Wholesaling. Title company

[Gary Spence]

when wholesaling should you get a title search done on a property before you present it to your end buyer? If so is there a way it can be done without paying for it?

[Sonu Sharma]

Hello Gary Spence . I am not a wholesaler myself but deal with quite a few on a regular basis. I am not sure if each one of them does a title search before presenting a property to their buyers but they do guarantee that if we see any problem with title, they would refund my deposit money.

I, of course, do business with people that I meet and tryst personally. So, the wholesalers do keep in mind that referrals can spread much faster and cooperate very well to any problems with title. I think they write it as part of their assignment contract with the seller that any cloud on the title will result in the transaction not going through, which probably helps them guarantee the deposit amount. I am not sure about that part though.

If you, however, want to give your buyers a great deal of peace of mind, you could engage a third party company called titlesearch.com to do a title abstract report on any property for a fee. This should definitely build credibility with your buyers, especially in the beginning stages, that you have done your due diligence to prevent any surprises and that you care about your buyers.

Hope this helps and good luck !!