Paying for title insurance, foreclosure sales
Answers to real estate questions as appearing
in the Houston Chronicle
By george stephens, CRB, AND Charles J. "Chuck" Jacobus, JD
Dear George: I'm buying a bank-owned property, and my contracted closing date was a few weeks ago. The bank is still not ready to close the deal. The bank informed me that they don't have all their papers together and can't give me a time frame as to when they will be ready. The title company told me that since this is a foreclosure sale and the seller is a bank, they do not have to abide by the closing date on the contract. Is this true? I have to be out of my current place by the end of the month. Should I consult an attorney?
Answer: Yes, consult an attorney or a Texas REALTOR® as soon as possible. You should sign an extension with the seller (bank) and a Buyer's Temporary Residential Lease (TREC 16-4), which would solve your move-out deadline problem.
Dear George: Does the seller have to pay for title insurance? I, as a seller, am providing a general warranty deed. My REALTOR® says I have to pay for title insurance. Since this would be for the benefit of the buyer, why would the seller be expected to pay it?
Answer: Who pays for the title policy is always negotiable. In some cities, it's customary for the seller to pay for it, as a part of the seller's proof that title is good.
E-mail your question to "Ask George & Chuck" or fax it to 281/596-7591. The answers to questions in this column do not contain legal advice. If you wish to obtain legal advice, you should consult your own attorney.
George Stephens, CRB, is the broker of ERA Stephens Properties. He is licensed as a mortgage broker in Texas and a real estate broker in Texas, Georgia, and Massachusetts.
Charles J. Jacobus, JD, is board certified by the Texas Board of Legal Specialization in Residential and Commercial Real Estate Law, and the author of Texas Real Estate Law and Texas Real Estate, both published by Thomson Publishing. He also teaches at Champions School of Real Estate and Houston Community College, and is an adjunct professor at the University of Houston Law Center.
George and Chuck are co-authors of Texas
Real Estate Brokerage and Law of Agency published by Thomson Publishing.
