title ins., tax assessed value, & title companies..
okay here's where i am...i am about to make an offer on my first rehab prop. and i don't think i know enough about the following topics, but it is a hell of a deal. So my questions are:
1.)What is the primary role of the title company? When should they be brought into the deal or contract neg.? What is title insurance and what does it protect me from and why do I need it??
2.) What is the tax assessed value of a property and what does it have to do w/ the price and does it give me an idea of what my monthly tax pay'ts will be?
I will appreciate any knowledgeable reply. It will help out a lot..thanks...
I will try my best to give you a ballpark answer "subject to" <IMG SRC="images/forum/smilies/icon_smile.gif">
Title Insurance is required by lenders and buyers to make sure that there aren't any encumberances or liens outstanding against the property which might keep you from transferring title. Basically title insurance researches the records and "insures" that you are buying a property with a clear title. Also on the title will be the legal discription and any easements that might effect the property.
Title Co's issue the policies and act as agent for the parties and escrow the $ and disperse funds based on the closing statement to the particular parties. lender, deposit, Seller, Realtors, etc.
The assessed value is not the tax value but the rate the assessor applies to homes in your area. It is a multiple and the actual value is lower than the market price. I think someone else can give you a better idea on assessed valuation. Hope this helped. You should be able to get a copy of the tax bill from the current owner and you can get the tax bill with the PIN#.
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Tom B.
"Nothing To It, But To Do It"[ Edited by roztom on Date 06/04/2003 ]
thanks for the reply...it helped clear up things for me...but if the tax assessed value is high, doesn't that mean that the taxes for that propery will be high??