top of page

Who Chooses the Title Company in a Real Estate Transaction?

Updated: Mar 17, 2023

Key with home keychain and insurance note

Buying a new piece of property can be exciting. You may be spending your days daydreaming about what the future holds once you get through the closing. But, just getting to the closing can be tough - especially if this is your first real estate transaction.

There are so many steps involved in the process that it isn’t at all uncommon for issues to arise and potentially delay or halt the sale altogether. Having a title company by your side can be an incredible asset.

So who is responsible for paying for title work? And who chooses the title company in a real estate transaction? Let’s talk about it.

Benefits of a Title Company

Title companies play an important role in real estate transactions. They put in the work to find out if the seller even has the right to sell a property before the sale goes through and the money changes hands. This involves doing a title search to review the property all the way back in the beginning. Once it is determined that the property is free and clear without any encumbrances, a title insurance policy can be offered to protect you and the lender against any title defects.

A title company will:

  • Handle all the paperwork

  • Coordinate the closing with all parties and a signing agent

  • Hold and manage monies placed in escrow.

  • Handle all communications with the lender regarding closing

  • Guarantee the accuracy of the title report so you know exactly what you are getting.

We share all of these benefits to show that choosing a title company for your real estate transaction is a really big deal - and not a decision to take lightly.

The Buyer Chooses the Title Company

In Maryland and many other states throughout the U.S., the buyer is typically responsible for choosing the title company. Of course, that also means that the buyer is the one to pay for the closing costs associated with the title work, such as title insurance and title search fees.

When it comes to making the choice, many buyers will look to their real estate agents for guidance. After all, they have had experience working with various title companies in the area. Other times, close contact with a lender may sway the decision of the buyer as to which title company to choose.

Either way, you want to look for a title company that is reputable, practices good communication, has extensive professional experience, and offers the services you may need.

Can the Seller Choose the Title Company?

While it may depend on your location, generally, yes, the seller can choose the title company. It is customary, however, for the seller to then be the one to pay the closing costs. Some sellers may have some strong reasons about why they prefer to use a certain title company - or prefer not to use another. If this is the case, offering to pay for the title work will often give them more leeway in choosing their preferred title team.

Top-Level Experience at Endeavor Title Company

A title company plays a major role in your real estate closing. Regardless of whether you are the buyer or the seller, choosing the experts with top-level experience can ensure you have the most successful experience. That’s what you will find at Endeavor Title Company.

To learn more or to get started, contact us today at (410) 666-3780.

179 views0 comments


bottom of page