Who Chooses the Title Company in Texas

Posted: October 8, 2012 in Uncategorized
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I have been in Title business seven years and this subject comes up over and over again.  Who chooses the title company in a real estate transaction? The buyer or seller?  This process is a negotiation between the parties. And each party can make an argument to why the title company of their choice should be used.  I like the way Texas Legal Docs worded this process:

In Texas, the choice of a title company is freely negotiated between the parties. Traditionally, the seller pays for the title policy, due primarily to the seller’s contractual obligation to pass good title to the purchaser. Since the seller pays for the policy, it makes sense that the seller should be able to choose the provider. It is the buyer, however, that will be the beneficiary of the title policy, and they have every reason to demand that the title insurance be closed and backed by a reputable and trustworthy company. Both sides desire and expect a smooth and professional closing experince, and both sides hold reasonable arguments for their ability to choose. But the reality is, no party to the transaction wants to lose the deal over an argument as to what company shall act as closing agent. At some point, sellers and buyers are able to reach a mutual decision on an acceptable title company without tanking the deal.

I could not have written that better myself and I think it makes perfect sense.  Please pass this on to your fellow realtors, that title is still negotiated wether you are the buyers agent or the sellers agent, and please do not ever let a deal go south over a title company.  That would make me sick!!

http://texaslegaldocs.com/blog/default.aspx/Who-Pays-the-Title-Insurance-Premium–Is-State-Regulation-Really-Necessary

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