Posted by Russ Sims on May 31, 2000 at 11:20:08:
Steve’s answers are great. On item 2 I like to have the seller’s signatures notarized, because then I can record the agreement at the county. This puts a very deffinite cloud on the title. My local title company has said that they won’t always catch recorded memorandums, but they will absolutely catch a recorded option agreement. That may just be particular to my area…On the other side of the transaction, I never have my agreement with my t/bs notarized: I don’t want them recording the documents and making title transfer difficult for me down the road.
Shop around for a title company that will do a free title search for you. When I first started, I was quoted a price of $250 for this service, but I shoped around and found a company that would do it at no charge, as long as we agreed to order the eventual title insurance there. It’s a “gentlemans” agreement and if I don’t eventually order the insurance, they will probably yank the service.