Selling a home can be a complex process, especially when recent work has been done by contractors. One way Missouri home sellers can simplify their sale and protect themselves is by filing a Notice of Intent to Sell (NOIS). While not required by Missouri law, a NOIS can significantly benefit property owners. Filing this notice shortens the period contractors and material suppliers have to file a mechanics lien from six months to just 45 days after the notice is filed. This can reduce the risk of unexpected liens popping up after the sale.
M&I Title Company, a local St. Louis-based title company whose ownership team includes Investors Title and the principals and most of the agents of MORE, REALTORS®
, takes the hassle out of this process. When M&I Title Company is involved and files a NOIS on your behalf, you won’t need to gather and provide all the paid invoices and properly executed lien waivers from contractors and suppliers. Their streamlined approach ensures that you can focus on your sale without worrying about these details. Even if time is tight, Greg Miller, the manager, and his team at M&I Title can help you close your sale on schedule, providing peace of mind and professional support every step of the way. Of course, the professional agents at MORE will be there along the way to guide you as well.
For more information on how a NOIS can benefit you and to get expert assistance, contact Greg Miller at M&I Title Company. They are ready to help make your home selling experience as smooth as possible.
In the St. Louis real estate market, ‘split closings’—where buyers and sellers close at different title companies—are a common practice. This is in contrast to most parts of the country, where a single title insurance company manages the closing for both parties. Althoughrare nationally, split closings have become a hallmark of the St. Louis real estate scene.
In a split closing, each title company plays a distinct role. The buyer’s title company is typically responsible for producing the title insurance commitment, ordering buyer-related items (like surveys), and coordinating with the new lender on figures and requirements. Conversely, the seller’s title company takes the commitment from the buyer’s title company and assists the seller in clearing any liens, checking for assessments and specials, and verifying commission and earnest money. Each company then prepares a closing statement for their side, and the two companies reconcile the figures.
Despite being the norm in St. Louis, split closings come with their share of risks and inconveniences. To gain a deeper understanding of these challenges, I consulted Greg Miller, Manager at M&I Title, LLC. He outlined the most common risks and inconveniences stemming from split closings:
Risks and Inconveniences of Split Closings
Potential Miscommunication: The division of responsibilities between two title companies can result in crucial information getting lost or misinterpreted. For example, discrepancies in settlement figures or misunderstanding regarding the readiness of documents can cause significant delays.
Difficulty in Resolving Issues: On the day of closing, last-minute hurdles such as undiscovered liens, discrepancies in documents, or issues arising from the final walkthrough can be more cumbersome. Each title company may have different procedures for handling these issues, complicating coordination and resolution efforts.
Delayed Seller Proceeds: For sellers, this delay means that the proceeds from the sale may not be available on the day of closing. This is particularly problematic for sellers who are relying on these funds to purchase another home simultaneously. The absence of timely proceeds can disrupt the entire chain of transactions, potentially leading to breaches of contract or the need for temporary, and often costly, financial arrangements.
Buyer Possession Issues: Buyers, on the other hand, may face delays in gaining possession of their new home. Since a real estate transaction is not considered closed until it is fully funded and the deed has been delivered to the buyer, any delay in these processes means the buyer technically does not own the home. This could result in the buyer being unable to move into their new home as planned, leading to additional costs or complications, especially if they have already vacated their previous residence.
Increased Costs: Sellers may face additional fees for closing services, courier charges for document transfers, and possibly higher coordination fees due to the involvement of an additional title company. These costs can vary widely and may also impact buyers if contractually passed on.
Wire Fraud Vulnerability: The exchange of sensitive financial information between multiple parties increases the risk of interception by cybercriminals. The complexity of communication can make it easier for fraudulent wire transfer instructions to go unnoticed until too late.
Additional Considerations
Privacy Concerns: With two title companies involved, sensitive personal and financial information is shared more broadly, increasing the risk of data breaches or unauthorized access.
Complex Coordination for Agents and Lenders: Real estate agents and lenders must navigate communication between two companies, adding complexity to their roles and potentially straining relationships with clients due to unforeseen delays or issues.
Risk of Non-Compliance: Each title company may interpret regulatory requirements slightly differently. This divergence can lead to compliance issues, affecting the legality of the closing process and potentially exposing all parties to legal risks.
Customer Service Variability: With two companies involved, the level of customer service can vary, potentially leading to a disjointed experience for both buyer and seller. Inconsistent communication or service levels can increase stress and dissatisfaction with the process.
By understanding these expanded issues and additional considerations, professionals and clients in the St. Louis real estate market can better prepare for the complexities of split closings. Strategies such as enhanced communication protocols, clearer contractual agreements regarding responsibilities and fees, and increased vigilance against fraud can mitigate some of these challenges.
In the ever-evolving landscape of real estate transactions, the threat of fraud has become increasingly sophisticated and pervasive. Recent alerts from Westcor and other title insurance underwriters highlight a worrying trend in real estate fraud, impacting not just foreign-owned unimproved lots but also residential and commercial properties across the board. As a leading voice in the St. Louis real estate market, it’s crucial to address these concerns and reinforce the importance of vigilance among our agents and clients.
The Escalating Threat of Real Estate Fraud
Seller Impersonation: No longer confined to foreign-owned, unimproved land, fraudsters are now targeting all types of properties, including those with owner-occupied homes and commercial entities. This form of deception involves impersonating the property owner to illegally sell the property.
Earnest Money Fraud: A newer tactic involves the fraudster acting as both the buyer and seller, using counterfeit checks for earnest money deposits. These checks, often drawn from foreign banks, are for amounts higher than typical in a purchase agreement. The scam unfolds as the fraudster cancels the deal before the check clears, demanding a wire transfer refund of the deposit.
Fraudulent Contract Assignments: In some cases, a fraudulent buyer assigns their contract to an unsuspecting third party. This complex scam involves posting online listings for properties that aren’t actually for sale, leading to conflicting demands on escrow deposits and creating a dilemma for title agents.
Red Flags and Preventative Measures
To safeguard against these scams, it’s essential to recognize potential red flags:
Unusual Communication Patterns: Be wary of sellers who avoid in-person meetings or insist on communicating only via phone, text, or email.
Inconsistencies in Identity: Pay attention to discrepancies like accents not matching the owner’s name, inability to answer property-specific questions, or documents signed or notarized in unexpected locations.
Urgency and Aggression: A seller in a hurry or who becomes belligerent when asked for verification is a potential red flag.
Suspicious Financial Requests: Be cautious of sellers requesting fund transfers to foreign bank accounts or presenting foreign checks, especially for amounts exceeding typical earnest money.
Best Practices for Real Estate Professionals
Verification: Always verify the identity of all parties involved in a transaction. Utilize state websites for license authenticity checks and refer to resources like the European Union’s PRADO website for passport verifications.
Payment Methods: Avoid accepting foreign checks. Instead, insist on wired funds for transactions.
Legal Consultation: In cases of uncertainty, seek advice from a licensed real estate attorney, especially regarding escrow arrangements.
Reporting: If you encounter fraudulent activities, report them immediately to the relevant authorities, including providing copies of fraudulent identification and documents.
Staying Informed and Prepared
For more detailed information on these scams, visit the Federal Trade Commission’s guide on fake check scams and the Financial Crimes Enforcement Network’s resources on title and escrow fraud.
Conclusion
The real estate industry in St. Louis, like many others, is not immune to the threat of fraud. It’s imperative that we, as professionals, remain vigilant, informed, and proactive in our efforts to protect our clients and ourselves from these deceptive practices. By staying aware and adhering to best practices, we can continue to uphold the integrity and security of real estate transactions in our region.
This article aims to educate and alert the St. Louis real estate community about the increasing sophistication of fraud in the industry, emphasizing the importance of vigilance and adherence to best practices to safeguard against these threats.
Some new home buyers believe that if they buy a new home directly from the builder or the builder’s sales person, they will get a better price. But is this true? Doyou get a better deal buying a new home directly from the builder?
First, we should address a “better deal” and what constitutes a good “deal”. If it is strictly price, then, while I think it is somewhat short-sided on the part of the buyer and falls in that “penny-wise, dollar-foolish” category, in some instances, with some builders, the builder will save some cost by you buying from their agent. This is the result of the builder having an agent that will get paid less commission that the builder would pay a buyer’s agent then if the builder chooses to pass that savings along to the buyer, rather than keep it, the buyer should receive a better price. However, just like the possible savings motivated the buyer to deal directly with the builder, it is unrealistic to think that a builder is not going to feel the same and be motivated to have a better profit margin dealing directly with the buyer and instead would choose to forego the savings and give it to the buyer in the price. Plus, most builders appreciate and understand, the vital role a buyer’s agent plays in the transaction and wants to encourage agents to show and sell their homes, so they typically avoid doing things that look like they are trying to cut an agent out of a deal by dealing directly with the buyer.
As a real estate broker and former real estate developer and builder, I’m surprised how many transactions I see in which a new home buyer forgoes a private building inspection thinking, since the home is new, an inspection is not necessary. In my personal opinion, this couldn’t be farther from the truth. Don’t get me wrong, this is not a condemnation of St Louis home builders as I know most of them, are friends with many, and feel that, for the most part, we have some very qualified, competent and ethical home builders in St Louis. Having said that though, I do realize that mistakes and accidents happen. Not to mention, given that a typical home inspection will cost less than $1,000 in most cases, that is a very small price to pay when making what is for most home buyers, the biggest investment they will make.
What could be wrong with a brand new home?
There are a myriad of things that could be wrong with a new home ranging from potential major structural issues, to issues with the systems, such as plumbing, electric, etc, dangerously high radon levels, to items that are more minor and cosmetic in nature. Some of the problems, if not discovered during an inspection, may surface quickly after moving in and in time to be covered by the builders warranty but others may lie dormant for a long time and not surface until a time when it may be difficult to get the builder to accept responsibility. Having a private building inspection will help discover the issues early, before the issue becomes a nuisance to you and while not having to worry about whether it’s covered by the warranty or not as you haven’t closed on the purchase yet.
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That’s right, along with very affordable home prices, Missouri also has almost the lowest closing costs in the nation at an average of $2,188 for lenders’ origination fees and third party fees, second only to the state of Wisconsin with average closing costs of $2,119, according to the 2013 closing cost survey by Bankrate.
See table below for survey results for all states:
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If you are buying, selling or refinancing a home you will come across real estate terms and industry lingo that may sound foreign to you. To help address this issue, below you will find definitions for the most common real estate terms that you are likely to come across when buying, selling or refinancing a home. If you have other questions about title insurance, or the role of the title company in these transactions, please contact me and I’ll be happy to help.
Get pre-qualified for a loan: talk with your mortgage banker.
Determine your “mortgage goals.” What are your expectations? If everything falls into place, what mortgage payment “range” you would be comfortable with? Review your credit history and sources of income. How much money are you willing to commit to buying a home; do you have money set aside for a down payment? Will you get a gift from a family member? Continue reading “Step by Step Process of Buying a Home; St Louis Mortgage Interest Rate Update“
Maybe you are a seller that has found yourself faced with the reality that you can’t sell your house or condo for a price today that will yield enough to pay off your loan, and you are not a candidate for, or don’t want to do, a short-sale? Or, maybe you are a seller with a house or condo that, for one reason or another, there is very limited demand for and, in fact, it seems that perhaps no one wants to buy what you have to sell? If so, you may want to consider using a lease option or a lease purchase to sell your home? After-all, there is a large demand for lease-options and lease-purchases by buyers but, there are risks you should be aware of and a lease option or lease purchase is not a sure thing.
Before considering selling your home using a lease option or selling your home on a lease purchase you should consult your attorney for advice (remember, I’m not an attorney and this article is not legal advice) as well as your CPA or tax professional (nope, I’m not a CPA either) however, from a 30+ year active broker, and an investor that has done many lease-options, below is a basic explanation of a lease option and a lease purchase as well as some pros and cons of selling your home utilizing a lease option or lease purchase as I see it: Continue reading “Should I use a lease option to sell my home?“
In most parts of the country, when a home is sold, the closing is handled by one title insurance company at which both the buyer and seller close at. In St Louis, “split-closings” are common, meaning that the buyer and seller close at different title companies. Is this bad, or a risky move for them? To answer this, I turned to Wendy Cromer, Vice-President of Marketing for Security Title Insurance Agency, LLC and the current President of the Missouri Land Title Association for her perspective. Continue reading “Should the buyer and seller close at the same title company?“
As a member of the title industry, I often see buyers decline to purchase a survey on their new home in an effort to save money. This decision may be penny wise but pound foolish! Buyers should understand that unless they purchase a boundary survey (also referred to as a stake survey) they are not receiving coverage from the title company that the house and its improvements are sitting within the boundaries of the property they are purchasing. Continue reading “This Land is Your Land- This Land is My Land“
The home-buying process can be a little intimidating for not only first-time home-buyers but also repeat home-buyers. Here is a basic outline of the home-buying process as well as recommendations of how to approach each task which I hope will help you with this process:
Get pre-qualified for a loan: talk with your mortgage banker.
Determine your “mortgage goals.” What are your expectations? If everything falls into place, what mortgage payment “range” you would be comfortable with? Review your credit history and sources of income. How much money are you willing to commit to buying a home; do you have money set aside for a down payment? Will you get a gift from a family member? Continue reading “What to consider when buying a home; St. Louis Mortgage Interest Rate Update“
There are so many different charges involved in buying a home, it is important to know what to expect at the settlement. Your lender is required to give you a Good Faith Estimate (GFE) of your settlement costs within three business days of your loan application. Once you get it, review the charges below to avoid any surprises when you sit down to close on your loan. Continue reading “A Condensed Guide to Closing Costs; St Louis Mortgage Watch“
Next month St. Louis County and St. Charles County will hold their annual collector’s real property tax sale. The City of St. Louis holds their property tax sale on five separate dates beginning in May and running through October.
The general perception among many people is that at these sales property is sold for back-taxes owed, which is not entirely accurate. Under tax sales the property owner may in fact lose ownership of their property to the purchaser at the tax sale but, in St. Charles and St. Louis County, not until after a “redemption” period has passed and notifications required by State law have been complied with. The City of St. Louis operates under a different state law and their process does not allow a redemption period but does require the purchaser to have the sale “confirmed” by the courts at his expense. This process will require the purchaser to hire an appraiser to testify as to the reasonable value of the property.
There’s another catch too…Assuming you are going to want title insurance, that is, a title insurance company to insure that you have “good title” such as you would on a normal home-purchase, then you are going to have to file a “quiet title” lawsuit against the property owner and all other parties with an interest in the property. Years ago when I was buying property at the tax sale I was able to skip this step, but in recent years the title companies have not been willing to insure the title without the suit. The quiet title suit will add time and money to the purchase of the property.
Another little twist in the county sales (not including city of St. Louis) is there are two types of property tax sales; a first and second sale and then a third sale. In the first and second sale there are normally 3 years delinquent taxes and the “purchaser” at the tax sale will receive a purchase certificate. The current owner will then have one year to “redeem” the property. If the property is redeemed by the owner, then the holder of the purchase certificate will receive a refund of the money they paid for it, plus pro-rated interest at 10% per annum on the original delinquent tax amount for the period until redemption. If the owner does not redeem the property within the one year period, and the purchaser of the certificate gives proper notices, then they will receive a collector’s deed at that time.
The St. Charles and St. Louis County tax sales will be held on Monday, August 23, 2010. For more information on the upcoming tax sales click on the links below:
Disclaimer: I am not an attorney (although I have stayed at a Holiday Inn Express before) and this is not intended to be legal advice or a legal opinion but simply general information. You should seek appropriate legal advice prior to bidding at tax sales.
Earlier this month I did a post about important legislation in Missouri, specifically HB 2058, which would make badly needed changes to the Missouri Mechanic’s Lien Statute, because if it didn’t pass purchasers of new homes would face hurdles obtaining long-term fixed-rate mortgages as title companies have threatened to stop providing mechanic’s lien coverage.
On May 17th I was happy to update the post with the news that the bill had passed the House and Senate and was just awaiting the signature of Governor Nixon to become effective.
Herein the problem lies…
Word is Governor Nixon may be considering vetoing the legislation. Why you ask? Why would he veto this legislation that overwhelmingly passed the General Assembly, has the support of dozens of stakeholders including the Home Builders Association, Missouri Land Title Association, Title Insurance Underwriters, Missouri Bankers Association, The Mortgage Bankers Association of Realtors, National Electric Contractors Assocation- St. Louis Chapter, the Carpenters District Council of Greater St. Louis, The Eastern District Labor council and more….. From the information I have, it appears there is an organized group that is opposed to this bill; attorneys that enjoy the income they make off the currently law which is cumbersome and flawed….hmm, what would happen if the law was fixed and there were fewer legal battles?
What to do to help..
If you want to make sure that the flaws in the current mechanic’s lien law are corrected, thereby enabling title companies to continue to provide mechanic’s lien coverage to lenders, so they will continue to make loans, and all along still giving protection to contractors and suppliers to make sure they get paid, then contact Governor Nixon’s office and let his staff know you want him to sign HB 2058 into law.
The phone number for the Governor’s Office is (573)-751-3222. If you prefer you can fax him a letter at: (573) 751-1495.
UPDATE – May 17, 2010 – THANKS TO MISSOURI LAWMAKERS (and the efforts of the Missouri Association of REALTORS and St. Louis Home Builders Association, readers of this post that responded, and others) THE MECHANICS LIEN LAW PASSED! ASSUMING THE GOVERNOR SIGNS IT INTO LAW FINANCING ON NEW HOMES AS WE KNOW IT HAS BEEN PRESERVED!
This week, which is the last week of the legislative session in Jefferson City, the Missouri Senate will probably take up debate on HB 2058, which is a bill that makes needed changes to the Mechanic’s Lien Statute in Missouri and has already been passed by the House of Representatives. At a time when we are just now seeing some relief to the “real estate recession” we don’t need another blow to the industry and homeowners, which is exactly what will happen if this legislation is not passed this week.
Without HB 2058 New Home Financing As We Know It Will Be Gone
Over the past three years or so, since the real estate bubble burst, we have had a crisis develop in Missouri with regard to Mechanic’s Liens. Title Insurance companies have been overwhelmed by claims made as a result of contractors, sub-contractors and suppliers having not been paid for work done on new homes. During this period flaws in the current Mechanic’s Lien statute have become apparent and need to be changed.
The Missouri Land Title Association has worked to get such changes made in an effort to encourage title insurance companies to continue to offer Mechanic’s lien coverage so borrowers may continue to obtain long-term, fixed-rate mortgages (in which lenders require mechanic’s lien coverage) on new homes. Without such legislation title insurance underwriters have threatened to cease offering mechanic’s lien coverage on new homes.
Contractors, Sub-Contractors and suppliers would continue to have the right to file mechanic’s liens to assure they are paid for the labor, services and materials however it would require them to file a notice of rights within 60 days to preserve their lien rights. This would give everyone (homeowners, lenders, title insurance companies, etc) adequate notice to be aware of the potential for a claim and helps identify that claim prior to the closing of the sale so the obligation can be satisfied at closing.
Would require a “Final, Unconditional Lien Waiver” by which a contractor, subcontractor, or supplier may release their claim to the home itself, thereby protecting the homeowner, without giving up their rights to collect money they are still owed by the builder or developer.
Would protect the new home purchaser from claims for unpaid work from anyone that did not record a Notice of Rights as required. This will assure that the new home buyer does not get surprised afterward by learning they must pay money to a contractor or company they have never heard of simply because the builder didn’t pay them.
If you would like to assure that good financing will continue to be available for new homes, and to protect the rights of the new home buyer then please call your state senator today and encourage him or her to support HB 2058, or you can simply click here and send a message to your Senator by simply filling in your name and address on the form.
Update: March 23, 2010: In spite of the concern of many organizations including the St. Louis Association of REALTORS, the Mortgage Bankers Association and the Title Insurance folks, the Board of Alderman passed the vacant property ordinance on March 12th – Now that lenders and title companies are aware of potential title and lien issues with this bill I have no doubt investors, and even homeowners, are going to run into some roadblocks when trying to finance property in the City of St. Louis – 2/3 of the Alderman voted in favor of the bill:
The Following Aldermen Voted FOR the Bill: Troupe, Flowers, Bosley, Ford-Griffin, Triplett, Young, Kennedy, Davis, Schmid, French, Boyd, Cohn, Williamson,Carter, Krewson and President Reed.
Voting AGAINST the Bill and in favor of property rights were the following Aldermen: Ortmann, Villa, Heitert, Gregali, Baringer, Vaccaro and Waterhouse. – end of update
In about 2 hours the board of alderman for the City of St Louis will most likely vote to pass the “Vacant Property Registration” bill that I wrote about last week in a post, pointing out what I feel are serious issues the bill has. In spite of opposition by the St. Louis Association of REALTORS(R), The Mortgage Bankers Association, as well as many other property owners, reahbbers and investors, the Board of Alderman for the City of St. Louis will most likely pass the bill this morning. If that happens, Mayor Slay still has the opportunity to stop this bad piece of legislation by using his veto power, but, from what I hear, this won’t happen most likely, “it’s not the way city politics works”.
In the face of yet another layer of bureaucratic red tape and fees that stand between property owners and their property I thought now may be a good time to share a story of just how ridiculous some of these things are, as well as the risk of having “criminal penalties” (such as jail time) for “civil” matters, (such as regitering a vacant property).
Back in 2005 or early 2006 I was involved in the purchase of a vacant building in the city. The building was in bad condition, and in a neighborhood that was sort of rough, but we purchased it because we felt some nearby redevelopment may continue to spread into this area and make it cost effective to rehab and restore the building or, in the alternative, tear it down and build something new.
After we purchased it we did secure the building as required by ordinance, including boarding up windows and I think we removed a porch that was in bad condition….at one point we even put a new roof on the building to protect it and prevent further deterioration, even though by that time the real estate market was deteriorating and our hopes of rehabbing the property was no longer feasible.
Somewhere along the line the City issued us a couple of notices of violation on the property….one came from one arm of city governement and was a list of 9 or 10 building code violations they wanted addressed (one of which was the roof….my partner worked with the city and it was agreed that if we took care of the 5 or 6 “serious” violations then we could ignore the rest….the inspector realized at this point we were looking for a rehabber to buy the property…so, we took care of those items…..during the same time period, from another arm of the city, we received a condemnation notice on the building….it was being condemned for basically the same violations as we were dealing with the inspector on.
Now, here is where there was an error on our part, albeit an honest one, my partner who was dealing with the buidling inspector thought our “deal” with him over the violations was satisfying all issues with the city. After getting summoned to court over the violations on the condemnation notice it was evident there was something wrong. Thinking it was a simple miscommunication between two city offices, my partner did not panic but worked to get the confusion resolved. He was in contact with the inspector who kept assuring him everything was OK and would then tell the judge this on the next court appearance. Unfortunately it took him a while to figure out that the building inspector had nothing to do with the condemnation notice as it was handled by a different office. It was about this time that the judge started mentioning “Jail Time” (the ordinance provided for this, I think the wording is pretty much the same as the vacant property ordinance).
With the judge threatening jail time, we decided to abandone the idea of “saving” this building and tear down the building to comply with the condemnation order (which was a financial disaster). We obtained a bid to demolish the building and were scrambling to get it torn down before our next court date. The Judge had made it clear if the problem wasn’t resolved by the next court date “someone was going to jail“. Guess what happened though? The city would not issue a demolition permit! It wasn’t because the building was a historic building, nor even in a historic district, it was simply because of the age of the building they thought it had “architectural significance”.
So below is a recap of where things stood at the time:
The City had condemned the building and told us to bring it to code (which was financially impossible) or tear it down by a dealine or they would tear it down.
We applied for a demo permit and were declined by the City
The municipal judge was going to “throw someone in jail” (the property was in a corporation name so we weren’t sure who that “someone” would be but we didn’t want to find out.
So they city said “tear it down“….and the city said “don’t tear it Down“…
Quite a plight…
Point of the story? Over-regulation and too many overlapping ordinances can not only cause confusion and contradiction, but can really make it almost impossible for even the most responsible property owner to comply with all laws, or maybe even figure out what they are being expected to comply with. Oh yeah, and the “jail time” they put in building ordinances, like the vacant property one, that the Alderman assures you “we would never use” (which begs the question, why not take it out of the bill then) does in fact get used and you could find yourself as I did, pretty well innocently in a spot where you are facing it.
The outcome? By the Grace of God, someone surfaced that was willing to buy the building (I use the term “buy” loosely, we basically gave it to him for all intents and purposes). When we showed up at court with the sale contract the judge continued the case for a month and demanded we come back and prove the deal closed. Fortunately the buyer closed, we went back to court, proved the sale to the judge and considered ourselves lucky.
In the past I think closing costs associated with the purchase of a home were pretty much a mystery to many, if not most, home buyers with many not even being sure what they were paying for. Most buyers simply went through the process, paying for closing fees, notary fees, title examination, title insurance, survey, flood letters, courier fees, recording fees, etc. without ever realizing that these fees and costs may vary with other vendors.
January 1st changes went into effect in the RESPA (Real Estate Settlement Procedures Act) which will require lenders to fully disclose all closing costs, including the costs of obtaining a loan as well as estimated costs for title insurance, settlement and other services within three days after a buyer applies for a mortgage. This should make it easier for buyers to see what services they are being provided, what the cost is estimated to be and to have time to shop around to find the best providers of those services at the most reasonable prices. Basically it gives buyers the opportunity to take control of “their deal” and not just “go with the flow” hoping that vendors being selected by your lender, real estate agent and/or title company are providing you with the best service at the best price.
While preparing to do this post I ran across a company that I am not familiar with but have to admit I really like their website and think it could be a great resource for homebuyers. The company is called Closing Corp and their website is Closing.com. Home buyers can go to their website, fill in the address of the property you are buying, answer a few questions and not only get a detailed estimate of their house payments as well as closing costs but also see quotes for various services from local companies (such as title insurance, home warranties, etc) and then print out a report. I entered an address here in St. Louis and got the following results:
47 title companies listed with prices from 6
10 home warranty companies with prices from 8
28 home inspection companies with prices from 13
17 pest control companies with prices from 3
As I looked over the “quotes” for the various services I found several disclaimers, basically nothing is binding of course, but I do think this gives a buyer a good idea of the range of prices they should expect as well as gives them a list of various vendors in their area they can consider. In addition it provides short explanations of each service such as this description of title insurance which, while it is short, I think it does a decent job of explaining what it is:
Title Insurance protects property owners and lenders from losses that could result from disputes over who actually owns the property. This could include fraud, liens against the property, or errors missed during a title search.
If nothing else the fact that it estimates your monthly mortgage payment for you, including an estimate for property taxes and property insurance, is probably worth the visit to the site.
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Authors disclaimer: This is not an endorsement of Closing.Com nor recommendation or warranty, expressed or implied. It is simply an editorial review of the site. Realize that general and generic information from this site or any other like it is just that, general and generic. Consult your real estate professional to assist you in getting information specific to your situation.
Missouri Online Real Estate, Inc. 3636 South Geyer Road - Suite 100, St Louis, MO 63127 314-414-6000 - Licensed Real Estate Broker in Missouri
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Selling a home can be a complex process, especially when recent work has been done by contractors. One way Missouri home sellers can simplify their sale and protect themselves is by filing a Notice of Intent to Sell (NOIS). While not required by Missouri law, a NOIS can significantly benefit property owners. Filing this notice shortens the period contractors and material suppliers have to file a mechanics lien from six months to just 45 days after the notice is filed. This can reduce the risk of unexpected liens popping up after the sale.
In the St. Louis real estate market, ‘split closings’—where buyers and sellers close at different title companies—are a common practice. This is in contrast to most parts of the country, where a single title insurance company manages the closing for both parties. Although rare nationally, split closings have become a hallmark of the St. Louis real estate scene.
Get pre-qualified for a loan: talk with your mortgage banker.
In most parts of the country, when a home is sold, the closing is handled by one title insurance company at which both the buyer and seller close at. In St Louis, “split-closings” are common, meaning that the buyer and seller close at different title companies. Is this bad, or a risky move for them? To answer this, I turned to Wendy Cromer, Vice-President of Marketing for 
As a member of the title industry, I often see buyers decline to purchase a survey on their new home in an effort to save money. This decision may be penny wise but pound foolish! Buyers should understand that unless they purchase a boundary survey (also referred to as a stake survey) they are not receiving coverage from the title company that the house and its improvements are sitting within the boundaries of the property they are purchasing. 
Home buyers can go to their website, fill in the address of the property you are buying, answer a few questions and not only get a detailed estimate of their house payments as well as closing costs but also see quotes for various services from local companies (such as title insurance, home warranties, etc) and then print out a report. I entered an address here in St. Louis and got the following results:
