Buyer or Seller - Who Makes the Choice of Title Company
Who chooses your Door County title company? I chose to re-post this excellent article because I've had a lot of questions on this very subject recently, and have one client who is dealing with this situation in buying a foreclosure. Here is some great information on how the process works. For my listings 95% will choose their own title company, because I will have done a title search identifying potential problems with the listing before I have even agreed to take on the listing. These searches show easement items, gaps in title, potential encroachments, liens (including obscure things like child support) that can have a huge impact on any sale. I even had one title search come up with a dock attached to a property that my seller didn't even know about. More to come on title searches soon! View the entire Door County Multiple listing to see our homes, condominiums and vacant land for sale daily.
Ever wonder who makes the choice of title company on a purchase contract for the sale of a house? It's a choice that both the buyer and the seller make at two different points of interest. The listing agent and the seller will select a title company and escrow agent at the time of the listing agreement. In some cases the title company will provide some preliminary work in advance of the sale.
Then along comes the selling agent and their buyer. They have indicated a choice of title company and escrow officer on the purchase agreement for the sale of a house. Most of the time a friendly discussion between parties can decide who's choice of title company it will be. But if it doesn't then who should make the choice of title company - buyer or seller?
Take another look at the purchase contract and most of them will indicate the seller paying for the lender policy of title insurance and the buyer paying for the owners policy. If that is the case for the purchase contract in dispute then the buyer makes their choice of title company.
The seller cannot make a purchase contract contingent on their choice of title if the buyer is paying for the owners policy. To do so puts the seller at risk of violating the Real Estate Settlement Procedures Act, RESPA. But if the seller agrees to pay both lender and owner policy then the seller may make the choice.
Real estate transactions and the contracts involved can be complex. If you are looking to sell or buy a home please make a wise choice and work with a real estate professional.
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Plano Real Estate | Plano Homes
Buy | Sell | Moving to Plano
Teral McDowell GRI, REALTOR®
Keller Williams Central - Murphy
104 N Murphy Rd #212 | Murphy, TX 75094
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