There are many common misconceptions about title companies. Today, we’ll cover one of them and outline the real story.
The Myth
Imagine being told you need to pay hundreds or thousands of dollars for a service from a provider that you have no control over picking. If your attorney chooses the title company for you, that’s essentially what you’re doing. (By the way, if you need a real estate attorney, we can refer you to professionals in our extensive network.)
The Reality
Most buyers don’t realize that they, not their attorney, has the final say over a title company. Your real estate agent should give you referrals to title companies, just as they do for other service providers, but most don’t. If your attorney expresses a preference or makes a recommendation of a title company, you should ask why. As the buyer, you’re paying for the title company, and the choice is yours.
How to Choose a Title Company
- Their track record of closing deals
- Their claim rates
- How long they’ve been in business (Insurance is only as good as the company that issues it.)
- They’re not owned by the brokerage you’re using (obvious conflict of interest and not what a real estate brokerage does best)
- They’re independent from your attorney
If you have any questions about real estate attorneys or title insurance, or if you would like to discuss an upcoming or potential transaction, please contact us.
