I was just wondering who would pick the title company when you go to closing. I know it is usually the seller but I have seen in the RESPA rules #9 the Buyer has the choice?
2007-09-22 12:38:19 · 11 answers · asked by Robert C 2 in Business & Finance ➔ Renting & Real Estate
Chapter 27, Sec. 2608 Real Estate Settlement Procedures states:
a) No seller of property that will be purchased with the
assistance of a federally related mortgage loan shall
require directly, or indirectly, as a condition to selling the
property that the title insurance covering the property be
purchased by the buyer from any particular Title company.
RESPA makes it clear that the buyer should be able to purchase their insurance from the company of their choice, therefore its the buyer that chooses the title company.
Hope that helps.
2007-09-23 15:02:36 · answer #1 · answered by Hoopfan 6 · 0⤊ 0⤋
I have been an escrow/closing specialist for about 20 years and in my experience though the seller cannot force a particular title company service as a closing condition, it is customary for the seller to pay for the buyer's owner policy premium therefore the seller generally chooses the title company. Additionally, the premium buyer pays for required lender's coverage is discounted when ordered at the same time as the owner's policy.
Nonetheless, You always have the right to research the entities involved in the transaction. Otherwise, unless there is a specific reason or issue with the title company seller chose, they all provide the same coverage and most are agents providing coverage by one of only a few title insurance underwriters anyway.
With regard to just4to.. answer above, it is just that kind of unfortunate incident that makes title insurance important. If such a situation had not been corrected, title insurance protects the owner & lender's interests in the property. Improper recording with the county is typically a closing procedure issue. Depending on the state closing and title maybe one in the same.
I hope this helps... :)
2007-09-22 14:08:49 · answer #2 · answered by Ajelle 2 · 2⤊ 0⤋
I think the RESPA rule is that one party cannot force the other party to pay for the title policy and use a title company that they don't want to.
In 15 years of real estate, I've only had two clients have a preference of title company - and that was along the lines of "Well, 12 years ago, _____ Title Company really messed up our closing, so I won't use them." The reality is that the INDIVIDUALS who messed up that closing (perhaps it was the title people, maybe they were the scapegoat for the Realtor or loan officer) probably don't work at the same title company anymore and might even be at the company we ended up at!
In San Antonio, it's customary for the seller's side (the listing agent) to pick the title company, and for the seller to pay for the owner's policy. Since often times the title company starts some preliminary work on the file prior to an offer coming in, it is somewhat fair to allow them to complete the transaction.
2007-09-22 18:33:34 · answer #3 · answered by teran_realtor 7 · 0⤊ 0⤋
In my area, choice of title company is subject to negotiation. A seller can stipulate a title company, but the buyer can change that in a purchase offer. The seller can either counter or accept.
I have had good and bad experiences with my local title companies, but overall, they all provide great service to my clients. I see that the closer that rolled her eyes at my client that stuttered because he was nervous and this was his first home purchase, (and I vehemently complained about this) is no longer closing transactions.
There is good and bad in all things.
2007-09-22 17:22:04 · answer #4 · answered by godged 7 · 0⤊ 0⤋
It can be either. When I closed on my house I asked for a certain title company and the seller asked that it be some other company. Trust me, before you agree to a company you know nothing about CALL the county auditors office and ask them if they have had any problems with the title company. I didn't and it took 6 weeks past the closing date to get the paperwork filed right with the county. It pays to know who you are dealing with.
2007-09-22 13:17:12 · answer #5 · answered by ♥ Mary ♥ 4 · 0⤊ 0⤋
It's really tradition more than it is law. If you prefer to use your own title company, you are pretty much guaranteed that the seller won't pay any of the closing costs... even if there are some that a seller tradionally pays in your area.
If your loan officer is good at their job, they'll notice if the title company is doing anything wrong for you.
2007-09-22 12:43:51 · answer #6 · answered by The Smart One 4 · 0⤊ 0⤋
Everything is by common accord, but is the buyer who has the right to choose and you shoud do it as a buyer, you never know the intentions of a seller...
2007-09-22 12:49:25 · answer #7 · answered by Anonymous · 0⤊ 0⤋
I thought it was whoever typically paid for that closing costs.
There are some deals were the seller will pay.
2007-09-22 12:41:27 · answer #8 · answered by nothingconstant 7 · 0⤊ 0⤋
yes the buyer has the choice,what i did was talk to my agent and checked who was recommend to me
2007-09-22 12:45:22 · answer #9 · answered by notsohardtofigure 3 · 0⤊ 0⤋
idonno
2007-09-22 12:41:04 · answer #10 · answered by Anonymous · 0⤊ 1⤋