Washington Buyer and Seller Guide for Title and Escrow

• INTRODUCTION Introduction. .................................................................................................................3 Important Contacts For Your Transaction..................................................................4 • TITLE The Title Insurance “Value Proposition”: 10 Reasons.................................................5 What is Title? - FAQ.....................................................................................................6 Why You Need Title Insurance - 21 Reasons.............................................................8 Life of a Title Search.....................................................................................................9 Title Policy Comparison Chart.................................................................................. 10 Homeowner’s Policy of Title Insurance.................................................................... 12 Homeowner’s Policy Additional Benefits. ................................................................ 13 What is the Title Commitment?................................................................................ 15 5 Common Ways To Hold Title............................................................................... 16 ID Affidavit - Why is it Needed? .............................................................................. 17 Vesting: Common Ways of Holding Title................................................................. 18 • ESCROW Escrow: FAQ.............................................................................................................. 21 The Escrow Process................................................................................................... 22 The Life of an Escrow................................................................................................ 24 Opening Escrow......................................................................................................... 26 Red Flags in the Escrow / Title Process.................................................................... 27 • CLOSING THE ESCROW Other Parties to an Escrow Transaction................................................................... 30 The Loan Process. ..................................................................................................... 32 PMI “Private Mortgage Insurance” - FAQ................................................................. 33 Taxes........................................................................................................................... 34 PATH Act................................................................................................................... 36 Loan FAQ................................................................................................................... 37 What is Payoff ............................................................................................................ 38 Property Tax - Annual Calendar............................................................................... 39 Closing Costs: What Buyers & Sellers Typically Pay For.......................................... 40 • CONSUMER FINANCIAL PROTECTION BUREAU Consumer Financial Protection Bureau (CFPB)....................................................... 43 What is Consumer Financial Protection Bureau? (CFPB)........................................ 44 Will The New CFPB Rule Delay My Closing?.......................................................... 46 Purchase Title / Escrow Order Workflow............................................................... 47 The New Closing Disclosure Explained................................................................... 48 • UTILITIES Utility Locator for King, Pierce, Snohomish Countie s............................................. 52 • GLOSSARY OF TERMS Common Real Estate Terms & Definition s............................................................... 57 2 © Ticor Title Company TABLE OF CONTENT