Misconceptions about purchasing a home that is over $1 million

In addition to residential real estate, Safe Harbor Title Company manages multimillion dollar commercial real estate transactions on a daily basis.  Our expertise handling these transactions combined with our regulatory knowledge, makes Safe Harbor Title uniquely qualified to provide settlement and title services for luxury home buyers.

There is a misconception that if you are purchasing a home that is over $1 million you need a lawyer.  There are two reasons why that is not necessarily true: 1. Residential mortgage lending, even jumbo loans, is highly regulated by the federal government.  The loan documents “are what they are,” and cannot be negotiated.  Additionally, the terms of the contract are typically worked out among the Realtors and it is rare for contractual issues to arise.  2. As mentioned, we handled transactions with lots of zero’s on the end every day.  We understand that in these situations we may be receiving money from investment accounts (sometimes multiple), as well as from Seller’s and loan proceeds.

Recently we provided settlement and title services for a home in the West End that sold on May 1st for $1.9 million, one of the highest transactions for Residential Real Estate in the month of May. We suggest that you take a moment to read this article from Richmond Biz Sense about that property, it's a pretty great read!

June 2017 Hard Hat Happy Hour - Richmond Biz Sense

We love compliments!

We got an awesome letter from a client who was very pleased with Candace's work. She's an awesome worker and an integral part of our team. These folks are out of Seattle, WA so you can imagine how thrilled we were when we got this in the mail. 

Looking forward to doing more businesses with Marcus & Millichap in the future! 

Double vision: Chesterfield craft brewery to open second spot in city

Original article appears in WVTR

Posted 6:32 pm, May 4, 2017, by Alix Bryan, Updated at 06:46PM, May 4, 2017

Siblings Brittany and Brad Cooper, co-owners of Steam Bell and Canon & Draw. (Mike Platania of Richmond Biz Sense)

RICHMOND, Va. – The Cooper family has double vision; they founded Steam Bell Beer Works in Chesterfield in 2016 and just announced plans to open craft brewery Canon & Draw later this year in the Fan District.

Brad Cooper, who opened Steam Bell after losing his mining job, said they happened along the location at 1529 Main Street, near the Virginia Commonwealth University Monroe Park Campus, during a search around the area which also included Brookland Park and South Richmond neighborhoods.

“We fell in love with it,” he said of the 5,000-square-feet building that has sat empty for years – downstairs, at least.

Blackwood Development has been slowly using historic tax credits to renovate the former Eclipse Linen Service and Laundromat. There are 16 apartments upstairs, above the commercial space.  Canon & Draw will occupy two retail spaces in the recently renovated building.  Nolen Blackwood said the renovation of the building cost around $3 million, reported RichmondBizSense. There are 16 apartments above the commercial space, ranging from 550 to 950 square feet, according to the BizSense report. 

Canon & Draw will have a partition dividing the tasting room area for private events. (Mike Platania of RichmondBizSense)

Things continue to take shape for a family who name is rooted in the craft itself. Traditionally, a cooper’s work included assembly of casks and barrels. A steam bell is used to cover a barrel and helps ply the wood into shape.

Building upon that branding, canon is French for barrel (though related more to artillery), and a drawknife is used to shape hoops for barrels. And when the soon to be released craft soda line is released, it will be called Trussing Craft Fizz, as a nod to the initiation ceremony that all cooper apprentices go through to become a journeyman.

The sodas will be the only product sold at both places; otherwise, they will be completely separate entities. The farmhouse ale focus of Steam Bell will “hop forward” on this side of the river.

“I’m looking at doing some lagers as well,” Brad said.

“Canon & Draw is an opportunity for us to create a brand that is a perfect fit for the area,” said Brittany Cooper, who moved back to Richmond to help her brother with the marketing side of Steam Bell, and who stayed on as a partner while continuing to work remotely at her IBM gig in New York.

“It’s really a completely a different concept,” she added. “It will be higher end, with leather couches and darker wood – cool, eclectic, old Southern atmosphere.”

Canon & Draw or C/D will be open six days a week and have over 10 taps for smaller batch, experimental varieties. Cooper will use a seven-barrel brewing system, and seven-barrel fermenters.

“We are really excited and already working on pilot batches,” he said.

The opening is set for late summer or fall of this year, though the lease details are still being finalized.

The specific area is surprisingly void of any craft breweries, though plenty of bars and restaurants are nearby. Garden Grove in Carytown is over 1.5 miles away, and in the other direction, Triple Crossing is over a mile away on Foushee.

Steam Bell crew. Left to Right.
Bryan Hicks, Maggie Pearson, Jacob Morgan, Connie Cooper, Brittany Cooper, Jody Brunner, Brad Cooper, Joey Johnson, Jeff Stoker and Tom Cooper

There are close to 30 breweries in the Richmond-metro, with more opening this year, but the Coopers see room for more, and aren’t worried about the brewery boom going flat.

“I believe there is, especially with the rise of the tasting room,” Brittany said. “But with distribution, there is only so much shelf space.”

The local bottles and cans still duke it out for space against the regional and national beers in a distribution scenario, Brad pointed out.

“The distribution market is really competitive,” he said.

Brittany added that the business is “market driven” and that you’ve “got to win a customer.”

Something the Coopers seem to have accomplished in Chesterfield. Right out of the gate, Brad said he hit the goal he had proposed in his original business plan.

“I had this dream of what we would start with and then scale it up over years,” he said.

Canon & Draw is near VCU, in the 1500 block of W. Main Street.

“It’s very humbling to get that level of support from people,” his sister added.

“We were getting a lot of support, so we put our heads down — we knew what we wanted to do the next few years — and went aggressively for it,” Brittany said. “In the first six months we released 40 different beers — we never dreamed we would do that.”

In late January 2018, the Coopers will take over space next door and use the extra 3,000-square-feet as a bottling line for beer and Trussing Craft Fizz. Look for flagship flavors like mint/tea and ginger/lime, along with seasonal varieties like apple/sage and blueberry/basil.

Meanwhile, the one-year party to celebrate the success found on Oak Lake Boulevard is June 3. The anniversary beer, a Brett Rye Saison, is currently fermenting in white wine barrels and awaiting it commemorative 500ML bottles – their first bottle release.

“I still have to order the bottles,” Brad said, as he laughed.

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Canon and Draw
1529 W. Main Street, Richmond
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Steam Bell Beer Works
1717 Oak Lake Blvd, Midlothian
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Map of Richmond-metro breweries

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!