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Learning, Sharing, and Teaching => Real Estate and Landlording => Topic started by: FrugalSaver on February 04, 2017, 05:20:19 PM

Title: What title research chould I do before my option period is up
Post by: FrugalSaver on February 04, 2017, 05:20:19 PM

I've typically gotten the house under contract and then as part of the closing over the next month, after the option period, the title company does what they do to make sure it's free and clear.

Am I doing something wrong?  Should I be doing more diligence before my option period is up to make sure the seller isn't scamming me somehow with a title they don't own or isn't free and clear?

Title: Re: What title research chould I do before my option period is up
Post by: FIRE me on February 07, 2017, 03:00:30 PM

I'm not a landlord. I am a homeowner. There is no way in hell I would buy a house before I got the OK from the Title insurance company of my choice. It's part of the closing, not after.

Title: Re: What title research chould I do before my option period is up
Post by: slugsworth on February 07, 2017, 05:34:16 PM

Quote from: FIRE me on February 07, 2017, 03:00:30 PM

I'm not a landlord. I am a homeowner. There is no way in hell I would buy a house before I got the OK from the Title insurance company of my choice. It's part of the closing, not after.

+1 there are a lot of clouds that might be important to you or your lender.

Title: Re: What title research chould I do before my option period is up
Post by: Drifterrider on February 08, 2017, 06:23:55 AM

Quote from: FrugalSaver on February 04, 2017, 05:20:19 PM

I've typically gotten the house under contract and then as part of the closing over the next month, after the option period, the title company does what they do to make sure it's free and clear.

Am I doing something wrong?  Should I be doing more diligence before my option period is up to make sure the seller isn't scamming me somehow with a title they don't own or isn't free and clear?

What do you mean by that?

Title: Re: What title research chould I do before my option period is up
Post by: gReed Smith on February 08, 2017, 02:31:15 PM

When you get your title commitment, do you look at Schedule B - Exceptions?  That's the listing of your risks, great and small. 

Also, many title companies issue the commitment and except anything that a survey may reveal, but don't provide you with the survey before closing.  Then you get your policy after closing, and it has more exceptions on it that the survey found.  I think that is bad practice.