Thursday, January 22, 2009

A very large real estate brokerage is burying language

in the sales agreements of transactions in which they have the listing directing the title insurance order to their affiliated title agency.  There is no simple waiver or acceptance for this paragraph, it's just sitting in the middle of a bunch of boilerplate stuff the buyer and the selling agent skip.

I ran into this the other day on a cash transaction.  I have three title transactions in process for one buyer.  This buyer likes our Choose and Save program.  It's fast.  It's easy and it's the most affordable way to buy title insurance and settlement services in PA.

The listing company backed down and didn't pursue the matter once they understood the good deal the buyer was getting and that we had already processed the transaction, though I got the impression that they normally press the issue.

Buyer beware.  Read that contract very carefully or perhaps just add a clause to the contract stating that YOU will select your title insurance and settlement provider and any language to the contrary in the agreement is null and void.  Stay in control of your transaction.

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