For doing a double closing with a short-sale (I use the trust way, etc etc). I have my title agent take care of the double closing but what I was thinking is, when the end buyer comes along and wants to purchase the property, how do I convince them to use my title agent? Wouldn't they usually want to use their own, or their attorney's title agent?
Traditionally the seller choses the title agency.
Chris
Does that differ per state?
The realtor and attorney keep telling me it is the buyer's right to chose the title agency.
I don't know if it differs geographically, but in every closing I have done here in Michigan- both for myself and when I worked as a Realtor- the seller (or perhaps more accurately the listing agent) chose the title company. All the big real estate agencies here have their own in house title companies, so perhaps this is just the local arrangement, but my impression was that it is traditional to do it this way.
Chris
What are you afraid of? You get killer deal from your title person and since your paying title fee who cares. no buyer i ever heard of is gonna walk cuz they cant pick title. Handle it
they keep saying why do they have to use our title agent, they are saying they are scared that I might be trying to hide something or scam them and wondering why i'm paying title insurance.
How should I respond to this?
Tell them the truth. Your flipping the house and you use a specific title that will insure. You have a relationship with this title blah blah. Don't let them bully you, you've got something they want. If they want it, they get it on your terms. If they walk so be it, but if you explain correctly and carry yourself as a professional, they won't. Heed this advice.
Leme know how it goes.
[ Edited by jackbenimble on Date 02/21/2008 ]
Show them a standard Realtor contract, where it is assumed that the seller will pay for the title insurance. Have them talk to a disinterested professional so they understand that it is standard practice. Explain that title insurance protects them from any title defects, and the insurance company won't cover the transaction if the title isn't clean.
Or let them pay for the title insurance if it bothers them so much to have you do it...
Chris
on all the old HUDs that I have, they show the borrower paying the title insurance. Is that not usual?
traditionally, seller picks escrow/buyer title. This is not etched in stone.
Be honest, they won't walk.
"on all the old HUDs that I have, they show the borrower paying the title insurance. Is that not usual?"
Usually BOTH the seller and the buyer purchase title insurance. I never did follow the logic of this; after all the seller insured the title when s/he bought the property. I think it is just that it is traditional for the seller to insure good title, and lenders insist that the buyer be covered. Great racket for the title companies- they only give a small discount for simultanious policies.
Chris
1. It is a RESPA violation to require a Purchaser to use a certain title company. RESPA applies pretty much in any case where a Purchaser is obtaining a mortgage through an institutional lender.
2. In NY, it is an NYS Insurance Department violation also.
Having said that, I am sympathetic - we just deal with people that will use the title company that we work with because of everyone's unfamilarity with land trusts. It has worked out so far.
[addsig]
The Seller can get a "hold open policy" which is only one policy but fuctions like two separate ones as in simultaneous policies). It costs about 10 percent more than a single policy. [addsig]
You can't mandate they use your title company, but you can strongly suggest it as Jack said before. A hold open policy will save you money as someone else suggested.