Basics of a title company closing?

Question

What generally are the basics of what a title company does in a wholesale transaction? lets assume a deal between a private homeowner and a wholesaler. no double close, use of land trust, etc.

1. what paperwork does the title company get? the original purchase contract and the assignment contract between the wholesaler and the end buyer?

2. does the title company, if they regularly do assignment deals, know to give you the difference as your assignment fee between the two contracts?

3. do you HAVE to show up at closing. ( again, assuming a transaction between private seller and a wholesaler.

4. who pays for the title check,( search for liens) you are the end buyer?

Steve Babiak · Answer

Troy Michaels - 
Then maybe you could share what you learned, especially since you were trying to get everybody else to share info with you.  That way, the next time somebody reads this thread, the answer will be there!

Steve Babiak · Answer

Jahvin Bowman - Ryan Webber recently passed away ...

Tj Hines · Answer

Simple here you go:

A-B Transaction between you and the seller

Then you will simply assign your rights and interests over to your end buyer.

Hand in both contracts to your title company or closing attorney and they will do the rest.

You will be on the HUD 1 settlement statement being paid an assignment fee.

Hope this helps!

Jahvin Bowman · Answer

@Ryan Webber

Correct me if I'm wrong, I understand the money is given to the wholesaler from the end buyer when an assignment of contract is signed.

Wayne Brooks · Answer

The contract will spell it out. If it doesn't, use a better contract.

Junior Salters · Answer

If it isn't spelled out who pays for the title search does the end buyer do it or wholesaler?

Ryan Webber · Answer

Yes, the contract and the assignment go to the title agent, or if its a double closing then both contracts

The amount of the assignment fee is specifically referenced in the assignment.  That's the amount they give you.  If you are double closing then the title company would give the difference, and, yes, IF they regularly do double closings they would know that.

On an assignment, no.  There is typically no paperwork for you to sign.  For a double closing, yes, you have to sign two sets of HUD-1's and other documents.

Who pays for the title insurance policy (a title check is normally not sufficient) and for other closing costs is specifically outlined in the contract.  If the contract says the seller pays for it, or you pay for it, or the end buyer pays for it, then that party pays for it.

Troy Michaels · Answer

i called a closing attorney. they gave me a basic overview of what they do............

Dion DePaoli · Answer

Can you clarify what you are trying to describe?

Example:

Owner to Wholesaler - Contract 1
Wholesaler to Buyer - Contract 2

Or

Owner to Wholesaler - Contract 1
Wholesaler to Buyer - Contract 1

You say no double close, so then are you thinking of an assignment of the contract?

Basics of a title company closing?

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