why do some listings say to use the seller's title agency

[bbronston]

Originally Posted by 1insider

As far as the buyer being unrepresented in case of seller picking the title company, the title company doesn't represent anyone. They are searching the title and issuing or not issuing a policy to protect the buyer based on their findings. Doesn't matter who pays for it.

I'll also add that the underwriters of the policy want a thorough search done because they don't want to pay out anything. If it was possible for the title company to do a one sided search (i.e. hide something from the buyer), I can assure you that the underwriting company would never work with them again, and no doubt sue them out of business.

[jackmichigan]

Originally Posted by NY Annie

Once again, my question:

Preface: given that title policies and prices are similar enough to be called equal so negating out the differences between companies,

who is representing the buyer?

The buyer should be given advice re: issues found in a search - including and especially (see a thread in this forum re: driveway easement access to parcel behind) regarding easements. Obviously, that OP did not have her own representation and the implications of said easement were not explained to her - probably glossed over.

I'm just surprised that the practice of allowing a seller to choose the title company, therefore leaving the buyer totally unrepresented, is simply shrugged off by so many of you.

And especially in the above situation of foreclosures/REOs, the seller/bank does not need representation nearly as much as the buyer.

There's no way I find this an acceptable practice.

As for your question, please note my previous post:

Originally Posted by jackmichigan

As for Buyer's representation, they can have an agent, an attorney, or both. If they're going it alone, hopefully they have enough knowledge to deal with any title issues which might be discovered in a title search, and they're wary enough to not allow certain exceptions to be included on a title policy. I don't recommend that those who lack real estate experience go without representation.

The title company is representing neither party--they are looking out for their own interests (by limiting their coverage risks). That's why I feel it's important for a Buyer to have proper representation, whether it's an experienced agent or a qualified real estate attorney, or both. Too often, a Buyer may not understand exceptions to the title policy, which could include easements, boundary issues or other significant issues. It's also important for a Buyer to obtain and understand all documents which are referenced in the preliminary title report (e.g. Easement recorded at Liber 2139 Page 82, or however it may be noted in the records).