What is closing

"I have to close on a house." "I am going to closing." "We are closing in 30 days." What in the world are these people saying. A closing is a transfer of ownership from one individual/entity to another individual/entity. In order to entice somebody to do that, there is consideration (payment) that is given to the seller. In order to establish that there are no liens or judgments (monies owed to other people that would automatically transfer over to the new owner), the attorney or title insurance company does a title search prior to the closing to determine if the seller has the right to sell the property, and if anybody needs to be paid off first.

Do I need to do a title search? Yes, it needs to be done. I would suggest that you do a preliminary title search (Do a search of the property in the public records to determine if there are any liens and judgments…and if you don't find anything, hire a professional to do a search.) Why would you use a professional? Because they know what they are doing, and if they miss anything, you are covered.

Do I need to get title insurance? Yes, one time I bought a property from a bank out of foreclosure. I was younger then and asked the bank manager if I needed title insurance. He replied, "The title that you get out of a foreclosure is the cleanest title you will ever have. You don't NEED title insurance." That is true, unless the attorney misses something, which in my case they did. It cost me a couple of thousand dollars in wasted time and attorney fees to straighten out, and four months of waiting for the sale.

If there isn't enough money for title insurance, should I pay for title insurance? If there isn't enough money in the deal to get title insurance, there isn't enough money in the deal.