ID Underwriting References

Abstracters

Overview

• When one purchases real property, it is paramount that the seller has a legal right to sell the property, that no other person or entity has a legal right to the property and that the boundaries of the property to be sold are mutually agreeable to the parties to the transaction. An abstracter researches the property and reports on his/her findings to all parties to the transaction.
• A title abstracter is another name for a title examiner.
• Id. Code 54-101 et. seq.

Research

• As stated above, an abstracter will research a parcel of property that one party wants to sell to another. The research will involve searching the chain of title going back in time to make sure the current seller has the legal right to sell the property and that there are no other people or entities that have an interest in the property. This search will also entail comparing legal descriptions to make sure the property being sold has the correct description.

• An abstracter will research whether there are any encumbrances against the property. They look for judgments, conditions, restrictions, mortgages or trust deeds, and any other liens against the property. They also look for any easements affecting the property.

• An abstracter may also work with a local surveyor and tax assessor to verify that the parcel of real property described in the documents is correct.

Knowledge

• Abstracters need to pay attention to detail, have strong organizational skills, the ability to explain their findings and a basic understanding of real estate law. They may be called upon to explain their findings to realtors, lenders, buyers, sellers, contractors and attorneys. They may also need to work with surveyors and other parties to assist in resolving disputes.

Reports

• Abstracters prepare a title report that includes the current vesting, the property's legal description, any liens or judgments and any other issues of concern.

Certified Abstracters

• In Idaho, if one is to act as an independent abstracter, a bond of $10,000 is required. Once the bond is paid, a Certificate is issued. The bond and certificate are valid for five (5) years. Id. Code 54-101, et. seq.

• Title examiners also have the option to obtain licensure by the National Association of Land Title Examiners and Abstractors (NALTEA).

Closing Protection letters

CPL Form

• Latest CPL Form Filing Date: 03-02-2016
• Filing Requirements: Add State Contact Info
• Current From: 3172900
• ALTA Version: 2015

Rates

State Mandated Rates

• Buyer:
• Seller:
• Lender:
• Borrower:

WFG Rates

• Buyer: $25.00
• Seller: N/A
• Lender: $25.00
• Borrower: $25.00

Notes

• Notes: I.C. 41-2714, Rate & form filing required, no filing found in WFGunderwriting
• Rate Checked: 05-06-2016
• By: ABF
• Manual Date: PROBLEM

Construction Liens

Overview

Construction liens in Idaho are also referred to as "Mechanics'" and "Materialmen's" liens throughout the Idaho Statutes.

Sources

ID Code §§ 45-501 et seq.

Authorized Claimants

For the purposes of construction of any improvement upon real property at the instance of the property owner or construction agent of the owner, the following people may file a construction lien:

• Any person performing labor related to the construction;
• Any person providing supplies or materials to be used in the construction;
• Any person renting, leasing, or otherwise supplying of equipment for the construction; or
• Any professional engineer or licensed surveyor who establishes or marks the boundaries of, prepares maps, plans, or specifications for, or inspects, tests, or otherwise performs any other architectural or engineering services for the improvement of real property.

ID Code § 45-501

Lien Priority

A perfected claim of lien shall be prior to any lien, mortgage, deed of trust, or other encumbrance which attached to the land after or was unrecorded at the time of commencement of labor, professional services or the furnishing of materials or equipment.

ID Code § 45-506

Notices and Registries

Idaho statutes do not require notice of a lien other than the recording and service of the lien claim itself.

Perfecting a Lien

A construction lien shall be perfected not later than ninety (90) days after the completion of the labor or services, or furnishing of materials.

To perfect a construction lien, a claim must be filed with the recording officer of the county in which the real property is located.

The claim must contain:

• A statement of demand;
• The name of the owner, if known;
• The name of the person by whom he/she was employed or to whom he/she furnished materials; and
• A description of the property, sufficient for identification.

The claim must also include a verified oath by the claimant, or someone authorized to act on their behalf, to the truth and accuracy of the claim.

A copy of the claim shall be served on the owner no later than five (5) business days following the filing of the claim of lien.

ID Code § 45-507

Enforcement Deadlines

A construction lien encumbers real property for six (6) months after the claim of lien has been recorded with the county, unless a lawsuit is filed to enforce the lien within that time frame.

If the claim of lien lists a payment on account or extension of credit given with an expiration date, the lien will then encumber the subject real property for six (6) months after the date of such payment or expiration of the extension.

A final judgment on a lien will expire ten (10) years from the date the judgment becomes final.

ID Code § 45-510

Releases

1. Bond

A property owner may remove a perfected construction lien from the subject property by obtaining a surety bond. The bond must be 1.5 times the lien claim amount. ID Code § 45-519

The debtor must file a petition with the district court where the property is located in order to release the lien via the bond. A hearing on the petition will be held at least five (5) days but not more than ten (10) days after the entry of the order granting the hearing. Service on the claimant at least two (2) days prior to the hearing is required. ID Code § 45-520

Given the bond meets the statutory requirements, the court will enter an order releasing the construction lien. Upon entry of the order, the lien is released of record in its entirety and the real property is released from the encumbrances of the lien. There is no appeal from this order. ID Code § 45-521

2. Release

A release of a construction lien may also be recorded with the county. It must reference the original construction lien recording document information and property that is subject to the lien. It must state the lien is paid in full and that the construction lien is released. It must also be signed by the original lien claimant.

Foreclosure Review

• Idaho provides for a non-judicial foreclosure of a Trust Deed (aka Deed of Trust) with no right of redemption after the Sale on the courthouse steps. ID Code §45-15
• Judicial Foreclosure is also available and Redemption Rights are preserved, as is ability to obtain deficiency judgment. ID Code § 6-1.

Escheat

Sources

ID Code § 14-501 et seq. Unclaimed Property Law.

Recipient Office

State Treasurer

Reporting

• Time Period: 5
• Due Diligence Amount: 50.01
• Due Diligence Dates: Not more than 120 day prior to report
• Aggregate Amount: Not Permitted
• Report Period: 7/1-6/30
• Report Due Date: 11/1
• Negative Reporting: Yes, effective 2016.

Dormancy Fee

Only for safe deposit boxes or other safekeeping repository.

Web Site

http://www.sto.idaho.gov/unclaimedproperty/

Good Funds

Wet or Dry Settlement

Dry

Definition

Escrow officers may only place "collected funds" in their trust account. "Collected Funds" means: (a) cash (currency); (b) wired funds when unconditionally received by the escrow agent; (c) when identified as such: (1) cashier's check; (2) certified check; or (3) teller?s check (official check) when any of the above are unconditionally received by the escrow agent; (d) U.S. Treasury checks, postal money orders, federal reserve bank checks, federal home loan bank checks, State of Idaho and local government checks, local or Idaho on-us checks (meaning checks drawn against the same federally insured financial institution or branch as the title agent's own depository), or local third party checks on the next business day after deposit; (e) local personal or corporate checks on the second business day after deposit; and (f) non-local State and government checks, non-local on-us checks, non-local personal or corporate checks or non-local third party checks on the fifth business day after deposit. For purposes of this section a deposit is considered made on (1) the same day the item is delivered in person to an employee of a federally insured financial institution, or (2) the first business day following an after business hours deposit of an item to a federally insured financial institution. ID Admin. Code 18.01.25.011.010(a)(ii).

Requirements

Notwithstanding any agreement to the contrary, no disbursement of funds or delivery of documents from an escrow for recording or otherwise may be made unless the escrow contains a credit balance consisting of collected funds, other than funds of the escrow agent or its affiliates, sufficient to discharge all monetary conditions of the escrow. The requirement of collected funds does not apply to collection or long term escrow. ID Admin. Code 18.01.25.011.010(b)(i).