Found an issue on this page? Let us know and we will look into it as soon as possible.
Who pays for a title search on real estate, the buyer or seller?
Anonymous2 views6 answers
I am the administrator of a relative's estate in upstate New York. There's a gentleman interested in making an offer, but he says before he does, he want's me to have a title search done to make sure there are no liens on it. I always thought that the buyer was responsible for the TS. I tried to look this up on the Internet, but there's conflicting information.
The title search protects the buyer. It is in the buyer's best interest to have a search performed and then obtain title insurance. Therefore the buyer is the party who requires, orders, and pays for the search. In the downstate counties the insurance premium includes the charge for the actual search. It is not separately billed .
However in this situation the seller may wish to obtain (and pay for) the search for the following reasons:
It is a difficult market in which to sell property. If there is a potential purchaser who wants to see a search before proceeding, it may well be worth the fee to obtain the search. Since the search fee is part of the insurance premium in many NYS Counties, the title company could potentially reimburse the seller for the fee once the title is insured.
Secondly, since the administrator/relative probably does not have the same first hand knowledge of all of the title issues affecting the property as did the decedent, the title search would alert him of any problems which would have to be taken care of prior to closing. They may be complicated issues which may take more time than the normal period between closing and contract. A little additional time to resolve issues prove to be useful.
Although it is generally the purchaser who obtains and pays for the title search, the seller should take into account all of the aspects of the particular matter. I would suggest that you contact the estate attorney who may be more familiar with the local customs of the community in which the property is located.
Matthew TannenbaumReal Estate AttorneyGarden City, NY ·
Generally the buyer pays for searching the title prior to closing. The cost of doing this is usually paid for at closing. BTW the standard sales contract contains a title clause that states that the seller must clear all title encrumbrances at or prior to closing so i am not sure why your buyer would care if there are any liens prior to going to contract. If you are reprsenting to him that there are none and the contract states that you would have to clear them anyway (ie: pay them off) there should be no issue. FYI a full title search in NY Metro area runs about $400-500 usually payable at closing. To run a judgment and lien search would be a fraction of that. Sounds like he is making an issue out of nothing. If you really want to move forward w/ him call or have your atty run a judgment and lien search only and give it to him.
Who does the title search/obtains title insurance varies from county to county; hence the conflicting information. Your attorney, and you should have one, should be able to deal with this.
