Our FREQUENTLY ASKED QUESTIONS 

Title insurance protects the purchaser or lender from any financial loss arising out of liens or other claims against the property created by previous property owners and not corrected prior to closing. Lenders/Mortgage Companies will almost always require title insurance.

Many states have different types of “homestead exemptions.” In Alabama, it refers to a property tax designation whereby you are taxed at a much lower rate (roughly half) if you live in the property as your primary residence. It is important that you take your deed to the tax assessor’s office and claim your homestead exemption prior to December 31 and that you occupied the property on or before October 1 in order for you to get the benefit of the exemption for the upcoming tax year.

The property taxes in Alabama are paid in arrears, and are based upon the fiscal year (October to end of September). Whoever owns the property on October 1st of the current year has to pay the taxes for the full tax year, even if they did not own the house the whole year. So, at closing the seller gives a credit to the buyer for the taxes accruing during the time the seller owned the property (from October 1 of last year to the date of closing).

There are several reasons for this one, and each state is a little different. In Alabama, the Probate Office requires all deeds to contain the seller’s marital status. The reason this is required, in part, is that during a marriage, both spouses have an “interest” in the marital homestead—even if only one spouse is ACTUALLY ON THE DEED to the property. Therefore, if you have claimed a homestead exemption on a house, and you are married, then when you sell the house, your spouse will have to sign the deed.

Some states put a duty to disclose certain information concerning the condition of the property on the seller. In Alabama, the duty to determine the condition of the property is on the buyer. Placing the duty on the buyer is referred to as Caveat Emptor, or Buyer Beware. In short, it is the buyer’s responsibility to do a thorough inspection of the property to make sure that there are no issues.

If you are getting a loan, then you will need to take the contract to the lender to begin the loan application and approval process. That process is quite extensive and can often take in excess of 30 days, however the loan approval process can be streamlined if you are diligent in complying with the lender request for information . To help expedite
the process, it is helpful to include a designation of the closing agent in the contract, i.e., “closing to take place with Conwell Title & Escrow, Inc.,” so that the lender can coordinate with Conwell Title & Escrow, Inc. throughout the process and close in a smooth and timely manner. If you are not getting a loan, then send the contract to Conwell Title & Escrow, Inc., and we will take you from the contract to the closing as smoothly and quickly as possible.

If you are signing documents as part of the closing you will need to bring a valid and current Government issued photo identification (Driver’s License or US Passport). Sellers/Sellers Agents bring all keys in your possessing for the property you are selling.

If you are a party to a transaction that is being required to bring monetary funds to the closing please make sure you provide any settlement funds to our office in the form of a certified/cashiers bank check drawn of a local Alabama Bank (limits apply to certified/cashiers bank checks) or transfer funds prior to closing to our office via wire transfer (Always verify wiring instructions directly with our office by phone prior to having any funds wired to our office). If you elect to bring funds in the form of a certified or official bank check please verify with our office as to the amount of money we will accept in the form of a certified /cashiers bank check as limits do apply.