Why does it matter who you choose to close your home sale?
I recently did some research and here’s what I found out!
REALTOR – is it important to establish a good working relationship with a title officer. By establishing this great connection, you will learn the title officer’s services and they will get to know your expectations as a real estate professional. A good working relationship is essential for a smooth closing. It establishes trust.
CONSUMER – Closing a real estate transaction is can be a stressful time, so you want someone who has worked with your broker, can perform, and can get you to the finish line with minimum drama. Each title company has a personality, they have a certain way of doing business. You do not want someone who doesn’t watch the details. Failure to pay attention to detail can cost you in the future and you may be forced to file claims again the title company for failure to follow the careful steps involved in the transaction process.
What are the differences between title companies? Liberal and negligent policies in how a title company works can result in claims. There is a wide gap between experienced escrow officers and new escrow officers; make sure that their infrastructure is localized! Some title companies have their records serviced overseas! Have the title company do in-house research.
Funding and recording There can be wide differences in how efficient a title company’s closing and funding processes are. This can mean all of the difference in getting your keys on time!
Do title company fees vary from company? The fees that title companies charge in a closing have varied in the past, but since the CFPB regulations a few years ago, the pricing is more standardized. The only thing that a title company has discretion over is the closing fee. The closing fee is posted at the Office of the Superintendant of Insurance in New Mexico. How about special assessment and pro rata search charges? The City files a lien if they are assessed now, so these should not even be charged. Pro rata searches are for only one thing, and that is if you are not hooked up to City services (gas, water, sewer) So these charges would only be appropriate if the property is not in the City. Some title companies will have hidden fees that are considered junk fees, so please check your fees and go over them with the title company.
Title insurance Some companies will perpetuate the idea that you have to close your sale at the same title company where you closed for the purchase in order to be able to get a discount on Owner Policy, and this is not true. All title companies are required by law to offer the discount. A good title company will look up prior policies to 1997 in the shared title plant, so rarely do you need your own copy.
As you can see, the choice of title company is very important. Do your research !
For more information and a free consultation to find out more about how to close a real estate purchase or sale, feel free to contact me today!
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