Buying Land in California

[Sal Sanshez]

I made an offer on some land in San Bernardino County for $15k. Do I use a title company? The seller wants a check for deed. How do I avoid getting screwed here? I checked property records and the person matches the name on title.

[Wayne Brooks]

Absolutely use a title co and get title insurance. Just because his name is on deed doesn’t mean it has clear title.

[Jay Hinrichs]

good chance it was bought at tax sale @Wayne Brooks  IN CA  it usually 5 years before a title company will issue title policy for a one off buyer.. big player can get it though..

[Brian Ploszay]

You can't give a check for a deed.  You have to get title insurance to ensure your ownership of that property.  Don't do this unless you do it right.  Going through a title company will make sure the guy owns it, no others have a claim on it, the taxes are paid, any municipal fines are extinguished, and any other liens as well.

The other comment mentioned it was a tax deed.  If so, consult a local attorney who has experience.

[Jay Hinrichs]

Originally posted by @Brian Ploszay:

You can't give a check for a deed.  You have to get title insurance to ensure your ownership of that property.  Don't do this unless you do it right.  Going through a title company will make sure the guy owns it, no others have a claim on it, the taxes are paid, any municipal fines are extinguished, and any other liens as well.

The other comment mentioned it was a tax deed.  If so, consult a local attorney who has experience.

while generally correct and good advice.. west coast is not like IL  we don't use attorneys to close at all.

and you can certainly give a check for a deed if you want to take a risk on the title.. I have done it countless times but I am not a rookie buyer either and am capable of doing my own title search.

also we don't have muni liens like your used to in your area or many areas of the rust belt... they don't attach to the property.. that was something I had to get used to when I started lending out your way in 2001 ish..

I only mention tax sale because in CA thousands upon thousands of bare lots trade each year at the county tax sales.. so when I see something very cheap and bare land I go right there.. it may not be that.. but good chance there is.

in CA there is NO right of redemption other than in RARE instances but most title companies still wont insure for 5 years.. we got insurance because of the sheer volume we did.. our title company would insure but most if not all one off buyers can't get it without waiting.. and No one quiet titles these they just wait it out.  There is a company that does title insurance just for tax sales.. but the insurance is quite week I checked on it once.. and banks won't rely on it for funding you may get a semi rookie to think hey I got title insurance by this company.. but it won't be recognized by one of the majors ..

[Rachel H.]

@Sal Sanshez Yes, do it the right way and get a title company involved. Check title and close on it just like any real estate transaction. Good luck! 

[Jack Butala]

Our rule is that if we purchase property for less than $5,000.00 we do our own title work through TitlePro 24/7, RealQuest Pro and or DataTree (full disclosure - we are licensed providers of all three).

If the property is urban in nature and logical for vertical development (and the deal makes economical sense), the only option is to get title insurance.

If you use companies like "sourceoftitle.com" (no affiliation) they will steer you in the direction of smaller more local mom and pop title companies which deliver the same product as the big guys for less than half the cost and usually much faster.

Sounds like you are already way ahead of the game, @Sal Sanshez Good luck and I wish you the best.