So you're buying a home for cash and you aren't sure if you need to use an escrow company. Todd and Oana talk about buying a home cash via private party and whether title and escrow are required. There are a lot of benefits of using a title and escrow company for cash home purchases, although not likely mandatory, there are protections in place for both parties. It is becoming more common for people to buy homes with cash and not use the MLS but people need to still use title and escrow after they sign a purchase agreement.
Most real estate agents are unfamiliar with off-MLS purchases and won't deal with them simply because they are a lot of work and not much money. Something that can help people who are doing private real estate transaction and paying cash for a house is to have a licensee handle all the paperwork and assist with escrow etc so that the proper and current contracts are used as well as all required state disclosures, such as the Seller's real property Disclosure, which is required by most states.
You will not likely get a discount on title and escrow fees when you are buying a home for cash. The only fees that you won't have to deal with are title fees that might be required by the lender for the buyer's loan. It is highly recommended that if you are buying a house for cash that you get a title insurance policy because if the sale is later disputed, you may lose the house and it could be difficult to get your money back.
If you have questions about a private party sale or off MLS transaction you can call or email Todd and Oana below.
