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jsarausad
183 Posts |
 Posted - 05/19/2008 : 10:33:56 AM
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Can a borrower choose their title insurance company? If my company normally uses "x" title company, and the borrower has a daughter that works at "z" title company, can my borrower choose "z"? and if so, how?
Thanks! |
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loancloser1342
496 Posts |
Posted - 05/19/2008 : 10:36:17 AM
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| No. Only the seller of a home on a purchase transaction can legally force you to choose a certain title company. |
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katbunk
2393 Posts |
Posted - 05/19/2008 : 10:39:58 AM
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| I think you're talking about a refinance? Yes, the borrower has every right to choose their own title. |
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Aloha
302 Posts |
Posted - 05/19/2008 : 10:46:11 AM
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I think theoretically - yes. The client can choose and shop around for the best services. That's what i learned from Broker's course when I was passing a test.
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rtrefflich
3935 Posts |
Posted - 05/19/2008 : 10:51:45 AM
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They can chose anyone they want.
On a purchase, the buyer can indicate which one they want to use but it is up to the seller to make the final decision. |
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jsarausad
183 Posts |
Posted - 05/19/2008 : 10:52:00 AM
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| How would my company go about using that title company when we use another one for all files? |
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Carpet Muncher
1385 Posts |
Posted - 05/19/2008 : 10:53:07 AM
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quote:
Originally posted by jsarausad
How would my company go about using that title company when we use another one for all files?
just place an order with them |
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lucky1s
3640 Posts |
Posted - 05/19/2008 : 10:53:18 AM
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| You call and open an escrow. |
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brad.easter
696 Posts |
Posted - 05/19/2008 : 10:54:58 AM
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| Just curious, why would your company do business with only one company, for all files. If a problem arises with that company and they don't perform, you are stuck. Better to use at least 2 different title companies. Better safe than sorry. |
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nowbroker
1490 Posts |
Posted - 05/19/2008 : 11:05:28 AM
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Jeesh guys and gals..
DOESN'T ANYONE READ THE SETTLEMENT COSTS AND YOU BOOKLET?
Read section II, F
By Federal law, (RESPSA) it is illegal for the seller to require title insurance by any particular company. Yes, by custom the seller chooses it, but the buyer is the ultimate payer, and can change it if they want. |
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katbunk
2393 Posts |
Posted - 05/19/2008 : 11:07:41 AM
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quote:
Originally posted by nowbroker
Jeesh guys and gals..
DOESN'T ANYONE READ THE SETTLEMENT COSTS AND YOU BOOKLET?
Read section II, F
By Federal law, (RESPSA) it is illegal for the seller to require title insurance by any particular company. Yes, by custom the seller chooses it, but the buyer is the ultimate payer, and can change it if they want.
Seller could certainly not accept the offer. |
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nowbroker
1490 Posts |
Posted - 05/19/2008 : 11:11:29 AM
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| And is that were the reason, the buyer could sue and would win. |
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ski2313
763 Posts |
Posted - 05/19/2008 : 11:19:01 AM
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The buyer can use any title company they choose. The seller can use a different one even.
Seller gets a seller's policy, through company X.
Buyer wants their buyers and lenders policy through company Z.
It's a little more work, but basically the closing with company X is handled as an all cash transaction, with the buyer bringing in one lump sum from company Z.
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katbunk
2393 Posts |
Posted - 05/19/2008 : 11:25:45 AM
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quote:
Originally posted by nowbroker
And is that were the reason, the buyer could sue and would win.
Tell me, how would a buyer win or why would a buyer even sue if a seller simply refused an offer that had something in there they didn't like?
In any case, I've never heard of an offer not being accepted, nor a buyer suing a seller, over the use of a title company. |
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nowbroker
1490 Posts |
Posted - 05/19/2008 : 11:43:35 AM
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True, but I have never heard of a seller refusing to sell unless they use their title company, a stupid move in today's market.
Most sellers and buyers do not care at all which title company it goes through, it is usually only a sparring match between hard headed Realtors. |
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CoolMtgGuy
4109 Posts |
Posted - 05/19/2008 : 12:43:03 PM
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quote:
Originally posted by jsarausad
Can a borrower choose their title insurance company? If my company normally uses "x" title company, and the borrower has a daughter that works at "z" title company, can my borrower choose "z"? and if so, how?
Thanks!
It depends on what State you are in. If you are in CT for example, attorneys are the title company agents so they chose the title company and they collect the fees. My definition of "title company" is the actual title insurance provider ... not their agent. |
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aftc
28 Posts |
Posted - 05/19/2008 : 12:50:23 PM
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Here in Florida in most counties the buyer pays for the title insurance and therefore chooses the closing agent. In Palm Beach county it is the Seller who pays and chooses.
Shouldn't it be the party that has to pay for the service or product be the one that chooses who provides it?
That makes sense to me.
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HollywoodLO
261 Posts |
Posted - 05/19/2008 : 12:53:49 PM
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quote:
Originally posted by brad.easter
Just curious, why would your company do business with only one company, for all files. If a problem arises with that company and they don't perform, you are stuck. Better to use at least 2 different title companies. Better safe than sorry.
If that company is also owned by the brokerage, it makes all the sense in the world...MORE $ FOR THE COMPANY. |
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nowbroker
1490 Posts |
Posted - 05/19/2008 : 2:39:54 PM
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Regardless of local customs, the law is Federal and applies all across the United States, even in Palm Beach Florida...
http://www.hud.gov/offices/hsg/sfh/res/resp2608.cfm |
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CoolMtgGuy
4109 Posts |
Posted - 05/19/2008 : 3:26:51 PM
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If you say
quote:
Originally posted by nowbroker
Regardless of local customs, the law is Federal and applies all across the United States, even in Palm Beach Florida...
http://www.hud.gov/offices/hsg/sfh/res/resp2608.cfm
I'm not sure what the point of this post is ... other than to reinforce that sellers cannot dictate that buys use a specific title company. Just like they cannot specify a mortgage company. The OP also asked about a buyer selecting the title company. As my post earlier states, in the CT, all title insurance companies are represented by attorneys. I guess a buyer could shop around for an attorney who represents a title company they want but that seems unlikey to happen. |
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