Keeping the Deed open

2 Replies

Ok. Hi all. I'm Daniel Bennison. This is my first post on BP.  I've been a realtor in Kansas City for 7 years and a flipper for 4 years.  When recently dealing with a new title company, I heard that you can "leave the deed open" for a $100 fee. What is the benefit of this? I'm a little unsure on the mechanics. Wholesaling always sounded risky but my wife and I have flipped 20 houses now and others in our family flip. Wholesaling seems like a natural progression Negotiating is fun and construction can be maddening at times. I'm not into posting signs everywhere, but I would be open to direct mail. My thoughts are racing. I've been listening to real estate podcasts today and my creative juices are flowing. Lets do a deal people!! Going to get more coffee now...

That sounds like a buzz term, maybe just a way to charge an added fee.  A deed MUST contain the Grantor and the Grantee in order to be valid.  So not listing the Grantee would mean the deed is not valid.  

The contract to purchase would be the instrument which affords the time to execute the deed and the exclusivity for the Buyer.  I suppose the term may be slang for the sake of conversation where they are saying, you can put your contract with them and they will wait for the third party (end buyer) to be produced before preparing documents but I would not personally refer to that as an "Open" deed, since the only party to be added would be the party who steps in as Buyer or Asignee.

Daniel,

Chicago Title offers what they call a Hold Open Policy specifically designed for investors. I can send you the information on it as well as a few offices they have there in the KC area. My Chicago Title agent here in Arizona just gave me their names for when we do business in KC. Let me know and I can forward this to you.

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