Quick Answer
A seller may be able to choose the title company in some transactions, depending on local custom, the purchase contract, applicable law, and the buyer's agreement. In many markets, the seller choosing the title company is common practice. However, the choice is not absolute and can be negotiated.
In many real estate markets, the seller choosing the title company is standard practice. Here is what sellers should know about their rights and options.
Why Might a Seller Prefer a Particular Company?
Sellers may prefer a specific title company for several reasons:
- Past positive experience with the company
- The company has experience with the seller's type of property or situation
- The seller has a relationship with the company or its officers
- The company offers efficient service and reliable closings
- The company has resolved title issues for the seller before
Does Paying Mean You Automatically Choose?
Not necessarily. In some transactions, the party paying for the title services has input into who provides them. But the purchase contract and applicable law also play a role. Just because the seller pays for the owner's policy does not automatically give them the right to select the company. The contract terms must be followed.
Can the Buyer Object?
Yes, the buyer can object to the seller's choice of title company, especially if the buyer has concerns about the company's reputation, experience, or ability to close on time. If the buyer objects, the parties can negotiate a resolution. The purchase contract may provide guidance on how to handle such disputes. See Can a Buyer Choose Their Own Title Company? for the buyer's perspective.
What If the Seller Already Opened Title?
If the seller has already opened title with a company, switching to a different company can cause delays and additional costs. The buyer should consider whether the switch is worth the disruption. Learn about changing title companies after opening escrow for the full picture.
Key Takeaway
Sellers can often choose the title company, especially in markets where that is the custom. However, the choice is not absolute and can be negotiated. A reputable, experienced title company benefits both parties regardless of who does the selecting.
FAQs
Does the seller always choose the title company?
No. It varies by market and contract. In some areas, the seller chooses. In others, the buyer chooses or the parties mutually agree. Check your purchase contract and local custom.
What if I do not trust the title company the seller chose?
If you have legitimate concerns about the seller's choice of title company, raise them with your agent and attorney. You can ask for a different company, though the other party may not agree. Ultimately, if the issue is important, it may be a point of negotiation in the transaction.