Question About Closing Costs::Urgent::

General Real Estate Investing
1

I just received an offer on land I own. In the offer it says:

TITLE POLICY: Seller shall furnish to Buyer at SELLERS expense an owner policy of title insurance…in the amount of the sales price…

Now I don’t want to pay for the buyers title insurance. Or is that normal? It goes on to say this:

…Seller shall furnish to Buyer …Seller’s existing survey…If the existing survey or Affidavit is not acceptable to Title Company…Buyer shall obtain a new survey at BUYERS expense…If Seller fails to furnish the existing survey, Buyer shall obtain a new survey at SELLERS expense.

So I don’t have a survey. So I can’t furnish one. So that would mean the buyer would just pay for his own then. What should be my next move? Should I counter (using my real estate agent) by stating I will pay for half of the title policy? That’s what I was thinking.

Also should I tell my real estate agent to tell buyer that I don’t have a survey so that they’ll have to pay for one?

2

That sounds word-for-word from the TREC form.

3

What you typed in says that if you don’t have a survey the buyer orders a new survery, but you (the seller) pays for it. Never allow someone else to choose what you spend your money on. If you accept this term, I would add the clause that the supplier of services are your choice.

4

In my experience it is typical for the seller to pay for the buyer’s title insurance policy. In effect you the seller are guaranteeing marketable clear title to your buyer via the policy.

5

I agree with 71. Why should the buyer pay for title insurance on a property they do own yet. As for the survey I would call around and check prices. DO NOT let the title company just order it. You will have no control over pricing. I am working on a loan for a guy in Houston right now and he let the title company order the survey and it was $571.00. For a small residential home in the city. Talk about rip-off. Here in Dallas we get surveys for $325.00 all day long.

6

This is negotiable in the contract. Just check the boxes that have the other side paying for the survey and title. Title is typically 1% of the sales price and surveys can cost $500-750. If they want it priced into the house, the sales price can be raised to accommodate.

If you’ve already agreed to all this then…doh.