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Should a Buyer Get to Choose Which Title Company they Use ?
Realtors Pick the Title Company.
Should a Buyer Get to Choose Which Title Company they Use ?
Realtors Pick the Title Company.
The Laws says they cannot but they do. If you call them on it, it is an “Oh Well. If you go to the Local Association of Realtors to Complain about this breaking of Federal Law they discourage you or out right tell you to Drop It.
Why Would a Local “Realtor” Association discourage their members to be quiet while other members are Breaking the Law ? Why Would Your Local Association of Realtor Encourage member to not enforce the law or tell on the Big Celebrity Realtor.
The Association of Realtors Does not Want to Upset the Cart. The Realtors have Lots of Money, they have a Big fancy Name in a Small - Small Pond and causing waves (Telling the Truth) is NOT encouraged.
These Big Shot Realtor have been in an area for their whole life, they are a local “Name”, and/or they fall into real estate sales because of their local celebrity status and then they have more money then the local Big Shot that runs the Local Real Estate Association.
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One Week of school, some of these Brokers got a license when it was 5$ for a Sales License and $10 for a Brokers license and they are still Broker Owner. So they made lots of money because that is the nature of Real Estate, your popular you make lots of money.
One Week of school, some of these Brokers got a license when it was 5$ for a Sales License and $10 for a Brokers license and they are still Broker Owner. So they made lots of money because that is the nature of Real Estate, your popular you make lots of money.
The Local Association of Realtors is Scared of Them. They Flat out tell you to Leave it Alone. You, the Little Guy, the Sales agent, the Non-Franchise Realtor, the New Realtor on the Block who wants an Honest fair deal for you, for your client and for all involved, Your Superiors, Your Local MLS board tells YOU to Drop it because of who the Offender is..
I am NO Longer a Member of the National Association of Realtors and therefore not under their Mafai Type Control. Realtors are Breaking the Law, Bending the Law and Flat Out lying every day, and when their peers “Tell on Them” they are told to let it go… Enough is Enough.
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Why Do Realtors Choose a Particular Title Company?
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Maybe they like working with them, maybe they
are honest and easy to work with. Or maybe the Realtor
is getting kick back from the title insurance which in a real estate transaction, is quite often paid by the buyer and the seller if a mortgage is involve and they slip in other "insurances" that you don't need. This is Big Money.
is getting kick back from the title insurance which in a real estate transaction, is quite often paid by the buyer and the seller if a mortgage is involve and they slip in other "insurances" that you don't need. This is Big Money.
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It is ILLEGAL for YOUR Realtor to Choose
The Title Company that YOU work With.
The Title Company that YOU work With.
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Realtors Are Above the Law
I CAN PROVE IT !!!
I CAN PROVE IT !!!
RESPA - HSG-RESPA Quote Emailed to Me
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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 sale. Buyers may sue a seller who violates this provision for an amount equal to three times all charges made for the title insurance. For information on RESPA Rules and Regulations, please visit our website at http://www.hud.gov/offices/hsg/sfh/res/respa_hm.cfm
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 sale. Buyers may sue a seller who violates this provision for an amount equal to three times all charges made for the title insurance. For information on RESPA Rules and Regulations, please visit our website at http://www.hud.gov/offices/hsg/sfh/res/respa_hm.cfm
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More Below on Realtors and Choosing Title Insurance / Companies
Due to affiliations, past work load history, inner city or small town relationships, and a variety of other “excuses” – reasons - the Realtor tells the buyer what Title Company to use and they enforce this. By enforce I mean they have the Seller counter offer this point, they push the Buyers agent, push the buyer and they get their way. The Buyer just wants to buy and does not want to rock the boat so they give into the Realtor’s demands that are offended past off to be what the Seller wants when in Reality the Seller does not really care. To the Seller it is just one more chunk of money out of their proceeds and is Really of no Valid use to them.
What Does the Association of Realtors Say about This Issue.
The National Association of Realtors and your Local Realtor may say that the Buyers, making the offer, get to decide which title company that they will use in closing their real estate transaction.
This is NOT True.
Realtors claim that it is part of the offer, part of the negotiations but for me as a real estate broker owner, I would have to say that in the Real World the Buyer does not really choose but is instead coerced in some way.
Most of the time the buyer comes to town and does not really know which title company to use so they go with which ever title company that the Realtor Suggests. In most cases, in my transactions, the Listing Agent decided who the Title Company would be.
Due to affiliations, past work load history, inner city or small town relationships, and a variety of other “excuses” – reasons - the Realtor tells the buyer what Title Company to use and they enforce this. By enforce I mean they have the Seller counter offer this point, they push the Buyers agent, push the buyer and they get their way. The Buyer just wants to buy and does not want to rock the boat so they give into the Realtor’s demands that are offended past off to be what the Seller wants when in Reality the Seller does not really care. To the Seller it is just one more chunk of money out of their proceeds and is Really of no Valid use to them.
What Does the Association of Realtors Say about This Issue.
The National Association of Realtors and your Local Realtor may say that the Buyers, making the offer, get to decide which title company that they will use in closing their real estate transaction.
This is NOT True.
Realtors claim that it is part of the offer, part of the negotiations but for me as a real estate broker owner, I would have to say that in the Real World the Buyer does not really choose but is instead coerced in some way.
Most of the time the buyer comes to town and does not really know which title company to use so they go with which ever title company that the Realtor Suggests. In most cases, in my transactions, the Listing Agent decided who the Title Company would be.
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The Buyer would make an offer with one title company and they would mark it out and put in the Title Company of their choosing and then tell me that “Well, this title company has done so much work that we feel we need to use them”.
And these Broker Owners are quite demanding about this. It does not matter to them how much work the other Title Company choice may have done for the Buyer or for the Buyers agent. These Brokers run the show, these Realtors decide what is best for the Consumer by what is best for them and their future relationship with this title company that Will Have their Backs.
The Buyer SHOULD absolutely be able to choose which title company they want to use based on their comfort level and knowledge of the company. And the Buyer should be able to do this without interference from the Realtor.
Now NAR can tell you all they like that this is not how it happens but it is.
So if you have an area, or even an out of area Title Company that YOU like to work with and you trust will watch your back and look out for you. And that this title company that you are comfortable with will stand up for and with you in the future should you need them too then you CHOOSE, tell your Buyers agent or real estate attorney to write in the Title Company of Your Choosing as the Closing agent and Title Provider
Can you Choose One Title Company for the Title Insurance and One to Close the Deal?
I believe you can. The don’t like this because the money is in the Title Insurance, but you can choose this if you like. I mean the Title Insurance Corporate Company is Most Likely not in the town your buying anyway. They simple have a Franchise owner selling their “insurance”.
If you do not Choose a Closing Agent the Listing Agent Will.
Most of the Time you go look at a property, the Realtor writes up a deal and they lean you toward a particular title company, you go with it and proceed through escrow.
I advise you to meet the closing agent, ask questions and to FEEL
Comfortable BEFORE you choose a Title Company - YOU really do have a choice
and Do NOT let anyone tell you ANY different.
So often the real estate consumer will rush into a contract, a closing without knowing what they really need to know. And Folks, you really need to know if you can communicate with and trust the closing agent, the Title Company that you are using on one of the biggest financial deals of your life. What if They don’t pay off liens? What if the water rights don’t get transferred or an easement is left out?
If you have a good relationship with a reputable title company oftentimes mistakes can be fixed years later. But if the title company and the Realtor denies they happened well then you really are out of luck.
Remember, you are most likely a one time deal and the Realtor is Steady business. When there are situation where you really need them to say what happened or to have your back, who do you think they will stick up for or lean their “evidence”, their “file” towards? The Real Estate Brokerage of their choosing of Course. And don’t forget the Realtors have more money then you.
Whether you’re a multi-millionaire or not the Realtors still have more money.
They have E and O insurance that can keep you in court for years. Quite a few of the real estate franchises are owned by the same Corporate Head and they can outlast you financially. Even if Your Are Right in Every way and have proof. So the Title Company and the Local Association of Realtor bend their way real quick. Of course you can not prove that. But for me it is True with out a Doubt based on my personal experiences as an Ex-Realtor and a Real Estate Broker Owner.
*** Can a Seller or their Realtor Counter offer, suggest or enforce that use a particular Title Company in your real estate transaction? According to HUD, this would Violate RESPA laws but it happens all the time.
The Buyer SHOULD absolutely be able to choose which title company they want to use based on their comfort level and knowledge of the company. And the Buyer should be able to do this without interference from the Realtor.
Now NAR can tell you all they like that this is not how it happens but it is.
So if you have an area, or even an out of area Title Company that YOU like to work with and you trust will watch your back and look out for you. And that this title company that you are comfortable with will stand up for and with you in the future should you need them too then you CHOOSE, tell your Buyers agent or real estate attorney to write in the Title Company of Your Choosing as the Closing agent and Title Provider
Can you Choose One Title Company for the Title Insurance and One to Close the Deal?
I believe you can. The don’t like this because the money is in the Title Insurance, but you can choose this if you like. I mean the Title Insurance Corporate Company is Most Likely not in the town your buying anyway. They simple have a Franchise owner selling their “insurance”.
If you do not Choose a Closing Agent the Listing Agent Will.
Most of the Time you go look at a property, the Realtor writes up a deal and they lean you toward a particular title company, you go with it and proceed through escrow.
I advise you to meet the closing agent, ask questions and to FEEL
Comfortable BEFORE you choose a Title Company - YOU really do have a choice
and Do NOT let anyone tell you ANY different.
So often the real estate consumer will rush into a contract, a closing without knowing what they really need to know. And Folks, you really need to know if you can communicate with and trust the closing agent, the Title Company that you are using on one of the biggest financial deals of your life. What if They don’t pay off liens? What if the water rights don’t get transferred or an easement is left out?
If you have a good relationship with a reputable title company oftentimes mistakes can be fixed years later. But if the title company and the Realtor denies they happened well then you really are out of luck.
Remember, you are most likely a one time deal and the Realtor is Steady business. When there are situation where you really need them to say what happened or to have your back, who do you think they will stick up for or lean their “evidence”, their “file” towards? The Real Estate Brokerage of their choosing of Course. And don’t forget the Realtors have more money then you.
Whether you’re a multi-millionaire or not the Realtors still have more money.
They have E and O insurance that can keep you in court for years. Quite a few of the real estate franchises are owned by the same Corporate Head and they can outlast you financially. Even if Your Are Right in Every way and have proof. So the Title Company and the Local Association of Realtor bend their way real quick. Of course you can not prove that. But for me it is True with out a Doubt based on my personal experiences as an Ex-Realtor and a Real Estate Broker Owner.
*** Can a Seller or their Realtor Counter offer, suggest or enforce that use a particular Title Company in your real estate transaction? According to HUD, this would Violate RESPA laws but it happens all the time.
In Everyone of my real estate transactions, the Listing agent strongly suggested which title company that my buyer use in a real estate transaction. The Listing agent said that is what the Seller wanted and took the choice away from my buyer.
Realtors break laws DAILY, some laws they don’t know
Realtors break laws DAILY, some laws they don’t know
and others they “pretend” they never knew.
The point of telling you this here is to empower you with knowledge and tell you that yes in theory and in law the Choice of the Title Company is a Purchase Agreement Item that is to be negotiated. And in the Law it is said 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 sale. Buyers may sue a seller who violates this provision for an amount equal to three times all charges made for the title insurance.
But in the Reality of Real Estate Realtors do Convince Sellers to “counter” offer and make a certain title company a condition of a real estate transaction.
The point of telling you this here is to empower you with knowledge and tell you that yes in theory and in law the Choice of the Title Company is a Purchase Agreement Item that is to be negotiated. And in the Law it is said 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 sale. Buyers may sue a seller who violates this provision for an amount equal to three times all charges made for the title insurance.
But in the Reality of Real Estate Realtors do Convince Sellers to “counter” offer and make a certain title company a condition of a real estate transaction.
Apparently Sellers Can Pick the Title Company if they Are
paying for the Title Insurance, however, is this in the best interest of the Buyer?
paying for the Title Insurance, however, is this in the best interest of the Buyer?
And from what I have seen the Listing Agent Chooses, though they make
it look like the Seller is Choosing.
it look like the Seller is Choosing.
If the Seller Pays for the Title Insurance are you, the Real Estate Buyer somehow less protected? Well if they or their Realtor chooses for you there is a big chance that you may not be protected in ways that you, the Real Estate buyer assumes that you are.
A Mortgage Title Policy is Purchased to supposedly protect the lender but I have seen cases where closings are about to take place and I myself have had to tell the Title Company about over $300,000 in liens that they forgot to include on the settlement statement due to loans that the seller had long before the sale.
So the Seller pays for Title Insurance to make sure that the title is good and liens are paid, and the Buyers pays for a Mortgage Title Policy to protect their interest and the lenders interest and yet these things can and do happen.
If the Seller pays for the Title Insurance then
If the Seller pays for the Title Insurance then
is it their choice where it is purchased?
If so then why NOT put it in the MLS, that this certain title company must be included in the offer. Instead of it being in a counter offer. Is it part of what the buyer negotiates or chooses?
If a Real Estate “Professional” chooses a Title Company “for you” is this really in the Best interest of the Real Estate Consumer?
If so then why NOT put it in the MLS, that this certain title company must be included in the offer. Instead of it being in a counter offer. Is it part of what the buyer negotiates or chooses?
If a Real Estate “Professional” chooses a Title Company “for you” is this really in the Best interest of the Real Estate Consumer?
Does the Realtor you are using have to legally disclose ANY connections or percentage of ownership between them and the Title Company that they are using to Close their real estate transaction?
If your Realtor is a Franchise, then odds are someone in their Corporate Head owns a piece of a Title Company, just my opinion.
Title Insurance Tidbits
confess rea estate
Most Buy Sell agreements require two types of title insurance policies. Generally, the Seller pays for an Owners Title Policy that covers the Purchaser against any defects in title. The Purchaser normally pays for a Mortgage Title Policy that insures the lender.
To me this is bogus and is a way to charge twice for the same job. Both sides of the transaction paying for the same exact thing is Not ethical or a Good Standard of Practice for the Real Estate Consumer in my opinion.
