Hi I have just made an offer on my first park and the offer was accepted. The seller is saying the title insurance will be ~$3000 and would like to split the cost. Also, they are asking for $15k earnest money on a ~1.6mm park. The earnest money seems a little high but I am not sure what to think about the title insurance…any advice would be very helpful. Thanks
What do you mean by “offer was accepted?” Typically, the terms of who pays for what and the amount of earnest money is “in the agreement.” In the States that we have purchased (or made bids), the seller responsible for the title insurance (but that can be negotiated by the parties). Everyone wants to put up as little earnest money as possible, but I do not think that a deposit of under one percent of the purchase price is unreasonable.
I would be more concerned about whether you have an agreement if you are still discussing these details after the “offer was accepted.”
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yes you are correct. we have a verbal on most issues but these 2 issues are left. I was not sure in the insurance. thanks for your help.
If these issues are the only ones left, you are within one percent of the “price” if you split the title insurance, and any decrease on the earnest money deposit is meaningless. You really need to make sure the essentials are in place for any contract. These include an adequate due diligence period, ability to withdraw and get your earnest money back, financing contingency (if necessary), access to financials, etc.
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