Would you kindly clarify something for me please?
First off I understand that if I’m assigning a contract then I don’t need a title search or Settlement Statement. That would surely be a matter for an assigned buyer who’s accepted an Assignment of Contract Agreement.
Now let’s say I send a signed purchase agreement to my title company, which I intend to assign to another buyer. In the covering email I point out that I intend to assign the contract, but at this point I don’t have one identified yet. There is also a 14 day inspection period which allows me to cancel the contract if the property doesn’t pass the inspection.
What if the property fails inspection by me or an assigned buyer within that first 14 days? None of us would be wanting to pay for a Title Search as it would no longer be required.
So when do title companies normally start doing the title search and applying the fee? Do they normally wait until any inspection period is finished?
That's up to you to instruct them when you're ready to go. Part depends on your time line between removing the inspection contingency, and the closing date. Some city/county/HOA' estoppel s can take a couple of weeks. The actual title search, a couple of days.
So in the covering email to a copy of the purchase agreement signed by me and the seller, I should state that title search should not commence until after the 14 day inspection periods has expired? And that will be enough?
If you're concerned about the $125-200, when you're ready email them then. I don't like things like "do this in two weeks if you don't hear from me". Personally, if I'm at the point of a contract, and am not comfortable doing my own lien search, I'd order it then instead of discovering an issue a couple of days before closing.
My concern about the title fee is that I'm told I might expect to make something to the order of 25 offers on average before I get an acceptance. Even at $150 for title searches I don't need that's going to add up for something I don't need.
Basically I'm just trying to understand the process in the US markets - then I can work with it.
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