A post-closing update ensures that all relevant documents were properly executed and recorded. Additionally, the updater ensures that no liens were recorded during the GAP period that could affect title.
Despite the best efforts of the settlement agent and the town clerk, things can “go wrong”. If caught early in the process, title defects and problems can be cured before they ripen into title claims. If not remedied, defective documents re-surface at the time of your client’s sale or in foreclosure and bankruptcy cases.
Common problems that are routinely discovered by the CATIC update team include: defectively executed or acknowledged documents; unrecorded powers of attorney utilized to execute a deed or mortgage; improperly recorded documents (e.g. signature page missing); documents that never made it to the land records in the first place; documents recorded in the wrong town; documents recorded out of sequence such as a first mortgage and second mortgage causing priority problems; liens recorded during the gap period; missing Schedule A property descriptions; and many, many more.
The update will be completed within approximately 45 days after the update order is placed by your office. In some cases, the update will be completed prior to 45 days if all of the Requirements have been met and there are no outstanding Requirements (e.g. undischarged Mortgage).
The discharge tracking service associated with an update order is to track the seller or borrower’s current mortgage payoffs and discharges. If you order a post-closing title update and a discharge/s, the Vermont team will follow through until a valid mortgage discharge has been recorded in the land records and we will report it to you. That’s right – no matter HOW long it takes, we will get that discharge for you!! This service is handled by CATICTrac.
You can pick and choose which files you send us. If the town clerk is across the street and the mortgage discharge will come from your favorite bank down the street perhaps you will keep the file. As for the Discharge Tracking Service, some attorneys use the service for all payoffs and others use it where the discharging lender is known to be slow, unreliable or out-of-state.
Most attorneys pass the costs along to the appropriate party: seller for seller’s mortgage(s); borrower for the post-closing update and borrower’s mortgage(s)). However, even if you are not able to pass the cost along, consider that a $40.00 update fee is more efficient and cost-effective than method than doing it “in-house.” As importantly, resolving ALL mortgage discharge problems for $40 is a no-brainer.
No. The service is for current payoffs only. However, CATIC does offer a title curative service for older discharges. See CATICTrac (CATIC’s aged lien service) or call CATICTrac at (800) 842-2216.
The service can clear mortgages, judgments, UCC financing statements, mechanic’s liens, tax liens, sewer liens, water liens and child support liens.
Yes. The fee for discharge tracking service alone is $35 for the first mortgage and $20 for every mortgage after that. See CATICTrac (CATIC’s aged lien service) or call CATICTrac at (800) 842-2216.
Unfortunately, we are not able to perform post-closing title updates in the following municipalities:
Essex County: Averill, Avery’s Gore, Bloomfield, Brighton, Brunswick, East Haven, Ferdinand, Granby, Guidhall, Island Pond, Lemington, Lewis, Lunenberg, Norton, Victory, Warner’s Grant
Franklin County: Bakersfield, Enosburg, Richford
Lamoille County: Eden, Waterville, Cambridge
Orange County: Vershire
Washington County: Woodbury
If you have questions, please call the CATIC Vermont office and we’ll be happy to offer guidance to help make your office more efficient and more profitable.
