CO Operations Summary

Banking Information

• Bank account/CD
• Bank account/LS
• Good Funds Law
• Disbursements Requirements
• Special Bank Requirements (IOLTA or IOTA or account specific to that state’s funds)

Escrow/Settlement

(2/11/2015)

• Who can prepare the HUD --
• Who can sign the HUD (EO/LTP/Attorney) --
• Who orders hazard insurance
• When is transaction consummated for new HUDs
• Record before/after disburse --
• Filed/restricted escrow rates -- Yes
• Record retention requirements --
• Is an attorney involved in the closing -- Title searches, examinations, closings and policy production are, ordinarily, performed by non-attorneys. Non-attorney title professionals are permitted to prepare form deeds provided that they are instructed to do so by a licensed realtor or attorney.
• Who can handle loan document signing --
• Doc Prep Required by Attorney per State Statute -- Non-attorney title professionals are permitted to prepare form deeds provided that they are instructed to do so by a licensed realtor or attorney.
• Use Escrow Instructions or not --
• Use Estimated HUD or Final -- Final only
• Pass-thru charges --
• Rates Inclusive or not -- The rates are all-inclusive. Thus, separate charges are not assessed.
• Up Charging --
• Junk Charges --
• Special HUD Requirements --
• Special Disclosures --
• CPL -- Yes
• Joinder of non-titled spouse --
• Survey state
  • Purchase –
  • Refinance –

Audits

(02/11/2015)

• Required

Recording Process

(02/11/2015)

• E-recording County list of e-recording attached
• Record before disbursement Disburse then record
• Special recording procedure

Recording/Document Requirements

(02/11/2015)

• Marital Status Stated --
• Transfer Tax -- Yes.
  • State documentary fee, which applies to real estate transfers in the amount of 10 cents per $1,000 on consideration exceeding $500, and is collected from the buyer(s).
  • Real Estate Transfer Tax is assessed by certain local governments. Amounts Vary. Table as of 6-28-18
• Mortgage Tax -- None
• Address for grantor/grantee/property --
• Witnesses --
• Names typed/printed --
• Prepared by/return to --
• Notary Stamp/requirements -- Name typed/printed under signature; date of expiration of commission and seal or stamp
• Parcel or tax index number
• Recitation of Consideration
• Derivation Clause --
• Corporate Signatures/Attestation
• Ink Color/Font
• Legal Description -- Must contain the plat or reference the plat book/page if description references a plat
• Margins
• Other Special Recording: -- Recordings are done in the office of the Judge of Probate; Tuscaloosa County requires derivation statement

Document Types

(02/11/2015)

• Conveyance Warranty Deed, Limited Warranty Deed, Special Warranty Deed aka Statutory Warranty Deed and Quit Claim Deed
• Security Instrument Mortgage or Deed of Trust
• Release Satisfaction or Release

Tenancies

(02/11/2015)

• Tenants in Common Yes
• Joint Tenants Yes
• Tenancy by Entireties No
• Community Property No
• Homestead -- Yes exempt from levy up to 160 acres or $5,000.
• Joinder of Non-titled Spouse Yes. A spouse not in title to the property must join in the conveyance/mortgage if the property is their homestead property. Ala.Code 1975 § 6-10-3. There are a number of older cases -- cited in AL UW section -- indicating that Purchase Money Mortgage does not require spousal signature on theory that at instant of purchase it was not homestead property. These should not be relied upon without underwriting approval based on the specific facts.

Taxes

The general tax year extends from January 1 to December 31. Taxes for the previous year are due on January 1. If those taxes are not paid on or before June 15, they shall be deemed delinquent on June 16. The public auction of tax liens on lands upon which taxes remain delinquent shall commence on or before the second Monday in December of each year.

Commitment/Policy Special Requirements

• Who can sign Commitment/Policy -- Counter-signature required by title licensee/individual resident producer.

Payment Customs

Left to negotiation and contract

Post Closing Requirements

• Recon follow up required