There really is a reason!
As Notary Signing Agents, conducting mobile loan closings we often encounter The Statement of Information form, which is often found in the loan packages we print and courier to the borrowers for signatures. This form sparks up conversations which borrowers look to us for answers regarding their sensitive information & its purpose. We (Notaries) are left to answer questions related to the document to which we provide as much information as possible to put the customers at ease. Although our main role as Certified Notary Signing Agents is to Identify borrowers, witness their signatures & notarize affidavits, Deeds & Mortgages Whether it be a refi, sale, or purchase property, borrowers often expect us to know what they are signing & the purpose of certain documents, the Statement of Information is one of them. We (notaries) try to provide as much information as possible on the forms but sometimes it can be a little tricky.
I provide the following information regarding this form to my borrowers and point them to the right direction to where more information can be found ie *California Land Title Association their Loan, Title, or Escrow officer.
When a title company seeks to uncover matters affecting title to real property a completed Statement of Information is required for the title company to use to distinguish the buyers and sellers of real property from other similar names, in fact the new CAR Residential purchase agreement calls for a Statement of Information to be provided by the seller to the escrow holder within 7 days of acceptance. To help better understand this sensitive subject, the California Land Title Association has answered some of the questions most commonly asked about the Statement of Information. In searching titles to real property, judgments, bankruptcies, divorces, income-tax liens against persons with similar names may be encountered. These matters cloud the title to the property unless eliminated by information showing that the parties in the real-estate transaction are not the person(s) involved in these difficulties, considering California’s community property laws, something about the spouse, too, if married -- so that matters not directly affecting the borrowers may promptly be ignored, as all matters not directly affecting the property being searched.
What is a Statement of Information & What does it do?
A Statement of Information is a form routinely requested from the buyer, seller, and or borrower in a transaction where title insurance is sought. The completed form provides the title company with information needed to adequately examine documents to disregard matters which do not affect the property to be insured, matters which apply to some other person. Every day documents affecting real property – liens, court decrees, bankruptcies are recorded whenever a title company uncovers a recorded document in which the name is the same or like that of the buyer, seller or borrower in a title transaction, the company must ask, does this document affect the parties we are insuring? Because, if does it affects title to the property and would therefore, be listed as an exception from coverage under the title policy
A properly completed Statement of Information will allow the title company to differentiate between parties with the same or similar names when searching, documents recorded by name. This protects all parties involved and allows the title company to competently carry out its duties without unnecessary delay.
What types of information are requested in a Statement of Information?
The information requested may include, but is not limited to full name(s) last 4 digits of your Social Security number; driver’s license number; year of birth; date of marriage if applicable; any previous marriage(s) if applicable; residence(s) for the past 10 years and place(s) of employment for the past 10 years
What happens if a buyer, seller, or borrower fails to provide the requested statement of information?
At best failure to provide the requested Statement of Information will hinder the search and examination capabilities of the title company causing delay in the production of the title policy. At worst failure to provide the information requested could delay the close of escrow. Without a Statement of Information, it would be necessary for the title company to list exceptions from coverage judgments, liens or other matters which may affect the property to be insurance. Such exceptions would be unacceptable to most lenders whose interest must also be insured.
This information is meant for general information only and is not to be construed as legal, tax or investment advice. The information has been gathered from sources believed to be reliable. Situations may vary, therefore professional should be consulted.