Hi, I am making a cash offer with short close time (5-7days). The seller asked for a 3k non-refundable deposit, and I only get this back if the title company cannot provide clean and clear title for us to close. Just wondering, are there anything else I should look out for closing, besides the clean and clear title?
@Jason Chen regardless if it is cash or if you are using a lender, you need to inspect the property thoroughly. I assume that you are using an escrow attorney. The attorney will do the title search and offer you title insurance. If the title is clouded, the attorney will not conclude the sale.
@Anthony Dooley , thanks for the reply.
Its gonna be a all-cash offer, so I am not using a lender. Also, we are going to gut the property for a rehab, so I don't think we need inspection in this case. We will use a title company to conduct the title search and I will make sure we get the title insurance.
So in this case, are there anything else other than the title I should pay attention to when close in such short period of time?
@Jason Chen No, not really.
Congrats on finding a property.
Due to an all cash transaction, the initial risk is the deposit. Need to make sure you are wiring to a legitimate escrow company. Find all the information on escrow company and talk with the escrow officer, confirm contact information, confirm physical location.
Second risk is the transfer of remaining funds. Make sure transfer information is correct and not at last minute changed to different instructions.
What city did you settle on? Last was Stockton or Las Vegas.
@Terry Lao , thanks for the great advise as always! I am still looking in those two markets. Made couple offers, but they didn't get accepted. I am not giving up and will keep looking.
I thought this post was the offer you were going to close on. What happened? Sounded like in final stages of contract for purchasing all cash AS IS.
@Terry Lao this deal is from another market that I was looking into. :)
@Jason Chen , congrats on taking action and making an offer!
I completely agree with the great advice from @Terry Lao . Make sure you are wiring your deposit and the rest of the funds to a legitimate escrow company. Always ask for a receipt to confirm the transfer has been received. The title company should provide this on an official document with their letter head and the amount transferred. Also, doesn't hurt to give them a call to let them know when you transferred the funds and to confirm receipt.
Seems like you don't have any other contingencies since you are foregoing the appraisal contingency, inspection contingency, and there is no loan contingency because you are offering all cash. At least you have a title contingency in place should you want to back out of the deal.
Good luck and keep us posted on your progress of this deal!
Great points! Thanks for the advises and I will keep you posted.
It is your first flip I would 100% get an inspection done
As for the future when you have a few under your belt I find it really makes a statement when you offer cash and the earnest money is the entire price of your offer with no contingencies
Of course being the buyer you put in contract you get to name the title company to hold the earnest money.