Posted by Jim IL on January 17, 2000 at 21:13:35:
When I do a L/O deal, I do not get title insurance, but I do search the title.
You can do this yourself, or pay to ahve it done.
This way, you have some idea of what condition the title is in.
But, if the seller is willing to pay for title insurance, why not?
I’m just not sure what the point in doing so is?
The option will not be exercised right away, so will the policy be any good when it comes time to close?
Just make sure that your agreement says the seller is to provide clear title to the buyer, and that the seller cannot encumber the property any more than the purchase price in the L/O agreement.
This is not iron clad, but will cover you a little better should it get to litigation later.
As far as “Recording with the title company”, what does that mean?
You do not record a deal with the title company, that is done at the county recorders office.
I would not record the agreement itself, but a memorandum or affidavit instead stating that there is an agreement, but not the terms.
No need to tell the world what kind of deal you have.
Just my $.02,