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Understanding Corrective Deeds: Correcting Errors in Property Documents

Understanding Corrective Deeds: Correcting Errors in Property Documents

Understanding Corrective Deeds: Correcting Errors in Property Documents

Introduction: In real estate transactions, accuracy and completeness in property documents are crucial. However, mistakes can sometimes occur in deeds, leading to inaccuracies or legal issues. In such cases, corrective deeds are used to rectify errors and ensure the integrity of property records. In this blog post, we’ll delve into the concept of corrective deeds, their purpose, standard errors, and the process of issuing them.

What is a Corrective Deed? A corrective deed, or a deed of correction, is a legal document used to amend errors or omissions in a previously recorded deed. It clarifies and updates the information in the original deed, ensuring that the property records accurately reflect the intentions of the parties involved.

Purpose of Corrective Deeds: The primary purpose of a corrective deed is to rectify errors or deficiencies in a recorded deed, such as:

  1. Typographical Errors: Correcting the deed’s misspellings, incorrect names, or typographical errors.
  2. Legal Description Errors: Updating inaccuracies or discrepancies in the property’s legal description, such as incorrect lot numbers or boundary lines.
  3. Execution Errors: Addressing issues related to the execution of the deed, such as missing signatures or notary acknowledgments.
  4. Ownership Errors: This involves updating information related to property ownership, such as adding or removing co-owners or correcting title vesting.
  5. Clerical Errors: Rectifying administrative mistakes made during the preparation or recording of the deed.

Common Errors Requiring Corrective Deeds: Some common errors that may necessitate a corrective deed include:

  1. Misspelled names or incorrect identification of parties involved.
  2. Errors in the legal description of the property, including incorrect lot numbers or boundary lines.
  3. Failure to include necessary signatures or notary acknowledgments.
  4. Inaccurate or incomplete information regarding property ownership or title vesting.
  5. Incorrect recording or indexing of the deed by the county recorder’s office.

Process of Issuing Corrective Deeds: Issuing a corrective deed typically involves the following steps:

  1. Identify the Error: Determine the nature and extent of the error or omission in the original deed.
  2. Prepare the Corrective Deed: Draft a corrective deed that accurately reflects the intended corrections or updates to the original deed.
  3. Execute the Corrective Deed: Have all necessary parties sign the corrective deed in the presence of a notary public.
  4. Record the Corrective Deed: Submit the executed corrective deed to the county recorder’s office for recording in the official property records.

Conclusion: Corrective deeds play a crucial role in maintaining the accuracy and integrity of property records. Corrective deeds help prevent potential disputes and ensure that property ownership rights are adequately documented by promptly addressing errors or omissions in recorded deeds. Understanding the purpose, standard errors, and process of issuing corrective deeds is essential for anyone involved in real estate transactions to safeguard their property interests.

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This is to give you notice that Sonic Loans Inc., Sonic Title Agency LLC, and Sonic Realty LLC have a business relationship. The nature of the relationship between the Referring Party and the provider(s), including percentage of ownership interest, if applicable, is: Sonic Loans Inc., Sonic Title Agency LLC, and Sonic Realty LLC are all 100% owned by the same party. Because of this relationship, this referral may provide any of the above parties with financial or other benefit.
A. Set forth below is the estimated charge or range of charges for the settlement services listed. You are NOT required to use the listed provider(s) as a condition for settlement of your loan on, or purchase, sale, or refinance of, the subject property.
THERE ARE FREQUENTLY OTHER SETTLEMENT SERVICE PROVIDERS AVAILABLE WITH SIMILAR SERVICES. YOU ARE FREE TO SHOP AROUND TO DETERMINE THAT YOU ARE RECEIVING THE BEST SERVICES AND THE BEST RATE FOR THESE SERVICES.
Provider and Settlement Service Charge or Range of Charges
Sonic Realty LLC 1%-6% of purchase price
Sonic Title Agency, LLC Title Insurance Policy: $950 - $1706 on a $250,000 property. (Rates vary and are dependent on the state, selling price, and loan amount on the property.)
Title Search Fee: $250 - $325 (where applicable)
Closing Fee: $450 - $650
Sonic Loans Inc.

This company provides various real estate mortgage loan origination activities either as a third-party originator or a mortgage broker, including loan pre-qualification, competitive bid process (when providing third-party origination services), loan origination, loan pre-approval, loan structuring, processing, and closing.

Loan Origination Charge: 0-3 % of loan amount (may include 3rd party fees)
Loan Discount Fee/points: 0.5%-6% of loan amount.
Application/Processing Fee: $0.00 - $875.00
Flood and tax service: $0.00 - $95.00
Underwriting Fee: $0.00 - $1295.00
Document Review Fee: $0.00 - $400.00
Appraisal Fee: $0.00 - $850.00
Credit Report Fee: $0.00 - $135.00

Actual charges may vary according to the particular lender selected, the particular services provided, and the underlying transaction, borrower selections, etc. Some or all of these fees may be charged by third parties and/or the Member Mortgage Lender/Mortgage Broker. The Member Lenders and Mortgage Brokers have agreed to pay a fee ranging from 0.5% to 2.75% of the loan amount to Sonic Loans in connection with a range of loan origination services provided by Sonic Loans to the Member Lender/Mortgage Broker. The fees are paid either directly to Sonic Loans by the Member Lender/Mortgage Broker or billed directly to you at closing.
B. Set forth below is the estimated charge or range of charges for the settlement services of an attorney, credit reportingagency, or real estate appraiser that we, as your lender, will require you to use, as a condition of your loan on this property, to represent our interests in the transaction.
Sonic Loans Inc. provides mortgage lender/broker services. Sonic Realty LLC provides real estate brokerage services. Sonic Title Agency LLC provides title insurance and settlement services.

Provider and Settlement Service Charge or Range of Charges
Appraisal Fee $0-$800
Credit Report Fee $63-$125
 Actual charges may vary depending on the lender and loan program selected which can be found on your loan estimate.

ACKNOWLEDGMENT

I/we have read this disclosure form and understand that Sonic Loans Inc., Sonic Realty, LLC, or Sonic Title Agency LLC are referring me/us to purchase the above-described settlement service(s) and may receive a financial or other benefit as the result of this referral.