mcarra
10-11-2005, 02:36 AM
I just read Bill Bronchic's article about saving money on title policies. In it he indicates the following......
"If you are buying a property with the intent of re-selling it within a year, ask the title insurance company for a "hold-open" policy. For a small fee (usually an additional 10% on the policy), the title company will hold a title commitment open for a year or more. Rather than issue a policy based on the first transfer (from the seller to you), they will issue a policy on the second transfer (from you to the next buyer). Since the seller usually pays for title insurance, you can pay the additional 10% when you buy, saving 90% on title insurance when you sell."
I am confused because in Virginia the buyer pays for the title insurance. We are closing (purchasing) our firsrt rehab on 10/28 and hope to turn it around within 120 days. Is there any way we can benefit from a hold open policy, or would it only benefit our buyers?
"If you are buying a property with the intent of re-selling it within a year, ask the title insurance company for a "hold-open" policy. For a small fee (usually an additional 10% on the policy), the title company will hold a title commitment open for a year or more. Rather than issue a policy based on the first transfer (from the seller to you), they will issue a policy on the second transfer (from you to the next buyer). Since the seller usually pays for title insurance, you can pay the additional 10% when you buy, saving 90% on title insurance when you sell."
I am confused because in Virginia the buyer pays for the title insurance. We are closing (purchasing) our firsrt rehab on 10/28 and hope to turn it around within 120 days. Is there any way we can benefit from a hold open policy, or would it only benefit our buyers?