Title company question

6 Replies

Maybe this is a newbie question but I put an offer in over the weekend for a property in Cleveland and the sellers agent replied back with a list of instructions.

Generally I don’t mind the format or the clear requests, it keeps the expectations in line. What I’m wondering though is they have mandated a certain title company be used. The Ernest money check needs to be made out to this title company and all references to any other title company needs to be removed from the agreements. Only there title company can be used.

I’m not even sure this is normal practice, does this sound right? For context this is my third property in the area and only the first time this has come up.

The buyer gets to choose the title company, but some sellers are just set on a certain company because they have a good contact or get a break on fees. I've gone with seller title companies just to keep things moving along on a couple of my personal deals and those of my clients. It can also make a slightly stronger offer by going with "sellers choice" of title company. 

Not ususally a concern unless it is an REO property.....their title companies only do a "recorded lien" search and will excluded any "non recorded potential liens" (code violations, utilities, etc) in the B section of Exceptions. If this is the case I would pay for my own Full title search.

@Kevin Co

I always always always dictate my title company. On the buy and sell side, in Ohio if you buy a house and use a particular title co then resell the house within x years you actually receive a credit on the sell side of the contract.

So to answer your question - no not weird at all. If I were in your shoes this wouldn’t raise a red flag - As long as they are legitimately a title company theoretically It should be fine.

That being said when people request this on my end and I have to be flexible I always do make sure they are legit as well as make sure a survey is ordered. I don’t think surveys come standard but maybe I’m wrong on that. Maybe connect with an attorney to ensure they are legit.

I always use Cuyahoga Title Services in Parma. Jim Z is my contact. They do title and legal.

Originally posted by @Kevin Co :

Maybe this is a newbie question but I put an offer in over the weekend for a property in Cleveland and the sellers agent replied back with a list of instructions.

Generally I don’t mind the format or the clear requests, it keeps the expectations in line. What I’m wondering though is they have mandated a certain title company be used. The Ernest money check needs to be made out to this title company and all references to any other title company needs to be removed from the agreements. Only there title company can be used.

I’m not even sure this is normal practice, does this sound right? For context this is my third property in the area and only the first time this has come up.

 There are not any rules or specific ways this is done. The answer like most things in real estate is that it's negotiable. So depending on who wants what and who's got the leverage in the transaction is going to dictate how things pan out. For instance if you're bidding on a property with multiple offers on it it's going to be in your best interest to play ball with the seller's requests if you'd like to take the deal down. Conversely if it's a property that has little traction and you're the only person interested in buying the leverage is going to shift over to you.