Choose and do not lose
As a real estate broker, I have helped hundreds of families choose title companies over the years. I am always amazed to learn that many sellers can choose a title company to manage the closing process and even play a critical role in executing the actual closing. Of course, most listing brokers have established relationships with title companies after years of (hopefully) positive experiences, and most listing brokers strongly encourage their clients to use the title company of their choice. However, in today’s crazy real estate market every dollar in closing costs, every minor delay and every hurdle in the closing process can be the difference between closing the deal or losing the buyer – choosing a great title company is more important than ever. .
Behind the real estate transaction, the title company performs various functions and is trusted to summarize all the responsibilities listed in both the real estate agents (buyer and seller or marketing agents) as well as the buyer and seller. Purchase and sale contract (purchase contract) including examination of various payments related to the transfer of the property, various loan details, taxes, commissions, prepayment costs – to establish tax and insurance accounts and many others.
Early in my career, I recognized the importance of a proprietary company that adds value to the transaction through early troubleshooting, consistent attention to detail, and a high level of service.
I now have the luxury of choosing a title company from the countless options available to me running a group of brokerages. Because every transaction I manage is considered the most important transaction in the world—no doubt to the people involved in it—I align myself with the best of the best to ensure every aspect of the transaction is handled. As high as possible. So let me share with you 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 based on procrastination, while high-performing brokers continue to provide excellent service with efficient systems and processes in place. There is no doubt that companies dropping the ball on the same light topic have dropped the ball in the past. Ask your friends and family, other real estate agents and mortgage brokers in your office for their good and bad testimonials. Since title companies are similar to insurance agents, you don’t buy insurance from a title company, the biggest consideration in reputation is their ability to consistently take your calls, return calls, and provide smart and accurate answers quickly. When a title representative. (sales representative) takes you to lunch, ask what their experience is; From new construction purchases, trades, land sales, financing, for sale by owner or broker.
In today’s weak situation in the national economy and the local housing market, it is becoming more and more clear that the financial stability of the ownership company is very important. There are significant risks to you as a home seller if your title company fails.
- If the title company goes out of business one day before the closing, the delay of the closing will certainly cause financial and operational problems for both the buyer and the seller.
If the going-out-of-business entity has real estate and/or mortgage proceeds, those funds may be frozen while the bankruptcy court settles the accounts.
If the title company makes a mistake at closing and goes out of business, the seller may be forced to fix the problem instead of the title company.
If the specific title of the title company on Schedule B-2 does not correspond to the specific rights of the seller’s warranty deed, the seller may be liable for subsequent claims by the buyer.
Second, you want to be sure that the title company is familiar with common pitfalls and solutions to problems that arise in your particular area. Do they have working relationships with lenders, do they have relationships in banks’ loss mitigation departments (if you’re working with short sales), do you work with the same person throughout the life cycle of the transaction?
The location of the owner’s office can also be an important consideration. Earlier in my career I chose a different title office for each listing based on the relationship with the regional representative. And the presence of a satellite office wherever there is a special list. Now I only work with title companies based on their client relationship management skills, their knowledge of the processes and their experience in successfully closing the most challenging deals, and their willingness to execute the right closing at my clients’ convenience. .
Finally, the fees charged by the title company should be evaluated. Fees for both title insurance and closing services vary by company and can be significant. Individual title fees and additional service fees (for example, to close a second mortgage) may be added. Be sure to have an open discussion about each fee. Of course, many fees are non-negotiable and/or determined by the individual county, state or lender such as conveyancing fees, recording fees, document preparation fees, state stamps, etc.
If the real estate transaction is simple and there are no mistakes, the title company is invisible and working quietly in the background. However, the more complex the transaction, the more important the escrow officer rises to the top. It is not unusual for a good proprietary company to save a transaction from collapse when various parties fail to maintain a relationship or lose goodwill. Choosing the best title company for your transaction is an important decision, as a real estate agent can influence your career and as a home seller, it is important to ensure the smoothest transaction possible. Evergreen Real Estate