Title insurance companies

12 Replies

A lot more information is needed to answer your question completely but here are some of my thoughts. 

First, in my area of Illinois, the Seller chooses the title company to fulfill his obligation to pay for the Buyer's Owner's policy.  Buyer has the option of choosing another title company to pay for his obligation to pay for the Lender's Policy, but then it would be a "split closing" which is terrible.  Even then, Buyers insist that Seller use a well known title company, Chicago Title, First American or Fidelity National, or at least a Policy underwritten by those companies.  Regardless, as a Buyer's attorney, I would never agree to an out of state title company unless I knew about them. Sometimes, when you buy a bank owned property, the bank uses an out of state title company.

Second, if you, the Buyer, are paying for the Owner's and Lender's Policy, then you should choose your own Title Company and I don't see why the Seller's attorney would care who you choose since you are paying all the premiums and costs.  In this case, use a local title company well known to everyone and a place in which you can stop and get updates on the transaction.  

Third, if you, the Buyer, are purchasing a property located in a state in which you live and the Seller's attorney want to go with a title company in another state, a company with whom you are not familiar, I would say "no." as you will be wiring funds to a company about which you know nothing.

Perhaps if you told us the state in which you live and where the property is located, someone could give you a state specific answer to your question.

Good luck.

I have done regular residential closings with Old Republic Title of Illinois.

I don't know if they are "investor friendly" or unwilling to work with "investors" but IF the Seller's attorney tells you they will work with wholesellers, at least you'll have a local title company and a contact person who can tell you exactly how your transaction will be completed.   

Good luck.

@Ricardo Green You’re missing a basic point here....you’ve been hearing about title companies/attorneys that are not “investor friendly”.  The title Insurance company is a totally different “company”....all they do is write title insurance, they have nothing to with the process, procedures or the mechanics of the closing.

I have to disagree in that title companies have everything to do with TRID regulations, which stands for TILA-RESPA Integrated Disclosure rule.

Title Companies have to obey the federal laws as they relate to the preparation of the Buyer's CDs (Closing Disclosures) and ALTA Master Closing Statements and in Illinois, the title company must and will complete both statements.

In my career, I've been to numerous closings where the Buyer and Seller, and their attorneys, want to do some "creative financing" with the figures at closing, but if the title company believes it's a "Respa" violation or violation of disclosure rules, the title company will not participate in it.  

I'm not saying that the title company will not participate in a "dual escrow"/closing of two (2) transactions at the same time  etc. but they will tell you exactly what they are and are not willing to do in such a transaction.

@Clint Votruba You missed the point....he is mistakenly asking about the Title Insurance company (Old Republic) not the “Title company”....an attorney is doing the closing, he’s simply getting the Title Insurance from Old Republic, who just issues the Title Insurance...they have nothing to do with closing procedures, RESPA issues, etc. 

BUT the "title company" named "Old Republic Title" with 8 office branches in Illinois, where the closings take place,  DOES have something to do with closing procedures and RESPA issues.

At Closings at these Illinois "Old Republic Title" title company offices, at attorney is NOT doing the closing.

The Closings at Illinois "Old Republic Title" title company offices perform an Escrow Closing, where the title company's Closing Agent represents the lender, collects lender documents signed by buyer, takes in Buyer's and lender's funds, takes in Seller's transfer of title documents, and closes the transaction contingent upon the lender's approval, including but not limited to the lender's approval of the Buyer's CD and ALTA Master Closing Statement.  

@Clint Votruba My bad.  His initial question about “title insurance” with Old Republic, which we’re familiar with as one of the 4 or 5 major title Insurance companies....I didn’t realize there was a title/escrow company called Old Republic there.

@Ricardo Green If you’re doing a straight up purchase, it doesn’t really matter which title company you use, as long as they are competent.  If you’re trying to do something funky, like using the end buyer’s mao year to fund the front end on a double close...not likely going to happen.