Posted by Bob at Get the Deed on August 01, 2001 at 08:06:49:
You’ve got it! In some situations, we get the title searched before actually signing the sales and purchase agreement. Using the order that you listed, be sure that the S&P has an escape clause that states that you’re only buying if the title is clean.
Whether or not you meet at the title company or attorney’s office is up to you. Last Friday I bought a home in the seller’s kitchen with a notary present. On Monday I recorded the deed.
That’s about it.
Hope this helps.
Subject-to Closings - Posted by Brian M. Powers(MI)
Posted by Brian M. Powers(MI) on August 01, 2001 at 07:49:06:
I am a little foggy on a subject-to close so if some of you can assist I’d really appreciate it!
After I get the purchase agreement with the seller signed, I go to the title co. and get a title exam to check the title to make sure it is clean, correct?
Once that is done I purchase a title insurance policy, correct?
Once this is done we’re ready for a close where the seller and I meet at my attorney’s office or the title co. and the property is transferred into a trust in which beneficial interest is assigned to me, correct?
Re: Subject-to Closings - Posted by wayne
Posted by wayne on August 04, 2001 at 05:32:21:
Use one of your contacts at a title company and get what is called a lien and encumberance report…should run you no more than a 100 bucks…this should be done on all properties you acquire no matter how you acquire them.
Make it part of your due diligence…but dont do it until you have a p/s agreement otherwise your just wasting your money.
Re: Subject-to Closings - Posted by Bud Branstetter
Posted by Bud Branstetter on August 01, 2001 at 12:17:22:
A couple of comments on the real world. Most title companies have a problem with title insurance on subject to deals. They may give you insurance with the dos provision excluded. Either way you want to check title. The title company may do that for you for a small fee or you may have to go to an abstract company.
Whether to get title insurance is another matter. If there is little equity and you are getting in lite, what are you insuring. If you are spending cash you should want insurance. However most want you to pay on the total purchase price. You could appoach some deals as if they were rental property(non-homestead affidavit) and loan them the cash. That way you get a mortgage title policy for your cash only. You don’t have insurance for any more but it is still the same. Then you put the title into the land trust and take control.
Most investors do not close at a title company as a formal closing. You can use a room there if you are a frequent customer. Also try a room at a bank-they have a notary too. I would say the majority are closed less formally.