Rolling the Dice...with Title Insurance

By Monika McGillicuddy

Are you rolling the dice...taking a chance with Title Insurance?

Twenty Two years in the business and I still have a hard time making buyers understand the importance of Title Insurance…most think it’s a big waste of money. I know that someone makes money from selling title insurance…but so what. How does that compare to having piece of mind???  I’ve heard horror stories from far away…but local New Hampshire stuff? Not  very often.  

So if you’re wondering “Do I really need Title Insurance?”  or  wondering how to make your buyer understand the importance of Title Insurance…take some time and read the following written by Karen F. Kelley, President of Broker’s Title & Closing, LLC Bedford N.H.  Reprinted in part below with her blessing.

*************************** 

Let me arm you with some examples of how title insurance saved the day.  These are not horror stories from California or Texas. These title claims occurred right here at Broker’s Title within the last 6 months.

A Milford N.H. property closed with Broker’s Title paying off the 2 seller mortgages. The payoff statement for the second mortgage to Champion came from the “work-out department”. Closing went smoothly; deed and mortgage were recorded; everyone was paid; buyers moved in.  Ten days later, the payoff check to Champion was returned with a form letter indicating that Champion was not accepting the check “due to foreclosure”.  WHAT??!! Many calls later to Champion, their attorneys, our attorneys, the title insurance attorneys revealed that there was indeed a foreclosure on the property a couple of weeks prior to the closing with a successful bidder who was soon to receive a deed to the property.  Because the deed was not yet recorded, there was no way for Broker’s Title to know about the foreclosure.  The title insurance attorneys immediately took control and persuaded Champion to unravel the foreclosure and accept the payoff.  The buyers, who had in fact purchased an owner’s title insurance policy, never knew that their title was in such jeopardy. 

The title to a Kingston N.H. property we recently closed was littered with private mortgages, tax liens, IRS liens and a ten-year messy divorce with 8 Court files to be reviewed.  I worked for weeks to clear title and we finally closed after I was satisfied that all liens were paid and that the seller did in fact have “good title”.  Six weeks later I received a call from an attorney representing an attaching party, asking why we had not paid off the $45,000 attachment at closing!  A careful re-review of the title file showed no mention of this attachment by our very experienced and thorough title examiner.  It was later determined that she made a decision that the attachment had no bearing and chose not to mention it.  Title insurance attorneys are now negotiating the release of this attachment with no cost to the buyers.

Not all claims are for such large sums, but they do represent monies from the buyers’ pockets if they do not have an owner’s policy.  George called me 6 months after he closed on his condex to tell me that a surveyor had knocked on his door to notify him that his above-ground pool and shed were too close to the lot line and would have to be moved.  This is not something Broker’s would have uncovered so I sent him away several times because I really didn’t know what I could do for him.  When he called yet again, in frustration I gave him the telephone number for the title insurer, even though I did not feel his policy would cover such an event.  I was wrong.  Title insurance paid him over $3,000 to cover the cost of moving the shed and the pool, and George was a happy man!

So the next time you are asked your opinion of title insurance, remember these case studies.

                                                         Broker’s Title & Closing, LLC

e-mail: kkelley@brokerstitlenh.com

www.brokerstitlenh.com

2006 Christmas Parade

This years Annual Santa Parade will be held on December 10^th. The theme will be "Christmas in the Country" and as usual the parade starts at 2pm on Main Street at Holiday Lane. The Parade will proceed down Main Street to Emerson Avenue. The line up begins at 1:00pm at the Holiday Lane location.

Anyone wanting to enter a float or marching group can visit the Hampstead Fire department's web site  for details and an application. 

The Fire Department also has some gorgeous Christmas trees for sale...visit the department to get yours before they're all gone.

Don't forget... Every year the fire Department invites everyone back to the department after the parade for award presentations, hot chocolate, munchies and a very special visit from Santa himself. This is a great opportunity for catching up with old friends and making new ones. As I mentioned in a previous addition of Hampstead Tid-Bits this is a "not to miss event".

Mark the date...for the Hampstead Mothers club annual Breakfast with Santa will be held on Dec 2, 8 AM - 11 AM at the Hampstead Central School.

Prudential Verani Realty's 5^th Annual Coat Drive is still going strong ....Our goal this year was to collect 6,000 coats, hats, mittens and scarves to donate to those in need. To date we've...collected 3,588 coats!

We can still do it with your help ...just drop off your coats by Sat. Dec. 2, 10:00 to 2:00 at our Hampstead office location at 2 Mian Street Hampstead. 

All of your very generous donations will be given to local shelters, charitable organizations and to those less fortunate.  Call or e-mail me to donate a coat and make a difference to someone this winter.

Do you have any town info you'd like to see posted contact me here or drop me an e-mail. Till next time have a Safe and Happy Holiday.

Monika@monikamcgillicuddy.com

Dirty Little Secrets of Contract Confidentiality

By Monika McGillicuddy

Do you think that the purchase agreement /offer to purchase that you just wrote on your buyers behalf for their dream home is being kept confidential…   

If you answer Yes…think again because in New Hampshire it MIGHT not be.

REALTORS® have an obligation Ethically to disclose to their  buyer clients the fact that their offer may not be kept confidential and yes I am talking about the terms…i.e. offering price and or conditions…financing, deposit ,closing date all of which  MAY be released by the seller to competing buyers in hopes of getting a better /higher offer.

This is sometimes called “shopping offers” and is being done fairly routinely but secretively in New Hampshire and other states.  No one will talk about it because they feel uncomfortable about it…

I wrote about Article 1 SOP 1-13 in detail a while back in my blog  but the summary of the Code of Ethics involving this reads as follows….

 Standard of Practice 1-13

When entering into buyer/tenant agreements, Realtors^® must advise potential clients of:

5) the possibility that sellers or sellers’ representatives may not treat the existence, terms, or conditions of offers as confidential unless confidentiality is required by law, regulation, or by any confidentiality agreement between the parties.

I am curious as to how you all are handling this required disclosure if your state does not a have a law or regulation regarding contract confidentiality?  

Is it a routine procedure in your state/area to disclose the terms?  If so do the buyers you work with know this?

Does a prior (before purchase offer is released) confidentiality agreement work for you?

Every time I try to use one I get laughed at by the other REALTORS®…I mean who in their right mind would have their seller sign this type of stipulation.

Is this a problem in your area?  Many REALTORS® I’ve spoken with tell me they just ignore the whole thing because everyone knows that listing agents have an unfair advantage in a co-brokerage situation anyway.  

I think it’s interesting that our code of ethics removed the word fair a few years back and replaced it with the word honesty…

Your thoughts…

 Aruba sunset at the Flying Fishbone restaurant photo by Jay McGillicuddy

Did you know that over 70 million US citizens have a valid passport which is just about a quarter of the eligible population?  Don’t be one of those stuck with out a passport when the new regulations take place!   Imagine the crunch as everyone rushes to get one… besides getting a passport takes time this day and age especially with all the Home Land Security issues.

If you don’t already have your passport you still have some time before the new requirements take effect.  

Jan 23, 2007 is the date that we’ll all need to show a valid passport to enter the United States when traveling by air.  

That includes arriving from destinations like Canada, Mexico and my favorite Happy Island located in the Caribbean!

It looks like we have a little more time before we’ll need to show a passport when entering the United States by land or sea.  Estimate time frame for that is sometime in January 2008.

Want a head start and an application?

Questions about the new requirements?

REALTOR COE Changes  

REALTOR Code of Ethics Changes for 2007.    

A number of new professional standards changes were approved at the National Association of REALTORS annual convention in New Orleans. Additions and changes were made to Articles 12, 15 and 17.  

Two new case interpretations were added for Article 6, one for Article 12, a white paper explaining why hearing panels decision do not include rationales and several forms were also revised.

While The Two most important changes were to Article 12, I have included all the changes…even the little ones that as I think all REALTORS should be aware of, especially if you like keeping track of your stats. These come directly from my committee member agenda and my copy of the BOD meeting handout. These changes become effective 1/1/07

Approved changes to Article 12:        

1.   REALTORS intending to share or sell consumer information gathered via the Internet shall disclose that possibility in a reasonable and readily apparent manner.

The rationale is "The proposed new Standard of Practice will protect consumers by giving them advance notice where information they give to REALTORS via REALTORS websites will be shared with, or sold to, third parties."

2.  REALTORS obligation to present a true picture in their
advertising and representations to the public includes the URLs and domain names they use, and prohibits REALTORS from:

 (1) Engaging in deceptive or unauthorized framing of real estate brokerage websites;

 (2) Manipulating (e.g. presenting content developed by others) listing content in any way that produces a deceptive or misleading result; or

 (3) Deceptively using metatags, keywords or other devices/methods to direct, drive or divert Internet traffic, or to otherwise mislead consumers."

The rationale is: "This new Standard of Practice is intended to clarify that Article 12's 'true picture' obligation prohibits deceptive and unauthorized framing of other real estate websites; manipulating listing content to
produce a deceptive or misleading result; and using Internet tools to deceptively direct, drive or divert consumers from their intended Internet destinations."

Article 15

The obligation to refrain from making false or misleading statements about competitors’ businesses and competitors’ business practices includes the duty to not knowingly or recklessly repeat, retransmit or republish false or misleading statements made by others. This duty applies whether false or misleading statements are repeated in person, in writing, by technological means (e.g. the Internet), or by any other means.

Rational: Article 15 prohibits REALTORS from knowingly or recklessly making false or misleading statements the new standard attempts to clarify two things.

1. The duty to refrain also includes repeating, republishing or retransmitting false or misleading statements.

2. The duty also applies these statements whether made personally, in writing or through technological means including the internet.

Article 17

Standard of Practice adopted clarifies the duty to arbitrate disputes between REALTORS in different states where no inter-association agreement exists but where complainants submit to the jurisdiction of the respondents association.

Amendments

Were made to the Code of Ethics Arbitration Manual regarding unauthorized disclosure relating to tribunal members and to parties and includes any report or publication not established in the manual.

Added as an Approved disclosure now includes:

“Where providing the decision of an arbitration panel to an association of REALTORS or  an MLS will enable that entity to correct records of sale or lease transactions or other historical records…in other words giving credit for a sale to someone prevailing in arbitration”

This last one will make people who are into keeping or tracking stats happy…I think.    

Let me tell you about my old man…

He was a very old man indeed…. some say he was born an estimated 2,000 plus years ago during the post-glacial period.

Even though he was so very old his passing was deeply mourned by New Hampshire residents as well as those of its sister New England States.

The Old Man in the Mountain.  What a sight he was…so majestic…so proud.  He sat boldly on the shoulder of Profile Mountain, which juts out into space, some 1200 feet above Profile Lake.

His profile was not to be missed by anyone visiting New Hampshire’s Majestic White Mountains.

I can’t tell you how many times we’ve pulled off the highway to stop at the viewing station simply so we could look at him, take pictures and just marvel that he was there.

A natural phenomenon…not created by man, but cherished by mankind. The joy never wore off…never became a yeah so what…been there done that type of attraction. 

One day when we least expected it he was gone…simply gone. We didn’t have a chance to say good bye, take one last photo.

We knew he was ailing a little bit and had heard about tentative gentle repairs being done and minor mending needed but no one expected this… I am talking, of course, about The Old Man of the Mountain, whose stony countenance simply vanished overnight and was discovered missing on May 3, 2003.

May 3 2003 is a day many New Hampshire ites will never forget…like remembering where you were when JFK or Bobby got shot…9-11 and Martin Luther King...of course while nowhere near the same tragic scale and magnitude those events where, but a day we’ll not forget anytime soon.

I’m sorry if you never got to see him in real life…my shots don’t do him justice but I’ve included many links that have great photos of New Hampshire’s Old Man in The Mountain for your viewing pleasure.

Former New Hampshire governor Craig Benson can sum it up much better than I can …so I’ll leave you with his words.

"From its mountainous perch, the Old Man has stood for centuries as a testament to the steadfastness of New Hampshire's Yankee character and the resolve of its people. This rugged yet beautiful monument fit the character of the pioneers who founded this state, the immigrants who built it, and the spirit of those who live here today. It was the ultimate symbol of those who would "Live Free or Die." And while that symbol may have fallen, that spirit still remains."

-- Governor Craig Benson

Please see my updated post on this subject here

REALTOR Code of Ethics Changes for 2007 

A few professional standards changes were approved at the National Association of REALTORS annual convention in New Orleans including one that requires REALTORS to give “customers advance notice if customer data may be shared with or sold to third parties”.  Another change says that REALTORS must present a “true picture” of where they’re directing customers on the Web and must not use Internet tools to deceptively direct consumers from their intended online destination. Other changes involve the handling of REALTOR arbitration proceedings.

The important changes to Article 12 that all REALTORS and members of the public working with REALTORS should be aware of are highlighted here and come directly for the National Association of REALTORS website. These changes become effective 1/1/07

Approved changes to Article 12:        

1.   REALTORS intending to share or sell consumer information gathered
via the Internet shall disclose that possibility in a reasonable and
readily apparent manner.

The rationale is "The proposed new Standard of Practice will protect consumers by giving them advance notice where information they give to REALTORS via REALTORS websites will be shared with, or sold to, third parties."

2.  REALTORS obligation to present a true picture in their
advertising and representations to the public includes the URLs and domain names they use, and prohibits REALTORS from:

 (1) Engaging in deceptive or unauthorized framing of real estate brokerage websites;

 (2) Manipulating (e.g. presenting content developed by others) listing content in any way that produces a deceptive or misleading result; or

 (3) Deceptively using metatags, keywords or other devices/methods to direct, drive or divert Internet traffic, or to otherwise mislead consumers."

The rationale is: "This new Standard of Practice is intended to clarify that Article 12's 'true picture' obligation prohibits deceptive and unauthorized framing of other real estate websites; manipulating listing content to
produce a deceptive or misleading result; and using Internet tools to deceptively direct, drive or divert consumers from their intended Internet destinations.".

 To take a Code of Ethics quiz visit JF Sellsius blog link here

Hampstead New Hampshire Tid-Bits ….

 Liv’n Out Loud.  The clothing.  The lifestyle ….I just Love it when I hear of a local success story. But not only is this a local success story but check out the celebrities who also agree that these ladies have something special to offer.  So take a few minutes and cruise their website  not only is this a great story about two ladies named Kristine Fichera and Alyson Bruu shown here with New Hampshire’s Governor John Lynch but the product line is awesome and will make some truly special holiday gifts.

So special that the Sundance Film Festival has selected their clothing to be featured in the Celebrity Swag Bags!!! Pretty Cool!

Tis the season and Hampstead New Hampshire is already on the bandwagon gearing up for a fun filled community holiday season.

Plans are already in place for the Fire Departments annual Holiday Christmas Parade. The whole town rallies around this event and it is a “Not to Miss” part of the holiday season in Hampstead.

Check out Hampstead Library  web site and the upcoming events page for tons of library information.

Hampstead Historical Society has a neat CD they are selling called Hampstead: Then and Now which is  a documentary review the life and times of Hampstead with amazing photos and commentary. 

Hampstead Mothers club annual Breakfast with Santa will be held on Dec 2…this is a not to miss event!  The Mothers club is also building a playground at the Dept Road fields and money raised through many of their fundraisers go to support that effort. For more info contact the club by clicking here .

Prudential Verani Realty’s 5^th Annual Coat Drive

 Prudential Verani Realty is holding our 5^th Annual Coat Drive from November 1-30^th. Our goal is to collect over 6,000 coats, hats, mittens and scarves to donate to those in need. All of the very generous donations we receive will be given to local shelters, charitable organizations and to those less fortunate.  Call or e-mail me to donate.

 Happy Holidays to you all!    

Monika McGillicuddy's website

Monika McGillicuddy's Training website

MLS Home Search

A little Bit About Kingston New Hampshire

Kingston is one famous little New Hampshire town covering 20.88 square miles.   

Kingston was incorporated in 1694 after King William’s War. Kingston was established as a town in 1694 when it separated from the town of Hampton. It was the fifth town to be established in New Hampshire and originally called King's Town.

Kingston’s most  famous citizen is Dr. Josiah Bartlett, delegate to the Continental Congress, signer of the Declaration of Independence, and founder of the New Hampshire Medical Society…made popular by the TV show The West Wing’s fictional President who was said to be a descendant of the real Josiah Bartlett.  

One of Kingston’s most treasured historical landmarks is the Kingston 1686 House, located on Main Street and was the former home of Josiah Bartlett. 

Kingston State Park, Rock Rimmon State Forest bordering the Great Pond, is a 44-acre park offering freshwater swimming and picnicking.

Kingston’s Population: 5,862 (1999 est.) estimated 2005 population is 6,240

Ideally located Kingston is only 45 minutes from Concord NH, 1 hour from Boston Ma (depending on traffic) and a scant 30 minutes away from ocean beaches.  Kingston is a pretty town with a quaint little down town area called the Kingston Commons.
In the summer months the Commons is known for its farmers market where local farmers sell their fresh products.  Kingston offers a wide variety of community events.

Long known as a town proud of its history but ready to embrace its future as evidenced by the fantastic new high school just completed. 

Come and take a Peak…you’ll be glad you did ! 

Voting For The First Time In Salem New Hampshire!

Today my mom and dad voted for the first time!   How very exciting it was!!!

They became citizens on January 18 2006. They were sworn in by US district Chief Judge Steven McAuliffe (husband of Christa our NH teacher in space who died when the Challenger blew up), they were amongst 369 newly selected citizens of the USA.  It was indeed a proud moment as you can see by the beaming faces of Hans and Elfriede. The ceremony was very special ...... which will not be forgotten by those of us watching them that day.

Today as they went to vote they were a little bit nervous- the whole ballot thing but the directions were clear and they cast their votes. I am so very proud of them...I just had to share.

                                                                                   Don't they look cute??? 

Pretty Little flower photo by Jay McGilllicuddy

Whose Time Are You wasting???

Whose time are you wasting???

I stumbled across a blog  on another site asking how many homes does the buyer look at before they buy?  And it got me thinking.

Just how many homes does the average buyer look at before they buy?

So I looked it up and found out. Typically in the Northeast they looked at 8 homes, in the Midwest they looked 11 homes, down south and out west they looked at 9 homes.

I also found out courtesy of NAR based on the ‘05 Profile of Home Buyers and Sellers (06 will be out any day) just how long the average buyer looked before they bought.

In my neck of the woods ...of course they spent more time looking here than anywhere else ...NAR states that buyers in the Northeast typically searched for 10 weeks before they bought a home and typically searched for 2 weeks of that time before contacting an agent to help them.

 Midwest typically searched a total of 8 weeks with 3 weeks of that time prior to contacting an agent.

South typically 6 weeks with 2 weeks of that spent prior to contacting an agent.

 West typically 7 weeks with 2 weeks of that spent prior to contacting an agent.

So this tells me that on average most buyers have been involved in the research stage for a few weeks before they even contact an agent.

By the time they get to the agent they have an idea of what they want and what they can afford.

Now it's up to the agent/REALTOR® to make a difference. One way to do that is to conduct a Buyer Counseling Session.  Effective buyer counseling will in most cases shorten the search time and help both the consumer and the agent understand each other much better.

Spend an hour or so meeting and counseling the buyer before you go and show...build trust and rapport and ask effective questions but most importantly listen to the answers they give you...these answers will help you determine motivation, expectations...both realistic an unrealistic, spend time exploring their wants and needs.  You must listen with your mind as well as your ears and really hear what they are telling you. 

Remember when showing homes the buyers have selected to focus on benefits...not just the features of the home.  Convert those features to benefits the buyer can feel because people buy a lifestyle not just a house.

Isn't this a wonderful business!

monika@monikamcgillicuddy.com

http://www.monikamcgillicuddytrainer.com

A Little Bit About Danville New Hampshire

Danville is ideally located within close proximity to both the Seacoast and theWhite Mountains of New Hampshire. 

 Danville has a quaint rural charm while being only a hop skip and a jump away from the much larger communities of Plaistow, Salem, Manchester and Boston, Ma. The Danville Community Profile states that the town census in 2004 was 4,327 small by anyone’s standards but Danville boasts a town....

Library and an active Heritage Commission.

Long proud of their community spirit Danville folks roll out the welcome wagon for new residents.

Just drive through the streets of Danville and you’ll be apt to find a place you’d like to call home. 

Danville is ideally located for a day trip to Hampton Beach or to one of New Hampshire’s many popular lakes. 

Danville is located close to many fine Camping facilities which is a favorite outdoor activity that many people in New Hampshire enjoy. 

Recreation

Fishing and Boating

monika@monikamcgillicuddy.com

Just how good of a negotiator are you???

 I think it’s pretty sad that so much of our business depends on our skills as a negotiator and that so many REALTORS think negotiations are all about them and not the process...why do we take it personally and make it about us?  

 Why is it that we allow our EGOs to be a big part of the negotiations? It’s like I have to win and you have to lose.

 Somewhere during that process we forget that it’s about the buyer and sellers and not us!!!! Instead of helping our clients get off their positions and focus on their interests to create a win win situation, we let our EGOs get in the way.  I think many times deals fall apart due to the agents posturing and their inflated egos.  It becomes a contest of sorts.

We need to focus on our clients INTEREST and not our own POSITIONS during the negotiation process.

Ever test your negotiation skills?  This is pretty interesting…actually the whole website is chock full of great negotiation tips…I‘m not affiliated with Peter Stark in any way just think it’s a great resource.

If you just take the EGO out of Negoiations the process might  work....much better.

A Little Bit About Atkinson New Hampshire

I love driving through Atkinson especially in the fall along rte 121...the road is embraced by trees and when the colors change...Wow is it ever pretty!  Next year I am going to make a point of taking photos along that road!

Atkinson is a small Southern NH town in Rockingham County; the community was named after

Col. Theodore Atkinson, a landowner whose farm once covered a good portion of the town. 

He was the Brother-in-law to Governor Benning Wentworth, and served as secretary of the colony until the Revolution. 

  Atkinson contains 11.2 square miles of land area and 0.2 square miles of inland water area.

The latitude of Atkinson is 42.838N. The longitude is -71.147W. Elevation is 262 feet.
The population, at the time of the 2004 census, was 6,638

Atkinson is a flourishing community whose border location is ideal for those commuting to Massachusetts or simply wishing to have easy access to the city of Boston, 35 minutes east brings you to  or 1-2 hours north you'll be in ski country 

  Click here for community profile.

Atkinson has some pretty cool conservation trails  and shares part of Big Island Pond a popular 500+/-acre lake with the towns of Hampstead and Derry NH.

Atkinson historically has had a strong re-sale value mainly due to its great location.

If I didn’t live in Hampstead I would definitely love living in Atkinson NH.

monika@monikamcgillicuddy.com

Cool tools...check out the guide to the home buying and selling process !

I was cruising the NAR website, which by the way is one of my favorite places to visit and noticed that they just released the first official  NAR  guide  for consumers on the home buying and selling processes!  I’ll tell you it looked great. Has any one ordered them yet?

Check it out here….

http://www.realtor.org/prodser.nsf/pages/hbspages

This will be a great addition to your Buyers Tool Kit or your Pre-Listing Sellers Tool Kit.  I love the NAR consumer handouts, especially the ones you can download and customize.

I think the NAR website is way under utilized.

monika@monikamcgillicuddy.com

Hampstead is a small town that has a lot of community spirit and civic pride. 

Very rich in history and often described as a picture perfect postcard town.  Hampstead  is located in Rockingham County.  The town is 30 miles south of Concord, 30 miles west of Portsmouth, and 20 miles from Hampton Beach on the Seacoast.   

The 2004 Census estimate for Hampstead was 8,700 residents, which ranked 32nd among New Hampshire's incorporated cities and towns.

Hampstead contains 13.4 square miles of land, approximately 8,350 acres, 400 of which are inland water area, wholly or in part Island Pond, Sunset Lake, and Angle Pond.

Hampstead is a great commuting location...35 minutes and you’re on an ocean beach, an hour north and you can be skiing.  

 I have lived in Hampstead since 1972 and watched as the town has grown from a small village to bustling little (by some standards) community.  Yet with all the convinces of a much larger town…shopping, community activities, and town beach and recreation fields Hampstead still retains that small town feel. Come and visit us and you’ll see what I mean.

Town Profile                               Fishing Info

  monika@monikamcgillicuddy.com  

http://www.monikamcgillicuddytrainer.com