Who chooses the title company in a FSBO transaction?

Whichever party is paying for the cost of title insurance is likely the party who selects the title company they’d like to work with for their particular transaction. If a seller is paying for an owner’s policy insuring the new buyer– they traditionally select the title insurance company.

If a buyer is paying for a loan policy insuring a lender, they may consent to having the title company selected by seller also provide the loan policy and close their mortgage loan, since one title company performing both sides of a deal makes for a smoother closing. However, again, who pays for what is fully negotiable in the purchase agreement.

It’s important for FSBO sellers and buyers to do their research and ask questions when selecting a title company for their sale. They should look for one that is properly licensed in their state, has experience with the closing process for their particular state, and is willing to answer any questions they may have. They should also consider selecting a title company that can offer the most convenient closing methods available to them, such as remote online notary or traveling notaries, so that they do not have to take time off work or travel to sign papers.

By working with a reputable title company, FSBO sellers and buyers can have the confidence that their closing process will be handled professionally and accurately. Both parties should always review the paperwork to make sure everything is correct before signing off on it.