Think about why the seller of a property may be offering this discount and the reasons why this is a bad idea should become clear. A seller will offer to shoulder this part of the expense because they know the title company will do everything necessary to protect their own interests — often at your expense.
When this happens, the buyer is not as well protected as they should be. Within the document that they signed was an innocuous looking line that said that they agreed that no municipal searches would be done.
Without knowing what that meant, they signed the document, which became an unbreakable contract. What the buyers did not know is that municipal liens should always be done in New York State, particularly when a property is owned by an institutional seller, such as a bank, which this one was.
These searches determine if there are any pending municipal issues regarding a property, such as a condemnation or code violations that would not show up on title. These searches are routinely done in New York State by title companies, except where specifically waived by the buyer, as was done in this case.
The accepted practice in real estate industry is for the buyer to submit an offer to purchase a property either alone or through an agent. The buyer will then select a title company. However, this is not as clear-cut as it may sound. For instance, the buyer can argue that even if the seller is paying for title insurance, that cost was factored in when determining the sales price, meaning that the buyer is paying for the title policy premium of the owner seller.
The normal practice in real estate is that when you have a buyer who insists on which title company to use, then you should allow the buyer to have his way. This means that the normal standard practice gives the buyer more preference when it comes to selecting the title company.
However, if the seller has a strong opinion and insist on directing the closing process to a title company, then it may be a great idea to agree to pay premiums for both the lender and owner title policies. The title company that you choose can greatly influence the closing process. You should probably seek out a real estate attorney as well. Also, carefully review the terms of the contract to make sure you agree with them. Best Of. Types of Mortages. Mortgage Basics.
Best Mortgage Lenders. More from. Mortgage Servicer Vs. By Kiah Treece Contributor. Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circumstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities.
Performance information may have changed since the time of publication. Past performance is not indicative of future results. Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. Amy Fontinelle Contributor. Mike Cetera Editor. The Forbes Advisor editorial team is independent and objective. Why should you ask : There are several reputable national title insurance companies that offer adequate products and services.
However, many title companies outsource the production of the title commitment overseas. A product prepared locally, by local employees, offers advantages that a product prepared abroad cannot. Local independent businesses return more money to the local economy, are more invested in its future, and give an average of 2 to 3 times greater support to local non-profit organizations compared to national firms.
We will deliver the confirmed rate quote via email within 4 business hours. For immediate assistance please contact us at Thank you for sharing your location data. Please refresh this site to see office distance calculations. To clear or reset your location, please clear all cookies for this site. Questions to ask when Selecting a Title Company.
April 26, Is my money safe? How is my investment protected? Is my title company a neutral third party? Are your rates filed with the Division of Insurance?
0コメント