Frequently Asked Questions
Escrow and the Closing Process
- Do I need to bring anything with me to signing?
- When does closing occur? Is that when I sign?
- May I write a personal check for closing funds?
- May a power of attorney be used to sign documents?
- What is PITI?
- Does my client need to sign in your office?
The Preliminary Title Report
- Do I have to pay all of the fees listed on the first page of the preliminary title report?
- I see there is an early issue fee being charged: what is this?
- The title report shows unpaid taxes. Will I, as the buyer, need to pay those taxes?
- There is an exception in the preliminary title report that says “waiver of remonstrance.” What does this mean?
- Why do I need to complete a Statement of Identity form?
Title Insurance
- What are the OTIRO 209, 208.1 and 59 Endorsements?
- What is the difference between Extended and Standard Coverage Policies?
- What does Extended Coverage cost and how does it work?
- What are your title insurance rates?
- In Oregon do judgments "attach" to property?
- What about support judgments that are on going?
- What types of Deeds are acceptable in the State of Oregon?
- What entities or who or is acceptable as a designated trustee on a trust deed in Oregon?
- Why don’t you show “fee title” ownership on the Preliminary Title Report?
- I don’t really need a title insurance policy. What other types of reports do you issue?
HomeOwners’ Associations and Home Ownership
- What services are provided by the homeowner’s association?
- Why I can’t I paint my house any color I want?
- I was just told to tear my shed down and it is not even finished…can they make me?
Frequently Asked Questions about Business Opportunity Transactions
Escrow and the Closing Process
Do I need to bring anything with me to signing?
Yes! We will need picture ID and often a 2nd form of identification, such as passport, bank statement, insurance card, credit card, etc. If you have any questions about specific ID issues, please contact your escrow officer well in advance of signing. If we are to pay any credit card debt, we will need a copy of your latest statement(s) with proper payment mailing addresses, account numbers and balances due. Lastly, if you will need to bring in funds to close the transaction, you will need to bring a cashier’s check or send wired funds. We are unable to accept cash, personal checks, or checks drawn on investment accounts.
When does closing occur? Is that when I sign?
Oregon is an “escrow” state. Most loan and closing documents are signed in (or delivered to) the escrow company 1-3 days prior to the closing date. The transaction is considered “closed” when the legal documents are recorded at the county. In a sale transaction, closing is the day on which the deed is recorded, which is when ownership is transferred to the new owner.
May I write a personal check for closing funds?
A Cashier’s Check, Certified Check, Money Order or wired funds is required. We must have “collected” or “good” funds in order to close the transaction. Most lenders will require a copy of the receipt; therefore, a Cashier’s Check is recommended. Closing funds should be deposited into escrow at least one day prior to closing/recording.
May a power of attorney be used to sign documents?
It is always preferable to have the parties sign for themselves; however, when necessary, we require a current, specific power of attorney that fits the needs of the transaction, whether it is a sale, purchase, or refinance transaction. This power of attorney (POA) must be reviewed and approved by the title company prior to signing. If you intend to use a power of attorney to sign loan documents, you also need the approval of your lender.
PITI stands for Principal, Interest, Taxes and Insurance. The purchase and sale agreement may include a provision allowing the seller to retain possession after closing at a cost to the seller based on the buyer’s PITI. The daily rate is generally calculated by adding the monthly charge for all four items, divided by 30.
Does my client need to sign in your office?
No! Pacific Northwest Title is a great team. We are happy to coordinate a courtesy signing in another branch to accommodate the needs of the customer.
For more information about escrow and the closing process, see Life of an Escrow and Definition of Escrow.
The Preliminary Title Report
Do I have to pay all of the fees listed on the first page of the preliminary title report?
No. An Owner’s Policy is customarily paid for by the seller together with any search fees for city liens and other governmental assessments. The Loan Policy is for the benefit of the buyer’s lender; therefore, this policy and any endorsements required by the lender are paid for by the buyer.
I see there is an early issue fee being charged: what is this?
Upon the completion of construction, any one who worked on the project has a right to lien the property in the event they were not paid. The new lender usually requires insurance against such potential liens. In the case of new construction, the title company accepts a higher risk that these kinds of liens may occur. This fee is an additional risk premium and is based upon the loan amount.
The title report shows unpaid taxes. Will I, as the buyer, need to pay those taxes?
All taxes due will be paid at closing. The seller will be charged for taxes covering the period of time that he or she has owned the home. You will be charged or credited based upon the period of time that you own the home.
There is an exception in the preliminary title report that says “waiver of remonstrance.” What does this mean?
The approval of the original subdivision was likely conditioned upon certain neighborhood improvements such as sidewalks, street lighting, etc. The recorded document is simply a notice to all subsequent property owners that any rights to deny the referenced services (or to refuse to pay for those services) have been waived.
Why do I need to complete a Statement of Identity form?
It is not uncommon for more than one person to have the same name. If a Statement of Identity has been sent to you, numerous judgments or liens have been found in our search of your name in the records (this does not mean that the judgments or liens are against you). As a courtesy to you, we seek to determine that none of the matters apply rather than disclose them in a preliminary title report. It is very important to return the completed form in a timely manner to prevent any delay in closing.
For more information about preliminary title reports, see What is the Purpose of a Preliminary Title Report and Title Insurance Key Concepts.
Title Insurance
What are the OTIRO 209, 208.1 and 59 Endorsements?
They are the Environmental Protection Lien Endorsement, Restrictions-Encroachments-Minerals Endorsement and Location of Improvements Endorsements, which are usually issued with an extended lender’s policy.
What is the difference between Extended and Standard Coverage Policies?
BOTH policies give protection for the following items:
* Valid legal description
* Ownership - who is authorized to sell or mortgage the property
* Disclosure of items of record that affect the use of the property (i.e. easements, restrictions, agreements)
* Valid access to the property
* Monetary items of record
EXTENDED policies provide protection for all the above and the following:
* Protection against unrecorded liens for construction labor and materials
* Protection against unrecorded easements or claims of easements
* Protection against loss caused by encroachment of residential structure onto adjoining lands, easement areas, or encroachments onto the insured premises by adjoiners, if not disclosed
What does Extended Coverage cost and how does it work?
Extended lender’s coverage is an additional 30%(subject to minimum) of the title premium. Extended owner’s coverage is subject to more complex rate calculations. If you are considering purchasing an extended owner’s title insurance policy, contact us for more rate information. In addition, two or three days must be allowed for the title company to make a physical inspection of the property, if the title company deems it necessary. The results of the inspection will be provided in written form. Any items disclosed at that time, such as questions of survey, encroachments, or unrecorded easements become Exceptions to Title Insurance and listed on the Preliminary Title Report. Only items that are not disclosed at that time can be filed as a claim against the title company. Extended coverage allows the lender and purchaser to make more informed decisions, but does not mean that the title company is liable for the items disclosed by the physical inspection.
What are your title insurance rates?
To estimate title insurance premiums, click here for rate charts.
In Oregon do judgments "attach" to property?
Yes. By Oregon State Statute, monetary judgments resulting from court cases become liens on real property. Through the closing of escrow, any judgments that attach to property may be paid in full to satisfy the lien.
What about support judgments that are on going?
Support judgments, which also attach to property, are a lien until fully satisfied and the support has been terminated. Therefore, proof will have to be provided that those payments are current through the transaction closing date. Most often, the title company will require a signed, notarized Partial Satisfaction of Support Judgment from the support payee.
What types of Deeds are acceptable in the State of Oregon?
Under Oregon Statute, there are four kinds of real property conveyance deeds: the Warranty Deed, the Special Warranty Deed, the Bargain & Sale Deed and the Quitclaim Deed. Although many other states use the Grant Deed, it is not a statutory form of deed in Oregon. You may purchase blank copies of deed forms specific to the State of Oregon from Stevens-Ness Law Publishing Company.
What entities or who or is acceptable as a designated trustee on a trust deed in Oregon?
By ORS 86.790, there are four categories of valid trust deed trustees: an attorney, who is an active member of the Oregon State Bar; a title or escrow company licensed to do business in Oregon; a financial institution or trust company authorized to do business under the laws of Oregon or the United States; and a department of the United States federal government. No other entities are valid trustees are valid. In addition, please note that – on Oregon trust deeds – the trustee and the beneficiary must be different, separate entities.
Why don’t you show “fee title” ownership on the Preliminary Title Report?
Since “fee title” ownership is the most common form of ownership vesting, we do not specify it on our title reports. If the ownership is not “fee title” (as in the example of a leasehold interest), we specify that form of ownership
I don’t really need a title insurance policy. What other types of reports do you issue?
See our Special Title Products page for more information.
For more information about preliminary title reports, see What is the Purpose of a Preliminary Title Report and Title Insurance Key Concepts.
HomeOwners’ Associations and Home Ownership
What services are provided by the homeowner’s association?
Every association is different. It is recommended that you read the recorded by-laws and contact the homeowner’s association directly for answers to specific questions.
Why I can’t I paint my house any color I want?
Covenants, conditions & restrictions serve to standardize the neighborhood. The purpose is to maintain consistent property values in the area. If you want to paint your house with pink and purple stripes, you may need to purchase property in an area without restrictions.
I was just told to tear my shed down and it is not even finished…can they make me?
Possibly! It is always best to get a building permit before constructing any building. Such construction could be a zoning violation. Additionally, the construction could be a violation of the covenants, conditions & restrictions. If there is a homeowner’s association or architectural control committee, you may first need their approval.
