Purchasing land by owner

[be12hunt]

We are looking at purchasing some land from a friend of ours. We are not financing it through a mortgage so will not be bound by any lending agreements.

My question is should we go through a title company to get a warranty deed or just use a real estate attorney and have a basic deed transfer done.
Our friends have a title policy that they got less than a year ago when they purchased the land.

[Throwin Darts]

We are looking at purchasing some land from a friend of ours. We are not financing it through a mortgage so will not be bound by any lending agreements.

My question is should we go through a title company to get a warranty deed or just use a real estate attorney and have a basic deed transfer done.
Our friends have a title policy that they got less than a year ago when they purchased the land.

The cost of a title policy should be minimal in the grand scheme of things. I would highly suggest you purchase one. Your friends title policy does nothing for you as the new owner.

[Landrover]

Following!

[DUKFVR]

The cost of a title policy should be minimal in the grand scheme of things. I would highly suggest you purchase one. Your friends title policy does nothing for you as the new owner.

This! Always CYA ,just in case.

[curtintex]

I wouldn’t buy land from my own parents without a title policy. Sometimes land can become encumbered without the owner even being aware. Title policy makes sure it’s a clear title. Cheap insurance.


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[SB09]

Yea, don't even consider going without a title policy...

[Birddog66]

We are looking at purchasing some land from a friend of ours. We are not financing it through a mortgage so will not be bound by any lending agreements.

My question is should we go through a title company to get a warranty deed or just use a real estate attorney and have a basic deed transfer done.
Our friends have a title policy that they got less than a year ago when they purchased the land.

I would recommend both, because they do different things. The RE attorney can set up the contract and explain it to both sides. The title co. handles the transfer of title and issues the title ins. The one from a year ago will not carry over to you. Unfortunately, That's not how it works.

[be12hunt]

I guess my logic was that if they had a clean title with their title policy back in December, then the only risk would be if our friends had a lien on the land.

I made a couple phone calls and it seems like it will be about $1500 for a title policy.

[DUKFVR]

I guess my logic was that if they had a clean title with their title policy back in December, then the only risk would be if our friends had a lien on the land.

I made a couple phone calls and it seems like it will be about $1500 for a title policy.

In the grand scheme it is well worth it, if nothing else just for piece of mind.

[Grayson]

We are looking at purchasing some land from a friend of ours. We are not financing it through a mortgage so will not be bound by any lending agreements.

My question is should we go through a title company to get a warranty deed or just use a real estate attorney and have a basic deed transfer done.
Our friends have a title policy that they got less than a year ago when they purchased the land.

I'm a little confused, are you paying cash or are they carrying a Note for you? If they're carrying a Note, there will still be a "lending agreement," unless they are complete fools.

[gfulton]

Yea, don't even consider going without a title policy...

This^^^^

[DFWPI]

I'm a little confused, are you paying cash or are they carrying a Note for you? If they're carrying a Note, there will still be a "lending agreement," unless they are complete fools.

What he said


From my Make Believe World

[be12hunt]

I'm a little confused, are you paying cash or are they carrying a Note for you? If they're carrying a Note, there will still be a "lending agreement," unless they are complete fools.

What he said


From my Make Believe World

We are paying cash.

[Ouch]

Do you intend to build on it? Will you finance the construction?

[Throwin Darts]

I guess my logic was that if they had a clean title with their title policy back in December, then the only risk would be if our friends had a lien on the land.

I made a couple phone calls and it seems like it will be about $1500 for a title policy.

That is by far not your only risk. A claim against the title could arise that wasn't discovered on previous title work and if you are sitting there with no policy then you are SOL.