| Investing in real estate can be a fantastic way to save | | | | Mortgage assumption clause. If you've ever heard |
| for your retirement that tends to be more stable than | | | | about investing with no money down, or with other |
| stock market investing over the long term and it also | | | | people's money (think late night infomercial) many times |
| promises greater returns than the stock market as | | | | these things are referring to mortgage assumption and |
| well. | | | | that is where you assume the mortgage of the seller. |
| Of course, the downside is that it takes more effort to | | | | The terms at which you will do that are often spelled |
| invest in real estate than it does to invest in the stock | | | | out within the mortgage assumption clause of the real |
| market. Part of that effort involves actually purchasing | | | | estate contract. |
| your investment property. Many times you'll have either | | | | Zoning clauses. Many times a piece of property you |
| an attorney or a real estate broker with you to sign | | | | are buying will or will not be zoned for specific |
| the papers at closing, and they can answer any | | | | purposes and many times you will require assurances |
| questions you have about the contract... and you | | | | that the building is in fact zoned correctly. Those |
| probably will have many questions especially at the | | | | assurances will usually be spelled out in the zoning |
| beginning when you first start investing. | | | | clause of the contract. |
| Nevertheless, it's a good idea to be familiar with some | | | | Title report clause. This is similar to the title insurance |
| of the different clauses that you'll run up against when | | | | clause in that it deals with who pays for the title report |
| signing contracts to close on real estate investments. | | | | as well as which company you will be using to run a |
| That's exactly what I wanted to talk about today | | | | title report through. Again, there are no set rules here |
| because in this article I will discuss several different | | | | about who pays for this report and so you can often |
| clauses that you can expect to find in a real estate | | | | negotiate, and you will do so in the title report clause of |
| contract. | | | | the contract. |
| The first clause I want to talk about is the title | | | | There are literally thousands of different clauses that |
| insurance clause. When you purchase real estate, the | | | | can be used in a real estate contract and I've just |
| cost of title insurance is usually a fairly large cash | | | | barely scratched the surface of three or four here |
| expense that is due during closing. There's no rule that | | | | today but hopefully you found the few that I've chosen |
| says who has to pay for it; you or the seller, and often | | | | to be useful and in fact you can use them to do more |
| times you can haggle over that, and the place where | | | | research if you feel the need to. |
| you do that is the title insurance clause of the contract. | | | | |