Ordering the Title

3 Replies

Hello BP,

As a wholesaler, if I am assigning my contract to an end buyer who is responsible for ordering the title?  Me or the end buyer?

Does it cost to order the title & if so is this paid up front or at closing?

What if I order the title & can't find a buyer?  Will the title company charge me for the search if the deal doesn't close?

The end buyer is responsible for ordering the title and there is no cost. The title company will not charge you if the deal does not close. 

Depends on what your contract says. If buyer pays all closing costs well, that's part of it. Don't order the title search till you've gotten an earnest money deposit put into escrow. Never order search until you have a legit buyer. It does cost money to order title but as you grow with your title company you may work some things out down the road. Typically they won't charge you for the search until closing but if you keep calling them and telling them to run title on multiple properties and do not close they may tell you, you have to pay.

 These terms on who pays for title can and should be negotiated along with price and should be included in your contracts. Its typically the buyers responsibility to pay for it but it also depends on the chain of title (how the property is transferred) and any prior agreements. A lot of times the buyer and seller split the costs along with the taxes but it depends on what is negotiated. Doing an assignment your not actually on title (from what I understand) so I will be honest and say I don't think you have to pay for title for you but your buyer will. Either of you  can call the title company to set it up to be done but I usually do it when selling.

Usually the cost for the title work is paid for at closing from the proceeds. 

I never actually order title until I have the deal sold b/c I don't want to have to pay for it if I don't sell it. 

Done my best, hope this helps.

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