Normally when you are buying a home you rely on your real estate agent to address the purchase contract, explaining what it is your are signing. Yes, it can sometimes be a little overwhelming BUT knowing what you are signing and what the details of the transaction are and what all the provisions, inclusions and exclusions are for the property you are purchasing is extremely important. This is why, since we are not all real estate agents, we depend on the agent we have chosen to work for us and to help guide us through all of the purchase contract documents (the same in regards to your mortgage loan and your lender). Which brings me to why I am writing this for you.
Recently there have been some changes made to the purchase contract documents. In the section “Evidence of Title And Association Documents” (sec. 7) This is the sections that has a choice of “Seller Selects Title Insurance Company” (sec. 7.1) OR “Buyer Selects Title Insurance Company” (sec. 7.2).
What does this mean to you?
What this means is that IF you and your agent choose sec. 7.2 “Buyer Selects Title Insurance Company”, this states that you as the buyer is responsible for choosing the title company AND you are to furnish the owner’s title insurance policy at the BUYERS EXPENSE, on or before record title deadline.
This is a big issue if this is not an expense you are planning on including in your purchase, so if you are not expecting this and don’t have the funds to cover this (which can sometimes be a good amount), and this could cause some complications for your closing.
My biggest suggestion with this is that you discuss this with your agent and if you are wanting to choose the title company, you should be aware of what this will include for you.
Again, I am not a Real Estate agent, but I recently had this happen with one of my clients and out of this experience I want to share it with you so this situation could be avoided.
Please give me a call, or contact us if you have any questions, we are always here to help.
Summit Mortgage Corporation
303-779-0591 ext. 101