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Where to draw the line?

By
Real Estate Agent with Your Home Free

How many of you, as a listing agent, put a "Preferred Title Company" in one of your listings?  Here in Texas, usually the seller pays title policy and chooses the closing title company.  As a buyer's agent, I comply with the wishes of the seller to close at their preferred location and company.

I got a contract tonight on a listing of mine and the agent chose his own title company.  I made a few changes to the contract and changed the title company.  I then get a fax that has a large box and star by RESPA Section 9 stating that:

"Section 9 of RESPA prohibits a seller from requiring the home buyer to use a particular title insurance company, either directly or indirectly, as a condition of a sale.  Buyers may sue a seller who violates this provision for an amount equal to three times all charges made for the title insurance".

Are you serious?  Why are we getting all Larry Lawyer over a title company closing a deal?  I am being silly or ignorant in thinking this is a bit of a joke?  I like my transactions to be first-name basis, let's go out for a drink when this is all done.  Everyone should be looking to keep the peace.  Why can't we all just get along?

This is almost like Carrie from Sex and The City getting dumped on a Post-It.  What exactly do you say to something like that?

Comments (3)

Cheri Smith
Prudential Gary Greene, Cypress TX - Cypress, TX
Realtor Prudential Gary Greene
Wow. That seems rude. I have never had that happen. I mean I have had buyers say they perferred another title company but the seller usually ok'd it. You and I both know it isn't the buyer that even cares...it's the agent. The agent sounds uptight. I guess I would just let it go. They aren't worth it. Give 'em what they want and leave it alone.
Mar 20, 2008 04:42 PM
Carolyn Gjerde-Tu-Davis
Lyon Real Estate - Davis, CA
Ca Real Estate
Technically the other agent is correct.  Did you see if there was a specific reason that the buyer wanted a particular company?  Title & escrow, like everything in the contract is negotiable.
Mar 20, 2008 04:59 PM
Tricia Hoffmann
Your Home Free - Highland Village, TX
In three years of real estate, I've never had an agent throw RESPA at me to choose a title company.  I understand he is correct but why the drama? : )  There was no specific reason to choose them.  Just weird!
Mar 21, 2008 01:28 AM