Buying a warehose for $1M explicitly FSBO, do I have need of an ALTA policy of Title insurance, or will sandard title do?
My company is buying a warehouse in the $1M breadth. It is for sale by owner, and we are buying it lacking an agent. I am preparing an offer sheet presently and I'm wondering if I should be elect to obtain a "full-coverage extended alta policy of title insurance" or if the standard policy is sufficient.
If I do elect to make a purchase of one, is it standard practice to have the purveyor or buyer pay for it at closing? What are the estimated costs?
Answers: Not satisfactory information. Is this a cash Dutch auction, or are you financing it? If there's a lender, it will be up to them. If there's no lender, you can do whatever you want.
REgarding the costs and paying for it, it's a flat percentage of the sale price, usually somewhere between 2% and 4%, by county. So it's not negotiable. But who pays for it, IS movable - part of the sale process.
Your best move would be to talk to varied title insurance companies and ask to speak to the "title officer". That is usually the person who know the ins and outs of title insurance, whereas the sales reps really dont know much.
There are some big companies approaching Fidelity Title, First American Title, or Chicago Title.
in California, it is customary for the vendor to pay this cost, and you can probably convince them to since they are good a fortune on real estate commissions. The directive does not dictate who pays, but its extremely common for California seller to pay this. It's a transferable element of the Dutch auction.
Lastly, do yourself a favor and get any a commercial real estate agent involved or an attorney involved surrounded by assisting YOUR SIDE of the deal. Everyone think they know everything about material estate, but sadly, what you cannot see, WILL hurt you.
You can maintain the cost of this low, by telling them that you involve assistance ONLY with contract review, and pitfall avoidance, but that you intend to do the lion's share of the work yourself.. You should know how to find someone that will guide your company for a reasonable flat levy. The end result is that here will be components of this transaction that you never knew existed and neither does the peddler. Having a just a out minimum of professional guidance can go a LONG WAY surrounded by protecting you.