First Cash Purchase: Help me understand logistics

[Paul Smetona]

Hello BP,

I'm about to make my first purchase-a very low cost (22K), "off market" SFH which I'll be buying with cash from a wholesaler. I'm happy with the price, the condition of the house, etc., but I have a few questions about the logistics of the purchase.

My understanding is that I will carefully read and then sign the purchase agreement the wholesaler is providing (supposed to receive it tomorrow). Then we will take that to the title company, open an escrow account there, and I will wire cash to the title company. Then the title company will perform a search on the chain of title, and if all checks out, will prepare the documents for the transfer, record the deed, give the cash to the seller, and at that point the seller gives me the keys. Does this sound right?

Here are a few questions I cant seem to find answers to:

1) I am looking for a warranty deed here, no quit claim. Do I ask the seller for this or the title company?

2) As for title insurance, is this something I would ask the title company for as soon as we get started?

3) The unit is currently occupied. As far as prorating the rent for the month in which I take ownership, would the seller give me a check for x/31 days of March in which I will own the property? And would they also give me a check for the security deposit upon closing? Or would this go through the title company? Should these details be in the purchase contract?

Thank you in advance for your help!