Wholesaler · Bay Shore, NY · Member since 2009 · 359 posts · 199 votes
I have a cash buyer who wants to see a copy of the title report before we double close. Said he wants to ensure there are no liens or encumbrances. My first thought is that its a good thing so there are no suprises at the closing table. My second thought is that the cash buyers attorney is going to pull title also thats why all buyers pay for title insurance right? My attorney says that someone has to pay him to pull a title search. I always figured that attorneys pull title and pay the title company after closing. Has any wholesale investor had this experience with one of their cash buyers?
Real Estate Investor · Fishers, IN · Member since 2009 · 408 posts · 196 votes
15y
Michael,
You should work with the title company to get the short form policy to the attorney. There really is no need for the attorney to pull title. Your short form policy that you get from the title company should be sent to the buyers attorney. When I said you have to close the attorney, what I mean by that, is the attorney will recommend to your buyer whether or not to close on the deal. Working directly with the attorney, based on the policy from the title company should be sufficient and it should save your buyer some money, as they will not have to pay for title insurance twice.
Let me know if I confused the situation or helped clarify it.
Real Estate Investor · Fishers, IN · Member since 2009 · 408 posts · 196 votes
15y
check with your title company to see if they can issue a "short-form" policy prior to close. It will be a 3-4 page document outlining the taxes, and liens if there are any, and will give the buyers attorney an outline of exactly what the title policy covers.
Anytime the buyer brings an attorney to a cash closing, you have to remember you are closing the attorney not the buyer.
Wholesaler · Bay Shore, NY · Member since 2009 · 359 posts · 199 votes
15y
Thanks Kev. So in other words the buyers attorney has to be satisfied with the title report? I'm a little confused because one of the questions in my original post "the cash buyers attorney is going to pull title also thats why all buyers pay for title insurance right? " Buyer C is going through the same process I'm going through when I buy which I would imagine pulling title. Is Buyer C just trying to save himself from the burden of hiring an attorney if he sees something on the title report he doesn't like?
Real Estate Investor · Fishers, IN · Member since 2009 · 408 posts · 196 votes
15y
Michael,
You should work with the title company to get the short form policy to the attorney. There really is no need for the attorney to pull title. Your short form policy that you get from the title company should be sent to the buyers attorney. When I said you have to close the attorney, what I mean by that, is the attorney will recommend to your buyer whether or not to close on the deal. Working directly with the attorney, based on the policy from the title company should be sufficient and it should save your buyer some money, as they will not have to pay for title insurance twice.
Let me know if I confused the situation or helped clarify it.