Ways To Establish A Good Relationship With A Title/Escrow Company

First, what is Escrow? The simple answer is that escrow is the carrying out the terms which were agreed to within the purchase agreement by an independent Escrow/Title company hired by you and/or the seller. It is important for both parties to have an impartial company orchestrating various tasks such as payoff demands, deed preparation, and disbursement of funds.

If you have not yet established a working relationship with a Title/Escrow Rep, locate one in your area by calling a local title company. When you do call ask for the Sales manager, this could take a couple calls however it is your responsibility to make this relationship not theirs.

Once you have the sales manager on the telephone tell them you are a real estate investor looking to place business with them and that you would like to be assigned a Title Rep. They will usually assign a newer Rep. for you that will have the time to call on you and help you with your requests. This relationship is key to your success and you must treat it with the same respect you would your Accountant or Attorney.

Here’s some of the services in which your Title Rep can help:

• setting up an online property profile system

• referring you to a real estate agents who you can work with for MLS comps and buying and reselling of property

• introduce you to their customer service department where you will receive information on recorded deeds and lien against a property

• setting up for you to receive your weekly NOD and TS list

• setting up for you to receive your weekly Probate list, not always possible in all areas

• assigning you to an Escrow Officer.

When you speak to your Title Rep about what you do, make sure they understand that you “buy and sell houses creatively” and you will want an Escrow Officer who understands buying “subject to” and seller financing. There’s a great way to make a Title Rep happy to help you; just promise to reward him/her with escrows on the properties that you buy and sell.

Once they assign you an Escrow Officer there are ten questions for you to ask them..

While interviewing the escrow officer ask him, or her, the following questions to see if he, or she, has a strong enough understanding of the real estate investing business.

1. Explain to me what a subject to purchase is. A subject to purchase is the buying of real property and leaving the voluntary and involuntary liens in lace.

2. During a Sub To purchase, what is your responsibility to the lender? The only responsibility is to our client.

3. Explain to me what a concurrent transaction is. The closing of two transactions one immediately following the other on a A-B B-C

4. On a concurrent transaction, what is your responsibility to the borrower/seller? To carry out the terms of the purchase agreement

5. On a concurrent transaction, what is your responsibility to the lender(s)? To carry out the terms of the purchase agreement

6. On a concurrent short sale transaction, what is your responsibility to the short lender? To carry out the terms of the purchase agreement

7. Do you orchestrate land contracts or Mobile Home Transactions? Yes / No their answer doesn’t matter.

8. What is the policy for issuing a title policy with voluntary liens left in place? Not an issue that is what Sub 2 is

9. What is your policy for leaving involuntary liens in place? Not an issue, that is what Sub 2 is

10. What is your favorite restaurant?

Once you've developed a relationship with a Escrow Officer and you're completely satisfied with their services and prompt information, you'll have to nurture it so that you will continue to be a favored client.