Delaware Real Estate Practices

A licensed Delaware attorney must conduct the settlement and must make the disbursements. The attorney must also examine the title.

The rate manual is silent as to cancellation fees.

Yes, an attorney that has paid a mortgage off, has the authority to release and satisfy such mortgage pursuant to 25 Del. C. §2120 Authorization to satisfy mortgage.

It is customary to convey via Special Warranty Deed. Deeds must have operative words “grant and convey”.

Any deed that fails to contain the words “grant and convey” is not insurable.

Yes. Rule 1.15 (k) A lawyer shall not disburse fiduciary funds from a bank account unless the funds deposited in the lawyer’s fiduciary account to be disbursed, or the funds which are in the lawyer’s unrestricted possession and control and are or will be timely deposited, are good funds as hereinafter defined. "Good funds" shall mean:

(1) cash;

(2) electronic fund ("wire") transfer;

(3) certified check;

(4) bank cashier's check or treasurer's check;

(5) U.S. Treasury or State of Delaware Treasury check;

(6) Check drawn on a separate trust or escrow account of an attorney engaged in the private practice of law in the State of Delaware held in a fiduciary capacity, including his or her client's funds;

(7) Check of an insurance company that is authorized by the Insurance Commissioner of Delaware to transact insurance business in Delaware;

(8) Check in an amount no greater than $ 10,000.00;

(9) Check greater than $ 10,000.00, which has been actually and finally collected and may be drawn against under federal or state banking regulations then in effect;

(10) Check drawn on an escrow account of a real estate broker licensed by the state of Delaware up to the limit of guarantee provided per transaction by statute.

No, a non-titled spouse or domestic partner does not have to join in the deed. However, any individual who is vested in title on the Deed  must also execute the mortgage or security instrument.

No.

(a) Owner’s Policy? Purchaser

(b) Transfer Tax & Recording Fee? Transfer Tax is customarily split equally between Buyer and Seller. Recording Fees are paid by the purchaser for the deed and mortgage, and the seller pays for any satisfaction of mortgage.

(c)  Survey Charges? Purchaser

(d) Closing/Settlement Fees? Purchaser, unless Seller is represented by counsel, then the Seller shall pay any fees associated with that representation.

Must be licensed with the Department of Insurance to execute commitment and policy. Do not have to be an attorney to get licensed and there are no residency requirements.

New Castle County – Tax Year is July 1- June 30 and taxes are due by September 30th, and become delinquent on October 1st.

Kent County – Tax Year is June 1 – May 31 and taxes are due by September 30th, and become delinquent on October 1st.

Sussex County – Tax Year is July 1-June 30 and taxes are due by September 30th, and become delinquent on October 1st.

Please consult with a local underwriter for information relating to real estate taxes on the subject property.

There is not a minimum search period required by statute or marketable record title act; however, the standard of practice is a 60-year search.

Yes, it is both permissible and customary to charge a separate search and examination fee. Delaware is not all inclusive.

The Customary form is a Mortgage

Who can be listed as the trustee on the Deed of Trust (e.g., residency and/or natural person requirements, etc.)? Can an underwriter or title agent be designated as the trustee, and, if so, is it customary?

 No.

Standard Exceptions

1. Defects, liens, encumbrances, adverse claims or other matters, if any created, first appearing in the public records or attaching subsequent to the effective date hereof but prior to the date the proposed insured acquires for value of record the estate or interest or mortgage thereon covered by this Commitment.
2. Rights or claims of parties in possession not shown by the public records.
3. Encroachments, overlaps, boundary line disputes, or other matters which would be disclosed by an accurate survey and inspection of the premises.
4. Easement or claims of easement, not shown by the public records.
5. Any lien, or right to a lien, for services, labor, or material heretofore or hereafter furnished, imposed by law and nor shown by the public records.
6. Taxes or special assessments which are not shown as existing liens by the public records.

Acreage or accuracy of area content not insured. Standard Requirements

1. Payment to or for the account of the grantors or mortgagors of the full consideration for the estate or interest to be insured.

2. Proper instrument(s) creating the estate or interest to be insured must be executed and duly filed for record, to-wit.

a. DEED FROM: DEED TO:

b. MORTGAGE FROM: MORTGAGE TO:

3. Copy of Completed Settlement Statement to be filed with this Company.

4. Payment of all taxes, charges, assessments, levied and assessed against subject premises, which are due and payable.

5. Satisfactory evidence should be had that improvements and/or repairs or alterations thereto are completed; that contractor, subcontractors, labor and materialmen are all paid.

6. Taxes and Assessments

Tax ID #

None.

Dictated by the Rating Manual of the Delaware Title Rating Bureau.

Yes, there is transfer tax in Delaware. It is four (4)% throughout the state and does not vary.

No.

Form 5403 (http://www.revenue.delaware.gov/services/current_bt/5403.pdf) must accompany every deed to be recorded in Delaware. Every non-resident individual, pass through entity or corporation who makes, executes, delivers, accepts, or presents for recording

any document, except those exemptions defined or described in Sections 1126, 1606 and 1909 of Title 30, or in whose behalf any document is made, executed, delivered, accepted or presented for recording, shall be subject to pay for and in respect to the transaction or any part thereof, a Real Estate Tax at the rate of six and 95/100 percent (6.95%) of the value of the gain on the property sold as represented by such document, which tax shall be payable at the time of making, execution, delivery, acceptance or presenting of such document for recording. Said tax is to be paid by the Transferor(s)/Seller(s).

No; however, it is customary for both documents to be witnessed.