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Title Insurance Explained - Is It Worth It? - YouTube
Channel: Kristina Smallhorn
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you know it really flips spam is why
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would anybody get a house and not get
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owners title insurance I'm always
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curious about this so what is title
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insurance anyways well we're about to
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find out it's take a tip Tuesday hi my
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name is Christina small horn your real
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estate whisperer and this week we're
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talking to Scott Carmouche he's a title
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attorney here in the Baton Rouge area
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and we're going to be giving you
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information about why title insurance
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owners title insurance is super
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important there is a difference between
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owners title insurance and lenders tire
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insurance and some people believe that
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title insurance is kind of like a scam
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and he's going to explain to you why
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it's not
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I'm Scott / moosh with Corbeau spider
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I've been an attorney in Louisiana for
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15 years I've been in property law
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almost exclusively for those 15 years an
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entitled in residential title for
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approximately 4 years all in gas title
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for the for the 15 years now Scott can
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you tell us the swinging difference
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between owners title policy and lenders
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title policy
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well this like any kind of insurance
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that you're gonna get you want the
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ability to protect whatever it is that
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you're going to be purchasing in this
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case it would be a home or property at
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any time you're financed in a home
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whenever there's a lender involved
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you're required to get title insurance
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but it's a lenders title policy that
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protects the lender lenders are trying
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to give the best deal they can so that
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you don't go to somebody else so a
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lender wouldn't require you to spend the
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amount for the title insurance if you
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didn't need it or they didn't need the
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protection form with lenders title
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insurance but it covers the lender and
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it's the value of whatever the loan is
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as the loan goes down the value of that
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insurance goes down whenever the loans
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paid off that insurance doesn't exist
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anymore if someone was playing along
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with the idea of getting title insurance
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how much would a owners policy cost them
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and how much would it actually cover for
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their home well
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whenever you get an owners policy and
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owners policies optional and the state
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of before the lender requiring to get up
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some policy if you get both of them
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together a lender and an owners policy
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you get what's called a simultaneous
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policy and generally that's only about a
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hundred dollars difference between those
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two with the owners policy it covers the
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purchase price of the home and it is a
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one-time fee that lasts for as long as
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you own the home or your heirs on the
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same property it's important to
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understand that title insurance is
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controlled by the Insurance Commissioner
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of Louisiana the insurance of
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Commissioner of Louisiana sets the title
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fee's all title companies have to charge
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the exact same amount for title
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insurance so what you need to look for
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or miscellaneous fees or fees that
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aren't revealed to you until the closing
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table for basic title insurance it has
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to be the same price if you were to get
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a quote from two different title
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companies on the actual insurance itself
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and it's different it's possible that
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one of them was offering you or quoting
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you a specific upgrade entitled title
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insurance everybody loves a good story
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can you give us one example that's
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happened to you why title insurance was
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super important sweating a real-life
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story that I think everybody in the
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Baton Rouge area is aware of is the
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spinosum property called rose an offer
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Perkins Road and in that instance there
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was a serpent - that had existed for
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many many years that people didn't think
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about or worry about after they
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developed the property and built some
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very fine homes on it the persons that
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had that servitude of the right to the
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servitude came and sued and they were
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going to have to tear down those houses
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to utilize the servitude if those people
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that purchased the new houses didn't
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have title insurance they would have to
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foot the bill for the attorney or any
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losses if they had to
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the house with title insurance it would
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pay for your legal representation and
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any losses in case you lost your
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ownership can someone get title
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insurance after they purchased a
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property like what if you inherited
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property can you still get title
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insurance even though that property's
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been in your family for years just like
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most insurances you can obtain that
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insurance at any time what would be
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required is that that you would have to
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get a titled opinion done on it to make
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sure that you did have good title and
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then they would coach you a price for
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the insurance but you could purchase
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title insurance after the fact when you
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obtain the property through inheritance
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or any other way title insurance is not
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for those issues or encumbrances we call
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or clouds on title that title attorney
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can find it's for those issues that you
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can't find and those issues could
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include fraud where somebody represents
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that they're a party when they're not
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affording the husband and wife bought
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property and then they sold it and then
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later on that that person got divorced
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married a new wife and then when they
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went when they came to sell the property
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they said that this new wife was the old
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wife and then years down the road the
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old wife comes back and says wait a
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second I didn't sign that that cash sale
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and I want my money for my rights is
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there a cap on how much an insurance
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company will pay for your case when it
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comes to title insurance well just like
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all insurances they do have some
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instances where you have a certain
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amount that you're insuring in the case
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of title insurance it goes by the
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purchase price so whatever you're
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originally purchased the house for
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that's usually the amount that that you
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set as what you want however if you
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purchase a $250,000 house but yet you
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want a million dollars worth of title
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insurance you could ask for that but you
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have to remember that you're going to be
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paying a lot more for something that you
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might not have
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right stick why do you think it's not a
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requirement for people to get a survey
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on their property when they're buying a
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house I know that that's something you
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guys look at a title search but I want
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to know why it's just not a requirement
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here everybody is allowed to get a
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survey when you buy a residential home
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however in general no one gets a survey
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on residential or city Lots they do
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whenever you're buying the country lot
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but you will have issues that come up I
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just had a client recently that neighbor
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said that he was going to put up a fence
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when he had a survey crew come out and
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survey his property and they had a
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dispute as to where the property line
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was that so that's something that you
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would be able to have both the attorney
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fees and/or any losses that you might
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have if that was property that you have
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covered under your insurance in general
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if you're purchasing a lot and a
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subdivision each one of those Lots have
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been surveyed and the survey has been
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put into the record so generally you
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don't need to have a survey done of a
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subdivision lock some surveys can be
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quite expensive anywhere from $500 to
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$3,000 the big thing I want you to get
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from this video it's that you shouldn't
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flip off title insurance I have to get
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down so tired I could not I can't do it
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anymore and it's not something you
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should be playing around with either if
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you're buying a house you need to have a
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owner's title policy a lenders policy is
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just not going to be enough if you want
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to know some more information and you
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have your personal questions about
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buying and selling your home here in
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Louisiana you could always email me at
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info at your real estate whisper com if
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you want to know more about buying and
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selling your home and you just want to
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watch some videos I have a useful
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playlist over here my name is Cristina
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small horn your real estate whisperer
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and I tell you all this because you
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matter
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