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Is it illegal for title companies to force a buyer to close with them on a short sale transaction?

July 13, 2008 – 6:55 pm | by nealb63

In my time I’ve written a few articles about short sales.

I’ve also read lots of others that people in the industry have written. Most of them talk about the process and the time frame it might take to complete the transaction…..the sorrows…the relief and finally the unknown. THE ANSWER.

This is on another subject. As you know the majority in my area would say that most of the properties on the market are short sales. When I go into our local MLS I’ve noticed a few of these remarks such as ….”the buyer is required to use XXX title as the closing agent in this transaction”….or “The buyer must use XXX Title as the closing agent in this transaction.”

Now I know that if you have less cooks in the pot your chances are the recipe will come out good but I wonder if they still should have the choice and or not.

I’m also aware that anyone who practices Real Estate in another state might have different rules or laws so they might vary.

Now I’ve completed a few them where that was the case. Let’s forget about how it was interpreted but is it illegal to do that or can the buyer legally use their own title company while an attorney for the sellers just negotiate the short sale?

I never really thought about it but now that it seems more common. I guess our MLS doesn’t mind it because it hasn’t been changed.

I’m not sure what the answer is because I can’t find anything that says it’s legal or illegal.

I’d like to hear any feedback on this.

For more information please contact Neal The Real Deal Bloom-Realtor® /Remax Premier Assoc.