Get a title search, get a title search, get a title search

Cash purchases are no reason not to get a title search. I cannot imagine anyone not getting one done and knowing they have free and clear title. 

Following Corinne Guest's comment - Several years ago my husband built a house for a gentleman. When he passed away his 2 daughters inherited the house and spent a lot of money finishing the basement. Then they left the house in the care of an agent who had been a friend of their Dad's. 

He didn't bother to get the house winterized or to keep the drive plowed so the fuel truck could get in over the winter. When Spring came some other friends went by to check on the house. The newly finished basement was now unfinished, with the sheetrock floating in a couple of feet of water.

The daughters said they didn't know they needed to keep the house insured, since there was no mortgage.

I agree with you 100%. It is at the core of every successful RE transaction. 

Title searches are critical!!!

I ran into the same thing. A client bouht a home from a friend who was getting diviorced. He gave the friend a life estate to live in the house provided the friend paid rent. The so called friend would not pay him so he had to go to court to terminate the life estate. He got the judgment, "friend" trased the house and moved out. He listed the house, we got it under contract and found a security deed that did not get cancelled. The lender solod the loan, new lender went out of business. The buyers attorney never could get the bank that aquired the lean signed off andthe buyer walked. Meanwhile the mold problem in the house worked. I finley got a new buyer and a local attorney to get the lean released. It closed but in cost the seller a lot of time and $15,000 less than the first contract. All to save a $150 title search.

Its dangerous, ignorant and downright stupid to bypass title search before buy a piece of property

Thank you for using the correct words "quit claim" and not the other word that a lot of people use incorrectly! 

Hi Tammy,
It doesn't happen all that often but bad things can happen when there is no Title Search or Title Insurance.  I once had to use my title insurance.  There was a $10,000 lien that was not cleared when I took ownership of a small piece of orchard property. When I went to sell the property, the lien reared it's ugly head.  However, the Title Company paid promptly on the policy and closing went smoothly.  I never did understand why it wasn't paid off when I took title but that wasn't my problem, thanks to Title Insurance. 

A buyer should always want to know what they are buying. To be sure that the seller can indeed provide a "clear title" which means no leans also, then a title search is to be conducted.

In Florida the "common" practice is that the seller pays for buyers title insurance. Most lenders require there be title insurance that covers the lender also.

I consider title search to be standard and best practice.

Always!

Excellent post, Title is very important as we in the lending industry know. Thanks for your time.

And I'll echo it with Title INSURANCE, title INSURANCE, title INSURANCE!  I've got a listing right now, and my Seller got tax notice for a tax bill when she did not own the property, but she's now expected to pay it. It was a screw up when the Seller we bought from purchased the property and a tax payment at closing got applied to a different property address. Whoops. 

Title Insurance company is handling it all. 

ditto for the survey.

i know a party that closed on their ( cash purchase) or land and a cabin, and learned later... the cabin was 100 percent on a neighborong property.

I mostly deal with manufactured homes on leased land in park communities. This has inspired me to write my own blog post because belive me, that is worthy to stress the fact, lol.

I usually order a title search right away if I think there may be any unusual questions about the title...better to find out about it early on than a week before closing!

Tammy,

I have seen Title Searches and resultant Title Policies save folks "bacon" over the years.

Folks ask if they need a title policy and I always give them the "death stare" - same thing with new/updated surveys.  It may cost a little more at the time but it is "insurance" you can not buy later.

Yup, think of the money you will save on that title search.  Totally makes sense.  Cash buyers think they own the world because they have CASH!!!

Hi Tammy

Having a title search done is always a smart thing, and it's done routinely here through a title company, cash or not. And that title insurance is pretty darn important, too! Good luck with your seller's title situation!

Jeff

Good morning Tammy Lankford, 

I'm so glad that Gita Bantwal re-blogged your post as I missed it. A title search should always be done and the example you give is exactly what can happen when one isn't done. Its always worth the cost!

Thanks, Tammy.  Great advice for every single buyer out there.