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Backman Title

Utah Title and Escrow Settlement Professionals

COVID-19 RESPONSE

Frequently Asked Questions

We are OPEN for Business!

  • What if a Shelter in Place order is given?
    The Federal Government, CDC, and the State of Utah have deemed Title Agencies in the Financial Services industry as an “Essential Service” that will remain open if that happens.  We will continue to close, record and fund files during this time even with a “stay at home” order. 
  • What happens if the county recorder’s office closes? 
    For now, county recorders are still accepting electronic recordings, however, if a county recorder office closes, our national underwriters have committed to insure these transactions with GAP coverage when certain procedures are met.  Gap coverage insures the “gap” between the disbursement of funds and the ultimate recording of documents when the county recorder’s office re-opens.  Gap coverage is available for owner’s and lender’s policies. 
  • How often is a closing room cleaned?
    Backman is committed to the safety and health of our clients and employees!  Backman Title closing rooms are disinfected and sanitized before and after each settlement.  We also follow social distancing protocols which means ONLY necessary signers should attend settlement/closing. 
  • Can an agent or lender have access to a closing without being there?
    Yes, we use technology (Video Conferencing) so agents, lenders and family members can take part in the settlement and closing. 
Backman Title is open for Business

COVID-19 Best Practices

Backman Title follows the recommendations from the CDC and Utah Department of Health to help protect our clients, the public, and our staff, to help reduce the spread of COVID-19. 

  • Some team members are working remotely. We also follow social distancing guidelines by avoiding close contact with others (health care experts recommend six feet).
  • Screening our team members and guests as they arrive to our office, including temperature checks.
  • Requiring mask use for team members and guests when distancing isn’t possible
  • Frequent hand washing with soap and water for at least 20 seconds, especially after going to the bathroom, before you eat, and after blowing your nose, coughing or sneezing.
  • Avoid touching your eyes, nose and mouth & covering your mouth or nose when you cough or sneeze.
  • Making hand sanitizer and tissues available for team members and guests.

Backman Title will continue to monitor recommendations and update policies and
procedures as necessary. 

Utah S.B. 13 2019 (Income Tax Domicile Amendments) passed during the 2019 legislative session and a requirement for declaring property as a primary residence begins in 2020.

Take a look at the bill here: https://le.utah.gov/~2019/bills/static/SB0013.html

Currently, property taxes for residential properties are 45% lower than an investment property. The new law requires an owner of real property to file a primary residence declaration with their county assessor before May 1 in order to qualify for the dramatically lower residential property tax rate.

Additionally, any time a deed is recorded that changes the vested owner of real property, a new primary residential declaration must be filed. This is true even if individuals are deeding from themselves to a family trust for estate planning purposes.

The process from filing a residential tax declaration varies from county to county.

Let’s look at a real life example of how this change could change your property tax bill next November. In my neighborhood if the County Assessor assumes the market value of my primary residence as $375,000.00, and I do not file the proper residence declaration, the amount of my property tax bill for 2020 will increase from $2,628.04 to $4,778.25.

That’s a $2,150.21 increase in the property tax bill.

The legislature gave quite a bit of freedom to county assessors about how to handle the residential property tax declaration filing. For now, each county assessor seems to be unique in how they will handle this new requirement. Some counties will require harder proof of residency requirements including: updated driver’s licenses, updated voting registration, or proof of the address used on federal or state income taxes. Other counties may require less information for their proof of residency.

The differences in forms and the variety of proof of residency requirements between county assessors make it impossible for a title company to file the primary residence declaration as part of the services provided during settlement and closing. A title company is not responsible for a property owner’s higher tax bill because of the failure to file proper forms with the assessor.

It is up to the property owner to make the effort to file their own primary residence declaration.

This change in the property tax amount may also affect pro-rations, settlement statements & closing disclosures. There may be new lender requirements and REPC/Addenda additions and changes forthcoming as our industry learns about how to best help buyers & borrowers handle these requirements.

For now, Backman Title has added notices about these new requirements to several documents that are signed or given to the buyer/borrower at settlement. These documents include our Escrow General Provisions, utility lists, post-closing checklists, and accommodation recording instructions. These new requirements are also a topic of conversation during settlement.

Title, Real Estate, and lending professionals can provide a great service for our clients by educating them about the new primary residential declaration law and requirements.

Be sure to check the tax amount when working with a net sheet like our handy net calculator: https://backmantitle.com/seller-net-sheet/

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