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 conducting 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 strongly urge their clients to use any title company at the one they are used to. However, in today’s crazy real estate market, where every dollar in closing costs, every simple delay, and every setback in the closing process can be the difference between closing the deal or losing the Buyer, it is more important than ever to choose one. great title company. .
Behind the scenes of a real estate transaction, a title company performs a wide variety of functions and both the real estate agents (those representing the Buyer and Seller or transaction agents) and the Buyer and Seller to add all the responsibilities outlined in the Purchase and Sale Agreement (Purchase Agreement) which includes investigating the various fees associated with transferring the property, various loan details, 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 troubleshooting, constant attention to detail, and a high level of service.
Now, when managing a team of brokers, I have the luxury of hand-picking a title company from the myriad of options available. Since each of my transactions is managed as if it were the most important transaction in the world, as it is certainly for the people involved in it, I align myself with the best of the best professionals to ensure that every aspect of the transaction is handled. transaction. at the highest possible level. 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 based on procrastination, while high-performing brokers continue to provide excellent service through established efficient systems and processes. In the same way, companies that drop the ball undoubtedly 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 the sense that you are not purchasing title company insurance, the biggest reputational consideration is your ability to receive your calls, return them, and provide intelligent responses and accurate promptly. When a representative of the title. (sales rep) takes you out to lunch, ask what is most of his experience; These are new construction purchases, commercial transactions, land sales, refinancing, sale by the owner or intermediated resale.
In the current fragile situation of both the national economy and the local real estate market, it is becoming increasingly clear that the financial stability of the title company is very important. As a home seller, there are significant risks if your title business fails.
1. If a title company goes out of business the day before closing, the closing will certainly be postponed causing financial and moving problems for both buyer and seller.
2. If the closing company has collateral 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 mistake when closing and closing the deal, the seller may be forced to fix the problem in lieu of a title company.
4. If the list of title company title exceptions in Exhibit B-2 does not match the seller’s title exceptions in the warranty deed, the seller could be liable for the buyer’s claims later.
Second, you need to be sure that the title company is well aware of common mistakes and solutions to problems that arise in your specific niche. Do you have working relationships with the lenders? Do they have contacts in the loss mitigation departments of the banks (if it is possible that you are working with short sales)? Will you be working with the same person during the life of the transaction?
The location of the title office can also be a valuable consideration. Early 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 list is located. I now work almost exclusively with a title company based on their client relationship management skills, their knowledge of the processes, and their track record of successfully closing even the most challenging deals combined with their willingness to do the actual closing. in a convenient location for my clients. .
Lastly, the fees charged by the title company should be evaluated. The fees charged for both 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 transfer fee, registration fees, document preparation fees, state stamps, etc.
When a real estate transaction is easy and has no catastrophes, the title company is nearly invisible and works quietly in the background. However, the more a transaction is undone, the more the escrow officer rises to the top and becomes increasingly important. It is certainly not unusual for a good title company to prevent a transaction from dissolving when multiple parties failed to maintain communication or lost their 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 salesperson, it is critical to ensure the smoothest transaction possible. Evergreen Real Estate
