Can the Seller Selectthe Title Company?

Who has the right to choose the title company? This is a common question that has raised emotions and controversy, especially when selling property. Most buyers and sellers have their own opinions on how to select the FL Title Company. Lenders, brokers, and agents also have their views. In most real estate transactions, three parties can lead the closing to a title company of their choice: the seller, the buyer, and the lender.

The answer to this question is YES. The acceptable practice in the real estate industry is for the buyer to submit a bid to buy a property either alone or through an agent. The buyer will then choose a Florida Title Company. However, if the seller or if the agent representing the seller is not comfortable with the title company that the buyer has chosen or has a strong opinion on where the closing process should be held, then the seller can counter the buyer’s proposal and suggest an alternative.

In this case, the conventional wisdom is that because the seller is paying for the title policy, he/she should also have the right to select the Title Companies in Coconut Creek. If the buyer is purchasing or paying for the procedure, then arguably, he/she also has the right to choose the title company. However, this is not as clear-cut as it may sound. For instance, the buyer can argue that even if the seller pays for title insurance, that price was factored in when setting the sales price, meaning that the buyer is paying for the title policy premium of the owner (seller). The buyer can also argue that allegedly the seller did not pay for owner title policy premium, would he/she have been willing to deduct the cost from the price of the property upon closing the deal? These are fundamental questions that that still don’t have definitive answers.

The standard practice in real estate is that when you have a buyer who persists on which title company to use, you should allow it to have his way. This means that the common standard practice gives the buyer more choice when selecting the title company and FL Title Lawyers. However, if the seller has a strong opinion and insists on directing the closing process to a title company, then it may be a great idea to agree to pay premiums for both the lender and owner title policies.