First Deal, Seller is asking me to pay title search

[Ed Brady]

Hello BP members,

I am brand new to REI and after many months of lurking on the forums, reading books, listening to podcasts, analyzing, deal searching and failed offers, feel that I am close to landing my first deal with a motivated seller.

Today, the seller countered my first offer, accepting the initial price, (which was 12.5% below the listing price), but asked that I pay for the title search.    I have read in multiple places here and elsewhere that the seller should pay these and I think it makes sense to do so.  I talked with my Realtor and she indicated that in certain areas of Ohio, it was considered "customary" for the seller to ask the buyer to pay for the title search.

I am not opposed to paying these costs, but I have questions... 

Is this a potential red flag that the seller may have reason to suspect the title is not going to come back clean?   If I agree to pay the costs, and it comes back that there is no clear chain of title and the deal falls thru, would I loose the money that I paid to do the search?   

All thoughts appreciatied...

Ed

[Andrew Brannick]

I would not worry about the title not coming back ok, the seller is trying to keep more of their money from the sale of the house. 

At least in Arizona, title fee's get rolled into the category of closing costs. If title is unable to allow the transaction to go through then there is no closing, therefore they don't get any of the closing costs. I would put a fistful of cash that Ohio is the same way. If the sale doesn't go through the only thing you wont get back is the home inspection fee's.

I think you are a little nervous and everything will be fine.