This topic may seem obvious. "Use a title company? of course I would."
I'm surprised though that investors will sometimes want to take shortcuts that could be harmful.
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I am a licensed real estate agent who has bought and sold real estate as an investment.
I also offer my services to find properties that investors may want to acquire.
From time to time a client tells me they would like to buy someone's property but would rather not have to get a title company involved.
In other words, like all investors, they would like to minimize cost as a means to maximize gain.
To this I say: be careful.
I explain to the client what a title company does. Among other things, they offer title insurance.
I inform that, sure- title searches could add a few days to the transaction and of course, will cost extra.
However, title companies exist for a reason.
They check to see that a property is free of encumbrances. Encumbrances are legal or financial or non-financial liabilities. Bottom line: you don't want encumbered property.
If you want to start tallying up expenses, buy a property with cloudy title. That is, a property that is not free of encumbrances.
Also, in many cases, your title company will be able to offer you an investor discount.
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It's also crucial that people know that buying property involves risk.
Though real estate agents can help in the search, acquisition and marketing of the property for sale, before investing, people should seek competent legal and/or financial advice from persons who are licensed to give such advice.
As in all cases with potentially large financial ramifications, investors should perform as much due diligence as possible.
Title companies offer due diligence information that investors may not otherwise discover.
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