Lau's Corner & Title Tips
1099-S Proceeds from Real Estate Transactions:
The Form 1099-S, along with the Form 1096 transmittal, must be submitted to the Internal Revenue Service no later than February 28, 2022 if filing on paper or by March 31, 2022, if filing electronically.
When filing, be sure to use "official forms or forms that meet the specifications for substitute forms." While CATIC's PrepExpress software contains a Solicitation/Substitute Form 1099-S that form has NOT been approved by the IRS and therefore should NOT be used for official filing purposes.
Transactions Involving Manufactured Homes:
If your loan transaction involves a Manufactured Home, please ASSUME that the lender wants an ALTA 7.1 MH endorsement. Even if the lender doesn't ask you for one BEFORE the closing, it will likely come back AFTER the closing for one! Best practice: proceed on course from day #1 and issue the endorsement for every MH transaction!
Why do lenders wait? Who knows - but what we DO know is that the post-closing headache is a serious hassle because you would not have: (a) obtained the required Affidavit of Affixation; or (b) collected the $100 endorsement fee at the closing. Collecting the affidavit and endorsement fee at closing will save your office time, energy and money.