Who Decides Which Title Company you Use to Close Your Real Estate Transaction
Monday, October 20, 2008
In Most of my real estate transactions the Realtor decides who the Closing agent is.
Due to affiliations, past work load history, inner city or small town relationships, and a variety of other “excuses” – reasons - the Realtor tells the buyer what Title Company to use and they enforce this. By enforce I mean they have the Seller counter offer this point, they push the Buyers agent, push the buyer and they get their way.
The Buyer just wants to buy and does not want to rock the boat so they give into the Realtor’s demands that are offended past off to be what the Seller wants when in Reality the Seller does not really care. To the Seller it is just one more chunk of money out of their proceeds and is Really of no Valid use to them.
What Does the Association of Realtors Say about This Issue.
The National Association of Realtors and your Local Realtor may say that the Buyers, making the offer, get to decide which title company that they will use in closing their real estate transaction.
This is NOT True.
Realtors claim that it is part of the offer, part of the negotiations but for me as a real estate broker owner, I would have to say that in the Real World the Buyer does not really choose but is instead coerced in some way.
Most of the time the buyer comes to town and does not really know which title company to use so they go with which ever title company that the Realtor Suggests. In most cases, in my transactions, the Listing Agent decided who the Title Company would be. The Buyer would make an offer with one title company and they would mark it out and put in the Title Company of their choosing and then tell me that “Well, this title company has done so much work that we feel we need to use them”. And these Broker Owners are quite demanding about this.
What Does the Association of Realtors Say about This Issue.
The National Association of Realtors and your Local Realtor may say that the Buyers, making the offer, get to decide which title company that they will use in closing their real estate transaction.
This is NOT True.
Realtors claim that it is part of the offer, part of the negotiations but for me as a real estate broker owner, I would have to say that in the Real World the Buyer does not really choose but is instead coerced in some way.
Most of the time the buyer comes to town and does not really know which title company to use so they go with which ever title company that the Realtor Suggests. In most cases, in my transactions, the Listing Agent decided who the Title Company would be. The Buyer would make an offer with one title company and they would mark it out and put in the Title Company of their choosing and then tell me that “Well, this title company has done so much work that we feel we need to use them”. And these Broker Owners are quite demanding about this.
It does not matter to them how much work the other Title Company choice may have done for the Buyer or for the Buyers agent. These Brokers run the show, these Realtors decide what is best for the Consumer by what is best for them and their future relationship with this title company that Will Have their Backs.
The Buyer SHOULD absolutely be able to choose which title company they want to use, based on their comfort level and knowledge of the company. And the Buyer should be able to do this without interference from the Realtor.
Now NAR can tell you all they like that this is not how it happens but it is.
The Buyer SHOULD absolutely be able to choose which title company they want to use, based on their comfort level and knowledge of the company. And the Buyer should be able to do this without interference from the Realtor.
Now NAR can tell you all they like that this is not how it happens but it is.
Every offer I have made to Century 21 in Eureka Montana, my Buyer has been Made to use the title company that the listing agent insists that they use. We make an offer, with the Title Company that my buyer chooses and the listing agent calls and tells me that the Seller really wants to use First American Title because they have done so much work already. Or the agent will put this in a counter offer that supposedly comes from the Seller.
This has happened to me for years and though it was annoying and though I really wanted to use the other title company, I had no idea that it was a RESPA violation.
Today I am told that Section 9 of RESPA prohibits a seller from requiring the home buyer to use a particular title insurance company, either directly or indirectly, as a condition of sale. Buyers may sue a seller who violates this provision for an amount equal to three times all charges made for the title insurance. For information on RESPA Rules and Regulations, please visit http://www.hud.gov/offices/hsg/sfh/res/respa_hm.cfm
A real estate Broker making you use a particular title company because they have done so much work already, is illegal. It violates Section 9 of RESPA Laws, but here in Eureka Montana, at Century 21 especially, anything Goes.
Folks, Today this is News to Me and SO now it is news to you.
When I would have a real estate buyer pick a title company and have me write this on my buy sell agreement and the Listing Broker would call me and say well we have to use First American Title because they have done so much work and the Seller feels obligated to them, my buyer would agree to not rock the boat or lose the deal.
When I would have a real estate buyer pick a title company and have me write this on my buy sell agreement and the Listing Broker would call me and say well we have to use First American Title because they have done so much work and the Seller feels obligated to them, my buyer would agree to not rock the boat or lose the deal.
I found it annoying but did not know that it violated RESPA laws. Century 21 in Eureka Montana does this with EVERY deal I have ever done with them. I cannot believe what this office can get away with. It is as if they are invisible from the law.
If you are owned by the Largest Real Estate Group in the World than you are above the law, E an O insurance protects the Realtor and not the consumer and what this means to you is that it does not matter what the Realtor says or does their Franchise and E and O insurance will make you the Real Estate Victim wrong. Realtors do not seem to know the laws that affect you personally. Realtors are NOT made by ANY governing authority to know, practice or enforce the laws that affect Your Life.
Realtors Harm real estate consumers and are seemingly “untouchable”.
You, the Real Estate BUYER gets to Choose the Title Company that you want and Do Not let a Realtor Strong Arm you into thinking ANY different.
Realtors Harm real estate consumers and are seemingly “untouchable”.
You, the Real Estate BUYER gets to Choose the Title Company that you want and Do Not let a Realtor Strong Arm you into thinking ANY different.
Find Out More Folks.. Knowledge is Power
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