Quote:
Originally Posted by vreihen16
From what I can tell from online articles, the common arrangement in SC is for the lending bank to make the buyer pay for their "lender's title insurance" as a closing fee. This policy only protects the bank in case of title defects, and only pays them the amount of their loan.
Buying "owner's title insurance" is optional, and 100% on the buyer. It protects you from someone coming out of the woodwork and claiming full or partial title to your land from events in the past, from things like contested estate settlements, liens, judgements, etc. There is also a premium add-on that covers encroachments, right-of-ways, survey errors, etc. No way would I close without at least the basic owner's title insurance.
FWIW, we spoke with the listing agent this morning, and will likely be taking a road trip this weekend to walk this lot and maybe a few others in the area.
My next area of research is whether we want to close with the property in our names, a trust, or set up an LLC? I'll probably wind up talking with a SC real estate attorney for advice on this.....
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I thought you said it was a "cash sale"? Ie, no bank involved. We paid cash for our property so a lot of the complexities you mentioned about banks being covered on their investment didnt apply. Tricky to get a bank to finance a land deal. They want a lot down and their rates are generally pretty terrible. Vacant land can be slow and difficult to unload and banks dont want to get stuck with it. The prices and conditions reflect that.
Tell us more about your LLC or trust idea. Why? What's the benefit? Too late for me but I'm curious about your angle. I assume it's some sort of risk mitigation?