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Ann Arbor Real Estate Blog

Blog about Ann Arbor and Saline Michigan

Who Chooses the Title Company to Close in Ann Arbor?

In Ann Arbor, both a buyer and a seller have the choice of which Title company to use for the closing or settlement.

When I list a home for sale in Ann Arbor or the surrounding area’s, I always order a Pre-Committment Title policy upfront. I do this so my sellers can review it and give to an attorney to review. (Anything that needs cleaning up can occur during the listing period.)

If the sellers have a preferred title company then I use that one. All of the local title companies in Ann Arbor are excellent.

When an offer is accepted it is perfectly OK for the buyer to decide which title company they want to use.  The only exception to this is many banks that are working with Michigan Servicing Companies for foreclosures will make you use their title company. (Not always but many times.)

If you are a buyer in Ann Arbor it is best to write that into the original offer that you will be using your own title company.

In Ann Arbor and all of Michigan, buyers and sellers split the cost of the Title Policy. The sellers pay what is called a Owners Policy and is based on the sales price of the home.

The buyers pay their portion of the Title Insurance based on the price of the mortgage they are obtaining.

Example: Contract price of home is 200,000.

The seller provides an owners policy on 200K.

The buyers is putting down 50,000. His portion of the title insurance is based on the amount of the loan which would be 150,000.

Both Buyer and Seller can choose their own title company.


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