NC Operations Summary

Licensed Entity:

• See Attached HUD Sample for Additional Information

Banking Information

• Bank account -- <<INSERT ACCOUNT #/ROUTING #/BANK NAME>>
• Checks stale dated after -- ___ days of issuance
• Good Funds Law -- Yes, $5,000 de minimus
• Disbursements Requirements -- <<INSERT IF WFG REQUIRES CD?>>
• Special Bank Requirements (IOLTA/IOTA/OTHER or account specific to that state’s funds) -- Yes – you cannot earn interest on your trust account with NC funds. If you do, it must be a registered IOLTA account with NC Bar – not recommended. Keep NC funds in a non-interest bearing account.

Escrow/Settlement

• Who can prepare the HUD -- Not restricted
• Who can sign the HUD (EO/LTP/Attorney) -- Not restricted
• Who orders hazard insurance --
• When is transaction consummated for new HUDS --
• Record before/after disburse -- Record then disburse with NC Attorney approval
• Filed/restricted escrow rates -- No
• Record retention requirements -- Yes, three years generally for agents
• Is an attorney involved in the closing -- Yes –required
• Who can handle loan document signing -- Attorney or Notary supervised by an Attorney
• Doc/Deed Prep Restrictions -- Attorney must prepare all legal documents
• Use Escrow Instructions or not -- No
• Use Estimated HUD or Final -- Final
• Pass-thru charges -- Yes
• Rates Inclusive or not -- Not Inclusive
• Commitment Fee --Beginning March 1, 2012, NC has a $15 commitment fee as additional title premium where a commitment is issued. This fee is not charged if the commitment is cancelled. There are no filed cancellation fees.
• Up Charging -- Not permitted
• Junk Charges -- Not permitted
• Special HUD Requirements -- Must indicate attorney payments for opinion and

“closing” service

• Special Disclosures --
• CPL -- Filed CPL rates
• UPL Issues -- Attorney must certify search/provide attorney opinion of title; search must be performed under direct attorney supervision; Attorney must supervise closing, approve fund for disbursement and give final certification of title.
• Joinder of non-titled spouse -- Yes
• Survey Required
  • Purchase –yes
  • Refinance – no

Audits

• Required -- No

Recording Process

• E-recording -- County list of e-recording attached
• Record before disbursement -- Record first
• Special recording procedure -- Attorney authorized recording after updating title

Recording/Document Requirements

• Marital Status Stated -- Yes
• Transfer Tax -- Yes
• Mortgage Tax -- None
• Address for grantor/grantee/property -- Grantee address required
• Witnesses -- Not required
• Names typed/printed --
• Prepared by/return to -- “Prepared by” information required on first page; must be attorney; some counties require deed to contain affirmative statement regarding payment of taxes
• Notary Stamp/requirements --
• Parcel or tax index number -- Required on deeds
• Recitation of Consideration -- Not required
• Derivation Clause -- Yes
• Corporate Signatures/Attestation --
• Ink Color/Font -- Black/10 pt minimum
• Legal Description --
• Margins -- 1st page – 3” top margin
• Other Special Recording: --

Document Types

• Conveyance -- General Warranty Deed; Sepcial Warranty Deed; Trustee Deed; Non-Warranty Deed or Quit Claim Deed
• Security Instrument -- Deed of Trust
• Release -- Notice of Satisfaction

Tenancies

• Tenants in Common -- Yes
• Joint Tenants -- Recognized but must be expressly stated G.S. 41-2
• Tenancy by Entireties -- Presumed in deed to Husband and Wife
• Community Property -- No
• Homestead -- No
• Joinder of Non-titled Spouse -- Yes, after initial purchase money deed of trust. A non-titled spouse must join in any conveyance after the initial purchase money deed of trust. This includes the principal residence and any recreational or investment property. Under the Doctrine of Instantaneous Seisin, we can insure the purchase money transaction, that is the individual taking title and granting a deed of trust in the same transaction, without the spouse’s joinder. This is only good for the purchase money transaction; the dower right exists for each subsequent refinance or sale.

NC now recognizes same sex marriage / civil unions.

Taxes

Taxes are assessed on a calendar basis; assessment beginning on January 1, due and payable by September 1 and payable without interest through January 5 of the following year. County budgets are based on fiscal year July 1 to June 30 but tax rates are applied on calendar basis.

Commitment/Policy Special Requirements

• Who can sign Commitment/Policy -- Licensed Title Producer
• Other --

Payment Customs

• Buyer customarily pays for the Owner’s Policy
• Seller customarily pays the state transfer tax. Buyer pays for recording of deed and deed of trust.
• Buyer customarily pays for survey.
• Buyer customarily pays for settlement/closing fees related to the loan. Seller pays for document preparation related to the deed of conveyance and lien waivers and any costs associated with title clearance matters.

Post Closing Requirements

• Recon follow up required --