PhillyDeeds adapts to COVID-19 and Coronavirus, Virus safe Notary Public

The past two weeks have brought a new reality for everyone. PhillyDeeds has received increased volume of calls as many have questions about transferring properties and how the virus affects their current holdings and estates. Thankfully with a few changes, PhillyDeeds has been able to meet the challenges and continue with preparation, execution, notarization and recording of Deeds and Mortgages.

The biggest change is that we no longer are able to sit at a table together and pass documents around from signer to signer. Our Notary Public has to be a little more creative about keeping a social distance and minimizing touches on the documents. New policies require wearing gloves while handling documents, maintaining a social distance of at least 6 feet and keeping all work areas sanitized.

Thankfully, most of the counties we work in have accepted electronic recording for years so the recording process is already pretty virus safe. Everyone expects that PA will pass Remote Online Notary (RON) legislation creating a remote notarization process where documents can be notarized remotely through an online video portal without the Notary being present in the room. But until that day, we will continue to follow best practice for COVID-19 and Coronoavirus so our customers receive thoughtful, sensitive, professional and efficient service when obtaining Deeds needed to make the necessary changes to their Real Property interests in the current climate of uncertainty and change. Please stay safe, be kind and smile.

I'm selling my house and there's a lien on it. What does this mean?

          When people want to sell their real property, a title search may determine that a recorded lien exists against the property. A lien can be recorded for any number of reasons including for unpaid property taxes, for unpaid water bills, and for an unsatisfied mortgage. Before transferring the property to the buyer, the lien must be satisfied or a court order removing the lien must be obtained. Oftentimes, a lien is satisfied out of the seller's closing proceeds. 

How do I transfer title out of a trust?

     For both tax and personal reasons, a property may be put into a Trust. To determine when property can be transferred out of a Trust and to whom it can be transferred, look to the language of the Trust Agreement creating the Trust.

     The Trust Agreement lists the Trust's Settlor, Trustee, and Beneficiary as well as instances where it is permissible to transfer property from the Trust. The Settlor is the person that established the Trust. The Trustee is the person managing the assets in the Trust. The Beneficiary is the person intended to receive the Trust's assets. The Trustee is empowered to actually transfer property from the Trust. 

     If the property will be transferred for a reason compliant with the Trust's purpose, the Trustee must be the individual actually transferring the property. A deed is drafted and the Trustee signs on behalf of the trust. The deed is filed with the Philadelphia Recorder of Deeds along with a recording fee. In Pennsylvania, state property transfer taxes do not apply to property transferred out of a trust, however, Philadelphia property transfer taxes may still apply. If you're looking for help setting up a trust or transferring property into or out of a trust, contact Philly Deeds.

I paid off my mortgage but it wasn't recorded. What should I do?

     When a party pays off their entire mortgage, the lender is required to record a Mortgage Satisfaction within 60 days (d) or face a penalty. See 21 P.S.§ 721-6(d). An unsatisfied mortgage appears when conducting a title search. 

      If the Mortgage Satisfaction was not recorded, the title company should first contact the lending party. Be sure to have the original mortgage number, the mortgagors' names, the mortgagors' social security numbers, and proof of payment. A written mortgage satisfaction request as outlined in 21 P.S.§ 721-6 must also be submitted. Contact Philly Deeds for assistance with title work and unrecorded mortgage satisfactions.

I don't have a Will. Who gets my house when I die?

      Everyone should have a Will prepared to assure that their relatives have clear direction about the disbursement of their assets after death.  If a person dies without a Will, they are said to have died Intestate and there are laws, known as Intestate Succession, that provide the order of heirs' claims, or who gets your stuff.  

      To determine who inherits the house or Real Property of a person dying Intestate, we first look at the Deed.  If the Decedent owned the property with another person, the Deed may include Rights of Survivorship, meaning the Property passes to any surviving property owner automatically.  If there are no surviving owners, or if the property was not held with any Rights of Survivorship, the property drops into the Decedent's Estate.  Since there is no Will, any property in the Estate is inherited by the Decedent's relatives as described by the Laws of Intestate Succession.  The Laws of Intestate Succession state who gets the Decedents' assets based upon the relationship to the Decedent.  See 20 Pa. C.S. 2101 et al. Actually distributing and transferring the property requires the Register of Wills appoint a Personal Representative. 

      Needless to say, the easiest way to determine who gets your house or Real Property when you pass is by creating a Will. If you want help drafting a Will or transferring property from a person that passed with a Will or Intestate, contact Philly Deeds.