Title insurance + possession for an auction property

2 Replies

Newbie Questions (pardon my ignorance please!)

1. I'm looking to buy a property at a live auction (in CA) or a rental property via an online auction (auction.com) but not sure how the Title insurance works for auction property. DO i contact the title company beforehand for each property I plan to bid on (and want to purchase insurance for)? Seems like that may get expensive! With trustee sales I'm worried there may be heirs that we don't know about or unpaid taxes etc. What do you guys do/recommend? 

2. What does it mean when it says "buyer is responsible for taking possession" and "buyer will be issued a warranty deed of sale"? For the former, is that just referring to the potential need for an eviction? Is a warranty deed of sale a title of ownership? 

Thanks all

And if anyone is based in california bay area, would love to meet up!

Originally posted by @Nehel Khanani :

Newbie Questions (pardon my ignorance please!)

1. I'm looking to buy a property at a live auction (in CA) or a rental property via an online auction (auction.com) but not sure how the Title insurance works for auction property. DO i contact the title company beforehand for each property I plan to bid on (and want to purchase insurance for)? Seems like that may get expensive! With trustee sales I'm worried there may be heirs that we don't know about or unpaid taxes etc. What do you guys do/recommend? 

2. What does it mean when it says "buyer is responsible for taking possession" and "buyer will be issued a warranty deed of sale"? For the former, is that just referring to the potential need for an eviction? Is a warranty deed of sale a title of ownership? 

Thanks all

And if anyone is based in california bay area, would love to meet up!

I wouldn't worry about heirs at a trustee sale. The probate property is gone and the heirs have no recourse but to bid against you if they still have emotional attachment to the property.

Mark Pedroza, Real Estate Agent in CA (#01858403)
1-415-786-6700

If you're bidding on REO's, they typically will come with title insurance......but if you win the bid, use Your title co., not theirs.

If bidding at the actual trustee/foreclosure auction...yes you need a title search before bidding.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Join the Largest Real Estate Investing Community

Basic membership is free, forever.