Choose and don’t lose
As a real estate broker, I have helped literally hundreds of families choose title companies over the years. It always amazes me to learn that many sellers don’t realize that they can choose the title company that plays an integral role in managing the closing process and even performing the actual closing. Of course, most listing brokers have established relationships with title companies built after years of (hopefully) positive experiences and most listing brokers will highly recommend their clients to use any title company they come across. are used to However, in today’s crazy real estate market, where every dollar of closing costs, every single delay and mishap in the closing process can be the difference between closing the deal or losing the Buyer, it’s more important than ever to choose a great title company. .
Behind the scenes of a real estate transaction, a title company performs a wide variety of functions and is relied upon by real estate agents (those representing the Buyer and Seller or transaction agents) as well as by the Buyer and Seller. her to add all the responsibilities described in the contract of sale and purchase (purchase contract), including the investigation of the various fees associated with the transfer of the property, various details of the loan, taxes, commissions, prepaid expenses, to establish accounts escrow taxes and insurance and much more.
Early in my career, I recognized the importance of a title company that could add value to the transaction with proactive problem resolution, constant attention to detail, and a high level of service.
Now, running a team of brokers, I have the luxury of personally choosing a title company from the myriad of options available. Since each of my transactions is handled as if it is the most important transaction in the world, since it certainly is for the people involved in it, I align myself with the best professionals to ensure that all aspects of the transaction are handled. . at the highest possible level. So let me share with you the four key points to consider when choosing a title company:
Reputation and history: there is no doubt that history repeats itself in this industry. Lazy brokers continue to make mistakes due to procrastination, while high-performing brokers continue to provide excellent service through efficient systems and processes in place. By the same token, light title companies that drop the ball no doubt have a pattern of having dropped the ball in the past. Ask your friends and family, other real estate agents in your office, and mortgage brokers for their good and bad testimonials. Since title companies are similar to insurance agents in that you are not actually buying insurance from the title company, the most important consideration in reputation is their ability to take your calls, return them and provide answers. smart and accurate promptly. When a representative of the title. (sales rep) takes you out to lunch, ask him what the biggest part of his experience is; is from new construction purchases, commercial transactions, land sales, refinancing, for sale by owner or brokered resale.
In the current fragile state of affairs, both in the national economy and in the local real estate market, it is becoming increasingly clear that the financial stability of the title company is very important. There are significant risks to you as a home seller if your title company fails.
1. If a title company goes out of business the day before closing, the closing will certainly be postponed and cause moving and financial problems for both buyer and seller.
2. If the title company going out of business has earnest money and/or mortgage proceeds, that money may be tied up while a bankruptcy court settles the accounts.
3. If the title company makes an escrow error at closing and closes, the seller may be forced to fix the problem instead of a title company.
4. If the title company’s list of title exceptions on Exhibit B-2 does not match the seller’s title exceptions in the warranty deed, the seller may be liable for the buyer’s claims later.
Second, you want to be sure that the title company is well aware of common pitfalls and solutions to problems that arise in their specific niche. Do they have working relationships with lenders, do they have contacts in banks’ loss mitigation departments (if you may be working with short sales) will you be working with the same person throughout the life cycle of the transaction?
The location of the title office can also be a valuable consideration. Earlier in my career, I chose a different title office for each listing based on a relationship with a regional representative. and the availability of a satellite office near where the specific listing was located. I now work almost exclusively with a title company based on their customer relationship management skills, process knowledge, and track record of successfully closing even the most challenging deals combined with their willingness to get the actual closing done in a timely manner. convenient place for my clients. .
Lastly, the fees charged by the title company should be evaluated. Fees charged for title insurance and closing services vary by company and can be significant. Individual title fees and additional service fees (like closing on a second mortgage) can add up. Make sure you have an open discussion about each of the fees. Of course, many fees are non-negotiable and/or determined by the county, state, or individual lender, such as the transfer fee, recording fees, document preparation fees, state stamps, etc.
When a real estate transaction is smooth and catastrophic, the title company is almost invisible, working quietly in the background. However, the more a transaction unravels, the more the escrow officer rises to the top and becomes increasingly important. Certainly, it is not unusual for a good title company to prevent a transaction from dissolving when various parties have failed to maintain communication or lost goodwill. Choosing the best title company for your transactions is an important decision that, as a real estate agent, can impact your career and as a home seller is critical to ensuring the smoothest transaction possible. evergreen real estate