Affiliate services
As a buyer or seller, you have to engage several service companies to complete the transaction. First, you need a title company to search and insure the title to the property. In some areas, title company will also perform escrow services. If not, you will need to use a separate escrow company. Some areas use a closing agent or attorney to facilitate the closing. You will also need a home warranty company if you are purchasing a home warranty or home protection plan.
Since there are many title companies, escrow companies and home warranty companies to choose from, who decides which ones to use in the transaction?
This is to be negotiated and decided upon between the buyer and the seller because they are the ones who will be paying for the services as part of their closing costs. But most buyers and sellers do not know anything about the various companies. Therefore, they rely on their real estate agent to choose for them.
It is a good idea to allow your real estate agent to choose. Your agent gives these companies repeat business, so the service he receives from affiliate companies will be better than if you deal with a company you have not worked with before. If you trust your real estate agent (if you don’t, you should find another agent), the title, escrow, home warranty and other service companies he or she recommends should be a good choice.