OfflineI have found four properties in TN that I am buying for "buy and hold".
The owner owns them free and clear and bought them with a Quit Claim Deed.
He is doing partial financing but doesn't care whether anything is recorded regarding that or not. I am making up contracts for us to sign with all this information (regarding finance agreement between us). I am going to have title searches and purchase title insurance but do I then need to have a regular type closing on these?
He is happy just doing a Warranty Deed only and being done with it but is agreeable to do it however I choose. The only thing is, I know his cash is tight and so since I am the one who wants to go a little more in depth, if necessary, I will pay all the fees. Having a "full closing" including title ck and title ins will cost me over $1,000 on each house.
Is a "full closing" necessary or if all the title search works out and I get the title ins could we just then do a Warranty Deed and be done with it?
What will that entail?
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something seems wrong. I'm looking at one of my latest closing statements and for a house that was bought for $110,000; Settlement fee $125.00, title exam $130.00, so my total closing costs were $283.00 (no title insurance). The Seller paid $442.00 for conveyance fee, and $75 for deed prep. Just an example, but your deals shouldn't cost $1,000 per home.
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So far we have just been emailing. The more we correspond, the more confused I am. I am supposed to call him tomorrow morning.
I initially called and asked for an idea of the fees. They asked the prices and addresses and said they would email me the info.
1st email from them-"Will we be doing the closing for both the buyer and the seller? What are the terms of the note?"
My response- "
"I am the buyer. I have never heard of doing separate closings. Please explain.
The price is set but we are still working out the exact terms. Does that make a difference on the cost of the closing?
I just need to know what the basic costs (broken down separately for each house) will be for title check and title insurance and to get everything taken care of legally and closed in Tennessee. These will be the first properties I have bought in this state.
Them-
It is a regional thing….In the Memphis area about 80% of transactions are “split” closings. Meaning the buyer retains a title company or attorney and the Seller retains a separate title company or attorney.
Also, it is typical for the Seller to pay for the search, but the Buyer to pay for the title policies.
I assume if this is Seller-Financed, and we represent the seller, we need to draw up a Note and Trust Deed. And will the Seller want Lender’s Title Insurance?
Here are some basic quotes for the amounts you requested:
1) $20,000 $350 for Buyer’s side, or $500 if we do both sides, $200 search, $220 for Owner’s Policy
2) $30,000 $350 for Buyer’s side, or $500 if we do both sides, $200 search, $235 for Owner’s Policy
3) $16,000 $350 for Buyer’s side, or $500 if we do both sides, $200 search, $220 for Owner’s Policy
4) $25,000 $350 for Buyer’s side, or $500 if we do both sides, $200 search, $220 for Owner’s Policy
Me-
So, am I understanding correctly that it will be approximately $1,000.00 for each property?
Them-
Will also be recording charges for county and state, and possible tax prorations.
Me-
I think we need to talk on the phone. It will be much easier. Now I have more questions than when we started.
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"Shining Like a Star & Dancing on Sunshine"
"Shoot for the moon! Even if you fall short, you'll still land among the stars!"
By the way, this was Mid South Title
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"Shining Like a Star & Dancing on Sunshine"
"Shoot for the moon! Even if you fall short, you'll still land among the stars!"
Here in Florida the title co. charages $ 80 to $ 130 to do the abstract (title search itself); the title insurance policy runs about $ 6 per thousand of the purchase price; & yes I would get a warranty deed recorded(usually only
costs the title co. $ 10 to record) ... especially since your seller has Quit Claim Deeds.
So once I take care of search and title insurance (I will call some other places to see if I can get better rate) just recording a Warranty Deed should suffice?
"You're never too old to be what you were meant to be!"
www.deangraziosi.com/real-estate-forums/investing-journals/59128/day-for...
"Shining Like a Star & Dancing on Sunshine"
"Shoot for the moon! Even if you fall short, you'll still land among the stars!"
Thanks for posting this, Karen. I am also in the middle of a negotiation involving an owner finance and had the same question about traditional closing.
The title co. will do the recording.