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I am in the process of buying a short sale house. I am buying it with cash. I just saw it says in somewhere that if I use cash, I don't have to buy lender/buyer title insurance. Of course I need to make sure the title is clean. So can I pay title insurance to do a title research and if it's clean, so I just don't spend extra dollars on title insurance?
Most contracts, though negotiable, state that the seller is paying for the owner's title policy. You aren't paying for it, the bank is with the agreement of the short sale. The other part of coverage in a typical, financed transaction, is where a lender wants more coverage and other entitlements included. That is the part that you do not have to buy because there is no lender involved.
Most contracts, though negotiable, state that the seller is paying for the owner's title policy. You aren't paying for it, the bank is with the agreement of the short sale. The other part of coverage in a typical, financed transaction, is where a lender wants more coverage and other entitlements included. That is the part that you do not have to buy because there is no lender involved.
Thank you FalconheadWest! This is very clear. I will check if it states anywhere that the seller is paying for the owner's title policy...
Likewise, in Michigan it is customary for the Seller to pay for a title insurance policy to assure that the title being conveyed is good. Even if that's not the case in your situation, it's probably a good idea to make sure that you get a title insurance policy--and make sure to fully understand what "exceptions" might be noted on the policy. If you don't fully understand everything, you should probably get legal advice.
I am in the process of buying a short sale house. I am buying it with cash. I just saw it says in somewhere that if I use cash, I don't have to buy lender/buyer title insurance. Of course I need to make sure the title is clean. So can I pay title insurance to do a title research and if it's clean, so I just don't spend extra dollars on title insurance?
what kind of potential risk are there?
Thank you all for your input?
A short sale, to me, would trigger an absolute purchase of title insurance. You know you are buying a property that has encountered financial difficulties -- the title insurance makes sure that if any other liens or judgements crop up on on the house that people are previous unaware of, you're protected.
A short sale, to me, would trigger an absolute purchase of title insurance. You know you are buying a property that has encountered financial difficulties -- the title insurance makes sure that if any other liens or judgements crop up on on the house that people are previous unaware of, you're protected.
I completely agree with this. During our title search we found out about a number of issues, one even had be resolved by someone putting money in escrow because the person refused to take the money (a personal debt with apparently a lot of animosity). Then before the seller started mail forwarding some things showed up which implied they had some unresolved tax issues. As tempting as it is to save some money, I'd hate to find there were even more things like that lurking after spending hundreds of thousands on a property.
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