Deed and Title Condition

Your offer should state the type of deed and condition of title you'll accept from the seller. If customary in your area, the contract could obligate the seller to pay for the lender's title-insurance policy and possibly to provide you with an owner's policy for the amount of the sale price. (And even if it doesn't, consider the policy cost a negotiating point.) Your contract should also make clear what actions the seller must take to deliver a good title by settlement, and what recourse you have should that not occur. Basically, the interim binder you should request from the title-insurance company and the title-

search contingency you insert in your purchase contract give you the chance to decide whether you want the seller to fix any problem or whether the problems merit trying to cancel the purchase. If it comes to that, don't try canceling without getting skilled legal advice. (Chapter 11 discusses how to get a good title.)

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