Real Estate Entrepreneur 路 Mid West, East Coast 路 Member since 2015 路 3k+ posts 路 1k+ votes
If the inspection goes well tomorrow I will be buying a property from a wholesaler(cool person) and I wanted to know if I should get title insurance. I'm buying the property cash and will most likely be putting a mortgage on it after purchase(unless i hit the lotto first). I wanted to know two things.
I'm going with the wholesalers title company. She seems to run a tight operation but I'm still a little apprehensive. Thoughts?
Should I get title insurance?
Well three questions lol!!! While doing my due dilligence i found out that the seller owes back money to the local water work to the tune of $1,500. I was told by the representative that the back money was added to the taxes for the 2016 tax year(No goood) and the outstanding amount stays with the property. I say all of that to say, Is this the job of the title company to make sure this is resolved before the transfer takes place i.e. closing or do I need to add this as a contingency in the contract?
Investor 路 Detroit, MI 路 Member since 2012 路 119 posts 路 64 votes
10y
I used to work for a title company dealing with all sorts of title issues-100% yes, get title insurance. Regarding title issues - you won't get title insurance without clear title. So any title defects (liens, judgments, deed issues) will be resolved with the transition. Either paid by seller or you depending how you have it set up.
Title companies use large title underwriters for title insurance (Fidelity, First American, Stewart), so any title issues when you go to refi or sell will be insured through them. With title insurance you are 100% protected.
Fitness Sales Director 路 Erie, PA 路 Member since 2015 路 59 posts 路 29 votes
10y
Throwing another question out there:
During closing...is title insurance automatically added in (as determined by the lender)? And thus you don't need to specifically state that you want it?
Or is it something that as the buyer you need to state that you want, and then proceed to choose which coverage you want? Do they give you different options or is it up to the buyer to specify? Thanks!
During closing...is title insurance automatically added in (as determined by the lender)? And thus you don't need to specifically state that you want it?
Or is it something that as the buyer you need to state that you want, and then proceed to choose which coverage you want? Do they give you different options or is it up to the buyer to specify? Thanks!
If there's a lender involved, they will always make sure that there's title insurance. If you buy with cash, typically, as part of the pre-close documents, you have to mark 'want title insurance' or 'not want title insurance'
Real Estate Entrepreneur 路 Mid West, East Coast 路 Member since 2015 路 3k+ posts 路 1k+ votes
10y
Well folks, Turns out that after the inspection the property will not work for my strategy :(. The property address is 6840 Grantosa Dr, Milwaukee WI.53218 SFR 3/1, 1232 Sq. Ft. Owner willing to accept close to asking. Good neighborhood rental market margins are $850 - $1150 per month If I only lived in the area I would probably purchase it but there is some differed maintenance that I'm not comfortable doing 758 miles away. Owner Asking $45K. JUST PASSING ALONG THE DEAL. If you would like the agents info let me know.
SO THANK EVERYONE FOR THE INPUT ON TITLE INSURANCE....INVALUABLE!!
I WILL DEFINITELY PURCHASE TITLE INSURANCE ON ANY PROPERTY I BUY.