Quick Answer
A buyer may be able to choose their own title company, depending on the purchase contract, state law, local custom, who pays for title services, and the lender's requirements. The buyer's right to choose is protected by federal law in some circumstances, but the purchase contract terms ultimately govern.
Buyers often wonder whether they can choose the title company for their transaction. Here is what you need to know.
Start With the Contract
The purchase contract is the first place to look. Some contracts specify who selects the title company. If the contract gives the buyer the right, you can choose any qualified company. If it gives the seller the right, the seller selects. If the contract is silent, the parties should discuss and agree.
What If the Seller Already Selected a Company?
In many transactions, the seller (or the seller's agent) opens title with a company early in the process. If you want to use a different company, you can discuss it with the seller. However, switching companies may involve delays and duplicate costs. Consider whether the difference is worth the disruption. Learn about changing title companies after opening escrow.
What About the Lender?
The lender may have approved title companies they will accept. Before committing to a title company, confirm with your lender that they will accept title work and policies from that company. Some lenders maintain lists of approved providers.
What Should Buyers Look for in a Title Company?
If you have the opportunity to choose, consider these factors:
- Experience: Does the company handle your type of transaction? Why experience matters when choosing a title company is a critical consideration.
- Reputation: What do agents and past clients say about them?
- Communication: Do they respond promptly and explain things clearly?
- Availability: Can they close on your timeline?
- Location: Are they familiar with the local county records and processes?
Key Takeaway
Buyers can sometimes choose the title company, but it depends on the contract, state law, and lender requirements. If you have the choice, select a company with relevant experience. If you do not have the choice, you can still evaluate the selected company and raise concerns if needed.
FAQs
Is it better for the buyer to choose the title company?
There are advantages either way. Some buyers prefer to choose because they want a company they trust. Others are comfortable with the seller's choice. What matters most is that the company is experienced and reputable, regardless of who selects them.
What if the seller refuses my choice of title company?
If the contract gives the seller the right to choose, they can refuse. If the contract is silent, negotiate. If the issue is important to you, consider whether to proceed with the transaction or walk away. Most title company disputes are resolved through discussion rather than deal termination.