If an owner has title in hand, how does the purchase work?

[Carrie Cavins]

I'm looking at a FSBO property and the owner states has title in hand. The owner claims the only thing that needs to be done is a transfer of title for about $150 (in Texas) with a cash purchase. This seems too simple, but would be wonderful. (I've only bought SFH) Does this work if an owner still had a mortgage and I was paying cash or would there be closing costs? And if there were closing costs, would I be responsible as the buyer because I'm buying "Personal Property"? Thank you!

[Jeremy Kuchenbecker]

I'm in Florida but your best bet would be to always contact a title/closing agency. A title transfer is generally all that NEEDS to be done (quit claim deed) but you should check to make sure he has clear title even though he has it in hand, no liens etc, make sure the title is recorded properly, and get a title insurance policy. If you look at your previous HUDs or CD from your SFH there's not much of a difference whether the owner has title in hand. Every state is different but never take someone's word for anything in real estate it could cost you down the road, verify verify verify.