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Who Picks the Title Company?

April 20, 2023

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The services of a title company usually come into play after an offer has been approved, at which point it becomes necessary to look deeper into the property. While buyers, lenders, and realtors are free to review the information that a property has on public record, title companies can eliminate many of the risks left by hidden liens, claims, ownership disputes, and other issues.

An Agent From a Title Company

Why Is a Title Company Necessary?

As stated above, most title companies are hired after a property has been selected for purchase and the initial offer has been accepted. From there, the company helps with multiple services, with two steps that take priority in all purchase transactions:

  • Conducting a title search: A property title search involves going over all the records and documents on the property. Its main purpose is to confirm that the seller is the property's legal owner, ruling out any claims from undisclosed heirs or other parties related to the current owner. It also serves to unearth any debts or liens pending on the property so that they can be resolved before settlement. Some issues can slip the seller's notice so a thorough search is needed to avoid legal problems later on.

  • Issuing a title insurance policy: Title insurances help protect the owner's rights over a property in the long term. It also prevents financial loss for buyer and lender in the event of liens, encumbrances or inaccuracies in the property's documentation. The right insurance policy can cover the costs that result from any of these issues, and save the owner's interests during a legal dispute.

Depending on who you choose to assist you during the transaction, a title company can also provide additional services, overseeing the closing and verifying that the necessary deposits have been made. Title and escrow companies are equipped to assist clients from the purchase offer, so buyers/sellers can complete all the steps without bouncing through different companies.

Who Picks the Title Company?

In many parts of the country, including Florida's real estate market, buyers take care of choosing a title company to help them protect their investments. This is expected since a buyer's personal assessment can only go so far while inspecting an unfamiliar property and the records attached to it. Future owners want to be reassured that they're part of a legitimate process while ensuring that nothing will put their ownership rights into question somewhere down the line. As such, buyers often take full control of this part of the process, reviewing their options and paying for the company's services after making their decision. They can be assisted by a real estate agent who understands the client's needs after overseeing the initial offer.

Mortgage ApplicationMortgage lenders are open to financial loss on instances of unpaid claims and liens, so most of them request hiring a title company before granting a mortgage loan to potential buyers. Beyond this requirement, lenders rarely have a say when it comes to picking a particular title company.

On the other hand, sellers have a hand in vetoing a particular company if they're the ones paying for it. Some real estate transactions have the seller pay for the title company to showcase the transparency on their side of the process, but this can also give sellers some leverage over the final decision.

If the seller has agreed to pay for a title search and/or an insurance policy, the sale agreement should explicitly state the payment conditions.

Picking the Right Company for Your Real Estate Transaction

The company's location is a defining factor for many reasons. On the one hand, it's easier to move along the process while coordinating with all parties (buyer, seller, real estate agents, legal representatives, etc.). On the other, a company's reputation in the area can work in your favor, and their knowledge of the local market can ensure the best deal.

Customer service is also important during such a lengthy process, especially if there are issues to resolve before closing. The title company can tell you how to proceed after finding a hidden claim or an error on the title, following up on the process to make sure that these issues are resolved promptly. The quality of a company's service is usually reflected in what people have to say about it, so make sure to check customer reviews.

Lastly, you want your title company to have the technology to surpass your own research, whether you're a potential buyer or a real estate agent. A reliable system can find any issues early on in the process to prevent financial and scheduling issues.

Choose Key Title & Escrow!

No matter the size of a property or its market value, you deserve peace of mind during your real estate transaction. Key Title & Escrow confidently guarantees the best results, thanks to over two decades of excellent services and the best track record statewide. We count on all the resources you need to conduct a thorough title search and protect your investment long after completing a purchase.

A real estate transaction demands patience and attention to detail. Key Title & Escrow caters to all your needs, whether you're a seller, a buyer, or a real estate agent in Florida. We offer a long list of services, from title searches to refinance transactions and statewide closings. Whatever you need, we got it, so you can put all your focus on your transaction without scrambling to deal with last-minute inconveniences. Just call (305) 235-4571 or toll-free at (800) 547-0006 to learn more about our title and escrow services. You can also fill out the contact form on this page to get more information from our Miami specialists.
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