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Here’s an article about a real estate brokerage that did a no-no by enticing agents to use a particular title company without disclosing it to their clients.

Title Companies charge different prices. As a Buyer, you are the one that is paying for Title Insurance so you should be the one that determines what Title Company you want to use. Some Agents will put “must use (name) at (xyz Title Company)” in the agent remarks on the MLS listing. I doubt these agents are getting a “kickback” from the Title Company or that would be a violation of the RESPA act and both the agent and Title Company would be in big trouble. Some agents have preferences of what escrow officers they like to work with, which is ok, but no agent can say “if you don’t use (name at Title Company xyz), I won’t sell you this house”. I doubt the homeowner would be too supportive of that either.

You can get quotes from Title companies to see their escrow charges will be. If you find one that is hundreds of dollars cheaper but an agent wants to use someone else, ask for the reason. If the reason isn’t worth hundreds of dollars to you, ask the agent to pay the difference.

Written by Keith Byrd - Go to Keith's Website/Profile