Low-ish Price Real Estate Transaction - Broker Use

[Ws6]

Originally Posted by Wolf359
Originally Posted by Ws6
Originally Posted by bullwinkle
^Can't stress this enough, there could be buried fuel tanks, or some past industrial use that even the current owner doesn't know about!!

This is why you do a title search/get title insurance, etc. DO IT!


Title insurance won't cover for environmental hazards. The rule is that the current owner is responsible to clean up any mess. So if you buy it, you become the current owner and if they find issues with it later, you pay to clean it up. Title search just searches the chain of ownership. Won't tell you if someone dumped some waste on the land.

The going directly to the listing agent works sometimes. But some real estate firms have a firm policy of not offering any discounts. So if the listing agent is one of those, you get nothing for going direct and as others mentioned, there's a reason you don't do the deal directly yourself. The real key if you deal directly yourself is to never give an answer right away, say you need to check with someone else first.

Interesting. In my contract, the title company is on the hook if they didn't find it.

I don't advise going to the listing agency. Go to the OWNER. Otherwise yes, they are in the loop and get paid.

 

[Wolf359]

Originally Posted by Ws6
Originally Posted by Wolf359
Originally Posted by Ws6
Originally Posted by bullwinkle
^Can't stress this enough, there could be buried fuel tanks, or some past industrial use that even the current owner doesn't know about!!

This is why you do a title search/get title insurance, etc. DO IT!


Title insurance won't cover for environmental hazards. The rule is that the current owner is responsible to clean up any mess. So if you buy it, you become the current owner and if they find issues with it later, you pay to clean it up. Title search just searches the chain of ownership. Won't tell you if someone dumped some waste on the land.

The going directly to the listing agent works sometimes. But some real estate firms have a firm policy of not offering any discounts. So if the listing agent is one of those, you get nothing for going direct and as others mentioned, there's a reason you don't do the deal directly yourself. The real key if you deal directly yourself is to never give an answer right away, say you need to check with someone else first.

Interesting. In my contract, the title company is on the hook if they didn't find it.

I don't advise going to the listing agency. Go to the OWNER. Otherwise yes, they are in the loop and get paid.


Standard listing contract says that if the property sells during the listing period, they get paid. That's why the seller would refer any buyer to the listing agent. They get paid regardless if they're involved or not. Typically buyers who try to squeeze every nickel out of the transaction never end up buying and someone else comes along.

 

[PandaBear]

There'll always be some agents willing to take it, not everyone can get to sell a multi-million dollar home right off the bat. A lot of agents have assistants that help with the mundane and boring work, so they can focus on the higher value part of the work.

 

[Wolf359]

Originally Posted by Ws6

Interesting. In my contract, the title company is on the hook if they didn't find it.

That's an interesting guarantee. The odds of it being a toxic waste dump are probably low, but I wouldn't think that a title search would show that illegal dumping went on at some point.

 

[Ws6]

Originally Posted by Wolf359
Originally Posted by Ws6

Interesting. In my contract, the title company is on the hook if they didn't find it.

That's an interesting guarantee. The odds of it being a toxic waste dump are probably low, but I wouldn't think that a title search would show that illegal dumping went on at some point.

With my land, it was as close to zero as I would be finding out the US military was housing an alien base underground. Other areas may want more scrutiny.

 

[Wolf359]

Originally Posted by Ws6
Originally Posted by Wolf359
Originally Posted by Ws6

Interesting. In my contract, the title company is on the hook if they didn't find it.

That's an interesting guarantee. The odds of it being a toxic waste dump are probably low, but I wouldn't think that a title search would show that illegal dumping went on at some point.

With my land, it was as close to zero as I would be finding out the US military was housing an alien base underground. Other areas may want more scrutiny.


OP is in New Jersey though, well known as a place where lots of chemicals are made and some superfund sites are from companies illegally dumping waste in the middle of the night. That's why getting a soil test is always a good idea.

 

[JHZR2]

All good info. Thanks everyone.

Got it on environmental check, and I like the soil test idea. There is a good chance that there was an oil tank on property at least. While that's a routine thing around here, it's a good thing to check and verify because there is a cost associated.

I would run the transaction same as if a bank was involved, with title search and insurance and all that.

Appreciate the insights!