Since most people buy or sell only a few homes during their lifetime, most are fine with relegating the choice of title company to the real estate agent.

The agent, in turn, chooses a company with an excellent reputation – one that is known to be efficient and responsive, with the resources to handle any issues that may arise in a timely and cost-effective manner.

But what if your seller is adamant about using a particular title or escrow company?

You should know that the choice of a title and/or escrow company or settlement attorney varies by state and may be negotiable.

In Michigan, Wisconsin, and Minnesota, for example, split closings may occur wherein the buyer and seller each select their own closing company, which is allowable under Section 9 of the Real Estate Procedures Act (RESPA).

In most of the country, however, if a federally related mortgage loan is involved in the transaction, RESPA’s Section 9 specifically states that:

1. No seller may require that the buyer purchase title insurance from any particular title company.

   And that:

2. Any seller who violates this provision shall be liable to the buyer in an amount equal

   to three times the charges made.

That can be an expensive mistake for the seller. So, while your sellers have the right to counter the choice of the real estate agent, it’s worth advising them that there is good reason to trust to that choice.