Protecting Your Property Rights

CALIFORNIA TITLE COMPANY HAS A VESTED INTEREST IN THE CONSUMERS OF THE STATE OF CALIFORNIA.

Protecting Your Property Rights

Califor nia CONSUMER REPORT CALIFORNIA TITLE COMPANY HAS A VESTED INTEREST

IN THE CONSUMERS OF THE STATE OF CALIFORNIA.

DECEMBER 2017 ISSUE

The information contained herein is deemed to be reliable, but it is not guaranteed. California Title Company assumes no responsibility for errors or omissions. Images may be subject to copyright. ©2017 California Title Company.

KNOW THE DIFFERENCE BETWEEN TRADITIONAL AND E-CLOSING OPTIONSThere’s been a lot of buzz about online notaries and digital closings over the past year. While many states will start to consider online notary legislation, the fact remains there are four main ways closings can occur. Here’s a summary of the options:

TRADITIONAL WET SIGNING: These closings are handled in-person and all of the documents are in paper format. The closing is handled with an in-office or mobile notary public signing with the buyers and sellers. They can also be con-ducted by what is called a mail-away, where the documents are mailed to the buyers and sellers, who must locate a public notary in their area and sign in their presence.

HYBRID E-CLOSING: These closings are similar to the tradi-tional closing in that they are handled in-person. Some of the documents are wet signed, while some are signed digitally with an e-signature. These are typically handed in-office or the mobile notary drives to meet the buyers and sellers.

IN-PERSON DIGITAL E-CLOSING: Terms for this type of closing have not been standardized yet in the industry. In this closing, the notary public is sitting face-to-face with the buyers and sellers, but 100 percent of the documents are signed with e-signatures. This can happen in the title agent’s office or the notary public can meet the buyers and sellers at a different location.

ONLINE NOTARY E-CLOSING: This type of closing is the new-est version. It has many different names, but often referred to as online notary. You might also hear the terms webcam or remote used to describe this type of closing. What’s new

here is that the notary public is not face-to-face with the signers. Instead the notary public appears before the buyers and sellers via some webcam or audio visual-technology. Because of that, all of the documents are digital and e-signed. Currently, only two states have legislation on the books that governs online notaries. Virginia and Montana allow for this type of closing in certain circum-stances. Texas and Nevada

passed online notary bills that go into effect in 2018. Several other states will consider online notary legislation in 2018 as well.

http://blog.alta.org/ | 11/09/17

CALIFORNIA TITLE AND COUNTY RECORDER IS CLOSED DECEMBER 25, 2017 IN OBSERVATION OF CHRISTMAS DAY

Traditional Wet Signing eClosing: "Hybrid Closing"

• In-person• 100% paper documents with

wet signatures• In-office, "mobile notary", or

"mail away"

• In-person• Some paper documents• Some digital documents with

eSignatures• In-office or "mobile notary"

eClosing: "In Person Digital" (a.k.a. "In Person eClosing")

eClosing: "Online Notary" (a.k.a. "Webcam" "Remote")

• In-person, face-to-face• 100% digital documents with

eSignatures• In-office or "mobile notary"

• NOT in person• Notary public appears before

signer via webcam• 100% digital documents with

eSignatures

TEST YOUR TITLE KNOWLEDGE

WHAT IS TITLE?

Title is your (1)__________________________to your property.

WHAT IS TITLE INSURANCE?

Title insurance is a policy that protects (2)_______________________ and

(3)_________________________. There are two different types of title insurance: owner’s

policy and lender’s policy.

• An owner’s policy is purchased by (4)______________________. While it is your choice,

purchasing an owner’s title insurance policy is the best way to protect your interests.

– Who does it protect? You, the homebuyer, are covered as well as

your (5)_________________________________________.

• A lender’s policy is usually paid for by (6)__________________. It is almost always re-

quired by the lender and protects only (7)_________________________.

• Who does it protect? (8)_____________________________ is covered by the lender’s

policy.

WHY PURCHASE OWNER’S TITLE INSURANCE?

A home is the largest investment you will make in your life. Owner’s title insurance

is the (9)_____________________ that protects your property from legal claims. It’s a

(10)_______________________ that covers you and your heirs as long as you own your

home. The owner’s policy also covers potential legal fees for settling claims against your

ownership rights.

WHAT IS A TITLE SEARCH?

A title search is an early step in the home-buying process to (11)_________________ that

could limit your rights to the property.

WHAT DOES OWNER’S TITLE INSURANCE COVER?

Under the owner’s title insurance policy, you are protected against any

(12)_______________________ in the title. Common errors include:

1. (13)________________: making a false document; for example, the seller misrepre-

sents the identity of the person who signed the title.

2. (14)____________: deception to achieve unfair gain; for example, someone steals

your identity and either sells your house without your knowledge or consent, or takes

out a second mortgage on the property and walks away with the money.

3. (15)_________________: inconsistent paperwork and historical records; for example,

an unforeseeable discrepancy in the property or fence line can cause confusion in

tracking the title history.

HOW LONG ARE YOU COVERED?

Your owner’s insurance policy lasts as long as (16)_________________________________.

Answers at bottom of next page

TEST YOUR TITLE KNOWLEDGE ANSWERS(1) ownership rights; (2) your investment ; (3) property rights; (4) the seller; (5) trustees, inheritors, and beneficiaries; (6) the homebuyer (7) the lender's interest; (8) only the lender; (9) smart option; (10) one-time; (11) uncover issues; (12) un-foreseeable errors; (13) forgery; (14) fraud; (15) human error; (16); you or your heirs own the property

5 THINGS TO REVIEW IN YOUR PRELIM1. CHECK THE VESTING Make sure that the person who is on title is actually the person selling the home. Not having all signatures at the close

of escrow could become a costly delay.

2. REVIEW YOUR MAP Always make sure that the property that is being bought or sold matches the property that is being searched by the title

company. A map is provided in the back of your report. If it’s not, contact your title officer immediately and request one be sent over for that file.

3. REVIEW ANY LIENS Liens are common in today’s transactions, but some liens reported on the Preliminary Report may have been settled

by the owner and can be removed. In contrast, without a seller’s Statement of Information, additional liens may not be reported and can cause delays in the close of escrow after they’re uncovered.

4. BEWARE OF BANKRUPTCIES If you see an item that identifies the property as being involved in a bankruptcy, call your title officer immediately. The

title insurer may need additional information regarding the property and the bankruptcy, and this information may become time consuming to obtain.

5. COVENANTS, CONDITIONS & RESTRICTIONS When buying a property, make sure you’ve reviewed all restrictions and know what you can do with the property.

Finding out after you close on your home that you can’t build a second story or can’t keep horses on the property can be very frustrating and is typically a matter that can be avoided.

As always, make sure to work with a company you can trust to help resolve these potential issues.

• California Title was among the first companies to receive the audited SSAE No.16 SOC 1 type 1 report and the SSAE No. 16 SOC 1 type 2 report with NO EXCEPTIONS.

• The SOC reports show that California Title is compliant with all of ALTA’s Best Practices by independent auditors. This certification shows that not only do we have policies and processes in place but they are being used.

• We demonstrate the great lengths to which we go to ensure all the personal information we receive from our customers is protected.

• We are not only committed to providing you with the best service, but also ensuring the service you receive is upheld to the highest standards of security.

• We continue to remain compliant with ALTA’s Best Practices to give you and your clients peace of mind.

7 Best Practices = SECURITY Each pillar is complex and has a vast amount of detail.

California Title Company has put in a lot of time and money to make sure we are compliant Consumer Financial

Protection Bureau (CFPB) compliant.

ALTA’s Best Practices require compliance in the following categories known as the 7 PILLARS:

1. Licenses COMPLIANT 2. Escrow Trust Accounting COMPLIANT 3. Information Security Management COMPLIANT 4. Recording & Pricing Procedures COMPLIANT 5. Policy Premium Delivery COMPLIANT 6. Insurance COMPLIANT 7. Customer Complaint Process COMPLIANT

PILLARS

CFPB: WHAT SETS US APART

Seal Beach Christmas Parade 2017 Dec 1This ‘continuous motion’ parade highlights youth groups, sports groups, schools, businesses, first responders and other organizations from Seal Beach and the surrounding areas. http://www.sealbeachlions.org/christmas-parade.html

Free Boat Rides with Santa Dec 2-3SANTA and his helpers listen to Christmas wishes during 20-minute harbor cruises on December 2 & 3 from 10am-2pm. Bring your camera and enjoy the tradition Dana Wharf has offered families for generations. A $5 donation to the El Camino Real Junior Woman’s Club is suggested.http://visitanaheim.org/event/free-boat-rides-santa

Winter Festival & Tree Lighting Dec 2Activities throughout the day include Santa visits, carnival games ($1), craft fair, Dana Point Police Services Kid Print ID, face painting, cookie decorating ($2), holiday crafts, Lego Santa’s Village Workshop, the Mini Express Train, petting zoo, pony rides and the Annual Tree Lighting! Most activities are free. http://www.danapoint.org

Tree Lighting Ceremony Dec 2This special holiday event will feature guests from the North Pole as well as performances by various community groups, delicious food available for purchase from local non-profit organizations, games, a spectacular fireworks show, and much more! http://www.fountainvalley.org

Santa’s Village by the Sea Dec 2The event begins with the annual tree lighting ceremony to usher in the spirit of the season. Take a picture with Santa and delight in a night filled with holiday fun, carolers, cookie decorating, and activities for the whole family to enjoy!http://ci.san-clemente.ca.us

Winter Market Dec 2THE MARKET WILL FEATURE: holiday entertainment, free pictures with Santa from 12 to 4 p.m., Food booths, holiday shopping, face painting, bounce house, beer and wine garden, and “spark of love” toy drive with Fullerton firefighterswww.cityoffullerton.com

Walking in a Winterfest Wonderland Dec 3Atlantis Play Center is located at 13630 Atlantis Way in Garden Grove Park. Be sure to dress warmly because there will be 50 tons of snow! Santa and Mrs. Claus will be visiting from the North Pole from 4:00 p.m. to 7:15 p.m. Activities at the event include crafts, inflatables, carnival games, train rides, music and more. http://www.ci.garden-grove.ca.us/commserv/winterfest-2017

Free Christmas Tree Lighting Celebration Dec 5Presented by the City of Garden Grove and the Garden Grove Community Foundation, this free event features live entertainment and holiday refreshments. The event culminates with the arrival of Santa and Mrs. Claus, spectacular tree lighting, and a flurry of winter snow.https://www.ci.garden-grove.ca.us/node/8928

Tree Lighting Ceremony Dec 7Light up the holiday at the City of Brea’s annual tree lighting celebration. Pictures with Santa are available for a fee. Cookies and hot chocolate will be served.www.cityofbrea.net

Dana Wharf Santa Photos Dec 8-16Santa wants to hear your wishes. Bring your cameras and snap a selfie with Santahttp://visitanaheim.org/event/free-santa-photos

43rd Annual Boat Parade Dec 8, 9, 15, 16This year on the boat parade nights, we are excited to include family fun holiday activities throughout the Harbor starting at 4:30pm and providing entertainment and holiday cheer for everyone prior to the boat parade. The City of Dana Point, County of Orange and the California State Parks at Doheny will provide Trolley service which runs all four days of the parade starting at 3:30pm until 10:30pm.http://www.danapoint.org

2017 Laguna Niguel Holiday Parade Dec 9The parade includes beautiful equestrian units, patriotic and inspirational military tributes, world-class athletes, spirit-filled youth groups, classic auto clubs, talented marching bands, and some of the biggest attractions in the nation! http://www.lagunaniguelparade.com

HOLIDAY Gingerbread House Building Workshop Dec 9, 10, 16This time-honored tradition just got a little more exciting and a lot more delicious! Featuring Jazz Kitchen favorites such as Bananas Foster French Toast, Louisiana Shepard’s Pie, Beignets, and more, this buffet will fill you up and get your creative juices flowing before you start building your masterpiece. http://visitanaheim.org/event/new-holiday-gingerbread-workshop

Annual Newport Beach Christmas Boat Parade Dec 13-17FREE to the public. The boat parade will light up the harbor for five consecutive nights. The parade starts at Bay Island at 6:00 p.m. and will last approximately three and a half hours. https://www.christmasboatparade.com

Enchanted Forest of Light Thru Jan 7As the days get darker, Descanso Gardens transforms its grounds into an enchanted forest with whimsical lighting displays and interactive exhibitions. Visitors will stroll along a one-mile walk through the Gardens to experience the most beloved collections of Descanso illuminated in glorious color. Some of these displays will be interactive, allowing visitors to manipulate the lights and sounds.https://www.patinagroup.com

Christmas Lights Thru Decemberhttp://www.orangecounty.net/html/christmas_lights.html

Events Resourceswww.visittheoc.com/eventswww.orangecounty.net/html/events.htmlwww.visitanaheim.org/explore/eventswww.visitsjc.comwww.missionsjc.comwww.lakeforestca.govwww.destinationirvine.comwww.pretendcity.orgwww.ocfair.com/ocf2www.newportwhales.com

Orange County Farmers Markets OngoingList of Farmers Markets in Orange Countywww.orangecounty.net/html/farmersmarkets.html

Visit our website for more title related news and information! WWW.CALTITLE.COM

DECEMBER 2017Orange County Events Calendar