$20k cash deal. Minimum you'd do before closing?

Question

I'm looking at buying a $30k house.  I was just going to offer $20k with a check for the amount.  & close as soon as the title company can do a title search.

title search would show how much taxes are owed & if any liens existed I'm thinking?

What contingencies would you do for a minimum?  Title Search/insurance is what I was thinking.  & have a pretty handy buddy walk through the property.  Not sure the water is on or not.

I know some investors have said get someone to scope the pipes?

I really don't want to carry insurance except for to protect myself if I'd get sued.  Not sure insurance companies offer something like that?  $700 a year to protect a $20k but I guess maybe no worse than car insurance.

Any hints or suggestions appreciated.any suggestions on how to best negotiate this deal?  What would be the bare minimum you'd do & feel comfortable?

Bruce Lynn · Answer

Does the contract you use have contingencies?   Like subject to inspection, subject to being able to obtain title insurance, etc?

In Texas our standard contract has an "option" period....so for X number of days we can back out for any or no reason.  Typically that's when we do our home inspections and negotiate repairs.

Peter Walther · Answer

I always recommend getting a survey of the property, you'd be surprised how many times it shows something the buyer wasn't aware of.

For example, the title commitment takes exception for a recorded access easement over the East 20' of the West 75' of the property and for matters that would be reveled by an accurate survey and inspection of the property.  You look at the property and see a dirt road a neighbor uses to get to his property and assume that's the easement the commitment was referencing and you're ok with it.

Two months after you close a bulldozer shows up and starts cutting in a road in a different location than the existing road and you're told its for a different neighbor who holds the recorded easement.  You then get a survey that shows the location of the new road is right where the recorded easement provides for it.  You then find out the dirt road was put in years ago so that neighbor now claims to have a prescriptive easement.  You submit a claim to the title underwriter who denies it because of the exception.  You're on your own to deal with the problem.

This is based on my experience deals with title insurance claims for a long while.  Good luck.

Kirk R. · Answer

Thanks helped me out.  Read contract.In our Realtor contract, you can check boxes that say subject to:AppraisalBuyers inspection (only covers: roof, heating, air conditioning, plumbing, sewage, electrical, structural damage)Limited home warrantyMold InspectionRadon InspectionSurveyWellSepticFinancing

Part of the contract (no check boxes):TermiteInsurance - seller keeps til saleEvidence of TitleTaxes & Assessments are prorated5 days for my attorney to review.  It sounds like if I hired an attorney he could argue about the amendments & get me out of the deal.  But on a $20k deal paying an attorney.....Sounds like title insurance, termite, & house inspector are pretty much a minimum that I would feel comfortable with.  Would you pay for a sewage scope or whatever it is?