Recommendations for RE Lawyer or Title Company for Cash purchase (tax lien, real estate)

[upgrader]

Hi, I'm looking to close on January 26th. I've been dealing directly with the listing agent. He's been great. One of the homeowners is his administrative assistant. She's also been great.

As it's a cash deal with the original owner in a well managed HOA (Isles of Palmer Ranch), I want to forgo the expense of title insurance. The Realtor's recommended RE Lawyer pretty much insists I pay for title insurance, or pay an equal amount for him to write up a "CYA" letter.

Can anyone recommend a title company or RE attorney that would be more accommodating to a cash purchase with no title insurance involved?

Please DM me with any recommendations.

Thanks!

[mr&mrssunshine]

silly silly silly...title insurance is YOUR protection

[macrodome2]

Originally Posted by mr&mrssunshine

silly silly silly...title insurance is YOUR protection

+1
You better inquire about that will happen when you go to sell that property. I've been asked for the title insurance policy for every property we've sold.

[motordavid]

+2...for the pocket change cost of a cash buy Title Insurance cost, I would not even blink, or think twice.
It is a one time, few dinners out cost.
Get it, imo.
GL, mD

[bbronston]

Well, it's a little more than a few dinners. For a $300K property, it's $1575 for the title insurance but I agree it's the smart thing to do. If the seller's policy is less than three years old there can usually be a discount available but that's probably not the case here. Just because a property is in an HOA and it's the original buyer who is selling, that doesn't mean that it is safe to forego the policy.

[Sunshine Rules]

I do not know a single real estate attorney or title company that is willing to let a buyer purchase without having a title search and issuing of a title policy. That's because even if you sign a waiver, if an issue is found later it is likely you will try to sue the attorney for not stressing the importance of a title policy to you.

According to a local law firm, here's a list of some of the things that can trigger a title issue:
Documents executed under false, revoked or expired powers of attorney.
False impersonation of the true land owner.
Undisclosed heirs.
Improperly recorded legal documents.
Prescriptive rights in another not appearing of record and not disclosed by survey.
Failure to include necessary parties to certain judicial proceedings.
Defective acknowledgments due to improper or expired notarization.
Gaps in the chain of title.
Mistakes and omissions resulting in improper abstracting.
Forged deeds, mortgages, wills, releases of mortgages, and other instruments.
Deeds by minors.
Deeds which appear absolute, but which are held to be equitable mortgages.
Conveyances by an heir, devisee or survivor or a joint estate who attempts to attain title by ill-gotten means.
Inadequate legal descriptions.
Conveyances by undisclosed divorced spouses.
Duress in execution of wills, deeds and instruments conveying or establishing title.
Issues involving delivery of conveyance instruments.
Deeds and wills by persons lacking legal capacity.
Errors in tax records.
Administration of estates and probate of wills of missing persons who are presumed deceased.
Issues of rightful possession of land.
Issues concerning the rightful conveyances by corporate entities.
Issues involving improper marital status.
Improper modification of documents.
Rights of divorced parties.
Misinterpretation of wills and ancillary instruments.
Deeds by persons falsely representing their marital status.
Claims by creditors of a decedent against property improperly conveyed by heirs and devisees.
Special tax assessments.
Real estate homestead exceptions.
Issues concerning interests noted in financial statements filed under Uniform Commercial Code.
Interests arising by deeds of fictitious parties.
Lack of jurisdiction or competency or persons in judicial proceedings.
Community property issues.
Utility easements.
False affidavits of death or heirship.
Intestate estates.
Probate matters.
Federal estates and gift tax liens

Even if the home is new or almost new, there could still be title issues with the previous vacant land transfers or the person signing on behalf of the builder or corporate entity for the builder didn't have the correct signatory powers, etc.

Here's one other issue that came up a few years back for one of my customers. When the seller bought the home he signed off on a waiver noting the pool being built into the HOA easement and did not have a variance, not realizing it could come back and bite him in the backside later. So later on, when he went to sell his home, that buyer's attorney did a title search and found the easement violation. The buyer refused to sign a waiver and the seller had to get a specific percentage of the lot owners of his subdivision to sign off on a variance. And it was at his expense because he had signed a waiver to his title policy. So not only do you want to get title insurance, be sure to carefully read what you are signing, including any exclusions to the title policy.

[motordavid]

Originally Posted by bbronston

Well, it's a little more than a few dinners. For a $300K property, it's $1575 for the title insurance but I agree it's the smart thing to do. If the seller's policy is less than three years old there can usually be a discount available but that's probably not the case here. Just because a property is in an HOA and it's the original buyer who is selling, that doesn't mean that it is safe to forego the policy.

Yes, we paid < $2Gs for our $408 G out the door priced new house in Sept '13.

In the scheme of things that cost for that protection is not a difficult decision, imo...
I was probably thinking about Exp Acct dinners back in NYC 15 yrs ago, when I carried the bag.
GL, mD

[kiggy]

Get title insurance. In case something bad happens down the road.

[MollyMillions]

Another vote to spend the money on the insurance.

You just never know what they might find when they do the title search. I understand you're in an HOA so you're not expecting issues, but...it's money well spent.

[craigiri]

If I'm not wrong, there are two parts to this.

Title Search
Title Insurance

A search should always be done - and, in fact, if you can get ahold of the last one done you can also read it (assuming you can understand these things)....

Title Insurance is a policy which protects you against stuff not found on the title search (or that rears up in the future).

I would think that a title company would allow you to do it without title insurance - I can't see why it is that much different than buying something "as-is". You assume all risks.

Well, since you are the risk taking type - at least after you buy it, you DO have the right to forego homeowners insurance - thereby saving a few grand per year.