Hope all is well. I am pretty new here and wondering if any experts in this forum can give me some help on this question:
Recently I was looking at a REO auction property, the bank has already taken the title and it was bid on Auction.com with a reserve price.
In the documents they put upfront, there is a Title Commitment from First American Title. However, in the sample Purchase agreement, I saw on the front page, it says if the buyer does not elect to use their own Title Company, they will use the Title Company chosen by the seller.
However, in some Addendum later, it says in BOLD that the seller offers no Title insurance and this is sold with Quit Claim Deed.
Question: Will the seller actually include a title insurance during closing from First American or they just attach a commitment there to tell me that the Title is clean based on the commitment? If so, why on the first page of PSA, there is a line saying that if I don't select my own Title company, it is deemed as I accept Seller's Title Company choice (this is the comfusion point, since later on deep into the PSA it says that Seller is not attached a Title Insurance to the deal)
Thanks for any help to this matter!
Generally, an addendum will supersede anything stipulated in the original RPA, so I would assume title is being conveyed with a QCD. In that case, the prelim is likely being provided as a due diligence doc as a courtesy.
Whether the seller will actually include(pay) for title insurance will depend on what the contract says. If they dont, you can always buy it yourself from the title company.
The offer for you to select your own title company is likely just an opportunity for you to select where you would like the deal closed.
If the Bank is only offering any Buyer a Quitclaim Deed - how can they prove they even own it?
Does something here smell off to anyone else too?...
@Brent Coombs While taking a QCD isnt the ideal way to get property conveyed, its unfortunately does occur.
Essentially, the seller doesn't have to prove they even own the property, its up to the buyer to do due diligence.
I'd rather not take a QCD if I can avoid it, but Im willing to do so to get a deal, after I do my due diligence.
Thanks Jesse for the great help!
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