Title costs

3 Replies

So I was on the phone with my closing agent to discuss how soon we can close a REO I'm buying. She asked me, "Who is paying title." This brought up a serious of questions in my head.

"Does she mean title insurance? Title search? Owners title insurance? etc..."

Just FYI, this is a cash deal, but could some one educate me, or lead me to a forum post, or resource, on what the different closing costs are specifically regarding title? (Naturally, this excludes appraisal fees, lender points, recording fees, taxes, etc...

Another way to phrase, if I'm a cash buyer purchasing a REO, what "Title" expenses do I need to be prepared to pay?


@John Shortridge Depending on what your contract states- that should go into detail as to who is paying what. I would think that both parties would be splitting the closing escrow fee and in my state, the seller (bank) will usually cover the cost of standard title insurance which is why they will usually make you use their title co in order for them to pay that.

Ok thanks for the advice. So is title insurance and title search the same thing? or Part of the same thing?

They are separate but both apart of the process. The title search will reveal any liens or encumbrances on the property. Per your contract the seller will most likely have to provide a clean and marketable title to you. Title insurance is your piece of mind, knowing that if something were to come up after you close like a mechanics lien etc, you wouldn't be liable.

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