Online Auction Companies and Using THEIR title Companies

[Ray Slack]

I buy REOs through auction.com, hubzu, and a few other online auction companies. They used to pay for your owner's policy if you used their title company.  Which the bank /Seller owns.  

Now they are not paying for the buyers policy but their are forcing you to pay a $700 transaction management fee to the Seller's title company if you don't use them and choose to use your own company.  

  If I don't want to use the seller's title company (Which they own) and agree to use my own title company and pay all the buyers and seller's costs imposed by my title company how can the the seller's title company still charge me a fee just because I'm not using them?  I believe this is illegal.  Any input?