How Do You Get The Deed To A Property If Investing Out Of State

Question

Hi.  I wanted to find out how you get the deed to a property if you are investing out of state?  I heard about a title company but I'm not exactly sure what a title company does so if you could also explain that it would be wonderful.  Also in general what documents should I receive when I purchase a property?  Thanks for your time.

Treasa Manigault · Answer

Thank you both so much for your insight.  I appreciate it!

Jimmy Lieu · Answer

Hey Treasa, welcome to BP! Great question and definitely something every new investor should understand. When you buy a property (whether local or out of state), the title company is basically the neutral third party that handles the closing—they make sure the seller actually owns the property free and clear, they check for liens or unpaid taxes, and they handle transferring ownership from seller to buyer. After closing, the title company will record the new deed with the county, and once it's officially recorded you'll usually get a copy mailed or emailed to you for your records. You'll also get a settlement statement (sometimes called a Closing Disclosure or HUD-1) that shows all the numbers—purchase price, fees, taxes, etc. If you financed the deal, you'll also get loan docs from your lender. So the main things to keep an eye out for are your deed, your title insurance policy, and your settlement statement. When you're investing out of state, it works the same way—you don't have to be there in person, everything can be handled through mail-away or electronic signatures, and the title company will make sure you're recorded as the new owner. For example, here in Columbus, Ohio, out-of-state investors close deals all the time without flying in, and it's a really smooth process once you've got the right team. Happy to connect and answer any questions you have!

Kerlous Tadres · Answer

Hey @Treasa Manigault! When investing out of state, the deed proves you own the property and is recorded in the county where it’s located. A title company makes sure the title is clear, no liens or claims, and handles the closing paperwork. You’ll usually receive the deed, closing statement, loan documents (if financing), and any inspections or property disclosures. From my experience, a good local title company is key; they guide you and make sure your ownership is clean, especially if you can’t be there in person.

Ryan Coon · Answer

Hi Treasa,

When purchasing property, whether in state or out of state, it is standard to work with a number of professionals/services to help facilitate the transaction. These often include (1) either a real estate agent and/or an attorney to assist in putting together a "real estate purchase and sale agreement" or some similar contract to outline the terms of the purchase and (2) a title company/escrow company to help facilitate the exchange of the property for the purchase price.

The title company often serves several purposes in the transaction including (a) to issue title insurance, (b) to serve as escrow, and (c) to prepare and record necessary documents such as the deed for the property. Title insurance is designed primarily to protect you as the buyer to ensure that you have clean title, meaning that there are no other outstanding claims on the property that could interfere with or limit your interest and/or control of the property. Escrow is generally a third party that acts as a middle man to hold and collect all necessary documents and funds from the seller and the purchaser to ensure that both parties have met all of their obligations before closing. Essentially this protects both parties because it ensures that the seller doesn't collect the money then run off without actually deeding the property, or conversely, it prevents the buyer from having the property deeded to them before submitting payment and then running off with the property without actually paying for it.

Drafting and Recording of documents such as deeds is also necessary because it's the preparation and execution of the deed that actually transfers title from the seller to the buyer. Recording of the deed with the county where the property is located is generally a necessary step to inform the public of your interest in the property and thus to prevent other/future claims or disputes as to the ownership of the property. Once the deed is recorded then the party serving as escrow, often the title company, will remit the recorded deed to the purchaser.

Now, the nature of your questions does show that your are quiet new/green in the real estate world so I would highly recommend spending a significant amount of time educating yourself before diving too deep into real estate investing. Attend a course, find a mentor, and/or do a deep dive researching the issues to be aware of. It would also likely be a great idea to develop a relationship with a local real estate attorney, real estate agent, and/or title company to help you navigate these issues at least on your first few deals. Additionally, take a very "belt and suspenders" approach to these first few deals (use a real estate agent/attorney to draft the agreements, use a title company, etc.). In other words, do everything by the book. Don't get too creative or try to DIY things until you have enough deals under your belt to feel really comfortable what you're doing.

How Do You Get The Deed To A Property If Investing Out Of State

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