Who Chooses the Title Company, Seller or Buyer?

Title companies play a crucial role in Texas real estate transactions, ensuring the smooth transfer of property ownership while safeguarding the interests of all parties involved. However, questions often arise regarding who selects the title company – the seller or the buyer. Let's navigate through the Texas real estate practices, including the communication chain in the event of a title claim after closing and what's best for the buyer.

Seller's Standpoint:

• In Texas, it's customary for the seller to choose the title company. This tradition is deeply ingrained in the state's real estate customs.

• The seller typically foots the bill for the owner's title insurance policy, which protects the buyer against unforeseen title issues post-purchase.

• Often, sellers have established relationships with specific title companies, relying on recommendations from their real estate agents, attorneys, or past experiences to guide their selection.

Buyer's Perspective:

• While sellers commonly dictate the choice of title company, buyers in Texas can express their preferences and negotiate during the purchase agreement phase.

• Buyers might have particular title companies in mind, drawn from recommendations, online reviews, or their research into a company's reputation and performance.

• Opting for the title company allows buyers to exert more control over the process, ensuring their interests are represented and the transaction proceeds smoothly.

In Texas, the decision regarding the selection of the title company is not merely a matter of tradition; it also represents a realm of negotiation and mutual agreement between the buyer and seller. Whether grounded in tradition or negotiated in contemporary transactions, the selection of a reputable title company serves as the linchpin for orchestrating a successful real estate transaction in the Lone Star State.