Question No. 1: What should the Buyer bring to settlement?

Answer: Photo I.D.

"Good Funds"- this means: (a) a bank cashier's check or treasurer's check; (b) a certified check; (c) wired funds; or (d) a trust account check from a Delaware attorney for your proceeds from the sale of a house you are selling.

Proof of homeowner's insurance, and an invoice or paid receipt for the first year's premium.

Question No. 2: How long will settlement take?

Answer: Settlement should take approximately 1 hour, assuming: (a) the documents from the lender have been received in time; (b) everyone who is attending settlement arrives in the attorney's office on time; and (c) the funds from the lender are received in time for settlement.

Question No. 3: How should I take title (own) my property?

Answer: If you're married and you're buying your home as husband and wife, the most common way to take title is as tenants by the entirety. If you're not married but you're buying your home with another individual, you can take title as tenants in common, or as joint tenants with right of survivorship.

"Tenants by the entirety"- if there's a debt that only 1 of the spouses owes, the house is protected from being used to pay that debt. Also, if one spouse dies, the survivor automatically becomes the sole owner of the property.

"Tenants in common"- if one owner dies, the share owned by the
deceased person does not automatically go to the surviving owner. Instead, it is the deceased owner's Will that determines who the deceased owner's interest in the house goes to. If there is no Will, the laws of Delaware determine what happens to the deceased person's ownership interest.

"Joint tenants with right of survivorship"- If one owner dies, the share owned by the deceased person automatically goes to the surviving owner.

Question No. 4: Is a survey required?

Answer: A survey is ordered by your attorney, and it helps show whether there are any boundary line disputes, and whether fences, decks, sheds, pools, etc. are properly located on the property and adjacent properties. A survey is different from the appraisal, which determines the value of your house for your lender's benefit.

There are 2 options when it comes to the survey. You can have a mortgage inspection plan, or you can have a survey with permanent corner markers. The mortgage inspection plan is all that your lender requires. It doesn't provide accurate measurements, there's disclaimer language on the plan indicating that you can't rely on it, and it can't be used to put in a fence, pool, etc. A survey with staking is more expensive than a mortgage inspection plan, but the survey is accurate, and you can use it to erect a fence, install a pool, etc.

Question No. 5: What about property taxes?

Answer: The tax year for county and school taxes begins July 1 and ends June 30. These taxes will be dealt with on the settlement sheet. The seller is responsible for the taxes from July 1 to the date of settlement, and the buyer is responsible for the taxes from the date of the settlement until June 30.

Question No. 6: Do I need owner's title insurance?

Answer: The answer to this question is absolutely yes. Before settlement, your attorney makes sure that an extensive search of the title is performed to determine the existence of possible rights, liens, claims, or encumbrances that affect the property you wish to buy. Even the most comprehensive title search made by the most highly skilled individual cannot protect you against all title defects and claims. We generally refer to these as "hidden defects." The most common examples are fraud, forged signatures, missing heirs, alteration of documents, secret marital status, and incapacity of parties. Another hidden defect are laws that permit claims and liens to be filed after settlement which relate back in time even though they didn't exist at the time of settlement.

A title defect is anything that happened in the entire history of the real estate you are buying which adversely affects your rights. If your title to the property is found to be defective and you don't have owner's title insurance, you could lose the house and the land, still have to make your monthly mortgage payments and end up with nothing.

The title insurance policy you will receive will provide you with coverage from the date of the policy back in time to the origin of title. If any defect is raised, the title company will defend the title for you for as long as you or your heirs own the property.

Question No. 7: My lender is not requiring a termite inspection or report, and I'm being told it's not necessary. Should I get one anyway?

Answer: The agreement of sale between you and the seller gives you the right to have the house inspected for termite infestation and/or damage. In fact, your agreement of sale allows you to get out of the deal and get back your deposit money if infestation or damage is found and the seller refuses to correct the problem.

You are the one who will be living in this house. The fact that your mortgage company is not requiring a termite inspection has nothing to do with whether you should get one. Here's the bottom line. If you don't get your house inspected for termites, you could always pay for termite treatment if you find termites after you move in. It's not cheap, but it's reasonable. BUT - what if after you move in you find structural damage from termite infestation? That could cost a fortune to remedy. To avoid taking this risk, get a termite inspection. It's very inexpensive.