Most consumers are surprised to learn that the title company they are using to close their real estate transaction is a company owned or controlled by the same real estate broker, builder, or mortgage lender involved in the transaction.
The problem for consumers is that this disclosure of an affiliated relationship between the title company and the real estate broker, builder, or mortgage lender is not disclosed to the consumer until there really is no ability to have a choice.
Most often, the affiliated title company disclosure is made within a day or two of the closing, and by that time, the consumer cannot switch title companies or go another direction.
The argument made by the real estate broker, builder, or mortgage lender for using the affiliated title company is that the closing process will be more seamless and easy if everything is done under one roof.
Unfortunately, this argument is not based in reality, as there really is no benefit to using an affiliated title company to handle a real estate closing.
Affiliated title companies lack independence, so consumers end up using a title company beholden to the real estate broker, builder, or mortgage lender.
Additionally, affiliated title companies are typically run by non-attorneys since they are employees of the real estate broker, builder, or mortgage lender.
LegalClose was founded on the belief that consumers should have a choice in the selection of a real estate title and closing services provider, and if given the choice between using a non-attorney or an attorney, the choice would be obvious.
