Do you accept the seller's title company?

Good morning!

As I was reading through some of the REO listings I noticed that almost all of them states that the bank will chose the title company. I also saw some non-bank properties witht the same requirement.

Is this normal? Do you usually see that and what do you usually do? Do you go with their title company?

I guess I would rather be in control and chose the title company I want, but I want to hear your experience/advice on this.

Thank you and have a great weekend!

If the seller (bank) is paying for title insurance then they will usually pick the company. It shouldn’t matter much to the buyer as the coverage should be the same. The buyer, if getting a new loan, will usually be charged for the lender’s policy of title insurance.

Sometimes it’s local custom that determines. It used to be that sellers paid for the title policy in Southern California, and the buyer paid in Northern California. I always wondered how they figured it out in Central California.


Furnishedowner - thank you for the information. Actually I was not to concerned with the title insurance as I understand that they are basically the same as you stated. However I am more concerned with the escrow. I feel a little bit uneasy to have to put the earnest money in escrow with a company selected by the seller. Is this normal practice?

Thank you and have a nice weekend!

If the seller is paying the attorney fee, and has already performed the title search, then I will use the seller’s settlement agent if that saves me some money.

As a general rule with bank owned property, a lot of the work to deliver clear title has already been done by the seller’s attorney or designated title company. Why pay someone else of your choosing to do the same work that the seller has already paid for?

I wouldn’t worry either about putting earnest money in with an escrow company. In California they were all licensed. Ask the escrow company about their credentials. They should be happy to enlighten you.



Great question.

I would say the answer to your question (NON-BANK OWNED) is-- ONLY if you both agree that you should use the sellers title agent.

Just ask and see if the seller objects.

Most of us go directly with earnest to be deposited with sellers agent because it has been the norm or that’s what we have “heard”

Usually if seller can be able to verify and can prove that the earnest was deposited with buyers title agent there should not be any issues!!

It’s always better to ask and see what you can get. Just my thoughts.

Good Luck!

Normally I would agree with you. But, this question is about REO property. In my experience, the REO seller dictates the deal – the forms to be used, the earnest money deposit required, and the title company to be used.

You can always use your own title company or settlement attorney for your side of the closing at your expense, but the bank will still use their title company for their side. The cost of getting your own way is not worth quibbling over such a trivial issue.

Dave T,
Thanks for the REO pointer. I was not familiar how that works so I chose to comment on the non-bank owned properties.

Thank you guys for the answers… Good information.

Have a great Sunday!

What if the property will be owner financed and the state is a Title company closing state?