This regularly scheduled column is written by Eli Tucker, Arlington-based Realtor and Arlington resident. If you would like to work with Eli and his team in Northern Virginia and the greater D.C. Metro area, you can reach him directly at [email protected].
Question: Do you have guidance for choosing a Title Company to work with when buying or selling a home?
Answer: Title companies manage the legal side of the transaction like ensuring buyers have clear ownership after closing, reviewing and recording the deed, issuing title insurance, and preparing paperwork for the buyer and seller to sign at closing. They work in the background of transactions and, usually, the less you hear from them, the better. In the DMV, title companies generally do not represent one party; they are a fiduciary to the transaction (support both parties).
Locally, it is common for buyers to select the title company. Sometimes, a seller may want to use their own firm/attorney and will request a “split settlement” but that is uncommon.
Your Real Estate Agent, But Ask Why
Among the reasons you’d hire an agent should be their network of professionals that support a real estate transaction: title, lending, inspections, contractors, etc.
If you have an agent, they should be the first person you turn to for a title company recommendation. They’ve probably worked with dozens of local firms before and should have a vetted service partner.
It’s perfectly fair to ask your agent why they’re recommending a title company to make sure it’s for the right reasons. Some agents and brokerages benefit financially from doing business with title companies and it’s important that you know if a financial relationship exists.
Fees
Title insurance is typically the largest fee, and rates are set by the insurer, not the title company. Rates are usually similar, so large differences may reflect basic vs. enhanced coverage. Buyers can choose the coverage level; or whether to purchase owner’s title insurance at all.
Discretionary fees charged by the title company usually don’t vary by more than a few hundred dollars. You can always find a cheaper option for title services, but the quality of legal/title support on a real estate transaction may not be a smart place to save a few hundred dollars.
Location
Use a local title company who is familiar with the local real estate and tax practices, not just licensed to practice here. I use a different title company in Northern VA than I do in Washington DC or Maryland.
Office locations matter less than you’d think because most title companies will support virtual (like a Zoom meeting) or mobile (send a notary to you), but most consumers like closing in an office so check where they conduct closings to make sure it’s convenient.
Attorney Experience
Most sales follow a standard, predictable process that inexperienced title companies/attorneys can handle but occasionally something unexpected comes up that requires experience and expertise to resolve. If problems do surface, having access to an experienced local title attorney makes a big difference in keeping a deal on track and reducing the risk, stress, and effort of all parties.
