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Old 09-11-2014, 08:59 PM
 
Location: Arlington, VA
419 posts, read 797,420 times
Reputation: 88

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I'm in the process of buying a condo. The current owners are a couple who live there. They want to sell the condo in order to relocate to another state.

To my surprise, in the initial contract, the seller is a relocation company (instead of the couple). My realtor told me that the relocation company buys the condo from the couple. Therefore, I'm signing the contract with the relocation company. But I'm not sure if the relocation has already bought the condo from the couple or intend to buy it.

Recently I received the title paper. It seems that the couple's names are on the title/deed instead of the relocation company.

I asked the title company who was the seller, the couple or the relocation company? They told me the couple still own the condo and are the official owners. At closing, they will transfer the title to the relocation company, who will then transfer the title to me.

I'm a little concerned about the complicated situation. Since there will be two transfers at closing, in case either transfer doesn't go smoothly, I will not get the house (or title). Correct? Are there potential pitfalls in this situation?

Originally I intended to skip Owner's title insurance due to its cost (The Basic option is $750; the Enhanced option is $1050). Now I am not sure if I should skip it due to the situation. Shall I get the Owner's title insurance?
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Old 09-12-2014, 06:42 AM
 
Location: McLean, VA
790 posts, read 1,605,208 times
Reputation: 556
I'm sure others will jump on with more direct experience, but I think you'll be fine. I purchased a home in 2005 that had multiple owners. Didn't realize this until I was at the title company. Everybody signed, and it was fine.

This couple may need to use the relo company because it's part of a full package. One of my former employers used to pay for closing when selling a house and the upfront fees for purchasing a new one. You had to use the relo folks at both stages -- the selling of the old and buying of the new. Not just one part. This couple may be in the same situation. Hope this helps!
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Old 09-12-2014, 06:49 AM
 
1,282 posts, read 1,728,210 times
Reputation: 877
This is pretty common when a company offers a full relo package to an employee. The transfer has it's benefits to the employee from a tax perspective. I would get title insurance. Search the internet for nightmare stories involved when you don't have clear title. Yes, it may seem like a rip off, but the alternative could mean a financial nightmare.
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Old 09-12-2014, 09:14 AM
 
Location: Arlington, VA
419 posts, read 797,420 times
Reputation: 88
Quote:
Originally Posted by austindoxie1972 View Post
I'm sure others will jump on with more direct experience, but I think you'll be fine. I purchased a home in 2005 that had multiple owners. Didn't realize this until I was at the title company. Everybody signed, and it was fine.

This couple may need to use the relo company because it's part of a full package. One of my former employers used to pay for closing when selling a house and the upfront fees for purchasing a new one. You had to use the relo folks at both stages -- the selling of the old and buying of the new. Not just one part. This couple may be in the same situation. Hope this helps!
Thanks for sharing your experience! It makes me less concerned about the closing.

The couple relocate to another state for a new job. Yes, sounds like the relocation company may do these for them.
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Old 09-12-2014, 09:16 AM
 
Location: Arlington, VA
419 posts, read 797,420 times
Reputation: 88
Quote:
Originally Posted by Middlin View Post
This is pretty common when a company offers a full relo package to an employee. The transfer has it's benefits to the employee from a tax perspective. I would get title insurance. Search the internet for nightmare stories involved when you don't have clear title. Yes, it may seem like a rip off, but the alternative could mean a financial nightmare.
Thanks for your comment about getting title insurance! I'll search online to see what may happen if I don't get it. At the same time, I'll research on the difference between the Basic coverage and Enhanced coverage.
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Old 09-12-2014, 09:32 AM
 
Location: MID ATLANTIC
7,724 posts, read 18,524,039 times
Reputation: 8382
Very common - relo companies do this all the time, it's a non-issue.

As for title insurance, I always recommend it and it has nothing to do with the relo company. I've seen too many instances where such a little amount has covered so much. It's a one time thing for as long as you own the property. Not somewhere to cut corners.
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Old 09-12-2014, 01:00 PM
 
Location: McLean, VA
790 posts, read 1,605,208 times
Reputation: 556
Yes, I'd get the title insurance, too. You'll sleep better at night. (Or, at least, I would.) Congrats on the purchase!
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Old 09-12-2014, 02:02 PM
 
45 posts, read 35,551 times
Reputation: 67
Definitely get title insurance. Here's why:

Families Win Clear Title To Homes Sold by Killer

Several Herndon and Great Falls families sat in limbo for 3 years waiting to hear whether they owned their homes, or whether their homes would go to a child.
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Old 09-12-2014, 03:34 PM
 
57 posts, read 48,643 times
Reputation: 101
Interesting. I never even knew this was how this process worked. (When one is selling due to a relocation with work, etc.)

Best of luck to you, and congratulations on your new home!
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Old 09-12-2014, 06:18 PM
 
4,032 posts, read 4,831,011 times
Reputation: 10595
Yes, get the title insurance. It's a small price to pay for peace of mind in the overall scheme of things.

And the relo company will have worked with their preferred closing/title company for awhile so that will help keep things running smoothly as well: that company will know the drill and how to keep the paperwork flowing.
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