I will be paying cash for a property and the homeowner owns the home outright with no mortgages or liens. Just to make sure, I will be having a title search run as well as an inspection of the property. How does one go about the closing when in this situation? Can the deed simply be signed over or do you have to go through a closing at a title company?
The deed can be signed over without the closing company. Make sure to file it right away.
Fadiz, that was the answer that I was looking for. I posted the same question on another couple of forums and never got a straight answer. Thanks a bunch.
Paul,
Make sure he has the deed notarized when he signs it.
John
John, exactly and then as Fadiz recommended, I would record the deed with the county as well.
I honestly would have to ask what are your plans for the property?
If you are buying to hold and you know there are no liens that is fine. I still like the title insurance.
If you are flipping and can find a title company to do a 110% hold open I would pay the title company to do the closing! That way when you re-sell you can cover the closing costs up to 110% of what you paid for it.
Either way title insurance is well worth the $$.
Robb, I will be buying the property outright with wonderful credit cards. My plan is to do a lease option on the property. The owner even said that he has a candidate that fits the bill for a lease option. He needs to get rid of the property due to medical bills. He is offering what looks to be a great deal and I’ll run the title search, inspection,and appraisal before purchasing the home.
There’s no difference at all except that a note and mortgage will not be filed.
I found out that I could simply pay this gentleman, get a receipt, have the deed taken over to a title agency, have the seller sign the deed and put my info on the deed, and the title company will send me the title through the mail.
The only hole I see in the process is that it is possible for a lien to be recorded between the time that the title search is done and the deed is recorded.
In NC, the closing attorney would do a preliminary title search, collect all money, get all papers signed, do an update to the title search, record the deed, and THEN disburse the funds.
Note that the moment of closing is when the deed is recorded. Money should not change hands until then.
Note that the moment of closing is when the deed is recorded. Money should not change hands until then.
Exactly right. Sounds like the question was more a general closing question rather than a mortgage vs. cash closing question. With a mortgage, it would be the same way- the lender would not disburse funds until their lien was filed against a clean title.
Steve, I see the situation that you have described playing out. I will be getting title insurance, an inspection, and an appraisal. Monies will be handed over to the current homeowner and then everything will be recorded at the title company.
I see now that although the overall inspection, title search (will be done in 72 hours), and appraisal follow the same route, without having to rely on a bank or mortgage company to slow things down, the closing can be done in a matter of days.