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.
Good luck,
Russ
I have never done a L/O deal and would like to do a few. When you do a deal, how do you check the title?
If I go to www.OCTITLE.com, I can see who the property owner is, but don’t you want more info?
Do you want to see the mortgages and liens against the property? (I would think so).
Would you order a simple property profile to satisfy this?
Do you notarize your L/O agreement with the seller, or are you satisfied with just a signature?
Are you arranging all of your collections and payments with an agency?
I would go to a title company and have them check the title…that simple.
Never notarized…signature enough for me. I do however record a memorandum on the contracts that i am going to “sandwich”.
It is up to you…some owners get scared and want to still make the payments in there name (let them…just check to make sure they are paying by getting all there loan information). Collection company can also be set up (easier for you…costs a few bucks though).