How to close outside title company?

Question

I’m the buyer and have a direct (no realtors) owner-financed deal about to go under contract. I understand the risks, but am curious if closing outside a title company is as simple as recording the notarized documents at the courthouse? Seller’s attorney is drafting all the necessary documents (buy/sell, trust indenture, etc) and i want to forego title insurance and title would go in my name at closing. Thanks!

Caroline Gerardo · Answer

Close your eyes and pray.

Rory Egelus · Answer

Awesome, thanks! Yes, we have the brains to figure out the seller dispersement given prorated property taxes, tenant security deposits, etc. :) Cashier’s check will be the downpayment and we may physically walk the process together from bank to courthouse to finalize the deal. Future payments to sellers will be direct from my bank to theirs.

Bob S. · Answer

NEVER, terrible idea, why would you? Title insurance is peanuts. All my deals never involve a realtor. But I would never close without a title co.

Matt Devincenzo · Answer

Yes that's basically it. If you're just buying cash/terms, and foregoing the 'extra's' you get from title (escrow funds, disburse to seller and others, title ins etc) then you can just record the deed and the mortgage/deed of trust (depnding on state) yourself. How you handle payment e.g. get a cashier's check or wire funds to seller once you have the deed present but not recorded is up to you both, as well as ongoing terms payments to seller.