SCAM ALERT!

If you've been following our blog recently, you've probably noticed that we've talked a little bit about security and privacy. We'd like to share a very real story that happens more often than you'd expect and explains why we're in business.

A buyer finds a property, they fall in love with it and they put in an offer. Simple right? Before the transaction can be completed, usually a title company like ours, comes in and verifies that everything is in order. We make sure that the title is clean and that there aren't any pending liens on the property, but what you wouldn't think to expect is that the seller isn't even the real owner! 

Yes, this happens occasionally and it is truly scary. Maybe a distant family member or even a complete stranger discovers a property that has been unnattended for many years and decides to put it on the market and tries to sell it. Something that is not theirs to begin with! What is somewhat amazing about this is how far some buyers get into the transaction with someone who is not authorized to sell the property. How can you verify who the owner is unless you hire a Title Company? A Real Estate Agent can lookout for signs of fraud but for most properties, there is a public record of it that anyone could easily lookup and learn everything there is to know about it, and therefore appearing to be the owner. 

Having the right title company is important too because you just don't really know what to expect. We've dealt with so many deals across the board both commercial and residential, that at this point, we've seen it all! If something seems amiss with your 

Why companies are flocking to Richmond

April 13, 2017

By Paula C. Squires (read the original article as it appears in VirginiaBusiness.com by clicking here)

Riverfront Plaza towers in downtown Richmond 

Richmond has scored some big business wins recently.

Not only are companies like Owens & Minor choosing to expand their existing presence in the market, but the metro area is drawing new tenants who are relocating from other major cities or opening new operations in Richmond.

Downtown has proved extremely popular with CoStar, a Washington, D.C.-based real estate research company. It picked Richmond for a 100,000-square-foot operations and research headquarters.  Another newcomer is International City Management Association - Retirement Corp. (ICMA-RC), a non-profit independent financial services company, that’s leasing 55,000 square feet at Riverfront Plaza.

So why are these companies coming to Richmond?

That was the subject of a market research report released this week by Cushman & Wakefield | Thalhimer.  The real estate firm concludes that a wealth of millennial talent, a lower cost of doing business compared to other metro areas and lower rental rates are among the drivers.

The report notes that Richmond has access to plenty of millennial talent because it’s home to several universities including Virginia Union University, Virginia Commonwealth University and the University of Richmond. In addition, there are schools not too far away, such as Virginia Tech, the University of Virginia, the College of William and Mary, Christopher Newport University, Old Dominion, and James Madison that help provide a pool of educated young employees in Richmond.

Helping the millennial population are rental rates that Thalhimer says are substantially lower than nearby metros. Both CoStar and ICMA-RC have an existing presence in D.C. where a one-bedroom apartment can rent for as much as $2,221 compared to Richmond’s rate of $972.

Overall, the cost of living in Richmond is 5 percent below the national average,  and housing costs are 11 percent below the national average. “So not only do companies get to save money, their employees do as well,” the report says.

On the business side, the city’s sales and use taxes are not only low compared to nearby competitive metros, but, according to the report, are the fifth lowest in the nation at 5.3 percent.
                     
According to Thalhimer, Forbes magazine recently ranked the cost of doing business in Richmond as 109th lowest in the nation, better than Nashville, Baltimore, & D.C., which came in at Nos. 115, 176, and 195 respectively.

Newcomers and expansions in the office marketplace have led to more than 1,400 new jobs since the beginning of 2016.  The CoStar expansion is expected to contribute more than 700 new jobs, Owens & Minor downtown expansion will bring 300 jobs and ICMA-RC, 200 jobs.

Along with the jobs come capital investment. Owens & Minor plans to invest $15 million in a new Client Engagement Center at Riverfront Plaza, CoStar is investing more than $70 million and ICMA-RC plans to spend over $10 million.

The report notes that eight Fortune 500 companies are currently located in the Richmond area. With so much going for it, including light traffic congestion compared with other metros, the report concludes that Richmond "is growing into one of the major destinations for companies both large and small in the mid-Atlantic and the Southeast.’’

What do we do? (According to Zillow)

What Does a Title Company Do?

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A title company makes sure that the title to a piece of real estate is legitimate and then issues title insurance for that property. Title insurance protects the lender and/or owner against lawsuits or claims against the property that result from disputes over the title.

Title companies also often maintain escrow accounts — these contain the funds needed to close on the home — to ensure that this money is used only for settlement and closing costs, and may conduct the formal closing on the home. At the closing, a settlement agent from the title company will bring all the necessary documentation, explain it to the parties, collect closing costs and distribute monies. Finally, the title company will ensure that the new titles, deeds and other documents are filed with the appropriate entities.

Here’s what potential home buyers need to know about title insurance.

How Does a Title Company Determine That a Title is Valid?

The title company makes sure a property title is legitimate, so that the buyer may be confident that once he buys a property, he is the rightful owner of the property. To ensure that the title is valid, the title company will do a title search, which is a thorough examination of property records to make sure that the person or company claiming to own the property does, in fact, legally own the property and that no one else could claim full or partial ownership of the property.

During the title search, the title company also looks for any outstanding mortgages, liens, judgments or unpaid taxes associated with the property, as well as any restrictions, easements, leases or other issues that might impact ownership. The title company may also require a property survey, which determines the boundaries of the plot of land that a home sits on, whether the home sits within those boundaries, whether there are any encroachments on the property by neighbors and any easements that may impact an ownership claim.

Before a title company issues title insurance, it will prepare an abstract of title, which is a short summary of what it found during the title search (basically, this is the history of the ownership of the property). Then, it will issue a title opinion letter, which is a legal document that speaks to the validity of the title.

What is Title Insurance?

Once the title is found to be valid, the title company will likely issue a title insurance policy, which protects lenders or owners against claims or legal fees that may arise from disputes over the ownership of the property.

There are two main types of title insurance: owner’s title insurance, which protects the property owner from title issues, and lender’s title insurance, which protects the mortgage company. You, the home buyer, will pay for the lender’s title insurance when you close on the house, but it’s also a good idea to make sure you have an owner’s title insurance policy as well (in some areas of the country, sellers pay for these policies; in others, the buyer must purchase it).

For example: You buy a home and get both lender’s and buyer’s title insurance, but then someone comes forward claiming they are the rightful owner of the home. If, in fact, the title was wrong and they are the rightful owner of the home, your title insurance policy will likely pay you the value of the home and the lender the amount they lent you to buy the home.

How Do You Pick a Title Company?

Ask your real estate agent, peers who have recently bought a home or your lender for recommendations for a title company. Then, do your homework on the title companies recommended.

Look for a title company that has years of experience doing this (have they done hundreds or even thousands of these kinds of transactions?). Contact the Better Business Bureau to determine whether the company has any complaints against it.

You should also shop around for the best premium rates in your area; if you buy an owner’s title insurance policy, make sure you get one with as few exclusions as possible and that it covers the full purchase price of the home.

What Does a Title Company Charge?

The cost of title insurance depends on the size of the loan and varies greatly depending on the state. The good news is that the premium is a one-time fee you pay at closing, not an ongoing expense.

According to the Federal Reserve, “a lender’s policy on a $100,000 loan can range from $175 in one state to $900 in another.” You’ll typically pay an additional amount — usually a few hundred dollars or more, depending on the size of the loan and your state of residence — for a buyer’s policy.

Note that you may be able to get a discounted rate on your title insurance if the property was sold within the previous five years; just call and ask.

When Do You Meet With the Title Company and How Often?

You may meet with or talk to an agent from the title company on multiple occasions. First, you may decide to meet with a few agents from title companies before you buy your home to help you decide which company to go with.

If the title company maintains an escrow account for you, the agent may reach out to you to provide details on that account or you may contact him with questions.

If your title company handles your closing, you will meet with a settlement agent in person then. At this time, the settlement agent will explain all the documents related to the settlement before you sign anything. And, of course, if something goes wrong with regards to the title, you will likely meet with one of their agents then.

Consumers should feel free to contact their title company at any time to get answers to their questions on title searches, title abstracts, title insurance, escrow accounts or closings.

View the original article on Zillow by clicking here!

How To Easily Get Hacked

Password security is serious business, especially when we live in a world where we conduct the majority of business electronically. We can deposit checks via smartphone, we can transfer money easily between accounts with the push of a button and we pay at the stores with a piece of plastic. 

Most apps and programs that deal with finances have different encryption systems that make doing all of this possible and safe, but there is one downfall to all of this and it has to do with your email. In a way, your email is the key to all of your accounts. Why? If you lose your password or if an app wants to verify your identity, it will typically send you something to your email in order to continue the log in process. 

Email is pretty secure nowadays and email servers don't get hacked as often as some of the other websites we frequent. This is the exact reason why your email password should be different than your other passwords. Let's say that Facebook or Instagram gets hacked, both Facebook and Instagram have your email and if your password is the same as your email, a hacker can easily log into your email. So even though your email didn't get hacked directly, someone can still gain access to your email. Once someone is in your email, they can see what other accounts you have registered with that email by doing a quick search within your inbox. If online banking is tied to that email, they could easily go in and reset your password by sending themselves a link to log in.

The reason why we are talking to you about this today is because of an incident that happened to one of our clients. Someone had hacked into a realtor's email and used the realtors email to send a letter asking for a wire transfer as part of the downpayment for a home. The buyer, trusting the realtor, did the transaction as requested. It wasn't the realtor who was requesting the money, instead it was being wired to someone else's account. 

As you can probably imagine, this created a lot of confusion and frustration for all parties involved, and it also made you question the realtor's ability to keep a transaction secure. At the end of the day, this could've happened to anyone but it is just an example of how easy it is for hackers to trick you into doing things that could really hurt you. 

So our advise to you, don't use the same password for all your different accounts because even though your email might be secure, if you use the same password and another website gets hacked, a hacker who is able to log into your email will gain access to pretty much all of your accounts. 

Active-adult living booming in region

Active-adult living booming in region

TRENDS AREA IS HOT SPOT FOR THOSE 55 AND UP

Original article appears in Fredericksburg.com

But the couple, who have lived in Spotsylvania’s Virginia Heritage community ever since, were impressed with the amenities and the clubhouse.

She said there are always activities, such as her Thursday dominoes-and-lunch group.

“I’m never bored,” she said.

The Clemonses are both retired from the federal government and moved here from Maryland. She is from Orange County, but wanted to be in a more populated part of the Fredericksburg region.

They sold their first home in Virginia Heritage a few years ago and purchased a house with a smaller footprint in the same development.

“It became too much and they were building smaller in a new section,” Pat Clemons said.

They aren’t the only ones in the region looking for a more manageable way of life.

The Census Bureau estimates that by 2050, the country’s 65-and-older population will double. As baby boomers age, that group will number 83.7 million.

According to one local developer, those baby boomers are looking to downsize.

The demand for communities catering to the 55-and-older demographic exploded in the region about a decade ago, spawning places such as Legacy Woods and Virginia Heritage at Lee’s Parke in Spotsylvania, The Evergreens at Smith Run in Fredericksburg, and Falls Run in Stafford County.

Demand for those types of homes dropped along with the rest of the housing market after the Great Recession, but is now showing signs of revival.

Cornerstone Homes, the developer of Regency Park Villas in Spotsylvania, started building in the Fredericksburg area again as demand for its core business—active-adult communities—picked up.

The company sat on 32 acres near the intersection of State Route 3 and Gordon Road for eight years, waiting for the market to improve. Cornerstone recently started work on The Villas at Barley Woods. The first homes are expected to be completed by the end of the year.

Cornerstone owner Roger Glover said demand never died off for senior-living communities, but a poor real estate market kept people from selling their homes.

“Now those homes are selling and they need somewhere to move,” he said. “We’re seeing pent-up demand that has surged in the last couple of years.”

Cornerstone already rezoned the property when the recession hit. Glover said the recession changed his approach to building, and he chose to focus solely on active-adult communities ever since.

Cornerstone is in the final stages of floor plan designs for the communities and will start constituting the model homes and clubhouse this June.

The Villas at Barley Woods will be a small, 55-plus community of about 120 homes.

It will also have features that Glover said seniors are increasingly seeking: walking trails, an executive suite for the semi-retired, a pool, a grandchild play area and a dog run.

It’s not the only outdoor-friendly community Cornerstone is working on.

Hanover County recently approved Cornerstone Homes’ proposal for Chickahominy Falls, a 400-home development anchored by a community farm.

Glover said Fredericksburg ticks all the boxes for a successful senior-focused development. It is on the East Coast, near cities like Richmond and Washington D.C., but far enough removed to offer a slower pace of life. With the region’s growing population, he said many older people are moving here to be close to children who live in the area.

Cathie and David Taylor moved into another Cornerstone development, the Villas at Magnolia Lakes in Richmond, last June.

“From a real estate perspective, I decided to focus when I saw the trend coming,” said Dort, who fits the demographic. “I’m one of them.”

At age 57, he said he’s among the younger residents of the development but needed to downsize from their longtime three-story home on more than an acre.David Taylor is the co-owner of Libbie Market, a full-service grocery story in the Westhampton area of Richmond, and due to the demands of his job needed less home maintenance.

He said with his own health concerns, aged parents and work, it made sense to downsize.

Taylor recommended other people making a similar move take their time and make sure the lifestyle fits their expectations.

Linda Dort, a senior real estate specialist with Century 21 New Millennium, works exclusively with homes in senior communities and communities that are appealing to retired people.

She releases an annual “Guide to Main Level Living” that lists 23 local communities that offer maintenance-free communities with social opportunities. Some of these communities are partially age restricted, and some now allow younger buyers.

Dort also lives in Virginia Heritage. She moved there in 2007.

Active-adult communities are creating new opportunities for local business people.

Thomas Pentland, owner of personal driving service At Your Service, said the aging population created a need for his business.

He focuses on elderly clients who don’t drive, but need to run errands. He moved here from Maine to be closer to family and was struck by the number of senior living developments.

“I went to a lot of those communities and talked about their residents’ transportation needs,” he said. “It’s just because of age. Baby boomers like me are the larger portion of the population, and they are going into retirement.”

Lindley Estes: 540.735-1976

lestes@freelancestar.com