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A Question for Realtors

I am doing some research for a client and I would like to know is it possible for the realtor to decide which closing company/agent handles their closing? i am interest in responses from all locations. Thanks for all your help!

Posted by Lisa Mullins on 05/15/2009 12:44 PM

Comments (20)

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20 Comments on A Question for Realtors

MAY

Usually you can let them know which ones you have worked with in the pasat. If you use several you can pass it to them pass it along to them and let them talk to the companies. Most buyers don't know which company to go to, its up to us to help them along the way. But they make the final decision.

Only the possibilities available not direct referal... Buyers choice...

Buyers and sellers rarely have a preferred closing agent and typically rely on the advice of their agent. The choice of closing and title companies are a matter of negotiation between the parties. Escrow companies can and will do a split escrow/closing as well, where each party uses the company of their choosing. The only draw back to that however is coordination between the two may slow down the closing process. I've done them smoothly and they've always worked out fine.

Gene

I suppose you could look at it this way; whoever pays for the title insurance policy gets to choose but everything in an offer is negotiable.

Much thanks to Gene, Caron, Jeannette and Ross.

Lisa, The Realtor can certainly make a strong recommendation, but to actually pick the title company, I've got a problem with that. Here in Maryland, the buyer gets to choose the title company. Rich

Here it is negotiated and usually picked by who is paying for it. I asked a FAR attorney on two different occasions and both agreed. They thought from a liability stand point an agent should even suggest one but I disagree with that point.

That being said since I represent sellers 99% of the time, we use the Title company of my choice, as well as surveyor and appraiser. But I always whether the seller pays or not let the buyer choose the termite company.

Same here in WA. I see in some listings a Seller asks for a certain company where the title was already searched. But Buyer still gets the choice.

At our firm we can recommend a title company, but must provide the consumers with a written notice of 1) any business relationship that exists between our firm and that title company, and 2) that the buyer is not required to use any particular title company and is free to use any title company of his/her choosing. That's how we handle it. There are also RESPA issues that affect the requirement to use a particular title company.

Thanks Charles and Sandra. We are trying to determine her target market, whether it be title companies, real estate agents, etc.

Here in WA State it is usually up to the Buyer's discretion/choice, but can be a negotiated term, especially if preliminary title has already been ordered. Most of the time the choice is based upon convenience of signing location and proficiency of closing agent.

Thanks to the Scott Loper Team. I'm assuming her target would be more towards the title company.

Thanks to Rich J. for your response.

We only have two to choose from in my area. Buyer gets the choice although, as many have said it is a negotiable term. I have found most buyers have no preference at all. We can give them details and information about the companies, but ultimately, it's their decision.

I've seen it written in contracts as "lenders choice". I disagree with this for a few reasons, but I won't go into that.

Thanks Lissa. So it is possible to be the lenders choice. I would love to hear all your opinions. If you'd like to email me off record feel free to at lisamullins@reliable-business.com .

Here in Connecticut, the client must use a lawyer, and the lawyer handles the title company. If a client doesn't have a lawyer I usually recommend a couple tat work in the town where they are buying. Makes it easier if they need someone down the road.

Thanks Ed.

MAY

All decisions should be the clients. You can make a recommendation; however the other agent will also.

Usually it is two bull headed agents trying to see if they can make the other agent cave in.

MAY

Lisa, We usually say the Buyer chooses, but if it is a developer or builder they will direct will it goes because of their relationships with the escrow holder. They don't want to go to a new company and prove financial stability for lien-free endorsements. It is discussed between agents as many have their preferences. We have our favorites, but like working with all of them. To me what is important is the escrow officer, not the company. I've had some lie to me in the past - I refuse to work with an escrow officer that lacks integrity. This shouldn't be a deal killer, but can influence a transaction. We often try to match the escrow officer to the transaction - personality types and the relative complexity of the transaction. Not all escrow officers can handle all transactions, just like agents. Match 'em up and close 'em.

MAY

The buyer always chooses here in VA but I have done split settlements if Seller and buyer don't agree. I have made suggestions especially if I am the lister on short sale and the title company is already working on things for me.

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