Who chooses the Title Company?
Who chooses the title company? That’s a realtor, actually a luxury realtor named Shana Acquisto. My name is Mike Acquisto. We are real estate brokers together, and we’re going to talk about who chooses a title company. In certain cases, there’s buyers there sellers, there’s agents, there’s all types of stuff going on. Sometimes it’s above market pricing and we’re competing.
Sometimes, you know, it’s a different market. So there’s a lot of different scenarios. So we’re going to talk through this whole thing and show you an article here on who chooses in.
Why, right? And so you know who pays for it? That’s negotiable. Ok, so that’s a separate thing. But you guys may have noticed in when you’re pulling up your MLS sheets and you’re getting ready to prepare an offer. Sometimes the listing agent will have their preferred title company listed in the MLS.
Nice to know. Ok.
It’s preferred. So rest buy rules say if the seller is paying for the owner’s title policy and the lender’s title policy because if they’re getting a loan, there is a mortgage. The mortgage company requires their own mortgage. Well, then they can choose. But where the the questions and the vagueness comes is when seller pays for it.
The owners and buyer pays for the mortgage for the mortgage policy. So Rachel and I had this discussion yesterday about, she said, Do you ever like push that like if they have their preferred in there and you’re in multiple offers? Do you ever want to, you know, put in your own preference in there, OK? And the discussion is this guys. So you need to ask your clients, do you have a preference?
This is who the seller wants to use, you know, and I’m fine with it if you are. We typically use, you know, we have our own favorite title companies, but you need to ask that to the client because if something ever happens way later and they’re like, Well, I never got a choice in that I didn’t know I had a choice. You always want to just have that conversation with them.
95% percent of the time they’re going to say, I don’t know one, I’m going to go with your recommendation and that’s fine. But you know, we just want to make sure that we know who chooses, right? And when you are selecting a title company. All the title fees are fixed by the state, so you’re not going to get a better rate going with one over the other for the House or the policy. Now they can cut their escrow fees
Or raise them, and you might see a variation. They can’t change it every time, but those are fixed within the title company. So, you know, something that we’re going to be learning about later in another workshop. But what does all that mean? They use different underwriters right for insurance, and just kind of like homeowner’s insurance, you need to know what your coverage is, right?
And that’s a whole really separate topic that we’ll learn about later. But there are differences. So something that you would want to know is, is it a reputable title company? Have they been around for a long time? Because when you put money there, escrow fees, your earnest money, you want to make sure it’s protected.
I mean, so you know, basically it boils down to the service, if they provide a great service and they take care of you and make it super smooth and easy on your clients. That’s, you know, that’s who you really want to make sure that you’re going with. So but going back to, you know, if if you’re putting in an offer and you’re in multiple offers and you see the preferred title company, if it’s a reputable title company, I personally would just go with that title company.
You don’t want to get in a in a battle over the title company and who we’re using because, you know, is that really doing your client a service? You know, justice?
Now, if you’ve got in a fist fight over a title company,
People get very adamant about it. And if you have a client that somehow has a family, you know, a relative or a friend or someone that works at a title company, they may give you a little bit of pushback. But just because you want to push business to a certain title company, don’t let that interfere with getting your client a property, right?
Make it easy if if it’s a reputable company and they have put that preferred title company in, just, you know, go with the flow, guys, but have that conversation with your client. Make sure they’re OK with it.
Mike’s notes would be that the title companies try to compete on different levels of service and products and other things to be included there. So some of the things that might be is do they close at night or on the weekends? Do they close remotely?
Do they offer this like RON service? So remote meaning? Will they come to you? And is there a fee related to that? Will they do things like send documents via overnight to you, send return labels so you can send it back? Are you paying for that or are they? There’s various different things that they compete in. Do you close at your facility and is it nice? Is it comfortable? Do they offer cookies?
Chat in now if you’ve stopped in at a title company, that indecision. Yeah, chat. And now if you’ve stopped at a title company when you drove down the road just to pick up a fresh hot cookie that they have sitting there? Yeah, I have. I’ve done it many times.
I didn’t have me on the closing list. I’m just here for the cookies. Oh, no
Problem. No just stopped in and literally got cookies at the title company. I was like, It’s on.
Remember a long, long time ago, actually, when Sherry, I think it was when Sherry was closing, they had popcorn. And I love that popcorn.
But yeah, popcorn at the private airports as well. So if you go through the FPOs, you can compare popcorn at different airports and eat it to give you a little bag. And yeah, so that’s also a thing. So title companies, those are things that they try to compete on, as well as the personality, the time of closing, when they would do it for you, how busy they are, can they get you in at the
End of the month? Or are they responsive or do they dump on you at the last minute and cause you havoc? You know, those are all very important things, especially now with them being, I mean, these title companies we should love on them because they are so busy and they are working so hard. And you, you know, people have very specific needs and times that they want to close.
So your service is super important. But you know, I just wanted to kind of make it clear, you know who picks it and how that process works.
So think about this, though. Ok, so we just had this whole discussion about who picks and why and ultimately, why it does matter a little bit to you as an agent is imagine you work super hard and get this whole thing all the way to closing. Yeah, OK. Absolutely. And you have a lender that’s on your side that works all the way through feverishly and gets to this point, OK?
And now all of a sudden, there’s a last minute when you’re memorializing everything. There’s been tons of hours, tons of details, tons of communication, a lot of different items that go on, OK. And then all of a sudden, when your client actually shows up to sign the stuff at the end, that one moment it’s a really memorable thing. And how does it close closure act?
And this is where I judge him and where it’s ultimately super important is, is that person in the moment? Are they not distracted? Do they walk into the room and own the Rome and say, like, Hey, there can be a million things going on around them, right? And do they walk in and have that presence to represent you in all of your hard?
It’s an extension of us. Yes. It really is when they walk in. Do you have that relationship where you’re able to give the closer a hug and show them that it matters? Have you never met them? Were you there early? What are these things if you’re five minutes late, is that close?
You’re going to be like, she’s always late. And just imagine that one comment what that does for all your repeat and referral business from that person, right? Or does your closer take a different approach and and take care of it? And does your and you don’t even know, praise you?
Not that we need that, but there have been situations in there where it’s like, you know, your agent didn’t negotiate this for you and you’re like, what? Why would you say something like that? We were in a competitive situation, you know, something like that?
Or are they saying, you know, what do because you’re you have an awesome agent. They have negotiated this on your behalf and you don’t have that cost. So yay, you know, and do they make you look good because, you know, it could all unravel at the end there?
And if they have a horrible closing experience, I kind of forget everything that’s happened prior and they stick with that horrible experience. There’s been one time that I actually twice, but I remember one Brandon and I were in a closing and it was horrible. And I’ll have to tell you guys the story on another time, but you just I.
I’ll never forget it. And it was our client’s first home, very first home that they ever purchased. So they were super exciting and it was a horrible experience. And Brandon and I were both trying to, you know, make it better, and it just kept getting worse.
Now it depends on your presence to. And you’re also at closing. I was with somebody just the other day who I felt I had never met in my life. I had heard this gentleman’s name. And he knew me and he was like, You were at my closing and I was just befuddled.
I was like, Whoa, I don’t know, 10 years ago.
And he was like, Yeah, you’re at my closing. You knew exactly what was going on. You were totally. And I was like, Oh, all right, that’s cool. And I didn’t even know him from I had not a clue.
Well, yeah, I just I forget we met him, and then Mike doesn’t really go through the actual sales process with them, but he did have to go to closing on my behalf. And you did a great job. Is Something stuck right?
You helped him to remember 10 years later that I was at his closing. I presented something to him of value. And that’s the important part is at closing. Did that happen or were you thrown under the bus? Do you get that repeat and referral business? This gentleman remember 10 years later?
Yeah. And sometimes you guys, the closers are really they’re a neutral third party and they’re not supposed to give information or advice or opinions. So if they’re like, Is this right good? Is this what you’re saying? They’re very limited on what they can.
They can share. So having someone there from the real estate side and or the lending side is really important. And if you have a lender, it takes a time out of his day to go to closing. That’s huge. That’s huge because most of them don’t.
Well, that’s going to conclude it for today, a double.