How to choose a title company
Choose and don’t lose
As a real estate broker, I have helped literally hundreds of families choose title companies over the years. It always amazes me to learn that many sellers don’t realize that they can choose the title company that plays an integral role in managing the closing process and even completing the actual closing. Of course, most listing brokers have established relationships with title companies built on years of (hopefully) positive experiences and most listing brokers will strongly recommend their clients use any title company they contact. they are used to However, in today’s crazy real estate market, where every dollar of closing costs, every single delay and hiccup in the closing process can be the difference between closing the deal or losing the Buyer, it’s even more important than ever to choose a great title company. .
Behind the scenes of a real estate transaction, a title company performs a wide variety of functions and is trusted by both real estate agents (those representing Buyer and Seller or transaction agents) and Buyer and Seller. her to add all the responsibilities described in the purchase and sale contract (purchase contract), including the investigation of the various fees associated with the transfer of property, various loan details, taxes, commissions, prepaid expenses, to establish accounts escrow taxes and insurance and much more.
Early in my career, I recognized the importance of a title company that could add value to the transaction with proactive problem solving, constant attention to detail, and a high level of service.
Now, leading a team of brokers, I have the luxury of personally choosing a title company from the myriad of options available. Since each of my transactions is managed as if it were the most important transaction in the world, since it certainly is for the people involved in it, I align myself with the best professionals to ensure that all aspects of the transaction are handled. . at the highest possible level. So let me share with you the four key points to consider when choosing a title company:
Reputation and history: there is no doubt that history repeats itself in this industry. Lazy brokers continue to make mistakes due to procrastination, while high performing brokers continue to provide excellent service through established efficient systems and processes. In the same way, light title companies that drop the ball no doubt have a pattern of having dropped the ball in the past. Ask your friends and family, other real estate agents in your office, and mortgage brokers for their good and bad testimonials. Since title companies are similar to insurance agents in that you are not actually buying the insurance from the title company, the most important consideration in reputation is their ability to take your calls, return your calls, and provide answers. consistently smart and accurate. When a representative of the title. (sales rep) takes you to lunch, ask him what the biggest part of his experience is; is for new construction purchases, commercial transactions, land sales, refinancing, for sale by owner or brokered resale.
In the current fragile state of affairs, both in the national economy and in the local real estate market, it is becoming increasingly clear that the financial stability of the title company is very important. There are significant risks to you as a home seller if your title company fails.
1. If a title company closes the day before closing, the closing will certainly be postponed and cause moving and financial problems for both buyer and seller.
2. If the closing title company has bail and/or mortgage proceeds, that money may be tied up while a bankruptcy court settles the accounts.
3. If the title company makes an escrow error at closing and closes, the seller may be forced to fix the problem instead of a title company.
4. If the title company’s list of exceptions to title on Exhibit B-2 does not match the seller’s title exceptions on the warranty deed, the seller may be liable for buyer’s claims later.
Second, you want to be sure that the title company is well aware of the common pitfalls and solutions to problems that arise in your specific niche. Do they have working relationships with lenders, do they have contacts in banks’ loss mitigation departments (if you may be working short sales) Will you be working with the same person throughout the transaction lifecycle?
The location of the title office can also be a valuable consideration. Earlier in my career, I chose a different title office for each listing based on a relationship with a regional representative. and the availability of a satellite office close to where the specific listing was located. I now work almost exclusively with a title company based on their client relationship management skills, knowledge of processes, and track record of successfully closing even the most challenging deals combined with their willingness to get the actual closing done in a timely manner. convenient place for my clients. .
Lastly, the fees charged by the title company should be evaluated. Fees charged for title insurance and closing services vary by company and can be significant. Individual title fees and additional service fees (such as closing on a second mortgage) may add up. Be sure to have an open discussion about each of the fees. Of course, many fees are non-negotiable and/or determined by the county, state, or individual lender, such as transfer fee, filing fees, document preparation fees, state stamps, etc.
When a real estate transaction is easy and catastrophic, the title company is almost invisible and works quietly in the background. However, the more a transaction unravels, the more the escrow officer rises to the top and becomes more and more important. It is certainly not unusual for a good title company to prevent a transaction from dissolving when multiple parties have failed to communicate or have lost their goodwill. Choosing the best title company for your transactions is an important decision that as a real estate agent can impact your career and as a home seller is critical to ensuring the smoothest possible transaction. Evergreen Real Estate
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