I’m looking at purchasing a duplex on straight owner financing. Zero down and they own it free and clear. Do I have to use a closing agent/title company/closing company to close on this or can I just record my contract with the terms?
Recording your contract does not put the deed in your name, nor get you title insurance.
Use a title company or settlement attorney to make sure you are protected.
We close several of these types of loans regularly without a title company. If you want to skip the title company you’ll need to be able to:
- do a reliable title search to satisfy you that you are buying a property without liens,
- prepare all of the legal docs (Note, Deed, Deed of Trust),
- feel comfortable without title insurance to guarantee your ownership of the property,
You’ll also want to be able to have a program that will keep up with the amortization of your note. Inclusing how much interest was paid each year. Don’t trust the seller to keep up with everything for you. Many of them, me included, make mistakes.
I suggest that the title company is well worth it. If you want to save money on the title insurance premium ask them what it will cost (including any escrow fee) if you just want to get a title search, title commitment, or title report. In my opinion those three are almost the same and will let you know that their examiners are comfortable with the status of the title.
If you aren’t familiar with the commitment you can ask an escrow officer to help explain it to you.
Good luck. Which ever route you choose.