Real Estate Investor · Snoqualmie, WA · Member since 2014 · 8 posts · 1 vote
SO, I have never done this type of creative purchase before, I am used to the normal process of escrow/title etc.
Since this normal process is not involved for this deal, as the contract is being carried, it seems I need to get a full disclosure, or It seems I should find out on my own if title is free and there are no liens BEFORE getting into a closed deal. ( and being stuck).
What recommendations, tips tricks etc. can any experience, seasoned, and knowledgeable investors have for this beginner?
DO I just get my real estate Attorney to look it over?
Why no Title Company/Escrow in this transaction? I have done three owner carry purchases, and have used my local title company every time to prepare the owner carry note, deed, title insurance policy, and record the deed with the county. It may just be a convenience thing on my part, but this is the only way I have ever seen it done in my neck of the woods. I'd be interested to hear if there is another way of doing it.
Well, my agent finally answered my question... shoulda just waited? - My agent verified that AFTER we sign off on inspection phase, before we sign, then the title and escrow information will be available... I guess, this makes sense; why spend money IF my inspection blows up the deal, halts the deal...or I run away!
Definitely still use a title co as @Mike Sattem states. Get an owner policy of title insurance. The seller normally covers that cost here in WA, but a creative deal is just that. In general, I am even more careful with seller-carry's. Most are fine, but sometimes the seller knows it's not bank-financable because of the property condition or title chain. Good luck!