Quick Answer: Yes—as the homebuyer, you have the legal right to choose your own title company, even if the seller, their agent, or a friend recommends a different one. Since you're the one paying for title insurance and most closing costs, the decision is ultimately yours.
Choosing your own title company gives you cost transparency, undivided loyalty, and peace of mind during one of the biggest financial transactions of your life. Below, we cover the benefits of choosing your own company, five tips for finding the right one, and the few scenarios where using the seller's title company might actually make sense.
Choosing your own title company gives you cost transparency, undivided loyalty, and peace of mind during one of the biggest financial transactions of your life. Below, we cover the benefits of choosing your own company, five tips for finding the right one, and the few scenarios where using the seller's title company might actually make sense.
The Benefits of Choosing Your Own Title & Settlement Company in Staunton, VA
There are four main benefits to choosing your own title compan
Potential Cost Savings
It’s true that title insurance rates are often regulated but the additional fees vary. By shopping around, you can find a company that best suits your needs. You may potentially be able to negotiate some fees.
That said, the best reason to shop around is to learn about the company’s reputation. Sometimes you may pay a little more, but the quality of the service you get will pay you back.
That said, the best reason to shop around is to learn about the company’s reputation. Sometimes you may pay a little more, but the quality of the service you get will pay you back.
Trust and Peace of Mind
And that brings us to trust and peace of mind. You want a company that keeps you updated and makes the closing process as smooth and stress-free as possible. If you have to constantly call to get a progress report, the dollars you saved may not be worth it.
Protecting Your Interests
At Lilly Title & Settlement, we handle crucial tasks like title searches, managing escrow accounts, resolving issues, and ensuring you have a smooth and secure legal transaction.
We also take extreme precautions in handling your money, including strict measures to protect you from wire fraud (more on that below).
We also take extreme precautions in handling your money, including strict measures to protect you from wire fraud (more on that below).
Avoiding Conflicts of Interests
Using your own title company for your closing instead of the seller’s preferred company avoids any possibility of a conflict of interest. This is especially true if the seller is also a real estate agent.
We do, however, recommend you listen to the recommendations of your real estate agent or lender. These professionals can offer valuable advice on the local market.
We do, however, recommend you listen to the recommendations of your real estate agent or lender. These professionals can offer valuable advice on the local market.
5 Tips for Finding the Right Title Company
A title company has a big job in making sure your closing goes smoothly—from ensuring you have a clean title to disbursing funds on closing day. That's why, once you've decided to choose your own, it pays to choose wisely. Here are five tips our own clients have told us were most helpful.
1. Check the Title & Settlement Company's Reputation
Ask family and friends for recommendations and check online reviews. You want a company that isn't just competent, but also friendly and communicative throughout the closing process.
2. Look at Their Professional Expertise
The best title companies have many years of experience closing on different kinds of properties, with a proven track record. An experienced title and settlement company is far better equipped to handle any issues that arise during settlement.
Tammy Lilly, owner of Lilly Title & Settlement, has almost 20 years of experience in the business and started her own company in 2014. We encourage you to ask any prospective title company how they handle the closing process, and get a feel for whether they're a good fit for you.
Tammy Lilly, owner of Lilly Title & Settlement, has almost 20 years of experience in the business and started her own company in 2014. We encourage you to ask any prospective title company how they handle the closing process, and get a feel for whether they're a good fit for you.
Ask for a Closing Checklist
When you're talking with a title and settlement company about handling your closing, make sure they can walk you through a checklist, such as:
• A list of what documents you'll be signing
• Whether you need to bring payment to closing, and how much
• What form of payment to bring
•. What documents you need to provide on closing day. For example, home inspection reportst or proof of homeowner's insurance
You want the title company to communicate clearly what's expected of you as the buyer. If a company can't offer some form of checklist, verbal or written, that's a red flag.
• A list of what documents you'll be signing
• Whether you need to bring payment to closing, and how much
• What form of payment to bring
•. What documents you need to provide on closing day. For example, home inspection reportst or proof of homeowner's insurance
You want the title company to communicate clearly what's expected of you as the buyer. If a company can't offer some form of checklist, verbal or written, that's a red flag.
Confirm They Communicate Frequently
Ask the title company how often they'll be in touch before closing, and whether they're available by phone, email, or in-person meetings. You're making one of the biggest financial transactions of your life—protect it with professionals who take communication seriously.
Make Sure They Protect You from Wire Fraud
Wire fraud is rampant, and because email is used so often during real estate transactions, it's an easy target for scammers. Ask any prospective title company exactly how they handle the transfer of funds.
At Lilly Title & Settlement, we establish a phone procedure with you and call on a confirmed phone number to verify the legitimacy of wire instructions received by email or fax. We only send wire instructions through encrypted email, confirm by email that instructions were received, and verify all details before sending funds on your behalf.
At Lilly Title & Settlement, we establish a phone procedure with you and call on a confirmed phone number to verify the legitimacy of wire instructions received by email or fax. We only send wire instructions through encrypted email, confirm by email that instructions were received, and verify all details before sending funds on your behalf.
2 Scenarios When You Might use the Seller's Title & Settlement Company
There are a few situations where it may make sense to use the seller's preferred title company:
• The seller agrees to pay for your title insurance which may five them more leverage in choosing the closing company.
•. The seller's title company has already worked with the property before which could streamline the prodess.
Again, the bottom line is that it's your decision. Keep an open mind, but always make sure your interests are protected above all else.
• The seller agrees to pay for your title insurance which may five them more leverage in choosing the closing company.
•. The seller's title company has already worked with the property before which could streamline the prodess.
Again, the bottom line is that it's your decision. Keep an open mind, but always make sure your interests are protected above all else.
The Bottom Line
You're making the biggest purchase of your life! When it comes to the biggest financial transactions you'll ever make, it pays to be careful and thoughtful about who you work with, from your real estate agent to your closing company.
Pinching pennies on a crucial legal service shouldn't be your first priority; protecting yourself should be. Take the time to do a little research on the companies you're considering. It will make the entire real estate process much smoother. FAQsSo I have to use the title & settlement company the seller recommends?
No. As the buyer, you have the legal right to choose your own title company, even if the seller, their agent, or your real estate agent suggests one. Since you're the one paying for title insurance and most closing costs, the decision is ultimately yours.
Does choosing my own title & settlement company cost more?
Not necessarily. Title insurance premiums are regulated in Virginia, but additional fees vary by company. Shopping around can help you find competitive pricing and, more importantly, a company with a strong reputation for smooth, secure closings.
What should I look for when choosing a title & settlement company?
Look for a strong reputation and positive reviews, years of professional closing experience, a clear closing checklist, frequent communication, and strict wire fraud protection measures like phone verification and encrypted email.
When might it make sense to use the seller's title & settlement company?
A few scenarios: the seller has agreed to pay for your title insurance, the seller's title company has a strong reputation and offers competitive pricing, or that company has already handled a title search on the property, which can streamline the process.
How do title companies protect against wire fraud?
Reputable title companies establish a verified phone procedure, use encrypted email for wire instructions, confirm receipt of instructions by email, and verify all details before sending funds.
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