June 2009

THE ABSTRACT & TITLE COMPANIES
The Difference is Our Experience!

* NEW *
Indiana Good Funds Law

Effective July 1, 2009, Indiana law now requires all funds in the amount of $10,000 or more received from any party to a real estate transaction must be wired funds. Checks from a single party totaling $10,000 or more are prohibited. This ensures money is immediately available for disbursement to all parties involved, hence, good funds.

What does this mean for you?

If you have a closing with a buyer who will be bringing $10,000 or more to closing, you will need to get the title company’s wiring instructions to give to your clients prior to closing.

If your buyer is bringing $10,000 or less to closing the following are considered “good funds” under the Act:
- United States Currency
- Wired Funds
- Certified or cashier’s check drawn on an existing account at a bank, savings & loan, credit union or savings bank chartered under the laws of a state or the United States
- A check drawn on the trust account of a real estate broker
- A personal check not to exceed $500 per closing
- A check issued by the State, the United States, or a political subdivision of the State or the United States
- A check drawn on the escrow account of another closing agent (case by case basis)
- A check issued by a farm credit service authorized under the Farm Credit Act of 1971

Please be aware, for back-to-back closings taking place at different title companies, disbursement may be delayed since multiple wires will have to transpire. Please keep this in mind and schedule closings accordingly. Additionally, if you have a seller closing at one title company and they will be bringing more than $10,000 to their next closing at another title company, their funds will need to be wired. The title company can only accept a title company check if the amount is $10,000 or less. In this case, we would need the wiring instructions for the title company where the seller will be closing on the purchase of new property prior to closing so funds can be wired out immediately after funding.

Special Notes:
- Wired funds do not include ACH transfers (transfers that can be pulled back by sender). Please verify with your bank that funds are wired unconditionally.

- The new law allows for sellers proceeds and payoffs to be issued with a check at closing unless a wire is specifically requested. Therefore, checks will still be issued at closing unless requested otherwise.

According to the new Good Funds Law, your title company will not be able to disburse any proceeds, payoffs, or other payments until all money is received for the transaction. The law applies to all title companies in the State of Indiana and no exceptions can be made. To see the bill in its entirety, please visit: http://bit.ly/InGov

AS ALWAYS, THANK YOU FOR PLACING YOUR TRUST WITH ABSTRACT & TITLE. WE TRULY APPRECIATE YOU AND YOUR BUSINESS.

ANNOUNCEMENT
Abstract & Title would like to welcome a new member to our team!
Joyce Crabtree is the new Closer/Manager of our Avon Office. Joyce has over 30 years of experience in the title industry and we are very excited to have her as an addition to our staff. She is committed to working hard for you and your clients. The Abstract & Title team aspires to give you the best in customer service. We truly enjoy working with all of you.

TAXES OUT YET?
Good question. 2007 payable 2008 tax amounts for Hendricks & Marion counties are still not available. They are anticipated to be out within the next month or so...of course, that’s always subject to change. We will keep you posted. Please note: 2007 payable 2008 Morgan county taxes are now available.

SETTLEMENT STATEMENTS
Please take time to review your settlement statements before closing. This helps us avoid errors on items such as commission amounts & splits, tax discrepancies, bills which need to be collected, etc. Due to many factors, often times you receive your settlement statements last minute. We will do everything we can to get your figures to you as soon as possible. Glancing over the figures and verifying that commission and other items

THE ABSTRACT & TITLE COMPANIES
The Difference is Our Experience!

AS ALWAYS, THANK YOU FOR PLACING YOUR TRUST WITH ABSTRACT & TITLE.

WE TRULY APPRECIATE YOU AND YOUR BUSINESS.
Please visit us at our website:www. abstract-title.com

ESTATES, TRUSTS, LLCs’, CORPORATIONS, & POAs’
WHAT YOU NEED TO KNOW

Working with so many types of entities in real estate transactions these days, it becomes difficult to keep up with what is required on each type of transaction. In order to ensure a smooth closing, here is a quick reference sheet to help you determine which forms will be required at closing.

ESTATES – When listing a property for a deceased owner, please make sure an estate has been filed in the courts or is in the works (meaning they have talked to an attorney). We will need the name of the personal representative of the estate. Purchase agreements, etc. need to read ― Estate of __________ By: _____________, Personal Representative.‖ If an estate has not been filed yet, please provide us with the name and phone number of the attorney who will be working on the estate paperwork. *NOTE: If title to a property was held as husband and wife and one spouse has passed away, we will need the date of death of the deceased spouse for the survivor-ship clause to be included on the deed.

TRUSTS – For buyers taking title as a trust, we will need the exact trust name, trustees’ names, and date of the trust. A copy of the first page of the trust will provide this information. Please make sure the trust name is written on the purchase agreements and signed by the trustees of the trust. For example, ―John Doe and Jane Doe, Co-Trustees of the John and Jane Doe Revo-cable Trust dated January 1, 2008.‖ Buyers purchasing as a trust and sellers selling as a trust need to read this way on the purchase agreement and all documents. If the Seller is a Trust, we will need to know who the acting Trustee(s) is/are.

LLCs’ – LLC entities have MEMBERS, not presidents, vice presidents, etc. Prior to closing, we will need the resolution for the LLC stating: (1) who the members of the LLC are, (2) who has authority to sign for real estate transactions, and (3) that the subject real estate transaction has been approved by the LLC.

CORPORATIONS – Corporations have officers such as president, vice president, secre-tary, and treasurer. Prior to closing, we will need a corporate resolution stating: (1) who the offi-cers of the corporation are, (2) who has authority to sign for real estate transactions, and (3) that the subject real estate transaction has been approved by the corporation.

POAs’ – If you have a seller who is having a power of attorney sign for them at closing, please get us a copy of the POA immediately. It will need to be reviewed and approved prior to closing. If you need a POA prepared for you, one of our attorneys can have a POA prepared within a couple of hours for $50. *SPECIAL NOTE: A person appointed as a power of attorney CANNOT appoint another person as power of attorney. A new power of attorney would have to be drawn and executed by the person appointing a power of attorney.

*ADDITIONAL NOTE: If a seller appoints a power of attorney and then passes away, the power of attorney is no longer valid…it is now an estate.