Divorce can be complicated, emotions can run high, and when dealing with real estate it can be very confusing. It is common for attorneys to negotiate who will be keeping your home, if anyone. If this is the case, a title company is often involved. Here is a list of frequent questions and scenarios that come up in the divorce process and answers to help navigate divorce and the real estate property owned.
Frequently Asked Questions With regards to Divorces and Real Estate Property
If I remove my spouse from ownership through a Quit Claim Deed will that extinguish our dower rights if I chose to refinance, sell or buy (with financing)?
No, even if a quit claim deed was done removing one spouse, if they are still married, dower still applies. If you sell, refinance, or buy a home using financing, your spouse will need to sign papers at the closing.
Our Divorce is not amicable. Can we arrange for separate closings?
Yes! Please just let the title company know this ahead of time so we can plan accordingly. If there are any protection orders where they are not allowed to contact one another, it is helpful for us to know. Things like this do not pop up on title exams.
My divorce is pending. What happens at my closing?
A divorce is not complete until the Divorce Decree is final. If a divorce is pending, dower rights are still in effect with regards to your property. Which means if you are the sole owner, your soon to be ex is the sole owner, or you own the property together, both parties will need to sign if you refinance or sell the property. Similarly, if you purchase a property and fin
ance it, both parties will be required to sign documents while you are married and divorce is pending.
If both parties are in title and a separation agreement is not yet in place, when the property is sold the title company would divide proceeds 50/50. If this should not happen or parties are not in agreement, they will need to wait until the divorce is final or judgment
ruled in pending case on what exactly would need to be done with proceeds (namely put into attorney account).
My ex is supposed to receive funds back from me when I refinance. How does this happen?
Let the title company handling the refinance know this ahead of time. Whether or not the funds will be split, go to one party, or to the attorneys/one attorney. This should be in the divorce decree, but it’s nice to have an idea beforehand. If party does not qualify for a refinance, the separation agreement should state what happens to marital prop
erty or subject property.
My divorce is now final. Do you need anything?
Yes! We need divorce decree, separation agreement, etc ASAP! Once the divorce is final, dower rights and survivorship rights are extinguished. It is very important that the divorce decree or separation agreement is followed with regards to real estate owned and money owed to you or your ex. If the decree is not filed with regards to property or time frame, it may be good to involve your divorce attorney so that the change is documented in the court docket and there is agreement between all parties. It is extremely important to use timelines in your divorce decree with regards to real estate property along with alternative plans and timelines just in case.
For Example: Mr and Mrs. Jones are getting divorced. Mr Jones is to refinance the home.
Divorce Decree: Mr Jones should be completed with a refinance removing Mrs. Jones from title by June 30, 2024. Mrs. Jones shall be disbursed funds from the title company in the amount of $50,000 at this time. If Mr. Jones does not refinance the property by June 30, 2024 then he must either sell the property by August 30th, 2024 and have title company disburse $50,000 to Mrs. Jones or he must give $50,000 to his attorney, Joe White so that he can disburse to Mrs. Jones’ attorney Kim Holden by August 30th, 2024.
Every situation is different, so feel free to reach out if you need advice or have questions!
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2 HR CE Course | Real Estate & Title Law | October 5th 12-2:30
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What is Closing Protection Coverage?
All title companies in the state of Ohio are required to offer Closing Protection Coverage. If a customer opts to purchase the coverage, the coverage will protect any of the funds the client brings to the transaction, if their funds were misappropriated or stolen by the title company or one of their employees. It is important to note that lenders always opt for this coverage to protect their funds. The money collected for this coverage is given to the title company’s underwriter, not the title company.
Closing Protection Coverage protects clients’ funds during the transaction whereas Title Insurance protects the buyer’s interest in the property after the transaction closes and for as long as they own the property.
We are Erieview!
ERIEVIEW Title Agency has no affiliation with ERIE Title Agency. Without the “View”, it is not Erieview. In addition, like many other title companies, Erieview Title has an ABA called Erieview Select Title. Please know that Erieview Select Title has no affiliation with Erie Title Select. Again, without the “View,” it is simply not us.
Syllables on contracts matter, but service matters most of all. Reach out anytime if you have questions or would like to know more about ABA.
Thank you for the opportunity to work with you and your clients!
As always, if there are any questions, please fee free to reach out to our office!
1031 Exchanges can be a very useful tool for investors. 1031 Exchanges are commonly used to defer capital gains taxes on the sale of an investment property. In all cases, a Qualified Intermediary would work with the title company in order to provide 1031 Exchange Documents to be executed, hold funds from the sale and then apply those funds to the next property purchased by the seller.
There are a good number of 1031 Exchange Companies that Erieview Title has worked with over the years. Old Republic Exchange Company is one of those. The video below provides a great overview of the 1031 Exchange Process and its benefits.
In addition, there is a brochure available here with additional information. As always, feel free to reach out to us! We are happy to connect you with a Qualified Intermediary that can help you or your client with questions they may have.