When buying a foreclosed property, should you/ can you pay for a title search or survey before making offers?

Answer 1

You should definitely pay to have a title search! I'm sure you could find a place that's not too expensive. But anything is worth it to know that if you do buy the house, it won't get taken away from you due to a problem with the title.

Answer 2

You had better have a complete understanding of the property before you make an offer, and that includes a title search. You should do that with any property, but with a foreclosure, there is a higher probability that someone has a lien on the home. You don't want to make an offer and get stuck with a property that you'll be paying other people for...and if i understand correctly, you'd have to pay them off before changing the title could be possible...they would have first position on the property after the bank...

Answer 3

2

Answer 4

I wouldn't go to that expense until you are under contract. If you are only considering doing it before hand incase there is a problem, you will still find it and the property can't be transfered if there is a blemish on the title until it is cleared. As far as the survey is concerned, if there is some type encroachment on the property, it will also have to be remedied before title can transfer. If you want the property to be at least XX acres, then you can write that into the contract that it is contingent upon it surveying to at least XX acres. Depending on the condition of the property, you may want to consider inspections before making an offer. That is perfectly within your rights to ask of the other agent or seller. Of course they could say no and you would have to decide which way to go.

EDIT: A title search is required on any property on which financing is involved and in most areas required for all transfers of property.

Answer 5

If you are asking strictly about paying for these services before making an offer...no! Put in your offers, negotiate, and your contract should have standard language to perform your due diligence.

The survey will be done by your lender and you can finance that many ways...at closing, in advance directly to the surveying company, or wrap into your loan. Speak with your lender regarding this...also don't forget about appraisal fees.

By "foreclosed" do you mean REO? If yes, then title work is less of a concern (I recommend to everyone to do this diligence) because banks know they need 'clear and marketable title' to get their inventories off their books. I don't do title work on my REO purchases unless my lender requires it...and many of my private investors don't care. That's how I play my REO game.

If it's a foreclosure that is still owned by the homeowner and you are looking to short sale the home, then 'subject to clear and marketable title' NEEDS to be part of your standard contract language.

In short, don't waste time or money getting surveys, titles and appraisals until your contract is accepted. Then it's important to get these done and your contract should have specifics that allow you time to see if you want to move forward with your deal.

Answer 6

You might make the offer conditional on what the title search reveals. That way you can write an offer without the search, and only have to do one if it's accepted. Then, if it turns up a problem, you have a way out of the deal.

Answer 7

YES! you can and YES you should. The survey...well that isn't always necessary. You can look up the title info yourself cheap. The city/county will also have a survey on file. It may cost you a little now, but save you a lot later

Answer 8

I don't know for sure, but I'd say no, because you don't own the property and don't have permission from the owner. But why not call a title company and ask them? They'll know for sure.

Answer 9

Take Surveys Get Money : http://OnlineSurveys.uzaev.com/?yqUU