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Our job as a settlement company is to ensure that the title to your real estate is legitimate and provided with title insurance. This protects the property against lawsuits or claims that may arise due to legal disputes during the transfer of the title from the seller to the buyer.

The date of your closing will be scheduled accordingly with your convenience as the top priority. If we cannot find a time, certain measures such as “power of attorney”, which means someone can sign on your behalf, or mailing documents will be taken into consideration. You will be expected to sign several documents prepared by the lender and closing agent. These documents include disclosures, notices, and legal binds. You will need to bring with you a government-issued photo ID, any legal documents that the attorney or processor requests, and a final closing amount in certified cashier’s check if you did not wire your funds before closing.

If you want International Title & Escrow to handle your real estate closing, please call us at 703-821-1212

Title Insurance provides coverage for certain losses due to defects in the title that, for the most part, occurred prior to your ownership. A Loan Policy of Title Insurance protects the interest of the mortgage lender, while an Owner’s Policy protects the equity of you, the Buyer, for as long as you or your heirs own the real property.

Some examples of title defects include:

• A previous owner used the home as security for an outstanding loan.
• A previous owner included the home in an inheritance, and it was overlooked.
• Stolen or forged documents.
• A previous owner did not get a signature from a co-owner.
• Liens that seek payment for debt such as taxes, child support, or contractor’s fees.
• A deck or extension was built without a permit from County.

Title Insurance ensures a comfortable peace of mind by guaranteeing a safe protection of the buyer and his or her investment, finances, and home.

We understand your home is possibly the largest financial investment you will make, but the investment is not just financial. Buying a home is also an investment in the future for you and your family. That is why we offer the First American Eagle Owner’s Policy of Title Insurance. This Owner’s Policy provides more than safeguards for the title to your property—it provides you with peace of mind.

The First American Eagle Owner’s Policy provides expanded title coverage for owners of one-to-four family residences, including condominiums. Coverages included in the Eagle Owner’s Policy offer the highest levels of protection available to homeowners.

Tenancy is the legal manner that one takes title to real property. Individual buyers usually take title in fee simple. If there are two or more buyers, there are three common law forms of tenancy to choose from: joint tenants, tenants by the entirety, or tenants in common.

Joint Tenancy:

Joint tenancy is when family (unmarried) members take title of the property together. The joint tenants must obtain the same interests and title at the same time, as well as have identical rights to the property. This results in each joint tenant owning the entire property, not just a share, and each ownership is subject only to the rights of the other tenants.

Tenancy By the Entirety:

Tenancy by the entirety is similar to joint tenancy except with legally married individuals. The parties have an equal right of possession during their joint lives with the right of survivorship. Survivorship is when a spouse passes away and the property goes to the surviving tenant. This is popular for married couples as it protects them from judgements and liens as well.

Tenancy in common:

Tenancy in common is the ownership of a property by two or more individuals who have separate and divided interest in the property with no right of survivorship. This allows tenants to designate percentages of ownership interest and sell their interests without the consent of other tenants. Tenancy in common is popular for individuals or entities who take titles for business reasons or keeping property interest separate from other owners.

When buying a home in Maryland for the first time, buyers should be aware of the Maryland Transfer and Recordation Tax. Buyers are responsible for all these taxes that cover the work it takes to transfer and record property titles. It is common for buyers and sellers to split the total tax amount evenly.

The Maryland state transfer tax rate is 0.5% and is applied to various rates depending on the county. If you are purchasing your primary residence for the first time, your transfer tax amount will be discounted to 0.25% upon reviewing qualification documents. Buyers are also commonly subject to statutory exemptions. Several counties vary with exemptions, so reach out to your county to find additional information.

If you sell real estate in Maryland but are not a resident, you may be subject to the Nonresident Withholding Tax.

All nonresidents of Maryland who sell or transfer real property in Maryland must make a tax withholding payment to either the property’s local Clerk of the Circuit Court or the State Department of Assessments and Taxation (SDAT). If the seller is not able to certify exemption from withholding, the title company will pay the withholding to the state and withhold from seller proceeds. Nonresident individual tax withholding amounts are 8% of the total property’s sale price or a percentage equal to how much of the property an individual owns if there are multiple owners. Only nonresident’s shares are due if some owners are Maryland residents.

Full or Partial Exemptions may be issued if the owner submits a request to the Comptroller of Maryland at least 21 days prior to closing. A Partial Exemption means the owner is only responsible for paying a withholding tax on the net proceeds of the property sale, whereas a full exemption means the owner pays no tax at the sale. In order to be eligible for a full exemption, the owner must meet certain requirements. In addition to the Nonresident Withholding Tax, the owner(s) must file an income tax return with Maryland for the year the property was sold.

The Foreign Investment in Real Property Tax Act (FIRPTA) is a tax law passed in 1980 that requires foreign investors of a U.S. property to pay taxes to the Internal Revenue Service (IRS) on any capital they receive from the sale of the property. Unexpectedly, the burden falls on the buyer to ensure that the seller pays the tax, so settlement companies administer the appropriate deduction from seller proceeds based on the sales price. Until the tax is paid completely, the government obtains a security interest in the property which puts the property and other assets at risk for seizure. Frequently, real estate transactions are eligible for FIRPTA exemptions. This means the buyer is not required to withhold the full tax amount. If eligible, the buyer’s settlement agent will file a signed affidavit and apply for a withholding certificate. the certificate is typically issued within 90 days upon receival by the IRS, so the application must be filed before or by the closing date.

The Tenant Opportunity to Purchase Act (TOPA), passed in 1980, serves to protect tenants from having their property sold out from under them. TOPA requires owners to give tenants opportunity to purchase the property and a right of first refusal to match a third-party contract before the owner discontinues the use of that property. However, The TOPA Single-Family Home Exemption Amendment Act of 2018 states that owners of single-family homes no longer need to give tenants opportunity to purchase or a right of first refusal to single-family homes, but there are still notice requirements for these properties.

Many clients often come to us with the question of whether they have to follow the buyer’s title
company, often due to language barriers or simply the comfort of using their own selected team to
review their side of the documents.

On February 4, 2022, Commonwealth of Virginia Bureau of Insurance (“BOI”) issued a Letter of guidance
regarding “split settlements” due to the confusion surrounding the legality of split settlements. As per
the Letter, “the designated settlement agent, [who is identified by the buyer], is responsible for
overseeing…[all of the settlement services prescribed by the Virginia Code], ensuring the accuracy of the
information obtained through these…[services], and ultimately appropriately directing the closing and
settlement.” Subsequently, the Bureau has taken the position “that the title settlement agent’s fiduciary
responsibility cannot be transferred, delegated or substituted, and that there can only be one
settlement agent involved in the settlement or closing.”

The BOI also provides further guidance, however, on this Letter in their “Frequently Asked Questions
Regarding ‘Split Settlements’” issued on February 16, 2022, which clarifies that sellers can still retain
their own legal counsel for a real estate transaction. Although “the designated settlement agent remains
responsible for overseeing the settlement and obtaining appropriate records and information necessary
to conduct and complete the settlement,” the seller(s) can always retain legal counsel to assist,
especially since “certain tasks necessary to consummate a proper settlement (e.g., preparation of a
deed) must be performed by a Virginia licensed attorney.” As such, our affiliated law firm,
Washingtonian Law, is available to assist our sellers who need reassurance and representation for their
legal needs on the seller side.