companies might require a nonrefundable upfront payment that leaves the customer feeling unwilling to back out of the deal and just proceed through it. 

To prevent these types of scams, it is important to be aware of the mortgage buying process. Consider seeking help from an expert in this field. Conduct research on lender companies and read reviews by other customers. This can help you avoid businesses that utilize unfair business practices. 

When you are thinking of buying a home, it is an exciting moment and a huge investment, that is why it is important to acquire knowledge and conduct research beforehand. Buying a home isn’t easy and you can’t automatically trust the things you are being told. Therefore, learning about steps of the process of purchasing a home is important.  

The post 4 Common Real Estate Scams and How to Protect Yourself   first appeared on Express Title Company.

Find out What Escrow is in Real Estate

What is a Property Title?  

A title is the legal ownership of a property and the rights set over the property. Titles are not exclusive to real estate—many other items of value have titles, such as boats and cars. The legal purchase of a house transfers the title to the buyer from the previous owner(s), along with the deed. In simpler terms, a title is a legal way of saying you have ownership. Titles are then transferred by deeds. 

When you possess the title to a property, you have the following rights:  

• The right of possession. As the legal owner, you have the right to be on the property.  
• The right of control. As the legal owner, you have the right to do whatever you want on the property, as long as it is not illegal.  
• The right of exclusion. As the legal owner, you have the right to dictate who can and cannot be on the property.  
• The right of enjoyment. As the legal owner, you have the right to not be bothered by others and live peacefully on the property. 
• The right of disposition. As the legal owner, you have the right to transfer ownership.  

What is a Deed?  

A deed is evidence of a distinct event of transferring the title of the property from one person to another. This represents the right of the owner to claim the property. A deed must be a physical document signed by both seller and buyer of the property. According to Maryland law, all deeds are required to include the names of the seller and buyer, description of the property, and the interest you intend to convey. The new owner must physically possess a deed following the property’s purchase.  

Different Types of Deeds: 

• General Warranty Deed  
• Special Warranty Deed (the most commonly used deed in Maryland) 
• Quitclaim Deed  

To learn more about other potential deed options, contact a real estate attorney or the Land Records Department.  

Property Title vs Deed: Knowing the Difference  

The biggest difference between a property title and deed is the physical component. While a deed is an official written document proclaiming a person’s legal ownership, a title refers to the concept of ownership rights. For more clarity, think of a book: the deed is the physical cover and pages; meanwhile, a property title would be akin to the book’s title.  

Key Takeaways  

Understanding the difference between titles and deeds and their respective purposes is a crucial part of the homeownership process.  Just remember property titles are concepts of ownership, deeds are physical documentation of ownership!  

We hope that this blog was informative and helped in your homebuying process. For more information regarding property titles, deeds, and the homeownership process, contact Express Title today. 

The post Property Title vs Deed  first appeared on Express Title Company.

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What is Remote Online Notarization? 

Notarization is the process of authenticating a signature on a document by having an authorized person, called a notary, witness the signature. Remote online notarization (RON) allows you to use virtual video-audio conferencing to have your paperwork notarized. The documents are signed and witnessed digitally. It allows individuals, banks, law firms, and other parties involved to connect with a notary through the internet. RON retains all the components of a traditional, in-person notarization, but the process is more secure and convenient.  

RON can be used for: 

• Power of Attorney 
• Auto Title Transfers 
• Deeds 
• Real Estate Transactions 
• Establishing trusts 
• Beneficiary changes and retirement distributions 

What are the Benefits of Using RON? 

1. Convenience and Easy Access 

Without the ability to get documents notarized digitally, you would need to travel to a notary and sign the documents in person. This inconvenience can be avoided by digital authentication, eliminating paperwork. 

Scheduling a signing is much simpler and more efficient when all parties involved do not need to be present in the same room. Anyone with access to the internet within the United States can have their signature verified by any notary from the states that have legalized RON. You and every party involved can simply just agree on a day and time that is best for everyone.  

2. Decreased Likelihood of Fraud  

The identity verification process has multiple steps to it. Through knowledge-based authentication (KBA), you are given a questionnaire that is generated based on your personal history and your credit history. To verify your identity, you must answer the questions provided correctly. You may also need to show your government-issued photo ID, driver’s license or passport to prove your identity. The requirements for authentication vary from state to state. 

 RON allows you to use audio-video technology to sign and notarize documents.

3. Increased Security 

Compared with physical paperwork, digital documents are less likely to be lost, stolen, or damaged. RON provides fully digital records of your notarizations. The entire video chat is recorded in real-time and saved for future references, including the identity verification and the notarization of documents. 

How Does Remote Online Notarization Work? 

The RON law has specific requirements and standards for how remote online notarization must be performed depending on the state. RON is also not available for non-U.S. citizens who reside outside of the United States. 

The remote online notarization process is simple: 

1. The documents are uploaded to be signed and notarized 

2. The signer accesses the RON platform and begins the authentication process 

3. The RON platform will start the recorded video chat session with the signer and witness 

4. The notary will complete the infinity validation and credential analysis 

5. The signer will digitally sign the document 

6. The signer will receive digital copies of all notarized documents 

7. A copy of the video recording, including the authentication process, witnesses and documents are uploaded and stored to the notary’s digital journal.  

Remote Online Notarization facilitates the process of notarization. The process becomes more convenient and secure when compared to traditional notarization. Most lenders are still not allowing their recordable documents to be signed this way, but Express Title Company is. If you are interested in learning more about RON, Express Title’s experienced team can help you every step of the way.  

The post 3 Reasons Remote Online Notarization Simplifies the Homebuying Process  first appeared on Express Title Company.

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1. Stronger Financial Future 

With homeownership, you can build a financial future. As you build equity in your home over time you are increasing your net worth. Putting money into homeownership versus renting an apartment, you are building an investment as time goes on. Over time equity is built up and if enough equity is built you can use your house to borrow for expenses such as college, home improvements, or any other life emergencies. 
 

2. Tax Benefits 

In most cases, the interest you pay, and property taxes can be deducted from your tax returns. Comparably renters do not have this advantage. While some states allow rent to be included in taxes, homeowners can claim a much larger exemption from the homestead exemption and other tax exemptions depending on the county they reside in. 
 

3. Payments are Stable 

Most homeowners take out a 15-year or 30-year mortgage and the payments are the same each month. If interest rates decrease, you can refinance, thus lowering your payments even further. When all payments are made 15 or 30 years, or even earlier when paying to principal above your normal payments, you have no payments after that. Now your cost of ownership becomes just yearly property taxes and property maintenance. The cost of rent increases and can be unpredictable according to your landlord’s decision. 
 

4. Community, Freedom, and Pride of Ownership 

With homeownership, there is a sense of belonging to a community thus forming relationships with neighbors. Whether it is outdoors or indoors, you have the freedom to do “whatever” you want; you can redo the floors, paint the walls, garden, create an outdoor patio, and much more. There is a sense of “pride” that comes from homeownership.  

Aside from getting a place to call home, there are numerous benefits of homeownership, these are just some of them as the market continues to grow. Maybe right now is the best time to consider finally investing in a home. If the time is now to purchase your dream home, contact Express Title today, to help you protect your new home with title insurance.  

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Spring Maintenance Tips   

Spring maintenance can happen inside and outside your home, but again, it might seem overwhelming. However, taking the time and breaking it up over a few weekends, you can tackle these easily.  

1. Inspect the Outside of your Home for Damage  

Winter storms can easily leave some damage on the outside of your home, so it is important to keep an eye out for damage. Here is a list:   

Check the Gutters to see if anything is loose or leaking. Improper drainage can lead to leakage in the basement or crawlspace. Make sure to check that the downspout drain is away from the foundation and that the gutters are free from debris. Maybe consider installing gutter screens to help keep the debris out of the gutters.  

Examine Roof Shingles to see if there were any shingles lost or damaged during the winter weather. Shingles that are cracked or loose need to be replaced, especially before the summer when the sun can really damage the roof.  

Inspect Concrete Slabs for any sign of damage, cracks, or movement. Fill any cracks with a concrete crack filler or silicone caulk. Once everything looks good, go ahead and power wash your driveway and seal the concrete.   

Check Windows and Doors to see if your home’s windows and doors are caulked around the trim.  The purpose of caulking windows and doors is to help keep the summer heat and humidity outside and the winter cold and draft outside. This saves money on your utility bills.   

Clean Windows and Screen using a mixture of vinegar, dish soap, and water to spray and scrub your windows to bring some of that sunlight into your home.   

2. Spruce up Outdoor Spaces  

Nothing says spring better than spring gardening. Sprucing up your outdoor space can help bring a warm feeling to your home, so here are some tips to spruce up your yard: 

Cleaning up the Yard by getting rid of any debris like leaves that might have been left from the winter.   

Give your Garden a Facelift by tidying up your plants. Trim shrubs and trees so that they can bloom and grow healthier. Spring is the best time to start planting flower seeds, so you can start spicing up your garden.   

Lawn Maintenance by getting your grass ready for the summer weather. Do this by getting rid of any dead grass by raking it, then adding a fresh layer of topsoil, seeding the area, and adding nitrogen fertilizer. Doing this would make your lawn green and lush for the summer.  

Preparing Patios, Decks, and Balconies by sweeping and power washing the space. Maybe brighten up your deck by applying some stain. 

3. Inspect the Interior of your Home  

General Cleaning in areas of the house that often go neglected such as window casings, tops of wall-mounted cabinets, ceiling fans, and carpeting. Go through your home and start decluttering, including your rooms, kitchens, and garages.  

Inspect Attic Space to check for any signs of insects or critters, presence of mold, and proper insulation of the room.   

Basements are prone to dampness and insects, so it’s important to check for any signs of these to prevent any furthermore expensive damage.   

Leaks can lead to lots of problems so it’s a good time to check for any leaky faucets, clogged drains, and sweaty pipes under the kitchen sink, bathroom sinks, and washing machines.   

Spring is the perfect time to get home in tip-top shape. As a homeowner, it may seem like there is always something to do around your house, but by taking one task at a time and breaking it up over a few weekends, you can get the tasks done more easily. What are you waiting for? Start your spring maintenance!   

The post 3 Spring Maintenance Tips for Your Home   first appeared on Express Title Company.

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What is Private Mortgage Insurance? 

Private mortgage insurance is designed to protect mortgage lenders, not the homeowners. When you buy a home and make a down payment of less than 20% of the home’s purchase price, your lenders might require you to secure PMI. PMI protects your lender from the risks of default and foreclosure if you stop making payments on your loans.  

If you are required to pay private mortgage insurance, it can either be paid in full at the time of closing or added to your monthly mortgage payment. PMI is not a permanent expense and can be dropped from the monthly mortgage payments once the borrower’s loan balance reaches 78% of the original value, or in other words, when equity reaches 22%. Borrowers can also request the PMI be removed when they pay the principal equivalent of the 20% down payment toward their loan.  

Tips for How to Avoid Private Mortgage Insurance 

1. Make a 20% down payment  

The simplest and ideal way to avoid PMI is to make a large down payment of at least 20%. A larger down payment can offer you an advantage, however, not everyone can afford it. The average cost of a home is $375,000 nationally, and that means that 20% of that is $75,000. One way to produce this amount is to save up overtime.  

2. Utilize Lender-Paid PMI 

An alternative to eliminating the costs of monthly payments from PMI is to get a lender to pay for it, known as lender private mortgage insurance (LPMI). This option helps you as a homebuyer get a mortgage on your new home with as little as a 3% down payment, however, the lender will charge a higher interest rate. Therefore, it is important to compare costs and benefits before accepting LPMI. 

3. Use a “Piggyback Loan”  

A piggyback loan, sometimes called an 80-10-10 loan, provides a way to double the size of your down payment with the help of a second mortgage. The first mortgage covers 80% of the home price, and the second covers 10%. The remaining 10% is covered by your down payment. If your lender does not offer a second mortgage, you can get it from a local bank or credit union.  

4. Military Member or Veteran 

If you are a member of the military or a veteran, you qualify for a VA loan. VA loans that are backed by the Department of Veterans Affairs do not require PMI, however, there is a one-time funding fee.  

Homeownership is a monumental life event worth every penny. While waiting to buy a home until you have saved 20% of the down payment may seem like the best option to avoid Private Mortgage Insurance, this shouldn’t be the only thing holding you back. Buying a home can be frustrating and exciting at the same time, so before you use all your savings or retirement funds to pay for that 20% down payment, it is worth remembering that PMI is not tacked onto your expenses forever. To learn more about how Express Title can help you achieve homeownership, contact our team today. We are here to help you every step of the way.  

The post How to Avoid Private Mortgage Insurance   first appeared on Express Title Company.