Title search for bank-owned property, before or after bidding?

Question

Hello,

I am new and am currently looking at a few bank-owned properties to buy in Columbus, Ohio. I learned that most of bank-owned properties have clear titles but sometimes not. So, it is still recommended to do title search to ensure it is really clear. My questions are,

• When you buy a bank-owned property via online auction, do I need to do title search before bidding or can I still do it after bidding? 
• If I do the title search after winning the online auction and find any issue on the title, would I be able to cancel it?
• Would there be another ways you may suggest to find/buy bank-owned properties?

Thank you very much for your advice!

- Jeongmoon

Michael Ealy · Answer

Jeongmoon,

It depends on the auction rules. You have to read the auction rules very carefully before biddding. Usually the purchase is contingent to clear title and the bank will make every effort to sell a property with clear title (although the title is conveyed through a limited warranty deed or even a quit claim deed).

Jeongmoon Park · Answer

Thank you very much for your advice! @Robert Ellis

Robert Ellis · Answer

You should get a title policy as soon as you go into contract from the seller's title company. if not ask your agent or the listing agent for one or get ahold of the title company directly. shouldn't cost any money if it is a listed property.

Jeongmoon Park · Answer

Thank you very much for the quick answer @Michael Ealy!