Use Sellers Title Company?

Question

Adam Adams · Answer

Who's paying for their service? You or them? If I'm paying, I'm picking.

Justin Seng · Answer

Thanks everyone for the input!

Ned Carey · Answer

@Justin Seng I believe the law says the seller gets to chose the title company. I have never had verification what that law is and how or when it applies.  (RESPA maybe?) Regularly Bank REO properties and Wholesalers require their title company.

Title companies can really screw things up.  Virtually every time a buyer uses a title company we are not familiar with the deal gets screwed up some how. This can range from minor inconveniences to the title company not recording the deed.

If I am buying from a known wholesaler who has experience then I may go with his or her title company. People who have done lots of deals know who to use.  Otherwise I am picking the title company.

Bruce Lynn · Answer

In my market almost every seller wants to pick title company.  Some concessions made if buyer offers to pay title.   I think in most cases risks are low of who chooses in my market.  The main frustrations I see is that sometimes fees can be significantly different.  Here it is pretty common to see escrow fee around $400 for each side.  Few ask and it is generally not disclosed until you see the closing statement, so if you get to closing and it is $500 or $600 then you feel like you paid too much....  If the agent, brokerage, or decider is a frequent customer of the title company then there can be unequal treatment of the party that makes the choice.   That could be a good thing in some cases, bad in others.

Chris Seveney · Answer

Two examples:

I had a property where there was a land contract on it that was not released several sales ago. Property was vacant and I know one title company would not provide a title insurance policy on it. The other company did and had the land contract as an exclusion which would be removed once we received the release (which we did).

In another I had the buyer use their title agent who sucked. Delayed the closing by a week because they did not have their stuff together. Sellers like to use their title company because they know the deal will close.

As Adam noted, he who is paying gets to choose. Title companies can make a big difference though.

Use Sellers Title Company?

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