Choosing a Title Company - It's Your Right!

Florida Statutes provide that when you buy or sell a home, an independent third party must perform the escrow and closing. Most homeowners and buyers simply accept the Title Company that the Realtor or Lender has selected, not knowing that they have a RIGHT TO CHOOSE the Title Company themselves!

Both the Buyer and Seller have the right to select the following on the sales contract:

• Who will pay for the new owner’s title insurance policy
• Who will choose the Title Company

If your Realtor or Lender has selected your Title Company for you, do not be afraid to:

• Ask them why
• Ask them if they or their company own shares/stock in the Title Company or have an affiliated business arrangement with that company

Title fees are regulated by the State of Florida. The "promulgated rate" is the minimum amount a Title Company must charge for title insurance, but the Title Company is allowed to charge a higher rate if it wants to. If your Realtor or Lender has a vested interest in the Title Company or if their company has an affiliated business arrangement with the Title Company, you may end up being charged more!

Always shop around when buying title insurance. Obtain detailed quotes from several title companies and ask them to include any charges for shipping, handling, warehousing, courier, overnight express and wire fees. Many title companies charge these fees without having an actual invoice from the service provider to validate these charges. Without an actual invoice these fees are simply “junk fees” and only serve to increase the title company’s profit, at your expense. Do not be afraid to ask your title company to tell you all the fees up front and what they will profit from your closing.

The responsibilities of the Title Company are vital to your investment or sale. Evaluate all aspects of the Title Company such as costs, reputation and standing before you choose and remember…IT’S YOUR CHOICE.