Noob here. I often see ads of a FSBO, usually a distressed type of house in bad shape usually always has "must use sellers title company" Can anyone tell me why this is?

@Bryon Stout Usually one or more of these reasons: 1. They are giving the Seller a discount. 2. They will put through the deal despite a shaky title issue. 3. They have done the back work and payoffs for the Seller. 4. They have found an insurance underwriter who will insure the property even though most other insurers will not do so for some reason.

Frankly, that's against the law; the buyer always has the choice of the closing / title company

I usually see agents that are title co loyal more than FSBOs. They build relationships with a certain one over time. My guess is the seller will get a lower re-issue rate if they use the same co that issued title insurance when they bought. Could also be since they are distressed that they have particular circumstances the one title co is familiar with. Most are pretty much the same so it shouldn't affect you as a buyer much either way Account Closed

Yes I have, a number of them, and I always used my own title company. Would you like to call them and ask? PS: You need to get familiar with RESPA Section 9.

The way my Colorado contract reads, the seller chooses the title company. The buyer has the option of choosing the title company - but then they have to pay for it. One way around this is to write an addendum, saying the Buyer chooses XYZ Title, but seller pays for it. This must be in the contract BEFORE both parties sign or your chances of it being accepted are slim.

@Steve Vaughan my personal experience in PA is that the escrow title co is owned by the RE brokerage.. and the selling brokers steer the buyers to their title and escrow company.

Account Closed also makes a good point but might not apply here since this is a FSBO property. If there is no agent involved in this deal, I would say it's for some other reason. One possible reason is that if the property is selling for such a low price, the title company doesn't want to get bothered with handling the deal for the amount of fee it would receive. I've seen that a number of times with the more established companies. Whether it's a red flag depends on the reason. You can always ask the seller why he or she wants you to use the specific title company.

Thanks everyone. So is this a red flag when looking at properties?

Why do some people require you to use their title company?Why do some people require you to use their title company?

Back

Resources & Media

Resource Hub Bookstore Blog Guides Pro-Exclusives PRO Podcasts Pro Partnerships

Events & Training

BPCON2026 Webinars Free Courses

Strategies

How to Manage Your Rental Property How to Operate a Short-Term Rental How to Passively Invest in Real Estate How to House Hack How Does the BRRRR Method Work How to Flip a House How to Invest in Commercial Real Estate How to Invest in Real Estate How to Invest in Multifamily Real Estate How to Build Wealth

Invest More Confidently

Join the real estate investing community that’s helped thousands of people achieve financial freedom.

Start Free Trial

The Podcast Investors Trust

No fluff. Just deals, strategies, and lessons from the front lines of today's market.

Listen Now

Back

Pick Markets

Market Finder PRO Picking a Market Workshop PRO Picking a Market Worksheet Top 100 Cash Flow Markets Market Insights - Sunbelt Region

Market finder

Pinpoint the best real estate market for your specific goals with expert recommendations and real-time data on appreciation, affordability, rent-to-price ratio, and more.

Pick Markets

Pro membership

Get unlimited access to tools and resources that make it easier to find, analyze, and manage deals with confidence!

Upgrade to Pro

Back

Find Deals

BiggerDeals Off-Market Deal finding PRO Real Estate Syndications Investor-Friendly Agents Find Foreclosures Community Listings (FSBO) Business Directory

Invelo - off market deals

Scale your portfolio with off-market deals.

Explore Now

Back

Calculators

Rental Property Calculator PRO Rehab Estimator PRO Rent Estimator PRO BRRRR PRO Fix & Flip PRO Short-Term Rental PRO Sell vs. Keep PRO Landlord Insurance Calculator by Steadily All Calculators

Rental property calculator

Is it a good deal? Run your numbers like a pro with this simple yet powerful calculator.

Run the Numbers

Rent estimator

Understand how much rental income you can expect based on recent reports and data for your specific property.

Run Report

Back

Manage Properties

Managing Properties 101 Find a Property Manager RentRedi Property Management Software PRO Baselane Automated Bookkeeping & Banking PRO Property Management Tools Ask a Management Question Finding Tenants Screening Tenants PRO Leases + Landlord Forms PRO Property Insurance Property Maintenance / Rehab PRO

Property management software

Manage tenants, tasks, and your entire portfolio with one simple tool.

Activate Now

Property manager finder

Find reliable property management partnerships that last.

Find a Property Manager

Back

Plans & Pricing

Pro Membership Business Membership

Try PRO for 7 days completly free

Avoid mistakes and make informed decisions with Pro.

Start Free Trial

Grow your business

Promote your business on BiggerPockets and make quality connections with the right investors.

Sign Up Now

Back

For You

Newest Unanswered My Discussions Followed Discussions Followed Categories Followed Locations Followed People

General Real Estate

General Real Estate Investing Starting Out Deal Analysis Buying & Selling Business & Marketing Landlording Property Management Reviews & Feedback

Real Estate Strategies

House Hacking BRRRR Short-Term Rentals Mid-Term Rentals Multi-Family Fix & Flip Other Strategies

Finance & Financing

Lending Creative Finance Personal Finance Taxes & Legal Issues

News & Announcements

Official Site Announcements Market Trends & Data Real Estate News & Current Events Pro Exclusive Area PRO

Events & Networking

Events & Meetups Classifieds

Back

All Books

Best Sellers Browse All New Books & Pre-Orders Bundle & Save Books for Beginners

Unlock hidden potential in every property and maximize returns

This is your creative breakthrough guide to escaping investment paralysis and unlocking hidden profit in any market.

Get Your Copy

Build a Cash-Flowing Glamping Business with High Equity Upside

Whether you're starting from scratch or expanding existing hospitality operations, learn the practical frameworks needed to capitalize on the growing demand for upscale outdoor experiences.

Learn More

Why do some people require you to use their title company?

Most Popular Reply