Tip #2 - Title review
Please note: If represented by an agent, Realtor, or attorney, please disregard any information below and turn to your hired professional for advice and guidance. If represented, this is not an attempt to solicit business or provide advice for your specific situation, contract, etc..
When purchasing property in Washington State, it’s always a good idea to review the “Preliminary Commitment,” or also know as the “Title Report.”
Sometimes this information is provided upfront. Your agent can request this, if “title is open,” and the Listing Agent was a bit more proactive with gathering information before bringing the home to market. If received, it’s recommended to contact the Title Officer at the Title Company that provided the report. Their contact information should be listed on the first couple of pages within the PDF/report.
When doing so, ask the Title Officer to help you understand if there are any concerns, encumbrances, items that might delay or prevent closing, or hyperlinks with additional information that you should review. It’s also important to understand the type of Title Insurance Policy that you’re requesting in your offer, and to double-check that this is being offered later on, once title is updated (after you’re under contract).
** This part gets a little more confusing sometimes. Transactions can also close (and many do) without the above being checked on. Many homeowners don’t even realize there was a title report to review when they purchased their home, or CC&R’s (covenants, conditions, and restrictions AKA rules), a difference in Title Insurance Coverage, etc.. Please do not skip this. Sure, it can be boring and a lot to read, yet very worthwhile if an issue does happen to be uncovered. **
Depending on the specific property, title can have a lot to review, or sometimes it’s pretty basic. This is case-by-case. If the Preliminary Commitment isn’t provided upfront, agents can discuss the option of including the NWMLS Form 22T Title Contingency within a buyer’s offer. When discussing this with agents, I’ve noticed about half of them use it, half of them don’t, so don’t assume that it’ll be included. Also, don’t assume that just because you have it within your offer that the same level of digging into the information will be the same with each Title Officer. Although Title Officers are the main expert in this field, your agent may be able to help you understand the questions to ask, helping you dig more layers deep into the contents of the report.
There’s much more to this than just what’s above - always feel free to reach out (Please turn to your agent for guidance, if you’re already represented.)
