We see thousands of deals pass through our hands, and one of the most common questions we get from buyers and sellers is: “Who picks the title company?” There are a lot of myths surrounding this, and unfortunately, many people don’t realize they have a choice.
When buying or selling a home, one of the key steps is choosing the title company—the company responsible for ensuring the legal transfer of ownership and verifying that the property has no hidden liens or ownership issues.
Because we see these same concerns over and over, we think it’s important to break down the truth about closing costs and title selection—so you can make an informed decision and avoid unnecessary expenses.
This article is part of our blog, meaning we’ll share real-life cases along with insights into how the market works—and yes, we’ll also highlight our product and how it compares.
The Myth: Who Chooses the Title Company?
Many people think that who picks or pays for the title/escrow company depends entirely on location—whether it’s a specific city, county, or state.
🚫 While some areas have customary practices, these are just traditions—not laws or fixed rules.
✅ Title selection is always negotiable, and both the buyer and seller have a say in the decision.
The Truth: Title Selection Is Always a Choice
The title company is not automatically assigned based on location. It all comes down to what both parties agree to in the contract.
Buyers and sellers can discuss their options and pick a company that works best for them. If a seller insists on using their title company, the buyer can negotiate other terms in return, like a lower purchase price or seller-paid closing costs.
The most important thing to remember is: You are never forced to use a specific title company just because an agent says so.
How Real Estate Agents Create a Tradition and Push Their network Title Companies
Let’s be honest—most of us don’t have a title company in mind when it’s time to close on a home. That’s understandable. Title work isn’t something buyers and sellers deal with regularly, so they often rely on recommendations from the real estate agent involved on the deal.
And that’s exactly how a “tradition” gets created—by agents consistently recommending title companies over and over, making it seem like there’s the best choice.
Most real estate agents work closely with specific title companies in their network. While this may seem convenient, it doesn’t always mean it’s the best deal for you. In many cases, these partnerships lead to:
❌ Higher costs for buyers and sellers – Some title companies charge more simply because they are part of an agent’s preferred network.
❌ Limited transparency – Many buyers and sellers don’t realize they can shop around and negotiate.
❌ Conflicts of interest – While it’s prohibited, some agents receive incentives for steering clients toward certain title companies. Unfortunately, this practice still happens.
This doesn’t mean all agent-recommended title companies are bad—but you should always do your research before agreeing.
Real Case Study: How a Buyer’s Agent Cost a Seller Over $1,000 in Title Fees
A seller chose Beycome Title for their transaction at a flat $199 fee. Later, they received an offer from a buyer who wanted to use a different local title company—no big deal so far.
The seller informed the buyer’s agent that they had already selected Beycome Title. However, the agent insisted that their client preferred a different title company. As explained in this article, title selection is negotiable, and in this case, the buyer had the right to request another title company. No offense to us—it’s part of the process.
The Costly Surprise at Closing
When it was time to close, the seller received the Pre-ALTA statement—the final breakdown of all transaction costs, including title fees.
💰 Title settlement cost:
- $1,250 for the seller
- $1,250 for the buyer
Total $2,500 in title fees—a shocking difference compared to the $199 Title option the seller had originally chosen!
When the seller (understandably frustrated) complained about the inflated cost and mentioned the better deal with Beycome, it was too late or too complicated to restart from scratch—the contract had already been finalized.
But the Story Didn’t End There…
At the closing table, the seller called out the high title fees and explained the situation directly to the buyer—who had no idea they were overpaying for title settlement and had never even chosen this local title company.
You might think this was just a mistake by a careless agent, but this happens all the time. We see countless closings where sellers and buyers unknowingly overpay for title settlement fees.
Why?
- They trust the referral too much without questioning the costs.
- They don’t read or request a title fee estimate before signing the contract.
The Lesson: Always Verify Your Title Costs
Before agreeing to any title company:
✅ Request a breakdown of fees upfront.
✅ Compare costs from different title companies.
✅ Don’t assume the agent’s recommendation is the best deal. A real estate agent is not a title agent!
A little due diligence can save you hundreds or even thousands in closing costs!
Knowledge Is Power—Be Informed!
Don’t let this happen to you. Always ask for a estimate breakdown of title fees before signing a contract. Always Compare options!
All Title Companies have to Follow the Same Rules—So Why Pay More?
Title services are heavily regulated, meaning that no matter which company you choose, the process remains the same.
In most cases, the only real difference is the settlement price—and some companies charge significantly more for no added benefit.
For example:
Beycome Title, in Florida, charges only $99 (only for beycome current user) per side for settlement fees, while traditional title companies charge $500 to $1,000 or more for the same service.
That’s hundreds of dollars saved for a service that follows the exact same legal process.
Breaking Down Title & Escrow Costs
1. Title Insurance (aka Premiums)
✅ Owner’s Title Insurance (Paid by Buyer or Seller, depending on contract)
- Protects the buyer from past ownership disputes, liens, or title defects.
- Cost varies by state but typically $500 to $12,000, depending on the property price.
✅ Lender’s Title Insurance (Paid by Buyer, required for mortgages)
- Protects the lender in case of title defects.
- Usually 0.5% – 1% of the loan amount.
2. Title Settlement/Escrow Fees
✅ Settlement or Closing Fee (Paid by Buyer and/or Seller)
- Covers title company services like handling paperwork, disbursing funds, and recording documents.
- Traditional title companies charge $300 to $1,000.
✅ Wire Transfer Fees
- Charged for sending and receiving wired funds.
- Usually $25 – $50 per wire.
✅ Courier & Notary Fees
- Covers document delivery and notarization.
- Typically $50 – $250.
3. Title Search & Examination
✅ Title Search Fee
- Researches property history to ensure no liens, judgments, or ownership disputes exist.
- Costs range from $100 to $500.
✅ Title Examination Fee
- A legal review of the title search results to confirm ownership status.
- Typically $100 – $300.
4. Government Recording Fees
✅ Deed & Mortgage Recording Fees
- Paid to the local government to record the deed and mortgage.
- Typically $50 – $250 per document, depending on the county.
✅ Transfer Taxes (if applicable)
- Some states or counties charge a transfer tax when a property is sold.
- Varies widely by location—some states don’t have it, while others charge 0.1% – 2% of the sale price.
5. Additional Potential Costs
✅ HOA Fees (If Applicable)
- If the property is in a homeowner’s association (HOA), there may be transfer fees.
- Typically $200 – $1,000, depending on the HOA.
✅ Attorney Fees (If Required)
- Some states require a real estate attorney for closing.
- Can range from $500 to $2,000.
Final Thoughts: Title Fees Can Add Up, But You Can Save
While title and escrow costs vary, the process is nearly identical everywhere due to regulations. Some title companies charge significantly more simply because… they can.
Key Takeaways to Save Money:
✅ Both the buyer and seller have a say in picking the title company—it’s always negotiable.
✅ Agents often push title companies in their network, but that doesn’t mean they are the best option.
✅ Always ask for a detailed breakdown of title fees and compare options before closing.
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