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Posted by Hoosier on December 20, 2000 at 10:30:26:

Working on my first deal, but I have a question. If I found a house to flip to another investor and I tie up that property on contract, then take it to the title company to do a title search and stuff? Will the Title company charge me fees up front or at closing? Also, say if the deal doesn't go through for some reason, but I took the purchase contract to the title company to have the title search done. Will they make me still pay fees for their service if I don't close?

Thanks,
Newbie

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Posted by SCook85 on December 20, 2000 at 16:15:19:

Most title companies will not charge you upfront. Lately one of the local companies near me has been charging investors $250 up front to cover their out of pocket expenses. Typically when a title company does a title search there is a cost involved. Many do not charge you if your deal falls through, but I do know of some that do charge. If you just decide to not do the deal I would expect a bill. But if you were applying for financing and for some reason your financing did not come through then the title company may let you slide- they don't want to add salt to your wound.

I wouldn't get in the habit of having title companies do this for you and then not settle on the deals. You probably won't be welcome there for long. There is a time and out of pocket expenditure to get your deal rolling.

Steve