JordanParticipantDecember 1, 2017 at 1:36 pmPost count: 34
I’m currently in the process of closing my first ever deal, and am, of course, doing so through TitleMind! I’m obviously very glad they opened in time for my transaction so I don’t have to worry about messing up my first deal, but my one concern is the fact that they don’t (yet) offer title insurance with their closing packages.
For this reason, I have three questions. 1. How critical is it to have title insurance for a land transaction? I know most of you aren’t lawyers here, but what I guess I can ask is whether or not people here do typically purchase it. 2. When is it too late to buy such insurance? If I just want to worry about getting this thing closed now, can I still do so after-the-fact? 3. If I SHOULD buy title insurance, as TitleMind doesn’t yet offer it, does anyone know of a company that land investors typically go to? And one that will offer insurance by itself and not as part of a closing package?
Any help here would be appreciated — I’m pretty anxious about this whole thing! Thank you.Kevin FarrellModeratorDecember 1, 2017 at 3:20 pmPost count: 745
Jordan – I don’t normally use title ins. On higher value property that I know I will sell for over $15K, I may get the title ins at purchase. Jack recently mentioned that you can get title insurance after you close. I haven’t done it, but he said it’s like buying and extended warranty for your car.JordanParticipantDecember 1, 2017 at 4:13 pmPost count: 34
Thanks, Kevin. I think it’s unlikely that this land will sell for $15,000, but it’s not impossible. So, kind of a borderline case (unfortunately, as I’m new at this, I don’t have a great feel yet for what land will sell for). I’m glad that it doesn’t sound like I have to make a decision right now.
If anyone else has an opinion on this, I’d love to hear it! Thanks.John PParticipantDecember 14, 2017 at 8:02 pmPost count: 28
To answer your first question, the answer depends on how much risk you are willing to take. I will consider buying with title insurance if my research indicates anything unusual about the title history, or if I think I can sell for more than $10,000, or if the current owner does not have a title insurance policy.JordanParticipantDecember 14, 2017 at 9:04 pmPost count: 34
More good info — thanks! Does anyone have any ideas regarding my third question, a good source for such insurance for land deals?Joe SnustadParticipantAugust 10, 2018 at 5:16 pmPost count: 38
I know this is old, but I’ll try and revive the thread. Basically Jordan asked where to go for a title insurance policy. I’m about to do a larger deal and plan to go through title and escrow and get title insurance. The property I’m purchasing is in a different state then I live in, and the owners are also out of state. So do people typically use a local (to where they live) title company to run the transaction? Then they’d just have to hire a mobile notary to execute the signing out of state where the sellers live?Anwar MontgomeryParticipantAugust 11, 2018 at 12:23 pmPost count: 97
I typically go closer to the property as opposed to closer to where I live. I remember reading that some people use the same title company that can close regionally, maybe even nationally. I haven’t had that experience yet. Every time I transact in a new state, I find a new title company. When you close, the title agent will walk you through the process. Sign this, sign that, and wire the funds here. They typically send all the documents via email with a return label. You get the docs signed at your local notary and mail it. If it’s a clean transaction, it’s pretty simple.
I recommend calling around to a handful of title agents to compare prices and timelines. The mechanics to close can be relatively simple but finding a good agent that is quick, responsive, & thorough… that can be tough.
When J&J say that a title agent can kill a deal..they aren’t lying or exaggerating one bit.
Good luck.Kathleen DeNault-RidgeParticipantOctober 9, 2018 at 1:57 pmPost count: 121
Hi everyone…title close and title insurance questions.
So, I’m working on a deal with buy price just over 6K. The parcel will probably sell for 15-20K, and more on terms. I’ve always used notary closings on the buy side when my buy prices hover around 5K. This deal is just a bit higher, but I’m wondering if a title close is better so as to avoid possible “uninsured title” issues on the sell side. Also, will simply closing through title be suffucient or is actually purchasing title insurance necessary to avoid this issue. Also, how problematic is an “uninsured title” on the sell side?Kevin FarrellModeratorOctober 9, 2018 at 2:24 pmPost count: 745
Kathleen – I would close with a title company. I have purchased for up to $12K with just a notary but I now see the risk to closing on the sell side. It will cost you some money but it sure is easier with a title company close. Most will want to close with title insurance or they won’t do the deal. I just closed a sale with First American in CA and they have a clause in their standard paperwork that says “No insurance, no closing” or something to that effect.
You just need to be sure that there is enough profit to warrant spending another $2K.Neil HParticipantOctober 10, 2018 at 7:24 pmPost count: 70
Also, when doing a title closing, you should consider asking the title company for a “hold open”.
This holds the title insurance policy open anywhere from 6 months to a year with the idea that you’re going to turn around and sell it in that time period. This costs you 10% to 25% more on the title insurance on the buy side, but covers the cost of title insurance on the sell side if the same title company is used. (You can still have the future buyer cover the cost of a closing if that’s how you want to proceed, but the insurance is already covered.) Be sure to ask for the “hold open” when you open escrow not right before or after you close.
If none that made sense, let me know.
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