Title Company Questions?

Scott Costello All, Blog, Featured 5 Comments

So far my partner and I have not had much love from title companies.  In our first deal the title company we were working with (and was highly recommended by other investors) broke up and was not seen from again right in the middle of our deal.  In our second deal, another company who was highly recommended just recently was no longer doing title work themselves and was passing the work to another title company.  This other company took 2 weeks to get our title work back!?!

This brings me to my question for all of you…

How did you find your title company and what questions did you ask them before giving them your business?

I did some research on google a came up with a few questions to ask…

  1. 1.   Do they work with assignments?  Without assignor being present at close?
  2. 2.  Can they handle double closings if they are necessary?  If so, can 1 title search be used for the whole process?
  3. 3.  What do they charge for title search?
  4. 4.   What do they charge for a full title commitment?

I also found a couple great posts from Steph Davis about the subject…

The general advice you see most is to seek out a reference from an experienced investor in your area.  That is great advice. Should you just blindly trust it though?  I say not entirely so be prepared with some questions to ask to help you feel more comfortable with them.

So what questions to you ask when interviewing a title company?

 

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Comments 5

  1. Great question, Scott! Back when I was wholesaling, I tried going the route using referrals from other investors to find title companies to work with. It was pretty much a hit or miss situation. I worked with a few but didn’t really feel the connection. It wasn’t until I went out on my own and did my own research did I find success. It took some time and I interviewed many. Finally, I found an attorney who had been in the business for awhile who was also an investor and our personalities just clicked. Usually, it does boil down to personality issues. Hope that helps! 🙂

    1. Post
      Author

      I’m realizing a few things about title companies and for that matter, relationships in general. First, they have to be available to you if you have a question. If you call them up they should either answer or get back to you with in a few hours. Second, they have to get the work done in a timely fashion or keep you updated. I’m much more lenient if you keep me informed of delays with out me having to call you every day. Third, they have to understand what you are trying to do.

      Unfortunately you aren’t going to be able to find out if a title company possesses those traits unless you try them out. Questioning them before hand will rarely weed out the bad, unresponsive companies in my opinion.

  2. Scott – In my area, we use closing attorneys rather than title companies. I found my closing “partner” at my local REIA. I call him a partner, because that is what he is. He is there to make everything go smoothly at my closings.

    We have built a strong relationship over the years. I like using his company because he is an investor himself, and they ONLY do real estate closings except for things like setting up LLC’s etc. In other words, things that would benefit your business.

    Assignments, double closings, strange probate situations …. no problem. He is a pro and he understands investing. A typical closing with all the document preparation, title work etc is about $350-400 depending on the house. That does not inlcude owner’s title.

    1. Post
      Author

      In New Jersey it depends on where you do the closing if you need an attorney or not. If you live in Northern New Jersey everyone uses an attorney so they will do the closing most of the time. In southern NJ, all you need is a title company. Technically you do not NEED an attorney in NJ but it’s common practice in the North.

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