Lau's Corner & Title Tips
1099-S Filing Deadline:
As the end of the year approaches, Form 1099-S filing season will begin. The Form 1099-S, along with the appropriate Form 1096 transmittal, must be submitted to the Internal Revenue Service no later than March 1, 2021, if filing on paper, or by March 31, 2021, if filing electronically.
Please click here for more detailed information.
**Important Reminder** When filing IRS forms, 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.
Please note that the zip code on the 2020 IRS 1096 form is incorrect. The correct zip code is 78714-9213.
One Mortgage, Two Towns:
Gentle reminder: If you have a transaction involving one Mortgage with property located in two Towns, please record the original Mortgage in one Town and send a duplicate original to the other Town. This topic always generates questions. Here are a couple of them along with our answers.
Why send an original and duplicate original? If you send the original Mortgage to one Town and wait for the Mortgage to be returned before sending it to the second Town a document could potentially be recorded in front of that Mortgage. We all know that some Towns take months to record!
Will I need to charge twice for the loan policies? No, you will only charge once for the amount of insurance. You will issue two separate policies along with a ALTA 12-06 Aggregation Endorsement a/k/a "tie-in" endorsement.
What is a "Tie-In" Endorsement? The ALTA 12-06 Aggregation Endorsement is also known as a “tie-in” endorsement. This endorsement aggregates or ties together CATIC policies insuring multiple mortgages that all secure the same indebtedness. Aggregating the policies together eliminates the need to charge a premium for each policy. Instead, a single premium, based on the amount borrowed, can be charged. Please click here for additional information or to download the endorsement. Please call our office with any questions.