I want to speak with you today about the selection of title insurance underwriters. For years the tradition has been for one or both of the Realtors involved in a sale to agree on a specific title company, office and escrow officer. The clients usually don't voice an opinion.
So while the title company wants to lay claim to the seller on whose behalf they are insuring to the buyer that the seller has indisputable ownership of the property he is selling, their real clients are the Realtors. And that's where their loyalty belongs.
In Texas, and probably throughout all or most all of America, the title insurance rates are regulated by the state. If you buy a $200,000 home in Texas, the title premium is the same at all Texas licensed title companies.
But what isn't regulated is what the title company passes off as additional charges for their services, frequently labeled as escrow fees, messenger service, document preparation, copies, wire transfers and on and on. And they are rarely the same among companies.
In fact, they are negotiable, yet I'll venture to say that most Realtors don't dial this into the equation when they are selecting the company where their sale/purchase will take place. (For the record, I always do.)
But how can it not be the Realtor's obligation to make certain that the client is not going to pay unnecessary fees so that your favorite closer can have their business? It can't be. It is the Realtor's obligation.
I keep a watchful eye on what title companies want to charge my clients, and I frequently call around to see what a sample of the companies are charging for the components of their services. If the charges to my clients are out of line, the title company either has to reconcile the matter or I threaten to move the file. I've only had to do this once, but I'll promise you I'll do it in a heart beat if the company that's opened escrow for my client is padding the bill.
BILL CHERRY, REALTORS
DALLAS
214 503-8563
Our 43rd Year Selling Texas
Copyright 2008 - William S. Cherry
BILL CHERRY
Bill, Thank you for your insight to dealing with the title companies. We are ready to close on an investment property and we are only requiring an Abstract Certificate and that has been provided but the sellers "attorney-title company owner" says we are required to buy title insurance, of course from him. We are paying cash and we should be able to do what we want to do. We are going to resell the property and at that time we will provide title insurance. Sometimes it is hard to deal with some title companies.