I have been looking around for title companies and was wondering what the questions to most effectively screen the companies would be?
1. Ask for a copy of their standard seller side and buyer side closing documents
2. Review (or have an attorney review) the documents and make revisions as necessary to limit your liability and get a cleaner set of documents. Not all title companies are alike and many will not allow changes to their documents so you may have to shop around a bit.
3. Ask if they close any non-traditional type transactions you intend to use.
4. Ask for a copy of their standard fees, and it title policy rates are not set by a governing body, then also ask about insurance premium rates.
This should be a decent starting point.
I would ask them if they are investor friendly? If they double close? Do they allow assignment of contracts?
@Guy Gimenez and @Ryan D thanks for the response. Those are both good answers. I have written down the questions and am going to start screening in the morning.
After the title company representative answered that they DO double close, I would ask them what is their charge for the second closing. Some companies try to charge for two sets of documents and some companies charge a nominal fee for the second closing.
Also, I would ask them whether they require from your seller and you buyer + buyer's lender before the closing a notarized statement stating that both parties understand that this transaction is a flip. This one could be state specific, but my title company in NY requires this.
Thanks @Alisa O. the double close part is crucial. I called a title company yesterday and asked them this question and they hung up on me. Oh well....
The fees are good question as well
In your business structure, what party pays the fees associated with title?
Before trying to sell the property you just got under the contract it is wise to run the search so the Title company can indicate on their letterhead that you've got a "clear and marketable" title. You would cover this cost.
Once you start marketing the property to your buyers you can broadcast to them that you have a letter from the Title company confirming that the title is good. This will be especially useful when they start debating EMD.
I believe it is wise to have insurance on high dollar amount purchases so I pay for the title.
Do you have to pay a title company to set up escrow?
Hey @Alisa O.
Can you recommend an investor friendly title company in NY?
Wow these questions toward title companies are great. I'm starting to build my POWER TEAM and this helps me move in a forward direction. I will be making calls today. Very nervous, but it will be done.
This is some very useful information. Thanks to all who have made contributions.
Headed to an event tonight, knew BP will provide all the info I need. Great work Everyone!
What do you mean by "run the search?" How do I do this?
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