Here at myClosingSPACE.com we talk to consumers all day long. Some are fairly well educated about title insurance while most are just learning about it. Even the most educated may be lead to believe a common lie told by real estate professionals involved in illegal ABA's. We hear it all but one common lie we are hearing is that a lender, builder, or other professional who is referring a title company can charge you more for their services if you don't use their referred title company.

This is an Outright Lie

Well, in a sense it is. They can charge you more but the law states that you have a right to choose your own title company. If someone is telling you to use the title company they referred of face a higher price they should be avoided. The most common reason they want to charge you more for using a different title company is because they are getting an illegal kickback to send consumers to their title company. The end result is that the consumer will end spending more for title insurance to pay that kick back. So while on the surface it may appear that you are paying less to the lender or builder that savings is all but eradicated when you overpay for title insurance.

Don't Get Ripped Off

An honest lender or builder will want to help you save money and offer you the best service. If they are unwilling to offer you the same rate for their service whether you use their title company or one that you chose they obviously do not have your best interest at heart. They simply want to get that kick back from the title company. Is that person worthy of your trust? IMO no, because they are more concerned about making a few extra dollars at your expense than giving you the best service and price they can.

Exercise your Rights

Shop for title insurance. If a lender is balking at you using a title company that you chose you may want to look at a new lender. In this market the consumer holds all the power. If a lender or builder wants your business they need to work for you. Exercise your right to shop for title insurance and use the company that you want. Not the company that is paying your representative for their business.