Just waiting on the title commitment

Anonymous · ‎11-24-2014

We are still waiting for the title from the seller's attorney so that we can go into final review. We should've had it almost a week ago! The seller's attorney has been slow on so much. My lender is reassuring me that the appraisal looks good, our file is straight forward, and everything else should be fine. My lender told me that if we get the title today, we could very likely get our clear to close by Wednesday.

Has anyone else ever run into issues with the seller's attorney being slow to get the title sent over? Our closing date isn't supposed to be until 12/4, but we were hoping to try and close a bit early since we'll be staying with my fiance's parents until we close. We originally wanted to try and close this week, but now we would be happy to just close next Monday or Tuesday.

ezdriver · ‎11-24-2014

I'm confused. Why would you [the buyer] be waiting for the seller to produce a title? Your title company will issue a new policy to you and the lender.

StartingOver10 · ‎11-24-2014

@ezdriver wrote:
I'm confused. Why would you [the buyer] be waiting for the seller to produce a title? Your title company will issue a new policy to you and the lender.

EZ, it depends upon how it is written in the contract.

In my area of S Fl (Palm Beach county) it is customary but not mandatory for the seller to deliver clear title to the buyer at seller's expense.

However, if you go a little further south to Broward or Miami-Dade, then it is customary, but not mandatory, for the buyer to pay for clear title.

From your post, it sounds like you are in an area where it is customary for the buyer to pay for title. Or it could just be your builder requires it in their contract.

ezdriver · ‎11-25-2014

@StartingOver10 wrote:
@ezdriver wrote:
I'm confused. Why would you [the buyer] be waiting for the seller to produce a title? Your title company will issue a new policy to you and the lender.
EZ, it depends upon how it is written in the contract.

In my area of S Fl (Palm Beach county) it is customary but not mandatory for the seller to deliver clear title to the buyer at seller's expense.

However, if you go a little further south to Broward or Miami-Dade, then it is customary, but not mandatory, for the buyer to pay for clear title.

From your post, it sounds like you are in an area where it is customary for the buyer to pay for title. Or it could just be your builder requires it in their contract.

I get what you are saying. My thoughts are as follows:

1. A seller is always required to deliver a clear title ... meaning no clouds whatsoever. Who pays for clearing liens/clouds is not what I'm addressing. It's crazy for a buyer to pay for clearing clouds on title to the property they're buying.

2. The title insurance company ensures that #1 is done by issuing a buyer/lender title insurance policy with no "subject to" constraints in it. If it won't issue a clean title insurance policy, nothing elase matters as the lender won't fund the mortgage anyway.

I had #2 in mind when I wrote my previous post. If a buyer states that they are waiting for the buyer to deliver title to the property being purchased, I interpret that to mean that there are clouds on that title that have not yet been cleared.

Anonymous · ‎11-25-2014

We received the title commitment yesterday. It's a clean title, so yay! It was just taking so long because the seller's attorney was slow to initiate getting it.

Anonymous · ‎11-25-2014

Congrats!

StartingOver10 · ‎11-25-2014

Congrats on getting your title!

EZ, not to be argumentative - but the seller is not always required to deliver clear title. Our standard contracts require it. Lenders require it. But I have seen quite a few instances, especially over the past 6 years or so since the melt down, where REO properties have an addendum that allows the seller to deliver the title with clouds and/or encumberances on it.

I have caught Wells Fargo and other lenders (Ocwen mainly) deliberatly trying to pass the foreclosed mortgage over to the NEW buyer!

Naturally the buyer was cash and the seller assumed that the title would not be examined. I represented the buyer in those occasions (as an agent) and we had to bring in a pit bull type real estate attorney to get the seller to actually clear the title. They claimed they did not have to deliver clear title by virtue of their addendum. The closing was delayed, but ultimately the property closed - with clear title. In this business you can't make any assumptions. My advice to everyone is read the title commitment carefully but pay special attention to the exceptions pages on your title commitment (Schedule B). If you don't understand it, call the title co and/or your attorney.

Once again OP, congrats on getting your title work.

ezdriver · ‎11-25-2014

@StartingOver10 wrote:
Congrats on getting your title!

EZ, not to be argumentative - but the seller is not always required to deliver clear title. Our standard contracts require it. Lenders require it. But I have seen quite a few instances, especially over the past 6 years or so since the melt down, where REO properties have an addendum that allows the seller to deliver the title with clouds and/or encumberances on it.

I have caught Wells Fargo and other lenders (Ocwen mainly) deliberatly trying to pass the foreclosed mortgage over to the NEW buyer!

Naturally the buyer was cash and the seller assumed that the title would not be examined. I represented the buyer in those occasions (as an agent) and we had to bring in a pit bull type real estate attorney to get the seller to actually clear the title. They claimed they did not have to deliver clear title by virtue of their addendum. The closing was delayed, but ultimately the property closed - with clear title. In this business you can't make any assumptions. My advice to everyone is read the title commitment carefully but pay special attention to the exceptions pages on your title commitment (Schedule B). If you don't understand it, call the title co and/or your attorney.

Once again OP, congrats on getting your title work.

No worries. It's just a discussion and sharing of information.

I have a cousin who just lost a house in Ft Lauderdale that he bout at a foreclosure auction. The court issued the certificate of sale "subject to liens and encumberances" on the property. The lender got the proerty back by going to court and the judge "sold" the house to lender even thought it was already "sold" to my counsin via the court's auction.

I consider those to be exceptions. Bottom line is that no one should close on a property without a title insurance policy. No lender will close without a lender title insurance policy. Once you have that policy, nothing elase matters.

ezdriver · ‎11-25-2014

@Anonymous wrote:
We received the title commitment yesterday. It's a clean title, so yay! It was just taking so long because the seller's attorney was slow to initiate getting it.

What exactly is a "title commitment" and from whom that "commitment" is issued?

I'm just looking to learn as I don't recall hearing those terms used before ... except in the context of a title insurance policy.

Whatever it was, I'm glad that you are good to go. All the best with your new home.

Anonymous · ‎11-25-2014

Thanks for the advice! It's in our contract that the seller's are paying for our title insurance policy. I'm not sure how standard that is, but we will have it so that is good.

Once going into final review (conditions cleared, have the title, appraisal, homeowners insurance) about how long did it take to receive the clear to close for other people?