Home Buying in Mancelona>Question Details

Mark, Home Buyer in Tampa, FL

If I buy a residential home lot for cash, do I have to go through a title company for the closing??

Asked by Mark, Tampa, FL Mon Sep 8, 2008

I understand I must have title work done to insure clear title when property is transferred to me at closing. Do I have to use a title company for closing?? There will be no lender involved as it will be a cash closing. What docs must be signed and recorded on a deal like this?? This is a bare lot. Thanks for your help. Mark

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The use of a title company is highly recommended, even for a lot. Unless there is a title search done on the property there is a clear title. For the money it will cost for the service, it will be worth knowing you are not embracing the debt of someone else.

Good luck,
1 vote Thank Flag Link Mon Sep 8, 2008
As a realtor, I would never purchase any property without getting title work done. You can have an attorney do your closing or you could use a title company. The title company may be less expensive. Otherwise you will may inherit title issues and it will be your expense and much more expensive to get the legal work done to clear the title when you choose to sell.

To get clear title you must have a title company do the closing.

The Deed is the only document that must be recorded.
Web Reference: http://www.cathysloan.com
1 vote Thank Flag Link Mon Sep 8, 2008
You do not have to go through a title company for closing if you buy with cash. You can handle the transaction any way you want. Here are some possibilities:

1. Zero documentation.

2. A receipt for the money paid.

3. A receipt for the money and a deed from sellers to buyers.

4. A receipt for the money, a deed from sellers to buyers, verification of payment of property taxes.

And so on

The question is how much do you trust the sellers to pass clear title and how much "insurance" do you want that you will get marketable title for when you want to sell. If you want to see a sliding scale of the bare minimum to the full and complete, call the title company, tell them your goal, and see what they offer.

An entire industry exists to support the transfer of real estate. This industry grew out of a different industry: fraudulent sale of real property. A knowledgeable and experienced person can do without a title company when buying real estate and not get burned. An inexperienced person is inventing the process as they go along and has to consider whether the advice they get on a do-it-yourself closing is based on an someone's incomplete understanding of the pertinent underlying facts.
0 votes Thank Flag Link Wed Aug 29, 2012
Our office prefers to use the expertise of a local title company for everyone's legal protection. You may however choose to have your attorney prepare/review documents for you and prepare a closing statement. Typical closing will require signature of buyer and seller to confirm tax proration, verification that no liens are placed on the property, etc., certified funds from the buyer and a recordable warranty deed from the seller.
0 votes Thank Flag Link Wed Aug 29, 2012
You should definitely use a title company or an attorney to close any real estate deal. You could stand there on the lot and give the cash to the "owner," but how do you know for sure that this person is the owner, the only owner (rather than a group of people) , and that this owner has not borrowed against the property or otherwise legally encumbered the property. You use a title company to gain clear title to the property. You should also receive title insurance as a guarantee that the title is clear and can legally be sold to you. Don't be penny wise and pound foolish, as the well-know Ben Franklin advice states. Go to a title company or attorney. You can shop around for the best pricing. The costs do vary a bit. Good luck.
0 votes Thank Flag Link Mon Sep 8, 2008
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