Why some of the sellers require that buyer must use seller’s title co?
Thank you.
Howdy Marylander:
A lot of times the sellers agent will actually pick the title company for several reasons. Close to the Realtors office like next door on several deals I have closed, friends, relatives, and a mess of other reasons. Good service is in there too.
LOL
In my market it is custom that the seller chooses the title company since it is the seller’s (or seller’s agent) responsibility to get the closing set up. Also the seller pays for the title insurance in my market, so it seems natural. However, sellers can’t force a buyer to buy title insurance from a specific title company (RESPA).
Tedjr pretty much covered all possible reasons but in my experience, the reason the seller requests a particular escrow officer is the friend or relative factor.
If you are dealing with a bank owned property, you can be sure that they will have a certain title company that you will have to deal with. Usually that is covered in their addendum.
An investor who does many transactions prefers to use their own title/escrow company because they can control the entire closing process. Some don’t/refuse to do double/simultaneous closings, others will. If you do business with them often, its just easier getting over some hurdles that come up. Usually if your dealing with a loan it will most likely be the Lender’s choice and not yours.
KEC