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Old 12-11-2017, 11:51 AM
 
4,961 posts, read 12,543,561 times
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Quote:
Originally Posted by Diana Holbrook View Post
They will? "Force?" Really? We might suggest title companies and people that we have worked with in the past... and most clients appreciate being connected with good people. I have never actually had a buyer express any preference at all about which title company to use, but I can certainly work with any title company in town if that's what the client prefers.
well not necessarily "force", but some can get pushy to say the least.
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Old 12-12-2017, 07:02 AM
 
Location: MID ATLANTIC
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There are RE firms that tie the selling REA's compensation to the selection of the buyer's title and mortgage company. If I recall correctly, it was a bonus, not a penalty if the in-house options were selected.
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Old 12-12-2017, 07:15 AM
 
Location: Cary, NC
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Quote:
Originally Posted by SmartMoney View Post
There are RE firms that tie the selling REA's compensation to the selection of the buyer's title and mortgage company. If I recall correctly, it was a bonus, not a penalty if the in-house options were selected.
That is the sort of crap that needs to be perfectly clearly disclosed.

Actually, that would be a required disclosure according to our NCAR Buyers Agency Agreement.
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Old 12-12-2017, 03:29 PM
 
Location: Boise
659 posts, read 657,034 times
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Default Every state is different....

In my area, its typical for the buyers agent to list a Title and Escrow company on the offer. Seller can approve the offer, reject, or counter back with anything they wish to change.

Many local builders have relationships with a particular Escrow company that involved them providing financials and they are not usually willing to go outside of the companies they have been approved with. If you want your offer accepted, you will have to agree to use their approved Escrow company.

My title insurance rates are the same across the various companies and the choice usually involves who you, the agent(s) or builders want to use for service reasons. Our state department of insurance regulates and approves their rates and fees.

On a refinance transaction, its a bit different as there are no sellers to deal with. Typically, I ask the client if they have a preference where they close. I try to have a relationship with someone good in every company so we get the best service regardless of where the client chooses.

I would ask a local professional for what the practices are for your area.
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Old 12-13-2017, 07:01 AM
 
Location: MID ATLANTIC
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Quote:
Originally Posted by MikeJaquish View Post
That is the sort of crap that needs to be perfectly clearly disclosed.

Actually, that would be a required disclosure according to our NCAR Buyers Agency Agreement.
Agreed. We (State of VA) have this broad ABA disclosure that all borrowers sign with their purchase agreements. As someone that was once in-house, I honestly feel the fiduciary responsibility for the buyer is severely compromised by these ABAs. The attention at sales meetings concentrate on capture ratios and mortgage competition, not sales accomplishments or discussions on sales techniques. The number of homeowners that are being pushed to an FHA loan because that real estate mortgage company doesn't have the conventional rate/product is borderline criminal. These buyers are trusting the REA to guide them in the most expensive investment in their lifetime. Look at the key players setting policy in your local and state BoR. How many sitting at that policy table are owner-brokers, all with their own mortgage and title companies? It only takes a few to put a blemish on an entire industry.
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Old 12-13-2017, 08:40 AM
 
7,447 posts, read 9,191,083 times
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Quote:
Originally Posted by Diana Holbrook View Post
This may be another case of "it depends on customs in your area!" In our market, the buyer's agent chooses the title company, unless the listing agent has already opened title with the listing... which they sometimes do.
Interesting. Is that because the Buyer usually pays for the title policy there?

In Michigan, the Seller customarily pays for the title insurance policy so the Seller's side usually selects the title company. Since the title insurance rates are regulated, the selection of a title company has never a point of contention in my experience. Selling agents usually select a title company where they've done the most business--which is often just the closest one to their office.
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Old 12-13-2017, 08:45 AM
 
Location: 5,400 feet
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Quote:
Originally Posted by jackmichigan View Post
Interesting. Is that because the Buyer usually pays for the title policy there?

In Michigan, the Seller customarily pays for the title insurance policy so the Seller's side usually selects the title company. Since the title insurance rates are regulated, the selection of a title company has never a point of contention in my experience. Selling agents usually select a title company where they've done the most business--which is often just the closest one to their office.
Same here in NM. Seller provides the owner policy and the buyer buys a lender policy if needed. The coverage terms and rates are heavily regulated here, so it makes little difference who issues the policy.
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Old 12-13-2017, 08:47 AM
 
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Most of the time, the title is choose by either the bank or the lawyer. If you want a specific title company, then you may have to let them know ahead of time.
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Old 12-14-2017, 11:52 AM
 
Location: Boise, ID
8,047 posts, read 25,303,630 times
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In my area, the buyer selects. Sometimes the seller will counter and ask for a different one, but it is a buyer's choice in the end.

The only time it really matters is if it is new construction. In my area, title companies make builders jump through a lot of hoops if the buyer wants (or the builder wants to provide) expanded coverage. This is the coverage that covers liens on work done in the prior 90 days, which on new construction is most of the house. So if the builder dies or files bankruptcy the day after closing, the buyer doesn't end up with $300k worth of liens ON TOP of their mortgage. So for the title company to issue it, they have to satisfy themselves that the builder is reliable about paying their bills, and financially stable. They require profit and loss statements, bank statements, even call subcontractors for reference checks. This is a MAJOR pain for a builder to set up with a new title company. So that is why builders usually ask to close at their preferred title company.

Other than that, there is no substantial difference between title companies here. It just comes down to which escrow officers are good and which are bad.
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