Hold Open Title Policies
Hold open Title policies are very useful for a few reasons. First, what is a hold open policy?
A hold open policy must be requested prior to the Close of Escrow of the purchase of the property. This is used for 
investors that are intending to resell the property in 2-4 years. What this does is save the Investor fees for the owner’s title policy that is issued when the Seller sells the property.
The Buyer soon to be Seller will pay a small fee at Close of Escrow when they aquire the property. However, when this person sells the property there is a substantial savings in the Title Insurance. NOTE-The Seller must use the same Title Company when sellig the Property without fail. When we have a hold oen policy I disclose it in the listings to the agents.
What if the owner decides to kepp the property after close? It is important that the Seller contact the Title Company and have them close the policy in order to maintain the Title Insurance. There is not a fee for this but this is an often overlooked item.
What if the Seller is not quite finished with the repositioning of the property and the hold open time period os about to expire? It is easy to extend for a small fee. The Seller must contact the Title Company prior to the expiration of the policy and request an extension. There will be a small fee for this but it still saves quite a bit at closing.
There are different time limits on policies depending on who is the underwriter of the policy. The Buyer-Seller needs to decide how long that the repositioning is going to take and buy the policy accordingly.
Wait till next week for more education!
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Take Care,
Linda
Another fantastic piece of information. Thank you Linda
Never even knew this type of title policy existed….always learn something new. Thanks Linda.
Thanks-you know you need to get up early to beat me to the punch!
Thanks for sharing this vital information when investors who want to sell their properties in a short period of time. This one piece of advice can save an investor thousands of dollars.
Great article about hold open policies. Many investors are not aware of this option that can save an investor a substantial amount of money on the cost of the owners policy when an investor goes to sell the property. Linda you are one of the few brokers that are aware of this option. Thanks for spreading the news! Jon
Linda, you always come up with something new and of value!…Thanks for sharing…Marty