Occasionally, the listing agent and selling agent will clash over the Title Insurance Company selection.
Title Insurance is a commodity and a must have. In Texas, Title Policy forms are standardized and Title insurance premium rates are set by the Texas Department of Insurance (TDI) and are based on the property’s sale value using a sliding scale. You can use this Stewart Title Rate Calculator to figure out what Title Insurance costs.
The reason agents are particular about which title company to use is because of the service, knowledge and experience of the title company staff and closers. The right title team can make the escrow process smooth and trouble free, the wrong one can make the experience jangly stressful.
Here’s what the Texas Association of Realtors sez about who has the right to pick the Title Company…
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Who picks the title company that will issue the owner policy of title insurance as part of the closing of a real estate transaction?
Logical arguments can be made that support either a seller or buyer picking the title company. A seller may feel that he should pick the title company where the applicable provision of the TREC contract shows the cost of the owner policy to be a seller’s expense. A buyer may feel that he should pick the title company because he will actually be the insured party in the owner policy. If the seller pays for the owner policy, the choice of a title company is a matter that can be negotiated in any contract. The only law governing this issue is under the Real Estate Settlement and Procedures Act (RESPA), which provides that if the buyer pays for the owner policy, the buyer is entitled to select the title company.
While REALTORS® often have a favorite title company or closer that they prefer to use, REALTORS® must remember that their primary obligation is to put the client’s interest first. The ultimate decision about the choice of the title company should be made by an informed client.
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If we can help you with anything, give me call – Ken Brand 832-797-1779
{ 2 comments }
In PA, buyer pays for title so buyer gets to pick title company. Premium rate is also set by government agency here. RE agents may refer title companies but the buyer may choose whomever they wish.
I always went by this rule:
If you are buying dinner, you get to pick the restaurant.
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