Title guy when buying a house

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Edge215
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Title guy when buying a house

Post by Edge215 » Tue May 05, 2020 12:28 pm

I was watching a video with a real estate guy and one of his tips for buying house is to make sure you have a good title guy. What does this even mean? How do I find a title guy?

mouses
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Re: Title guy when buying a house

Post by mouses » Tue May 05, 2020 12:37 pm

Title insurance company. It's been a long time since I bought a house but I assume the bank pointed me at someone. As I recall, one company wrote most of the title insurance in the area. Your real estate agent probably knows someone, but I would check out any suggestions instead of just accepting them.

jeff1949
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Location: Salem, OR

Re: Title guy when buying a house

Post by jeff1949 » Tue May 05, 2020 12:49 pm

Edge215 wrote:
Tue May 05, 2020 12:28 pm
I was watching a video with a real estate guy and one of his tips for buying house is to make sure you have a good title guy. What does this even mean? How do I find a title guy?
In my experience here in Oregon it is usually a "Title Gal". But yes, they mean an individual at a Title Company that knows what they are doing.

deikel
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Re: Title guy when buying a house

Post by deikel » Tue May 05, 2020 1:47 pm

It means when you buy a property, you are checking its title - which basically means you are checking that the seller actually truly owns what they are selling to you (and what exactly is recorded that they are selling) and you are actually buying what you intend to buy - plus you make sure there is no deed from years past that might pop up as a right of someone else to part of the property (or all of it).

This is done with a title search and report

Depending on where you live and what the history of the property/land is, a title report can be fun to read, see the 100 year old description of the property lines in very different ways from today and find some history that way.

This can be insured in case someone makes a mistake and/or you end up with a dispute. If you have a mortgage on a house, the bank will insist on it anyway - so I will assume your video was tailored for folks who buy he property in cash (or without a mortgage and bank in the back). I believe some states make this mandatory as well (the search, not the insurance).
Everything you read in this post is my personal opinion. If you disagree with this disclaimer, please un-read the text immediately and destroy any copy or remembrance of it.

adamthesmythe
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Re: Title guy when buying a house

Post by adamthesmythe » Tue May 05, 2020 1:47 pm

I suppose it's possible that there are some less competent people at title companies. I can't say I have noticed any difference. You go to an office, sign a bunch of stuff, then go home.

It's probably more important to understand how things are done in your state. Because it varies.

Swivelguy
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Re: Title guy when buying a house

Post by Swivelguy » Tue May 05, 2020 2:08 pm

In most places, the seller provides the title insurance policy for the buyer, giving the buyer no choice in who their "title guy" is. However, the terms of the title insurance policy are what matter, not how good the guy or gal is. I suppose if you want to have a good "guy" in your court, the person to have is a real estate lawyer, who should make sure you're protected the way you think you are.

lstone19
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Re: Title guy when buying a house

Post by lstone19 » Tue May 05, 2020 2:29 pm

Swivelguy wrote:
Tue May 05, 2020 2:08 pm
In most places, the seller provides the title insurance policy for the buyer, giving the buyer no choice in who their "title guy" is. However, the terms of the title insurance policy are what matter, not how good the guy or gal is. I suppose if you want to have a good "guy" in your court, the person to have is a real estate lawyer, who should make sure you're protected the way you think you are.
How involved title companies are in a real estate transaction is a regional custom. We have owned real property in both California and Illinois. In California, the title company pretty much handles all aspects of the closing without lawyers being involved and are pro-active about making sure everything is correct. In Illinois, lawyers are involved and usually present at the closing with the title company just doing as directed so they take less of a role in making sure everything is done correctly. Every title agent I dealt with in California was on the ball. I cannot say the same about title agents in Illinois.

BillyK
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Re: Title guy when buying a house

Post by BillyK » Tue May 05, 2020 7:51 pm

Title companies will throw in all kinds of title exceptions when it comes to their title commitments. Many buyers think just because they are obtaining title insurance that they are covered for all potential title problems. However, particularly depending on the type of property, you need someone such as a good real estate attorney to review the title commitment to ensure that you aren’t acquiring property with unacceptable title exceptions. If there are title issues, you want to make sure they are cured before closing and satisfactorily removed as exceptions from your title policy.

adam1712
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Re: Title guy when buying a house

Post by adam1712 » Tue May 05, 2020 8:23 pm

This varies a lot by state based on law and custom. I have no idea how accurate the following is but shows how much it varies.

https://sandygadow.com/state-by-state-closing-guide/

Nutmeg
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Re: Title guy when buying a house

Post by Nutmeg » Tue May 05, 2020 9:30 pm

I understand from extensive reading that title insurance company you choose matters whether the title company or an attorney handles the closing.

Some title insurance companies will insure the gap between closing and recording, and some will not. For further reading, you might want to start here:

https://lakesidetitle.com/update-e-sign ... -coverage/

... and then go here for more detail:

https://www.cadwalader.com/ref-news-vie ... =15&eid=59

michaeljc70
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Re: Title guy when buying a house

Post by michaeljc70 » Wed May 06, 2020 9:23 am

In my state (IL) the attorney almost always picks the title company. The title company pays the attorney to do certain aspects of the work. It is somewhat of a kickback scheme in my view. When I told my attorney I wanted to use a different title company she said that was fine, but she would have to charge more. On the other hand, the real estate attorneys charge relatively low amounts and it is flat rate. There have been many articles over the years of how inflated title insurance is in most states. In Iowa they changed their system and a state agency provides it for $110 (for up to $500k, these amounts may be a bit old).

https://www.curbed.com/2018/2/26/170171 ... t-takeover

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lthenderson
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Re: Title guy when buying a house

Post by lthenderson » Wed May 06, 2020 9:27 am

My bank did/hired a title search as part of their requirements before giving me a mortgage loan. Like someone else said, I just signed the papers and went home. All they do is a search at the local courthouse to make sure there aren't any liens on the property and make sure the abstract is updated and has continuity.

michaeljc70
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Re: Title guy when buying a house

Post by michaeljc70 » Wed May 06, 2020 9:52 am

lthenderson wrote:
Wed May 06, 2020 9:27 am
My bank did/hired a title search as part of their requirements before giving me a mortgage loan. Like someone else said, I just signed the papers and went home. All they do is a search at the local courthouse to make sure there aren't any liens on the property and make sure the abstract is updated and has continuity.
What if a lien was filed the day they did the search (or the day after) and not in the system yet? That is the insurance part.

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lthenderson
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Re: Title guy when buying a house

Post by lthenderson » Wed May 06, 2020 11:18 am

michaeljc70 wrote:
Wed May 06, 2020 9:52 am
lthenderson wrote:
Wed May 06, 2020 9:27 am
My bank did/hired a title search as part of their requirements before giving me a mortgage loan. Like someone else said, I just signed the papers and went home. All they do is a search at the local courthouse to make sure there aren't any liens on the property and make sure the abstract is updated and has continuity.
What if a lien was filed the day they did the search (or the day after) and not in the system yet? That is the insurance part.
Yes but the same problem could happen to the best title guy money can buy and the OP was asking about hiring a title "guy", not about title insurance.

adamthesmythe
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Re: Title guy when buying a house

Post by adamthesmythe » Wed May 06, 2020 11:28 am

lthenderson wrote:
Wed May 06, 2020 9:27 am
My bank did/hired a title search as part of their requirements before giving me a mortgage loan. Like someone else said, I just signed the papers and went home. All they do is a search at the local courthouse to make sure there aren't any liens on the property and make sure the abstract is updated and has continuity.
I did pay for title insurance before going home. (And I read the papers before signing them). Title search =/ title insurance.

And I don't believe a lawyer is always necessary to interpret title exceptions. An ordinary person can read and understand the most common types of exceptions- utility easements.

You may need someone who is capable of reading badly xeroxed handwritten hundred-year old pages however.

talzara
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Re: Title guy when buying a house

Post by talzara » Wed May 06, 2020 11:56 am

michaeljc70 wrote:
Wed May 06, 2020 9:23 am
There have been many articles over the years of how inflated title insurance is in most states. In Iowa they changed their system and a state agency provides it for $110 (for up to $500k, these amounts may be a bit old).

https://www.curbed.com/2018/2/26/170171 ... t-takeover
Iowa Title Guaranty is now charging $140 for $500k of lender's and owner's coverage: https://iowatitleguaranty.org/Public/IT ... ve7119.pdf

The losses are so low that Iowa Title Guaranty makes a profit, and it pays dividends every year to the state treasury.

michaeljc70
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Re: Title guy when buying a house

Post by michaeljc70 » Wed May 06, 2020 12:28 pm

lthenderson wrote:
Wed May 06, 2020 11:18 am
michaeljc70 wrote:
Wed May 06, 2020 9:52 am
lthenderson wrote:
Wed May 06, 2020 9:27 am
My bank did/hired a title search as part of their requirements before giving me a mortgage loan. Like someone else said, I just signed the papers and went home. All they do is a search at the local courthouse to make sure there aren't any liens on the property and make sure the abstract is updated and has continuity.
What if a lien was filed the day they did the search (or the day after) and not in the system yet? That is the insurance part.
Yes but the same problem could happen to the best title guy money can buy and the OP was asking about hiring a title "guy", not about title insurance.
Based on your interpretation of "guy". Is a title "guy" someone that does a title search? Guy is a pretty vague term to me. Where I live I've never even heard of hiring a title guy....you hire a title company. You cannot close a conforming mortgage without title insurance.

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lthenderson
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Re: Title guy when buying a house

Post by lthenderson » Wed May 06, 2020 4:28 pm

michaeljc70 wrote:
Wed May 06, 2020 12:28 pm
lthenderson wrote:
Wed May 06, 2020 11:18 am
michaeljc70 wrote:
Wed May 06, 2020 9:52 am
lthenderson wrote:
Wed May 06, 2020 9:27 am
My bank did/hired a title search as part of their requirements before giving me a mortgage loan. Like someone else said, I just signed the papers and went home. All they do is a search at the local courthouse to make sure there aren't any liens on the property and make sure the abstract is updated and has continuity.
What if a lien was filed the day they did the search (or the day after) and not in the system yet? That is the insurance part.
Yes but the same problem could happen to the best title guy money can buy and the OP was asking about hiring a title "guy", not about title insurance.
Based on your interpretation of "guy". Is a title "guy" someone that does a title search? Guy is a pretty vague term to me. Where I live I've never even heard of hiring a title guy....you hire a title company. You cannot close a conforming mortgage without title insurance.
I was using the OP's words, not mine. In my experience, the bank hired a title company to do the research at the courthouse.

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