Does seller or wholesaler pay for the title policy?

2 Replies

Ok, so how can a distressed seller (one that needs to sell now) pay for the title policy (to make sure no liens, etc) when most title policies can cost hundreds of dollars. These sellers don't have the money to pay for it since they might be in pre-forclosure or in any other motivated/distressed mode.

So...I assume we wholesalers must pay for the title policy? 

It is customary for the seller to provide the buyer with a title policy.  However, it can be negotiated that the buyer pays for it.  

What matters most is that the buyer receives a title policy and receives ownership via a warranty deed.  If the property is being financed, the buyer will need to purchase a separate title policy for the lender.  

Originally posted by @Patricia Steiner :

It is customary for the seller to provide the buyer with a title policy.  However, it can be negotiated that the buyer pays for it.  

What matters most is that the buyer receives a title policy and receives ownership via a warranty deed.  If the property is being financed, the buyer will need to purchase a separate title policy for the lender.  

 usually comes out of sellers proceeds.  if seller is underwater.. then usually the deal is no good to anyone anyway.