The Reduction of Corruption in Bulgarian Real Estate

2010 will begin an interesting phase for Bulgarian real estate, with property prices at the lowest they have been for some years, mortgage loans becoming increasingly accessible at lower rates and the possibility of the new Notary Act coming into effect. The Bulgarian real estate market is expected to begin its revival with the new Notary Act, enabling transparency of all real estate transactions to be processed through the State Depository Bank.
With the passing of an amendment to the Notary Act, all new transactions such as real estate and vehicle purchases will be required to pass through the State Depository Bank. Designed to end the common existence of excessive cash purchases, the declaration of all acquisitions will be a major change to the current purchasing methods from many investors.
The new Notary Act is expected to come into force from the 1st January 2010 in an effort to reduce real estate fraud, corruption and money laundering. The changes will also ensure that all necessary fees and taxes relating to the sale and purchase are paid.
The introduction of a State Depository Bank will be set up to process all real estate payments, yet with restrictions as it will not be designed to function as a regular commercial bank. The bank will not be permitted to charge interest on payments; however a fee is expected to be charged on all transactions.
Although the procedure is set to come into effect as of January 2010, many of the details are still to be confirmed. It has not yet been decided how the bank expects to charge necessary fees on transactions, yet it is suggested that a sliding scale based on the property purchase price will be adopted.
The banning of cash transactions for purchasing real estate in Bulgaria will represent a new era in the market. In an effort to reduce taxes, the actual purchase price of properties has rarely been declared at the correct amount. These efforts to reduce tax fraud still omit the possibility of buyers and sellers agreeing to lower prices for the official transactions and exchanging cash privately, yet the majority of cash transactions will be greatly reduced.
The recent increase in demands for Bulgarian properties particularly from Russian clientele is potentially relating to the cash purchasing opportunities of the current market position. While the Bulgarian real estate market is predicted to be facing the lowest point of its downturn over the past 12 months, future sustainable growth will only be possible with major changes in the operational processes.
As the market is making efforts to move away from the extensive corruption methods that previously existed. The renewed growth into a stable economic sector is still predicted to take several years, despite the low property prices and the reduction in the supply against demand ratios. Amendments in the mortgage sector have produced some optimum opportunities not seen in the Bulgarian real estate market for some years, providing additional assistance with the recuperation of the market.

How To Use Association And Organizations Membership To Get New Clients For Your Business?

Most people join organization and associations but never utilize their benefits. As a serious business owner, and we at CD&C Business & Legal Form Processing Services, LLC ("CD&C") would like to think we fall in that category, growing your business should be at the top of your priorities. Joining a business association/organization could help you get new clients/customers and possibly increase your business sales and recognition. Organization and associations offers several benefits that may enhance your business. Some of the benefits includes but are not limited to the following:
Workshops, seminars, webinars, conferences and teleconferences. These benefits allow you to network with your peers, open discussions about what is going on in your industry, what others are doing and possibly put you in contact with potential clients/customers.
Webinars and teleconferences are often offered online and by telephone where you can listen and participate in the comfort of your home. Often time you are allowed to record the teleconferences so that you can view and listen to them whenever convenient for you.
Attending organization and associations meetings keeps you informed of the changes in your industry such as new products and services, discussion of new ideas and a review on how the industry is doing in general.
Forums/Notice boards provide a place for you and your peers to meet on a regular basis and give feedback about their experiences in the your business. Forum/Notice boards sometimes offer insider and time saving tips as well as answers to questions from people who are active in your line of business.
Newsletters and industry articles, subscribing to association and organization newsletters will keep you inform on news updates. Make sure to take the time to read their newsletters and articles to keep up on the trends in your business, what your competition is doing and in most cases you will get feedback from your client/customers about what they think about the business and its services.
Always read archived newsletters and articles to learn about things that worked and didn't work in the past for your line of business. Past issues will also give an history of your business and answers to frequently asked questions.
Get involved, volunteer with your association and organizations. Join committees. You may consider contributing to their newsletters this will give you exposure for your business and you may be viewed as an expert in your industry. Joining committees will also allow you to make decisions that will affect your business and a voice in the changes to your industry.
Other benefits includes the following:
Member discount - before shopping for business supplies you should check your organization and associations and their business affiliates for discount.
Some organizations will lobby to protect your business industry in state legislature and state courts.
Take advantage of their continuous training and educational programs.
Most of them offer directory listing where you should consider advertising your services. Keep in mind that potential clients go to the organization and associations to find help.
Some organization and associations like the National Notary Association offers personal identity theft protection for their members.
If they have a logo ask permission to use it on your website and marketing materials it can create credibility for your clients/customers.
Organization and associations establish professional standards, gives your business credibility, keeps you update on legislative news & activities, recognition of your profession and update court rulings. It can also increase awareness & value in the market place.

What Every Attorney Should Know About the New Durable Power of Attorney Form

At first glance the one obvious difference between the old durable power of attorney form and the new form which became effective on September 1, 2009 is the longer length of the new form.
Beyond this obvious difference, the major distinction, in my opinion, is that the new form poses significant execution problems, especially for seniors. Additionally, the drafters appear to have had little concern for the difficulties most small and solo practitioners have in obtaining witnesses for the execution of documents. In their zeal to protect the elderly from financial abuse, the drafters may have gone overboard and created a document that is so complicated and so difficult to execute that it may end up being underutilized. In fact, at a recent seminar a prominent attorney suggested that he is strongly considering recommending to his clients that they execute and fund a revocable living trust to avoid the complexities of the new form, as well as the persistent problems associated with recognition and acceptance of powers of attorney by financial institutions and banks.
I will attempt to highlight for you what I believe are some of the most important aspects/provisions of the new form which necessitate your attention:
(a) The form must be in 12 point font;
(b) If more than one agent is designated they must act together unless the principal initials the box permitting the agents to act separately;
(c) If successor agents are designated they must act together unless the principal initials the box permitting the successor agents to act separately;
(d) The execution of the new form automatically revokes any and all prior powers of attorney executed by the principal, unless otherwise stated in the "Modifications" section of the form. This would include any banking and financial institution powers of attorney ("POA") previously executed by the principal. I would strongly recommend that you address this issue with the principal, and provide for it in the "modifications" section of the form. It should be noted that there are several bills presently pending, A.8392 and S.5589 which propose technical amendments to the new form with respect to the revocation or termination of the POA.
(e) Part F of the form, relevant to the "grant of authority" to the agent(s) with letters "A" through "P" having a separate matter assigned to each letter listed, permits the principal to either initial each box he or she wants to grant the specific power/authority or to initial letter "P" which lists the letters for the matters, identified as "A" through "O" for which authority is to be granted.
Letter "M" of the old form as you may recall previously contained a gifting provision. No gifting provisions are contained within letters "A" through "P" of the form, with the exception that letter "I" relevant to "personal and family maintenance" allows the agent to continue making gifts the principal made to individuals and charities prior to the POA being signed, in an amount not to exceed $500 per recipient in any one calendar year.
Letters "A" through "P" of the form should not be modified in any way, shape or form. I also do not believe additional lettered matters should be added in Part F beyond letter "P". For an explanation of each of the powers granted see General Obligations Law §5-1502 A through General Obligations Law §5-1502 O.
(f) Part G of the form is the section which permits the principal to state any "modifications" to the authority granted in letters "A" through "O" of part F of the form. However, it is important to note that any "modifications" stated in part G of the form should not be provisions which allow the agent(s) to make gifts of the principal's assets or change the principal's interest in property. Any gifting other than the minimal gifting provided for in letter "I" of the powers must be provided for in the Statutory Major Gifts Rider ("SMGR"). For example, in the modifications section you could provide that the execution of this POA does not revoke a prior banking or financial institution POA. You could also define the "reasonable compensation" you would like the agent to receive or perhaps limit the powers of a "monitor". This is also the section where many elder law planning techniques can be provided for, such as entering into a personal service contract. As long as the modifications do not involve gifts of the principal's assets or changes to his or her interest in property they can be provided for in Part G of the form;
(g) If the principal wishes to allow the agent to make gifts in excess of the $500 provided for in letter "I" of the powers, he or she would need to both initial Part H of the form and complete and execute the SMGR;
(h) Part I of the new POA allows the agent to appoint a "monitor". The monitor could demand accountings by the agent, records and documents. The appointment of a monitor in the POA form would allow the monitor to obtain documents from third parties. If the principal appoints one family member as agent(s) and then appoints other family members as monitors, we may be leading our clients down a slippery slope that may detrimentally impact the agent's ability to act under the POA. It may be wise to specifically delineate the monitor's authority and the extent that he or she can seek and demand records. For example, you may wish to consider limiting the demand for records to once or twice per year.
The monitor(s) are also permitted to commence a lawsuit against the agent(s). See General Obligation Law §5-1509;
(i) Part J of the form provides that the agent(s) may be reimbursed for reasonable expenses incurred on the principal's behalf. If the principal wishes to allow the agent to receive "reasonable compensation", he or she must initial the box in Part J of the form. If the principal wishes to limit or define "reasonable compensation" he or she also can do so in the Part G modification section of the POA form.
As you can see, the number of times the principal is required to place his or her initials has significantly increased from the old POA form. For many seniors this will be another hurdle to executing the new form.
(j) Part L of the form relates to the termination of the authority of the agent. Of course the POA terminates when the principal dies or becomes incapacitated if the POA is not durable. See GOL §5-1511. Under the new law as in the past, delivery of a written instrument to both the agent(s) and any third party who may have relied on the POA as to the revocation of a POA is sufficient notice of revocation. See GOL §5-1511(3);
(k) The new POA form must be dated and signed by the principal and acknowledged by the principal before a notary public;
(l) Part N of the form provides the agent with a statement of his or her legal obligations, duties and liabilities as an agent. It clearly places a significant burden and responsibility upon the agent for record keeping. In my opinion, the agent under the POA is now in a similar fiduciary position as the trustee of a trust. Part N of the form also places the attorney representing the Principal in the unenviable position of having to advise the agent that there may exist a potential conflict of interest, and that he or she may wish to seek separate legal counsel before executing the POA in Part O of the form. If the Agent does not obtain separate legal counsel, it may be necessary to obtain from him or her some written acknowledgement of the waiver of the potential conflict of interest and their decision not to retain counsel.
I believe a number of nominated agent(s) will decide that they don't want the responsibility of being an agent once they have read the notice provisions of the form and consulted with an attorney.
(m) In Part O of the form, the agent(s) must sign and have their signatures acknowledged before a notary public. Multiple agents do not need to sign at the same time and do not need to sign at the same time as the principal.
The new POA form is not valid until all of the agents have signed and had their signatures acknowledged before a notary public.
(n) The Statutory Major Gifts Rider (SMGR), see GOL §5-1514, must be executed simultaneously with the POA form by the principal. When both documents have been fully executed, they will then be read as one document.
Gifting under the SMGR will be authorized only if the principal has initialed Part H of the POA form. Clearly, the SMGR is intended to alert the principal of the gravity and importance of granting gifting powers to the agent(s), particularly if the agent(s) is to have the authority to gift to him or herself. However, when one analyzes both the execution requirements of the SMGR and the legislative provisions relevant to the powers enumerated in #'s "1" through "9" of the "modifications" section (Part B) of the SMGR, there are enough ambiguities and contradictions to devote a full day seminar to. In spite of this I have been able to gleam the following:
1. If the principal wishes to allow the agent to make gifts to others, including him or herself up to the federal annual gift tax exclusion ($13,000 for 2009) he or she will need to initial the box in Part A of the SMGR;
2. Part B of the SMGR must contain any "modifications" or expansion of the gifting powers the principal wishes to give to the agent(s), and the box in Part B must be initialed by the principal. The Part B modifications relate to any expansion or modification of the power of the agent to gift beyond the annual exclusion amount ($13,000) to third parties. The powers in Part B do not include the powers to the agent to gift to him or herself (emphasis added). That authority must be provided in Part C of the SMGR. The gifting to third parties in Part B can be unlimited or gifts of a specific amount. It appears sample modifications of the gifting powers that can be inserted in Part B can be found in §5-1514(3) of the GOL. It does not appear that GOL §-1514(3) limits the modifications that can be made, see GOL §5-1503. However, this is one area of ambiguity.
3. Part C of the SMGR has to be initialed by the principal if he or she wishes to grant the agent(s) the authority to gift to him or herself with the extent to or limitations therein stated.
This, it appears that the boxes in Part A, B and C of the SMGR will have to be initialed by the principal if he wishes to grant expanded gifting powers to the agent(s) with respect to third parties and him or herself, and that the modifications of said powers need to be clearly delineated therein.
4. The SMGR must be dated and signed by the principal with his or her signature acknowledged before a notary public (Part E of the SMGR);
5. The SMGR must be witnessed by two people who are not potential recipients of gifts under the SMGR. The witness' statement must indicate that they observed the principal sign the SMGR in their presence (Part F of SMGR); and
6. Part 6 of the SMGR must state the name and address of the SMGR's preparer.
As can be seen from the above, the new POA form and SMGR have many complexities which must be carefully studied and analyzed. I wish you and your clients the best of luck in doing so.

Presenting Loan Documents - Order of Importance

When a notary signing agent receives the loan documents for a closing, the documents are not necessarily in the order in which they should be presented to the borrower.
One might think that it doesn't matter. Just start from the top of the stack of documents and work your way down. Just get them signed. That's the objective. Right?
Not necessarily.
One of the things I do as a notary signing agent is try to put myself in the position of the borrower. When I'm presenting the documents, I try to imagine which documents I would want to see first. What would be most important to me. So I take certain documents and put them at the top of the stack. (I'll use a yellow sheet of paper as a bookmark so I know where to put it back when I send the documents back to the title company.)
The very first document that I present to the borrower is the HUD Settlement Statement. I have actually received a set of documents in which it was placed at the very bottom. It doesn't matter. It goes to the top. That document shows all of the important numbers, so the borrower shouldn't be kept in suspense. It's also a document that they are entitled to see one business day before the closing. That rarely happens. So the least the signing agent can do is show the borrower the Settlement Statement as soon as possible.
The next document that I go over is the Right to Cancel (if there is one for that particular transaction). I do this for a couple of reasons. It has been my experience that the borrower is more at ease with signing the documents if they know that they have that right. There's no point in pretending that they don't have a right to cancel by placing the document at the bottom of the stack. Don't worry. The borrower is not going to cancel the loan, just because you showed them that document. If they cancel, it's because they changed their mind and decided they didn't want the loan.
Another reason that it's one of the first documents that I go over is because, they will be getting 2 copies of it to keep. I place those copies in the envelope with the rest of the borrower's copies. That way the envelope is sealed and out of the way. I normally don't have to open it back up for the remainder of the closing. I want the flow of documents to go as smoothly as possible. The fewer the interruptions, the better.
There are some other key documents that I want to show the borrower. They are curious to know what their interest rate will be, what their payments will be, if they have an adjustable rate, a prepayment penalty, and a few other key terms of the loan. If these documents are not already at the top of the stack, then I will present the Note and Truth in Lending. I put a tab on the payment coupon because it shows the actual payment amount, when it's due, and where to send the payment.
There are several other documents that I will put a tab on. I try to anticipate what questions the borrower will have. So I want to be able to put my finger on that document. It doesn't have to get signed right away. Just let them see it, then put it back in the stack. Anything to satisfy the borrower's curiosity and give them peace of mind.

What Is Translation Certification and Notarization?

If you are having a non-commercial document (e.g. driver's license, birth certificate, military service record, university diploma and transcript) translated, you may be required to submit a certified and notarized translation. Certification and notarization provide a higher level of confidence to the recipient that the translation has been performed by a professional translator and that the translation accurately reflects the information contained in the document. In order to ensure the document is accepted, the certification and notarization process must be executed in accordance to industry best-practices. Described below are the key steps of the certification and notarization process executed by a Language Services Provider (LSP).
Step 1 - TRANSLATION: The document is translated from the source language into the target language by a professional translator. Next, the translation is edited by a separate linguist. Finally, the edited translation is proofread and/or undergoes a quality review.
Step 2 - CERTIFICATION: The LSP generates a Translation Certification of Authenticity on company letterhead. This document certifies that the translation is accurate and has been performed by a professional translator. When translating from English, the Certification must be translated into the target language as well.
Step 3 - NOTARIZATION: A notary public notarizes the Certification (English version only). However, before doing so, the notary public validates and records the LSP's identity, and the LSP signs the Certification before the notary public.
Step 4 - SEAL: The LSP applies its embossed corporate seal to all translated documents and to the Certification, which stipulates that any documents not bearing the embossed corporate seal are not covered by the Certification.

When The Borrower Is Late To The Closing

A lot of emphasis is placed on the notary signing agent being on time for the closing. So much so that I usually arrive 10 minutes early and will sit in my car, or drive around the block.
But what if the borrower is late? It really depends on the situation, and the temperament of the notary signing agent.
Recently I had a closing in which the wife was home, but her husband wasn't. The wife finally reached him on his cell phone and told him to get home right away. In a situation like that, you just try to be patient. The mission is to get the loan closed. So you want to accomplish the mission.
Hopefully you haven't booked a closing so close to it that it will cause you to be late to it. But what if it will cause you to be late to your next appointment? Fortunately I have never been in a situation where the borrower's tardiness would cause me to be late for an appointment. But if I were in that situation, I would have no choice but to apologize to the borrowers and tell them that I have another appointment. I will come back to them when I have completed it. I would have no qualms about doing that. They should have been on time.
Last Friday was an extreme example of a borrower being late. The borrower was more than an hour late. It was irresponsible of her, to say the least. What made it difficult for me was that it was in Pueblo -- 40 miles away. If it were in Colorado Springs, I would have left and come back later. But it would have been a waste of time and gas to drive back to Colorado Springs, then return to Pueblo. So I waited it out. I have some movies on my Palm and that kept me entertained. I could have also gone to a cafe and waited. She finally arrived and I proceeded with the closing. I think I did a pretty good job of maintaining my composure, because I really wanted to strangle her.
The main thing that I don't want to do when the borrower is late is leave other people in a lurch. If I left, the title company would have had to go through the trouble of finding another notary signing agent, re-sending the documents to be printed out, etc. And the HUD Settlement Statement would have to be revised, because my name was on it, including my fee. In short, it would have been a lot of extra work. You do everything you can to be a team player and put yourself in other people's position. There's no place for selfishness in this business.
Fortunately I didn't have any appointments that I would have been late for. But if I did, I would have had no choice but to leave Pueblo and return later.
One thing that I always do is make it a point to give the borrowers my cell phone number so that they can call me if there will be any problems. Things happen that are beyond our control -- both for the notary signing agent, and the borrower.

Finally, Great News For Renters

People who choose to rent do so for many reasons. For some it is a need, as they may have a career that requires them to travel a few months at a time to work in one city for a few months, then another for a few more months. For others, it is because they want the luxury of living in a house versus an apartment but they are just not ready to buy a home of their own yet. Whatever the reason, rents do not have the responsibilities of being a home owner. Yet in many cases they are being forced to deal with the responsibilities of a mortgage.
For many years, renters have dealt with immediate evictions from the homes they are renting - and not because they didn't pay their rent. Countless renters have been put out on the street at only a moment's notice because the owner of the home they rent from has not paid the mortgage and is in foreclosure. Once in foreclosure, the bank that holds the mortgage takes over ownership of the home. The new ownership changes the rules, including that of the renter. But no more.
Thanks to Title VII - Protecting Tenants at Foreclosing Act, tenants no longer have to worry about 'get out now' notices. They are now given a 90-day period to make other living arrangements. This is great news! Although this has always gone on, with the mortgage crisis in this country countless renters have found themselves out in the street with nowhere to go, scratching their heads. Many had faithfully paid their rent and had no idea an eviction was coming. Many have lost some of the rent money they paid as some of these home owners in foreclosure just pocketed the money. But those days are over.
While renters may or may not be able to get any rent money back, the fact that they will no longer be kicked out into the streets without notice is a reason for all to stand up and cheer. Many renters are full families with infants and other children. It's not just the adults affected in these cases. School children have had to change schools immediately, causing great emotional and psychological damage. The adults have had to change jobs and/or move in with and impose on other family or friends. It has been a snowball effect that has been nothing but negative.
APAT Real Estate Settlement Services, a progressive mobile notary company of signing agents, including eSigning Notaries, works hard to keep clients and consumers informed of industry news and trends. You can view of copy of Title VII - Protecting Tenants at Foreclosing Act online.

Preparing for a Reverse Mortgage Closing

All borrowers deserve the red carpet treatment. But when I'm doing a Reverse Mortgage closing, I think about my mother, and how I would like for her to be treated if she were the borrower. And so I give reverse mortgage clients what I call, the 'Gold Carpet' treatment. It's apparent in everything that I do -- even in the gold binder clips that I use.
Preparation is where it begins.
For me, these closings are special. The lenders and title companies understand that too. I received the documents and had them printed 3 days before the closing date. No 'last-minute' rush jobs here.
Peace of mind for the borrower, and treating them with dignity and respect, is a top priority. I prepare the shipping envelope so that the borrower can see how her documents will be shipped, and that the envelope is all prepared. They should never have to guess how and where her documents are going. I'm also prepared to give her a tracking number, if she wants to track the progress of the delivery.
My notary journal is the first thing that she will sign. This is where it is important to let the borrower know that all of her sensitive information is safeguarded. I cover the names of the previous signers with a piece of black plastic. This lets her know that I don't allow anyone to see any of the names and information from any of the previous signers in my journal -- including her's.
Preparing the loan documents.
I am not a loan officer. I do not work for the title company. But I feel a responsibility to be able to know what all of the documents are in her package, where they are located, and any important information that is contained in the documents.
I set the borrower's copies on the inside of the folder because, when I'm at the closing, that is one of the first things the borrower will see -- that she is getting a copy of everything that she is signing. That too is part of the peace of mind that I want to establish at the beginning of the closing.
The first document in the stack is not the HUD Settlement Statement, although that is the first document that I will present. I go over the numbers with my financial calculator -- mostly to gain a better understanding of the breakdown of the figures. Everything is accurate.
She will not be required to sign the first page, so I put an 'initial here' tag to let her know. It also establishes early on where she should initial, unless it's indicated otherwise.
The second page of the Settlement Statement has a signature line. But the name is printed very small. I place a 'sign here' tag so that she can see, not only where to sign, but how. The lender wants the signature as the name is typed on the document. I carry a magnifying glass, just in case the borrowers have trouble reading any of the information.
Right to Cancel. This is one of those 'peace of mind' documents that I put at the top. I do this for a couple of reasons. In all of the reverse mortgages that I have done, I have never had a borrower cancel one. Nevertheless, it gives them peace of mind knowing that they aren't "signing their life away" -- that they can sign every single page in the stack of loan documents, and still have the option to back out of it. Another reason that I put it near the top is so that I can put the 2 signed copies for the borrower in the envelope containing the borrower's copies. It enables me to put that envelope out of the way during the signing.
Closing Instructions. I want to read the Closing Instructions. They contain a lot of useful information.
There is another 'peace of mind' document. It's called the Personal Liability Notice. It lets the borrower know that she will never have a personal liability for payment of the debt. I highlight it with a post-it tag. All of this is designed to reassure the borrower.
I go through every single page of the document. I want to familiarize myself with every feature of the loan. I also want to spot any potential questions that I want to ask the title company. I also check the print quality.
Anything that I can do to save time, I try to do during the preparation. Every part of the preparation is focused on making the closing go as smoothly as possible.
I wear a name badge to the closings. Although the borrower is expecting me at a certain time, it's still a good idea to identify myself. It's part of the peace of mind that I want to establish.
Arriving on time. That is extremely important. I am usually at a closing 10 minutes early. I'll drive around the block or just sit in my car and wait. It's better for me to have to wait, than to have the borrower wait.
As I expected, the loan officer was there. There wasn't much that he had to do. But it was good having him there. There were some hypothetical questions the borrower had that he was able to answer. They were definitely the types of questions that a notary signing agent should not attempt to answer.
She had broken her wrist a couple of months ago, and writing made her hand cramp. I asked her if she wanted to take a break. She did. This is important that the notary signing agent is sensitive to all of the things the borrower says, all of the gestures that they make, etc. They may not come out and express any discomfort.
The closing went well. The borrower was thoroughly pleased with everything. I showed her the courier envelope and told her that I would be returning the documents that day to the title company. She thought that she would be responsible for doing that. She couldn't believe how easy everything was. All she had to do was be at home.

Real Estate in Mexico's Restricted Zone - Tips to Smooth Out the Buying Process

There are many reasons to buy real estate in Mexico, and there are many places in Mexico to buy. Some of the most attractive places to buy fall into the "Zona Restringida" or Restricted Zone.
The Restricted Zone
The Restricted Zone is comprised of a belt of land that stretches 50 kilometers from the coast and 100 kilometers from national borders wherein foreigners are not allowed to purchase property. This zone was established in Mexico's 1917 constitution after years of territory losses due to wars and political corruption and was designed to stop foreign interests from purchasing large strategic areas of land where they might be annexed or used as a point to launch invasion.
The Fideicomiso
Today the risk of invasion is low, but as a part of the national constitution, the law remains. In order to stimulate and protect foreign investment, the Mexican government established a foreign investment law which establishes legal grounds for foreign citizens to invest in highly desirable costal properties through a bank trust, or as it is called in Spanish, a "fideicomiso"(pronounced fee day co mee so). Fideicomisos are the backbone of the foreign investment law and give beneficiaries all the rights of ownership that one would normally expect from a fee simple title, such as selling, leasing, renting, improving, leaving the property in a will (all within normal legal limits, of course), etc. In fact, the trust allows for a secondary beneficiary to which all the rights of ownership would pass should the primary beneficiary pass away... without the need of a will. The Fideicomiso trust is established at the time of purchase and is good for fifty years and renewable for another fifty years beyond that. There are many who think the only way to acquire property in Mexico is through long term leases. This is simply not true. As stated earlier, the fideicomiso gives the beneficiary all the rights of ownership. Ultimately the trustee (usually a bank) holds the title to the property and has a fiduciary responsibility to act on the beneficiary's behalf in all matters related to the home, condominium, or other property held in trust.
The Notary
When purchasing property in Mexico, it is important to do so through a notary ("notario" in Spanish). In fact, if you make a purchase without the help of a notary, chances are the deal is not legally binding and you are setting yourself up for some very costly headaches. The notary not only ensures that the property is in fact sellable, and confirms the identity of the seller, they are also responsible for collecting taxes on behalf of the federal government and registering the transaction with the public registry. Closing costs in Mexico are quite high due to the taxes and fees involved with the closing process. They usually run about 5% of the purchase price. This may seem high to a lot of foreign buyers, but when you consider that annual property taxes run in the neighborhood of .25% (one quarter of one percent) of the tax value of the property, the long term cost of ownership is actually much lower than in many countries.
The Real Estate Agent
Another indispensable tool when buying real estate in Mexico is a qualified real estate agent. A good real estate agent can provide you with sound advice on where to buy, help you avoid common pitfalls and put you in touch with the right professionals for mortgage, closing, and after closing services, making the entire purchase process much smoother. Because there are currently no licensing requirements for a real estate agent in Mexico, be sure to ask if they are affiliated with any national or local real estate associations. These organizations have requirements to join and help to ensure the agent you are dealing with is a qualified professional. By following these guidelines, and with a little care, you can soon be watching the sun set over the Pacific Ocean from the balcony of your new home in Puerto Vallarta, secure in the knowledge that your investment is safe.

New Requirement for NSAs - Background Check

More and more, we, as a nation, are becoming ultra-concerned and extremely protective of personal data and personal information. Identity theft, depending on who you believe, is either running rampant in our country or not as prevalent as we have been led to believe. Still the "powers that be" appear to be pushing for getting a handle on verifying the identity of all Notary Signing Agents. Some will see this as progress, while others tend to view it as a continuation of the Big Brother Syndrome.
In any event, for those who haven't been updated, here's what is transpiring now. Some lending institutions, banks, title companies and signing agencies are requesting that some of their "employees' and "service personnel" involved in the lending process undergo background screening and compliance training. Pretty much any individual that has access to the financial information of borrowers must submit to a background check. The "kicker" here is that they also have to pay for it - more on that later! Notary Signing Agents fall right in the middle of that group. This sudden requirement is based on their loose interpretation of Gramm-Leach Bliley Financial Services Modernization Act.
While the members of CD&C Business & Legal Form Processing Services, LLC ("CD&C") have yet to be required to provide certification, there have been such requests of some of our subcribers from various lending agencies and signing companies. However quite a few questions are emerging as to the sudden rush to have the certification done and as to whether it is necessary to do it. Also, the cost of doing this certification ranges anywhere from $9 to $150. Based on our readings, the general consensus is that there needs to be a definitive ruling on whether or not the requirement was supposed to be applied to "contractors" such as NSAs.
When is it going to be a requirement for signing companies/title, escrow and various lenders to submit to background checks as required of the NSA to help prevent fraud? Maybe, if there was a requirement, it would reduce non-payment to signing agents. It would be harder for a "Mr. Joe" to open shop for a few days, close shop and re-open under a different name; all the while refusing to pay NSAs. There should be a list/system where reputable companies are listed to help the NSA weed out the bad companies. The NSA will be put on a list/system where the title companies will only hire the NSA who have had the background check and are certified. No system is perfect, but it can help to reduce the NSA's risks.
Why do NSAs have to pay for the background check? The title companies are requiring the background check, so why shouldn't they pay for it? Can the NSA purchase the background check without certification? Are they willing to pay an increased fee for advance education now that we are certified? Another expense added and we are still being underpaid or not paid at all.

5 Simple Steps to a Successful Mortgage Closing

By establishing a signature closing process, you build confidence and trust with your clients. You prove to them that they can count on you to complete their closing error free. You will become the Notary they depend on.
Here are 5 Simple Steps to follow to ensure you produce a successful mortgage closing, once you have received the order:
1. Review the order confirmation. Be thorough and make sure you have a listing of all parties who are scheduled to sign. You must also have their addresses and phone numbers.
2. Confirm and schedule. First, be sure that it is appropriate to confirm. Some companies DO NOT want you to call the borrower at all, not even in the case of there being no driver's license copy or other form of ID, incorrect cashier check amounts, original death certificate, and the like.
3. Email follow up. For each action that takes place, be sure to follow up with an email advising that is was done. This is especially important when you have received changes to the original order. You need to not only respond that the changes have been received and are being adhered to, but you need that email as a paper trail for you to prove that you were asked to do the changes in the first place.
4. Map out the closing location and have equipment ready. The next to the last thing you want to be is late. The last thing you want to be is late and without the proper equipment. Be sure to have your drive time prepared by first knowing where you are going and how long it will take you. Always give yourself extra time. Also - have your equipment ready. Be sure your printer is ready and in your vehicle and ensure all computer downloads are good and ready to go. You should always use a backup system of some sort to be able to perform these tasks as quickly as possible. You could literally get the docs in as little as an hour before the closing time - so be ready!
5. Get proper signatures and follow the confirmation instructions. Always, always, always, make sure you have proper, legal signatures everywhere they are supposed to be and then confirm with your client when done. Most of the time you will be advised of who to contact and how to confirm that the closing is complete, if any particulars occurred at the closing, and/or if the closing has been delayed and why. Also, always include the tracking number in your communications.
Following these 5 Simple Steps will help you to receive repeat business from each client you do this with and many others, as word-of-mouth will start to travel. Set yourself apart from other Notaries by being efficient, professional, thorough - and dependable.

Understanding The Loan Documents

I read an article this morning on InmanNews, written by Ilyce Glink, entitled: 'Don't make this mistake when refinancing'. She gave some very good advice in saying that, no one should ever sign their name to a legal document without understanding exactly what the documents says, and what the transaction is all about.
As a notary signing agent, I see it firsthand: borrowers are so anxious to get the signing over with, or they're so distracted, that they don't take the time to read what they're signing. And very few of them ask questions. If they do ask questions, they are usually not the right types of questions to ask. She suggested to borrowers: "If you don't understand what is on the page, then keep asking questions until you do understand." I agree.
Reading every single word, of every single document, could make for some very long closings. I, for one, am not in favor of sitting through a closing if a borrower wants to take the time to read over 100 pages of loan documents, and try to decipher the meaning of every word they don't understand.
Nevertheless, I think that borrowers should take more time in understanding what it is they are signing. Even though they have a 3-day right to cancel, in most cases, I would venture to say that, very few of them actually take the time to read every single page of their copies.
A few days ago I wrote an article: Deed of Trust: 'Does anybody really read all of this?', in which I suggested that borrowers take the time to read this very important document. I dissected parts of the Deed of Trust and pointed out things they should look for. I have also written articles on other loan documents that the borrowers will encounter.
Which brings me to notary signing agents, and the role that we can and should play. There is a very strong mandate for notary signing agents to become very knowledgeable about all of the loan documents. Borrowers are becoming more and more skeptical (and savvy) as a result of the subprime fiasco, and they will want more time to read and understand what they are signing. And, if they take the advice of Ilyce Glink, they will ask more questions.

Buy Property in Germany: A German Real Estate Guide

Buying a property in Germany has become a popular option for people all over the world particularly people from Europe. German authorities and administration have left no stone unturned to publicize the rental apartments, and houses and apartments on sale. If you have chosen to acquire a flat or an apartment in Berlin, Hamburg or anywhere in Germany and are sure they fit in your budget, it's time for you to follow the regular procedures buying a property in Germany.

1. You should start with hiring a lawyer. A lawyer who has a specialization in real estate laws in Germany can help you make a better tax saving deal. The lawyer will also work towards safeguarding your interests and rights as the owner of the property you are obtaining.
2. Contact a notary and ask him for a draft copy of the contract. Every German notary uses his own format and template for contracts; that should not worry you or discourage your plans to acquire your dream home.
3. Discuss the terms and conditions in the draft with your lawyer and work on his suggestions He will suggest changes for your benefits and in your interest. Buying a house in Germany or in any foreign land is a matter of complex issues that are sometimes governed by international laws. A lawyer can help you settle all this issue and buy your acreage or house without much hassle.
4. You should be aware of the terms and conditions of the contract. Ask your lawyer to brief you about the major points and the effects of signing it.
5. It is advisable that you give your lawyer some power of attorney. That would help you in many ways. For instance you are unavailable at the commencement of the contract before the German notary; your attorney can represent you and sign the papers as your representative. Your lawyer can also represent you before the German authorities and make vital changes in the contracts, if required.
6. You should ensure that your contract is to be presented before an English-speaking notary. If this is not possible employ the services of a professional interpreter who can interpret the proceedings to you.
7. Giving a power of attorney to your notary and lawyer/solicitor will also be helpful to represent your contract to German authorities in your absence. The authorities can ask for our contract and declaration anytime on short notice. Your lawyer can save your money and time by attending to these minor issues.
8. As per the German Real Estate Law you become the rightful owner of a real estate only after your property has been registered by the Land Registry.

The Power of Testimonials in Your Business

If marketing is the life blood of business, then testimonials are the oxygen. Testimonials are sincere satisfied customers praising your product or service to the world. They are better than any advertisement you could buy or any interview you can take part in. If you think about it, most people are pretty skeptical about businesses anyway. They are bombarded with big dollar ads all around them. Whether it's some catchy commercial on television or radio or something they've read in a magazine or newspaper. Some companies have gone on to hire famous celebrities to endorse their products because it works. But we don't have the million dollar budgets to pay celebrities to lie about our service.
Yes, Americans are on information overload. It is hard for today's customer to see true value in anything that is being offered for sale. In comes the gloating customer who has testified to anyone who will listen that your service is world class. They explain how your company has made a difference in their lives or business. In short testimonials add a kind of credibility to your business that no amount of money can buy.
I want you to appreciate the power of testimonials and how they can positively influence the bottom line of your business. As a Mobile Notary trying to attract more customers, you need every edge available to help you to succeed. I promise that if you solicit written testimonials from your current customer about how good of a job you do, it will pay handsome dividends in the end. In fact, the use of testimonials will give you an unfair advantage over you competition, because they don't understand its power.
Once you have some testimonials, you then include reproductions of them in every piece of marketing material that leaves your desk. Whether it is a simple letter or post card to your potential customers, show them what others are saying about you. You should also put them on your website if you have one and you should. Make your testimonials easy to verify. Get permission from those customers who have written testimonial for you to include contact information for them. This adds more credibility because your potential customers may want to check to see if they are real.
Our customers are just like us. They want great service and we want to provide that. Without the use of testimonials in your marketing materials "never the twain shall meet!"

About the author...
Kevin Cobb is a fulltime Licensed Maryland Notary and Title Producer. In the last two years he has conducted more than 500 signings. He soon developed his own special way of marketing and increased his income dramatically. Kevin tells all and shares his inside secrets in his books and home study course:

Investing In East Europe's Romania- Law and Order

For investors who are trying to test and enter the East European Market, the last two countries admitted in European Union at first of January 2007, Romania and Bulgaria, are a really New El D'orado. The Real Estate Transactions have grown here in last 17 years, after fall of the communism. But now, the approaching of Romanian Property Laws to those of European Union, are making safer this kind of transactions. Never would happen in Romania the problems that buyers were forced to endure in Mexico and other Countries of Central or South America, where properties were lost because of an unsafe System of Property Law.
Romania has implemented a National Office for Land Survey and The Office of Land Roll Book that are fully working in the Northern Provinces Transylvania and West Plain but in Southern Provinces Muntenia, Oltenia and Dobrudja only 25% of properties are written in Land Roll Book. For properties that are for sale, an Urgent Methodology is adopted to write these Properties in Land Roll Book. Some steps are to be done in the selling process of a Property, as follows:

1. Every Sell-Purchase Agreement must be signed in Front of a Romanian Public Notary, who Autentificates the Agreement after the price is paid.
2. Before signing the Agreement, Romanian Public Notary must to ask and receive an extras over the Land Roll Book that certifies the Owner of the Property and the absence of duties for the Property.
3. The seller must have a Recent Certificate from the Office of Taxes that must be paid until the Day of selling.
4. The transfer of money is done through an order of ayment from a bank to another or between the accounts in the same Bank to avoid Transfer Tax.
5. In the day of payment, the property must be empty and the seller to give the keys to the buyer. An Inventory must be written for the objects that eventually remain between the walls of property.
6. If one of the two persons: seller or buyer are not able to come to the Notary in the day of signing the Sell-Purchase Agreement, he(her) can be represented by other person using a Power of Attorney. For persons coming from countries that have not signed The Hague Convention in 1956, is needed an Apostil, too (persons coming from United States, for example).
7. After the signing of the agreement, the Public Notary and the Land Roll Book Office have to replace the new owner in the rights on the property, his name being written on the Land Roll Book of the Property.
8. The New Owner has to declare his new Property at the Tax Office in max 30 Days.
9. The foreigners Private Persons are allowed to buy any property in Romania, except Land for Constructions or for Farming. The exception will fall in 2012 for Construction Plots and in 2015 for Farmland.
10. Foreign Companies or Joint Ventures are already allowed to buy Plots and Farms and all kinds of Property in Romania.
11. Tax for Selling is 3% for properties bought in the last 3 years and 2% for properties kept more than 3 years and is paid by seller. The Public Notary's fee (Honorarium), is 2% and is paid by buyer.