Profile picture for drominge

Why would a realtor insist on a split escow in the Purchase and Sale agreement?

  • August 19 2013 - Seattle
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

 
 

Answers (10)

Profile picture for SoCal Engr
Sounds like a simple resolution...

As the consumer, it's is (or should be?) your transaction. Since you're paying the bill, you go with the seller's escrow if you want to and there is no obvious reason not to (which, it doesn't seem there is).

If the REA is that set on "their recommended title company", but their recommendation is going to cost you additional out-of-pocket, let the REA make up the difference.

BTW...

Between us consumers, who is the REA recommending? Are they in the same class (size, rep, etc.) as Chicago Title?
  • August 20 2013
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Well, there you have it, drominge. Your agent doesn't trust Chicago Title, and you don't want to pay for a second escrow. I'm afraid you'll have to work it out with your agent.

Personally, I think the world of Chicago Title.
  • August 20 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for nwhome.us
In Washington State it is common to split the title from the escrow and as a result there are many independent escrow companies. They are in fact seperate functions.

I haven't heard of the buyer and seller using separate escrow closers for a couple of decades; it doesn't make any sense. The escrow companies have to charge more for separate files and what amount of confusion are you adding to the transaction.

Yes if the seller was a builder and the closer was some small office that wasn't keeping up with their files?  But Chicago has a management structure that you can use to get things done.

  • August 20 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

The agent shouldn't be getting kickbacks from the title company (other than a nice calendar once a year) Anything more is illegal.

I know with bank owned homes if you use their title company, often they will absorb the buyers cost of title work as they receive a bulk rate for title work. So if you went with the sellers title company, you could potentially receive a discount. Chicago title should be fine. But there are some title companies I avoid due to their past record of unreliability.

The only time it would be prudent to use one title company over another is the long term reliability of the title company (and their underlying title insurance underwriter). During the last recession many small title companies went out of business. And while the title insurance was safe, any documents they held after the closing largely disappeared.
  • August 19 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

You can ask your agent to get you a solid price from both companies or you can call yourself.  Just tell them the price of the home and they will give out pricing over the phone.  Make sure you ask them for the rate WITH tax included for both of them so you are comparing apples to apples. 

  • August 19 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for drominge
I was told it was because my agent felt his recommended escrow company would care for my earnest money better and would represent me better.  I wasn't buying it as the other escrow company was Chicago Title.  I asked if it would cost me more as a buyer on the closing costs and was just told "her rates are competitive."  When I questioned it and said I just wanted to use the seller's escrow company (Chicago Title) everyone got snippy on me.  Do agents get kick backs from escrow companies? 
  • August 19 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for daveskow
Laurie might be onto the  reason ......I have never seen this  before
what do the agents  say the reason is when asked ?
  • August 19 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

A couple of thoughts:

1)  The agent has a relationship with "their" escrow company and are willing to have the clients charged more to close their half with them.

2)  The agents has had a horrible experience with the other suggested escrow company and refuses to work with them.

Anybody else have any ideas?  Those are the only two that come to mind right now.

  • August 19 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for drominge

The buyer uses one escrow company and the seller uses one escrow company.  So, there are now two escrow companies one representing each party.

  • August 19 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for daveskow
what do you mean by " split escrow "?
  • August 19 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.