Using Seller's Title Company Because They "Already Opened Title"

[David Seale]

Newbie investor here and am uneducated on the choices I have for a situation I'm in.

I've always heard that the title company of choice used in a real estate transaction should be up to the buyer and that the buyer should shop/select a company based on their tenure/value/reliability/etc. 

My fiancé and I have just finished negotiating terms on the contract and are in the process of signing on a property. We requested to use a title company that we've worked with in the past for this transaction. The agent at first agrees and fills out the contract with our requested company. However, she then comes back and says the seller "already opened title" with another company. Without knowing exactly what opening title encapsulates, I can guess that seller has essentially started processing the paperwork and such with the other company. Maybe even paid a fee. BTW the name of the company is http://onenationtitle.com.

My question is, what is the best way to navigate this snag? Should we not even worry about it? Should we negotiate to lower the purchase price to reflect the cost the seller might have incurred?

Thanks!

[Chris Mason]

It's not unusual, in my area at least & this may be a "hot market" thing, for the listing agent to pick the title/escrow company (the generic catch-all term that covers all states/regions is "settlement service providers"). 

Typically this means the title company has already reviewed the chain of title, etc, and has...

- Tentatively approved title insurance for the buyer that comes along. 

- Qualified the seller. Ensured that there aren't a bunch of liens, etc, that exceed the anticipated sales price.

There are certainly cases where one place WILL issue title insurance, whereas another one will NOT issue title insurance, for the exact same property, with the exact same paperwork in-hand.

If you switch to a new title company, that's not unlike a buyer switching their lender. If the company you pick will not insure title, it can be a bunch of hassle and whatnot for no reason. The policy itself, and what it protects you the buyer against, is standard.