Hi everyone,
I have a question about title work. If I already have a property and I have a buyer. From what i know, i need to do the title work to make sure that the title is good and the owner is the real owner of the property. Is this necessary? If it is necessary, i’m a wholesaler, and i do not have the money to do the title work, is there another way?
Best Regards
You REALLY want to let the professionals handle all that. It’s what title companies are for. Do not take it on by yourself. They are paid at closing like loan balances and realtors are, and who pays them is determined by your contract: buyer pays closing, seller pays, or they split the costs.
The job of the title company (aka escrow company) is to act out your contract, which is why contracts are sometimes called “escrow instructions”. Title also does the things you mentioned, gets recordation done with the counties, and generally slays the paperwork dragon.
So you’ll need a signed purchase contract with the seller, and be sure to set your closing date to allow enough time for your buyer to gather his money together, to inspect the property to be sure he wants it, and for the title company to do their thing. I generally use 10 days from contract acceptance to cover all that, but my people work fast.
They can also handle the assignment process for you if you want, but if they do, your fee will show up on the “settlement sheet” (aka HUD1) that everybody gets during this time. If you don’t want anyone but you and your buyer to know what you’re making, you will have to conduct the assignment privately with him. That’s fine if you have a proper assignment form (easy enough) and trust him to not write you a rubber check.
If you’re in the Phoenix AZ area, go to Linda Grabner at TSA Title in Tempe, 480-385-6325. They’re very nice and helpful over there, and I use them every chance I get. I’m closing a land/home lot deal this Monday or Tuesday, in fact. Tell them Chuck Prime sent you.
Also, I’m looking for birddogs. Because I’ve learned that I can’t do everything myself. You or anyone else can email me if interested.
Chuck Prime
converttocash@cox.net