What is Title Insurance?

Yes—when you work with a reputable title and escrow company.

Escrow accounts are designed to securely hold funds until all contractual obligations have been completed.

However, real estate wire fraud has become increasingly common.

To help protect our clients, Two Rivers Title Company recommends:

• Never wiring money using emailed instructions alone.
• Always verifying wiring instructions by phone using a trusted number.
• Confirming any last-minute changes directly with your escrow officer.
• Never sending funds to an unverified account.

Protecting your money is one of our highest priorities.

The answer depends on your location and your purchase contract.

In many transactions:

• Buyers and sellers split escrow fees.
• Sometimes the buyer pays all escrow costs.
• Sometimes the seller agrees to cover them as part of negotiations.

Every state has different customs, and purchase agreements may vary.

Before closing, Two Rivers Title Company provides a detailed Closing Disclosure so you understand exactly what fees you’ll pay.

The average escrow period lasts 30 to 45 days, although every transaction is different.

Factors that can affect the timeline include:

• Mortgage approval
• Home inspections
• Appraisal delays
• Title issues
• Survey concerns
• Required repairs
• Negotiations between buyer and seller

At Two Rivers Title Company, our team works closely with every party involved to keep your closing on schedule.

An escrow company coordinates the financial side of a real estate transaction while protecting everyone involved.

Our escrow services include:

• Holding earnest money deposits
• Managing escrow accounts
• Coordinating with buyers, sellers, lenders, REALTORS®, and attorneys
• Reviewing closing instructions
• Collecting and disbursing funds
• Paying off existing mortgages
• Recording legal documents
• Finalizing the property transfer

Our goal is simple: ensure every closing is completed accurately, on time, and with complete transparency.

Escrow is a secure process in which a neutral third party holds money, documents, and legal instructions until all conditions of a real estate transaction have been satisfied.

Why Escrow Matters

When buying a home, neither the buyer nor seller wants to take unnecessary risks.

Instead of giving money directly to the seller, buyers deposit their funds into an escrow account. The escrow company safeguards those funds until:

• The title search is complete
• Financing has been approved
• Required inspections are finished
• All legal documents are signed
• Closing requirements have been met

Only then are the funds released.

At Two Rivers Title Company, our experienced escrow professionals ensure every step is completed accurately and securely.

Title insurance protects your homeownership rights and defends you from loss, as a result of claims or defects in your title. It protects you from any past events that could affect your enjoyment or marketability as a homeowner such as liens, easements, fraud, forgery, improper documents, encroachments, others claiming ownership, and anything else included within the policy.

No. A one-time payment at closing is the only payment required for the life of the policy.

Title Insurance premiums are regulated by rating bureaus in each state, so the only decision is to choose a Standard Policy or an Enhanced Policy.

Required by most attorneys, the Enhanced Policy offers 28 additional benefits, including a free escalation in policy value and many important coverages continuing into the future. Critical fraud and forgery coverage are among these.

It depends on your state. Sometimes the buyer, sometimes the Seller and in some states, a combination of both parties.

With an Enhanced Policy, the value of total coverage automatically increases up to 150% of the original owner’s policy amount over 5 years.

It is your choice! For refinances, it can be at your home or one of our many closing locations. For a purchase, it can be at the office of your realtor, your attorney or any one of our convenient closing locations.

Yes. We have an in-house Legal Department that can do so for a fee. Please email us at [email protected].

The Foreign Investment in Real Property Tax Act (FIRPTA) is a provision of the Internal Revenue Code [Section 1445] which requires the buyer of real estate to withhold 10% of the ‘amount realized’ from the sale of the real property where the seller is a ‘foreign person.’

The Act places the responsibility to withhold the 10% on the buyer of real property or his agent. If he/she fails to withhold the proper amount, he/she may be held liable for the payment of the tax plus penalties and interest.

There are several exceptions to the 10% withholding requirement. The following two are most relevant to residential real estate closings:

1. An individual buyer is acquiring real property for use as a residence and the ‘amount realized’ is $300,000 or less. The seller’s use of the property is not relevant. This exemption does not apply if the actual transferee (usually the grantee in the deed) is not an individual, even if the property is acquired for use by an individual. As proof of the exclusion from FIRPTA withholding, a buyer’s exemption affidavit setting forth the sales price and that the property is being acquired for residential use is necessary.
2. The seller is not a ‘foreign person.’ Withholding will be exempted if the transferor furnishes a Non-Foreign Status Affidavit (NFSA) which sets forth the seller’s taxpayer identification number (i.e. social security number or identification number for business entity) and contains a statement that the transferor is not a ‘foreign person.’ The NFSA can be executed by a US citizen, a US green card holder, a proper corporate officer of a foreign corporation, a general partner of a foreign partnership or fiduciary of a foreign trust or estate. A transferee is not permitted to rely upon a NFSA if he or she has actual knowledge that it is false. He or she must then comply with FIRPTA withholding, unless another exemption applies.

The forms and instructions for FIRPTA withholding may be accessed on the Internal Revenue Service’s website – www.irs.gov – by choosing form number 8288.

A lender’s policy only covers your lender and its investment in your property; it does not protect you, the owner. Only an owner’s policy protects the owner from claims to or defects on the property.