The title company searches the land records, insures the title and runs the settlement, the last step described in how a Maryland real estate settlement works. Because it holds your money and your documents, it is worth choosing on purpose rather than by default.
Who chooses in a Maryland purchase
In most Maryland home purchases the buyer chooses. The buyer is the one taking out the loan and deciding whether to buy an owner’s policy. Your agent may suggest a company, and the seller may have a preference, but you can pick another one.
Tell your agent your choice early, ideally when the offer is written. That way the company can start the title search as soon as the contract is ratified, which is the best protection against the problems that push back a settlement date.
What federal law says
Section 9 of the Real Estate Settlement Procedures Act (RESPA) says that the seller of a property bought with a federally related mortgage loan may not require the buyer, directly or indirectly, as a condition of selling the property, to buy title insurance from any particular title company. Almost every home loan from a bank, credit union or mortgage company is a federally related mortgage loan.
A seller who breaks the rule is liable to the buyer for three times all the charges made for the title insurance. The rule is in the United States Code at 12 U.S.C. § 2608 and in the Consumer Financial Protection Bureau’s Regulation X, section 1024.16.
What the rule does not cover
Section 9 is narrower than a general “right to choose.” It limits what a seller can demand. It does not:
- Stop anyone from recommending a company. A seller, builder or agent may suggest one. You decide whether to use it.
- Override your lender’s requirements. A lender can set standards for the settlement agent on its loans, and some keep approved lists. When the lender lets you shop for title services, your Loan Estimate lists them under “Services You Can Shop For” and the lender gives you a written list of providers. You can usually choose a company that is not on that list; ask the lender first whether it will accept your choice.
- Apply to an all-cash purchase. Without a federally related mortgage loan, section 9 does not apply, and who chooses the title company is whatever the buyer and seller agree in the contract.
One more federal rule helps you here. If someone refers you to a title company they have a business relationship with, such as part ownership, federal law generally requires them to tell you about that relationship in writing, and you generally cannot be required to use that company.
What to compare
- Who runs your settlement
- Ask who will handle your file and who sits with you at settlement. Maryland First Title has been attorney-led since 1994.
- Where and when you can sign
- Ask whether they will come to you, and what it costs. Settle at our Glen Burnie office, or we come to you anywhere in Maryland at no extra cost. Weekend and after-hours settlements are available by appointment. Buying or selling from outside Maryland? We arrange a remote settlement.
- How they protect your money
- Ask how they send wiring instructions and how you confirm them. We email them, and we ask every buyer to confirm them by calling (410) 768-2300, the number on this website, before wiring.
- What you will pay
- Ask for a written estimate of the company’s charges and compare it with the title charges on your Loan Estimate. Our instant quote gives you ours in a few minutes. The owner’s policy is optional in Maryland, and its premium is paid once, at settlement; read what an owner’s policy protects before you decide.
- Whether they know your county
- Transfer and recordation taxes, lien certificates and local charges differ by county. Our guides to the Maryland counties we serve cover them.
The one sentence to send your agent
If you want Maryland First Title to handle your purchase, send your agent this:
Please use Maryland First Title in Glen Burnie, (410) 768-2300, for our title and settlement, and send them the ratified contract as soon as it is signed.
Or open your title order yourself and add your agent’s name; we will contact your agent for the contract. Our residential settlement service explains what happens next.
Questions
Can the seller make me use their title company?
Not as a condition of the sale when you are buying with a mortgage. Section 9 of the Real Estate Settlement Procedures Act bars a seller from requiring you to buy title insurance from a particular company, and a seller who does is liable to you for three times the title insurance charges. The seller can still suggest a company; you do not have to take the suggestion.
Can my lender require a particular title company?
A lender can set requirements for the settlement agent on its loans, and some keep a list of approved companies. If your Loan Estimate lists title services under “Services You Can Shop For,” you may shop for them, and the lender must give you a written list of providers. You can usually choose a company that is not on that list, but ask your lender first whether it will accept your choice.
Is it too late to change title companies after the contract is signed?
Usually not, but tell your agent right away. The new company needs the ratified contract and time to search the title before the settlement date, so the earlier you switch, the easier it is. Call us at (410) 768-2300 and we will tell you what we need.