Title at Closing

[Alex Ng]

When getting under contract, should I apply for a title search during the due diligence or will the escrow/title company be doing that for me? I want to know if it's worth paying the extra money to conduct a title search if it won't already been done so by the escrow/title. What should I do if at closing the title isn't clear? 

[David M.]

@Alex Ng

You are kinda asking the same question...  Typically, in a residential real estate transaction a Title search will be ordered.  A Title insurance policy will be issued to the owner and another to the lender, if there is one.  This assume the transaction goes through.

Read your contract.  It should stipulate which party is paying for the Title search, and who is responsible for potential remedies.  These can occur outside of the due diligence period.

For example, in NJ the buyer pays for the Title search, but its the seller's responsibility to cure any defects of Title.  Buyer also pays for the Title insurance.  If there is an issue with Title, the contract has provisions.

I am GUESSING you might have heard about running your own Title search, but that is for when you are doing your own off-market research and generating your own leads.

But, you need to determine how your market customarily handles these actions.  Hope that helps.  Good luck.