Buying a House with Cash

[Beltzington]

Anyone have lessons learned? In the past my mortgage bank has always taken care of the paperwork and insured the required inspections are completed. Online research seems to indicate a closing attorney would fulfill this role but I wonder how to determine if they know what they are doing. Do they maintain any skin in the game should title or other property line disputes arise after the closing? The property is being sold "as-is but I am very familiar with both the house and the neighborhood so I am not overly concerned about the condition of the house only insuring any future legal disputes by neighbors or disgruntled heirs of the seller are address during the closing.

 

[davesl708]

Part of the attorney's work should be a title search and title insurance. A survey would be good insurance as well to deter boundary claims.

 

[Gary Fowler]

A title search AND boundary survey is the least amount of investigation that needs to be done. A house inspection by reputable company for code violations and termite damage is the other thing that should be done and isn't that expensive.
A title search is the highest priority of things to do. You don't want to buy a place and then discover that it has a lien on it for much of the value that you would have to pay off it you wanted to keep the property. You would then have to see if you could get your money back from the seller, a losing proposition in most cases.

 

[Gary Fowler]

After the sale, don't forget to go to the county tax assessor and get the title in your name, if applicable apply for homestead exemption etc. so you will receive the yearly tax papers. You don't want to become delinquent on your property taxes.

 

[Ed of all trades]

I am in the process of buying a house without a realtor and have to do about the same. I asked a lawyer I had used in the past and he sent me to the guy he got to do his. Get someone to guide you when getting a lawyer, They can be great and not so great. Ed

 

[Furu]

Anyone have lessons learned? In the past my mortgage bank has always taken care of the paperwork and insured the required inspections are completed. Online research seems to indicate a closing attorney would fulfill this role but I wonder how to determine if they know what they are doing. Do they maintain any skin in the game should title or other property line disputes arise after the closing? The property is being sold "as-is but I am very familiar with both the house and the neighborhood so I am not overly concerned about the condition of the house only insuring any future legal disputes by neighbors or disgruntled heirs of the seller are address during the closing.

I have bought and sold houses in several states from back east to out west. Not all states may be the same however.

I paid cash for a real estate transaction for the first time just last year. No bank was involved. From your post I presume no Realtor is involved either.
While having a lawyer is not a bad idea you can save a lot of money by insuring you take care of the little things so the lawyer does not "pad/inflate" his/her "billables."

You can hire an inspection company to do the inspection. Have them work for you and report to you.
Your bill of sale can be modeled off the MLS bill of sale. In it it should state that the seller pays for property title insurance (the standard in most states). Of course you can do it but that is not the standard. The loan title insurance that the buyer normally pays for is not required as there is no loan, you are paying cash.
A survey is a really good idea.
If it is an estate/probate sale make certain the estate is final and the "seller has the authority to sign. The title company should verify that as it is their title insurance that would have to deal with it but verify anyway.

Get a draft HUD 1A from the title company it should detail all costs except for your lawyer. The final HUD 1A is after closing.

Part of the attorney's work should be a title search and title insurance. A survey would be good insurance as well to deter boundary claims.

This is actually the Title Company's job. Any lawyer would just hire a Title Company to do it and charge you his take.

After the sale, don't forget to go to the county tax assessor and get the title in your name, if applicable apply for homestead exemption etc. so you will receive the yearly tax papers. You don't want to become delinquent on your property taxes.

The Title Company automatically does that when you close.

 

[Zerk]

I bought a place that was listed on MLS, and they had realtor. They paid for title insurance, which is probably all you need to do.

I have never surveyed a property. unless there is something on the edge of the property, I wouldn't worry. Evenin town most people don't bother, unless they are going to build a shed.

I wouldn't pay before the sale, incase sale doesn't go through. Unless it makes a difference to say. Never has to me.

 

[blueriver]

I paid cash for my place ... the title company i used had their own attorney and everything was handled by one firm.

 

[kenmac]

Not sure how inspection companies are in your area, but the ones I've been behind in my state ,I would have say, you are throwing your $$ away..
The home inspection companies here, take an on line course pass a online state exam that means hardly a thing.. They have no clue as to any state / national codes as it relates to foundations, HVAC, Plumbing / Gas codes, Electrical codes ,etc,..I have had to re plumb , reinstall gas appliances to meet code after home inspectors passed it all... Have friends that are master electricians ,that have had to repair wiring, breaker boxes, etc, that these inspectors pass as good to go.

My advise to buyers, is , if you want an inspection....Hire a termite company to inspect for termite damage, hire a plumber to inspect for plumbing, hire a HVAC contractor for HVAC, electrician for electrical,, etc, etc, They know the codes, and can advise about potential hazardous condition.... Will it cost you more ? Sure But, to think a home inspector is certified to inspect everything about a home for 1 low price ,and all will check out ok, is wishful thinking..
This 1 home inspector is most likely not certified in anything except his home inspection certification

This is 1 person's opinion that's been in and around the trade for over 30 yrs.. Not much I haven't seen

 

[ultrarunner]

Cash is the easy part... simply the opposite of getting a loan or having a loan contingency... up to 40% of the homes are sold cash.

For Sale By Owner is a little different... if a Title Company is used through Escrow most would not know the difference...

It is incumbant on the buyer to order of perform any inspections deemed necessary.

The first home I bought was a simple cash transaction with no lawyer or title company... typed up the deed found a notary and went to the recorders office.

Did review a preliminary Title report and everything was clean... paid 15k for the 800 square foot 1927 cottage in 1983.

Since then I have paid for Title and Escrow even when no Broker or Lender is involved.

I'm in California so your mileage may vary.