Simultaneous Closing- How to Handle Buyers Title Policy Request When Policy Shows Purchase Amount?

[Burt L.]

I have a buyer on a strong deal, who understandably wants to examine the title policy before giving a deposit. Of course, they would be aware that the title policy is in the amount of the buy-side figure and I thought twice before forwarding the policy. The title company says they can't provide a policy at the increased figure until there is s B-C side contract.

How is this best handled? To me, a deposit is refundable if good title can't pass. I would return a deposit if title isn't mechantable, etc.

[Wayne Brooks]

Maybe it's different there, but here a title policy is delivered about 5 days tops, prior to closing, way after a purchase contract is executed and EM deposit given. The title policy verifies clear title is being transferred. If the seller can't deliver clear title, then the buyer gets their EM deposit back. I've never heard of delivering a title policy prior to contract execution. Also, who pays for it, in your deal? You will NOT be giving them a copy of the title policy for the A/B transaction, but for the B/C transaction.