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| QUESTION: Who is entitled to select the Title Company in a transaction? Buyer, Seller or totally negotiable? Who is designated to select the closer? If Buyer, where in the contract does it state that?
ANSWER: Selection of both the title company and the closing company is subject to the negotiation of the parties. Neither party has arbitrary control over selection of either of these essential third parties. The Real Estate Settlement Procedures Act makes it unlawful for seller to dictate the selection of a title company if buyer must then purchase the title insurance policy. But, that is not an issue under Washington’s standardized, statewide forms. Based on our statewide forms, seller pays for the title insurance premium required by the terms of the purchase agreement. Thus, identification of the title insurance provider is subject to negotiation between the parties. The same is true for identification of the escrow provider. If the parties cannot agree on the identification of these providers, then the parties will not reach mutual acceptance.
In order to best serve your client, you’ll need to assist them in choosing the most appropriate Title and Escrow companies for them on that specific transaction. |
