Would Title Co. Steal Your Deal? - Posted by Patrick (CA)

Posted by Ben (NJ) on September 18, 2003 at 20:55:40:

there is one story I would love to tell but as they say, “I can’t comment on pending litigation!” (you never know who could be reading these posts!)

Would Title Co. Steal Your Deal? - Posted by Patrick (CA)

Posted by Patrick (CA) on September 18, 2003 at 10:43:22:

If I have a good deal (lots of equity ? low costs going in), what prevents the Title company from letting another investor know about your deal and try to go around you? Some other questions:

  1. Do you give the title company the original P & S agreement, Seller?s Acknowledgment and deed? Or what documents to you give them?

  2. Do you tell the title company the true fair market value, so they can insure the full amount?

  3. Anything not to disclose to them?

Re: Would Title Co. Steal Your Deal? - Posted by Brent_IL

Posted by Brent_IL on September 18, 2003 at 16:17:19:

A little suspicious, are we?

1 ? Give the title company copies of the contract for sale of real estate. The only deed you would give them is if the current seller signed one to transfer the property to you. Once title is recorded, an old dead is useless. The title officer will ask you for what they need. Never give them copies of private agreements such as, beneficiary agreements, operating agreements for LLC?s, and the like. In general, it?s better for you to have as few copies of sensitive material floating around as possible.

2 - An Owner’s Policy is issued in the amount of the purchase price. I don?t know if a title company would insure to appraisal value. I?ve never asked.

3 ? I wouldn?t disclose anything that I felt wasn?t their business. For example, if I?m maximizing tax deductions, I?ll have 3 or 4 additional agreements with the seller, e.g., non-compete, property consulting, etc. I wouldn?t forward copies of these agreements. One downside is that the purchase price has been reduced to accommodate these agreements, so the title coverage is for less.

If a deal has progressed to the point where you have a purchase contract and need title insurance, how will anyone go around you? I think your fear of title companies is unwarranted. They sell insurance policies. They don?t buy real estate. Closing agents are experts in paperwork. They are not trained to recognize good deals. It seems unlikely that the ones that can distinguish between profitable deals and retail deals would jeopardize their job by giving out information.

Re: Thanks Brent. - Posted by patrick

Posted by patrick on September 18, 2003 at 16:41:01:

I am a newbie. Saw them today. They only want to know the purchase price. They made copies of everything and gave me back the originals. Silly question. Nah, maybe it will help someone else newer than me.

Not totally off the wall… - Posted by Ben (NJ)

Posted by Ben (NJ) on September 18, 2003 at 17:02:11:

We recently ordered a title search on a tax lien ripe for foreclosure. Someone who worked for the title company went and knocked on the person’s door, told them they were getting foreclosed on and offered to buy their house. The guy threw them offhis property but then went and redeemed our tax lien.
I complained to the president of the title company and he went ballistic. Obviously this renegade took it upon himself to do this against the wishes of the conmpany.

totally off the wall… - Posted by English

Posted by English on September 18, 2003 at 20:14:55:


How come you always have to TOP everyone else’s stories. NOW YOU ARE JUST MAKING UP STUFF!

Re: Not totally off the wall… - Posted by Thanks

Posted by Thanks on September 18, 2003 at 19:12:30:

for mentioning that. Too bad about your tax lien. The guy that works there should have been fired - using customer information and conflicting with interest.

I will make sure I never brag about how good of a deal I might have. In fact, I will tend to down play it if asked.