Do you want to be a homeowner?

2 points about buying a home:

Most poeple don't realize that as a buyer, they are going to be the one paying for the title work to be done.  This is generally done by a title company, who researches the ownership history of the property to determine if there are any problems with that history.  Sometimes there can be problems, such as a prior owner giving or selling all or part of the property in question to someone and this transaction is not recorded.  If this happens and then the owner sells the property again to another person, now there are 2 people who have a claim on the property.  This can cause a whole bunch of significant problems, and you don't want to get involved in a piece of land like this.  So, title companies try to figure out if there are any such problems.

So, here's the important point: since the buyer is paying for the title research, they can also designate which title company to use.  Many people are not going to care and will just let the lender choose the title company.  But, if you are the buyer, you are paying for it, so you have the right to choose.  Exercise that right if you think it is important.  Find out who the title companies are in your area and interview them or meet their representatives.  Like any other situation, you are going to find some that you like better than others, for reasons important to you.  Might as well pay someone you like or whom you trust to do a good job.

Another issue to recognize in Ohio is that real estate agents can be "dual agents".  This means they can represent both the buyer and the seller in a residential sale.  This also means one agent gets all the commission on the deal.  Sounds fine, right?  Well, again, you are the important, and the interested party in your own purchase or sale.

In my view, as with any agency relationship, it is very difficult for an agent to be objective to both sides of a deal.  When you are buying an $80,000 or $100,000 house, do you want to put all your trust in someone that is getting paid by the other side?  Now, don't get the impression that I think real estate agents can't be trusted, because that is not my point.  All the agents I know are fine upstanding members of the community.  But, that is irrelevant.  If you are a buyer, then it is the other side that is paying the sales commission and it is only natural for any of us to give attention and influence to the person paying the fees.

If you are going to visit houses on the market, one thing a selling agent will ask you to sign is a form  which says you accept that agent as the only agent for that house.  This is not a contract with the agent, but it does say that you agree not to use another agent if you choose to buy that house.  I will not sign that form.  The agent can show me the house and answer my questions, but if I want to later get another agent to represent me in the purchase of that house, I should not sign the form that the selling agent asks me to sign.  Get your own agent and let the negotiations begin.

Comments

[Vernon Glueckert]

Very good info. Most people are not aware that they can designate which title company to use.