Saturday, September 01, 2007

query: when does a realtor order title insurance

My question is SHOULD a Realtor order title insurance? I'm not being facetious, really, think about it.

Wouldn't it be more appropriate for the consumer to order their own title insurance? Certainly the Realtor can assist by providing seller data, but the title work is being performed on behalf of the consumer and I believe they should shop, select and order for themselves.

BUT to answer YOUR question of WHEN, I say order title insurance whenever someone is willing to foot the bill for the examination work.

On our office we have the Choose & Save Program. The consumer puts up a $300 deposit which they'll get back if they close within 90 days.

Most consumers prefer to wait until the home inspection is clear before they start the order. Some are willing to front the examination deposit earlier because they really want to close quickly.

It takes 7 to 10 days to complete title examination and issue a title commitment in our area. So, the WHEN of ordering title is transaction specific based upon the needs of the consumer.

1 comment:

Todd said...

I think the Realtor should order title insurance only after the buyer has made an informed decision of who issues the insurance. The buyer should not order it because they likely won't have enough information to do so. Title insurance should be ordered as soon as the contract is signed so that a thorough search can be done and any defects be resolved.