Title search question (appraisal, agent, sale, insurance)

[GuyFriendly]

OK, the seller pays for the Title search; I read that in the contract. But while we have a contract, we do not have an appraisal, a loan to the buyer, or an inspection report.

So today I received a copy of what appears to be a Title search on our house. (All clean, of course).

Q: Are we expected to pay for this if the buyer backs out of the contract for any reason? If so, is it common for the buyer to order it first?

If not, then I breathe a sigh of relief. These things cost about $2,000 I think.

Thanks for sharing your experiences. I'm not asking for legal advice - just your experience.

[chet everett]

A simple title search in a fully computerized jurisdiction could be as little as hundred bucks, the buyer will always pay for that. Not sure why that would be delivered to you, only reason to do that would generally be if they found unsatisfied liens that they needed your help in identifying...

Just stay CALM -- odds are things will move ahead.

[rjrcm]

Actually, what you are paying the $2K for is the title insurance. The search is necessary to have clean title certified before issuing the insurance policy. If the deal falls apart, there will be no policy issued.

[GuyFriendly]

Originally Posted by rjrcm

Actually, what you are paying the $2K for is the title insurance. The search is necessary to have clean title certified before issuing the insurance policy. If the deal falls apart, there will be no policy issued.

Thank you both. Yes, I am nervous.

The title search was clean. I owe the March 1 tax payment when it gets here, but I always pay early. The payment history is clean. Nothing has changed since our 2003 re-fi title search.

I don't know why they sent this either, but you relieved my anxiety. Thanks!

[GuyFriendly]

OK, I read the document we received carefully (finally).

It is titled "COMMITMENT FOR TITLE INSURANCE"

It lists an escrow officer and title officer. It gives the name of the buyer (just the husband, oddly enough, as his sole and separate property) and the amount he is borrowing (as well as the total purchase price).

Then are Schedules A and B, a contract, Privacy Statement, land description, tax payment history, current assessments, and a map of the neighborhood.

Nothing to sign, nothing to commit to (even though it calls it a commitment).

QUESTION: does listing the lender, the purchase price, and the loan amount mean the loan is approved and sent to the Title Company? What is the order of things here?

FWIW, my agent seems to be AWOL the past few days - probably Christmas shopping.

[rjrcm]

Originally Posted by GuyFriendly

...
QUESTION: does listing the lender, the purchase price, and the loan amount mean the loan is approved and sent to the Title Company? What is the order of things here?...

No. That is independent of the title commitment process. The approved loan docs will be the last thing they receive depending on how long it takes for the lender to get through underwriting, usually about 30 days (some may be sooner others longer). The lender must also wait for the appraisal results before they can move forward, and assuming no inspection issues.

[GuyFriendly]

Originally Posted by rjrcm

No. That is independent of the title commitment process. The approved loan docs will be the last thing they receive depending on how long it takes for the lender to get through underwriting, usually about 30 days (some may be sooner others longer). The lender must also wait for the appraisal results before they can move forward, and assuming no inspection issues.

Thank you again.

[HOA Dweller]

Also, the title search will only have to be updated from now on; from the point the last one was done. They won't have to repeat the entire process in the event this sale doesn't go through.