Many homebuyers are surprised to learn that you may have the right to choose the title company that handles your real estate transaction, depending on your purchase contract and the agreement between the buyer and seller.
While a real estate agent, lender, or builder may recommend a title company they trust, the final decision is often negotiable as part of the purchase contract.
What Does a Title Company Do?
A title company plays an important role in the homebuying process by:
- Performing the title search.
- Issuing title insurance.
- Coordinating the closing.
- Preparing closing documents.
- Handling the transfer of funds.
- Recording the deed and mortgage after closing.
Choosing an experienced title company can help ensure your closing is handled accurately and efficiently.
Should I Use the Recommended Title Company?
There’s nothing wrong with using a recommended title company, especially if they’ve earned a reputation for providing excellent service.
However, you should know that you may have options. If you have a title company you prefer, discuss it with your real estate agent before signing the purchase contract.
Once the purchase contract is signed, changing the title company may require an amendment agreed to by the parties.
Why Does This Matter?
The title company is responsible for many important steps leading up to closing. Working with a knowledgeable and responsive title company can help prevent delays and keep your transaction moving smoothly.
Understanding your options before signing a purchase contract allows you to make an informed decision and avoid unnecessary changes later in the process.