“YOU” do NOT create “the warranty deed.” YOU do not want to go anywhere near that sucker. If you can’t afford to have a title company or attorney prepare the proper paperwork, you can’t afford to buy the thing.
This sort of business practice, if it becomes habitual, will put you out of business in no time at all.
Real estate closings can be tricky, technical, and sometimes complicated. Undotted i’s and uncrossed t’s can and will be used against you in a court of law. No joke. Cutting corners and doing things you have no business attempting can cost you not hundreds, not thousands, and not even tens of thousands of dollars. They can cost even small time investors HUNDREDS OF THOUSANDS OF DOLLARS.
How do I know? Let’s just say I’ve had some good days, and I’ve had some bad days. The good days I’ve long since forgotten. The bad ones . . . that’s another story.
Joe"
Tim, don’t you always create the Warranty Deed? If you’re doing a kitchen table closing, or even if you’re doing a courtesy closing at a title company… are YOU creating the warranty deed?
Yes, typically when doing a keeper-type deal, I’ll create the deed. The first couple of years I had the title company do it since I was paying them for a title policy. They would do the HUD-1, the deed, and several CYA docs for the title company that strangely resembled the ones I gave them for me. :brow
I would go through the closing with them so the closing officer would know how to explain the docs and then the closing officer would do the closing. It was not real effective so I quit doing things that way.
In general I agree with Joe, and I assume this is Kaiser since I’ve seen him make this comment before?
I’ve never done kitchen table closings and don’t believe anyone should.
As far as why I will do my own deed, there are several reasons. First, I’m a detailed person so I’m not that concerned about making mistakes. Second, I control the process that way and I’m not waiting or worrying about someone else in the loop. Third, if I’m doing it, I’ve probably decided my risk is not that great.
So, please have the title company prepare your docs and purchase a title policy, especially if you’re putting money into the deal. That’s not a comment on anyone’s detail skills, but the safe route.
I have done kitchen table closings, back patio closings and on top of the car hood closings. Yes, I have done closings a few times.
I will tell you this my paperwork has always been State Specific no matter where I have invested and I have invested in many States.
There has never been a problem with a Title Company, or anyone else for that matter. The important thing I am trying to stress is make sure your paperwork is correct, use a REI Attorney to make sure your paperwork conforms where you are investing. As far as I am concerned if my Attorney made a mistake with the paperwork, let him tell it to the Judge. :dance2
However, just starting out, follow the process with the professionals you will need at a closing. Then if you are comfortable you can close at your local I-Hop.
As far as a new person being sued for hundreds of thousands of dollars, look over to your right for a moment, do you see that turnip? See if it bleeds? I do not know who made that statement, now that I think about it I don’t care who did.