Tip 15-2011: Boiler Plate Deeds

(Boiler Plate Deeds)  Ron Critzer at Court Square Title was kind enough to share the following story!  He recently encountered two situations where multiple property owners decided to change title among each other.  Instead of retaining an attorney to be sure the deed was drafted properly, these owners attempted to save money and obtained an on-line deed template or something similar from Staples.  These “boiler plate” deeds can sometimes create significantly more problems and costs than what is saved.

In Ron’s two situations, the boiler plate deeds contained a reservation of mineral and subsurface rights by the Grantors.  In other words, the transferring (selling) owner still owns part of the real estate.  Now when the current owners want to sell you still have to track down the prior owners to get the mineral rights released.  What a mess!

In Ron’s words, “If you’re going to convey an interest in real estate, make sure an attorney prepares the deed.”

PS – I couldn’t have said it better.

Please contact us if you have questions or need legal advice.

Senior Partner

William D. Tucker, III
Tucker Griffin Barnes P.C.
Charlottesville, Virginia
434-973-7474
Tucker@TGBLaw.com
www.TGBLaw.com

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Tip 14-2011: Short Sales (Locking in Interest Rates)

(SHORT SALES – Locking In Interest Rate)  A previous Tucker’s Tip #4-2011 discussed what constitutes a qualified short sale Buyer.  First, the Buyer needs patience to allow sufficient time for the short sale lender to approve the contract.  Second, the Buyer may need to provide additional cash to contribute to any subsequent lender, investors and mortgage insurance requirements for short sale approval.

As a result of the time usually required for short sale approval, the Buyer should consider delaying as long as possible locking in the interest rate with their lender.  There is unfortunately no guarantee how long a short sale may take for lender approval.  A possible strategy described in Tucker’s Tip #9-2011 suggested first satisfying the inspection contingency, and then once satisfied, the Buyer can apply for the loan.  Both of these contingencies should be completed after “contract ratification”, not after “lien holder approval”.  By using this plan, the loan application is not submitted until approximately thirty days after contract ratification, thereby allowing a longer opportunity to lock in the interest rate.

As there is no guarantee how long a short sale approval will take, delaying locking in the buyer’s interest rate will usually save the Buyer from paying potential “lock extension fees”.  Obviously, there are certain instances when the Buyer may decide that “locking in” early is their best strategy.  In these cases, if possible, try to negotiate as long a loan lock period as possible.

PS – The City of Charlottesville Clerk’s Office will be CLOSED April 13^th for Thomas Jefferson’s Birthday.

Please contact us if you have questions or need legal advice.

Senior Partner

William D. Tucker, III
Tucker Griffin Barnes P.C.
Charlottesville, Virginia
434-973-7474
Tucker@TGBLaw.com
www.TGBLaw.com

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