When Title Matters
November 20th, 2009Posted by Jim Reppond
I recently had a transaction close where the title company “forgot” to record the transaction on a Friday afternoon. I won’t name names, but it was not one of the companies I frequently use. It was a bit of a problem, because the Buyers were already on a plane to pick up their keys, take possession, and meet with construction people on Saturday to start remodeling.
The escrow agent, who is very pro-active and efficient, demanded that the title company issue a temporary letter of indemnity to cover the property until it was recorded. At first the title company balked, but then realized they had blundered in a big way and agreed. Fortunately, the Seller felt comfortable enough to allow the Buyer to take possession anyway.
I spoke with Title Representatives from a couple of other companies and they assured me this type of thing is rare, but it happens. But this experience has taught me that having a good title company that is careful and thorough matters and can be really critical to a smooth transaction.
5 Comments Add your own
1. Natalie Danielson | November 20th, 2009 at 10:20 am
We forget how important title and escrow are to getting a transaction closed and recorded. On my OWN house the title company had errors on the legal description when it closed so when I went to refinance two years later the title report showed that I didn’t own it. ugh… took over a month to fix…
So read those reports…
2. Cheri Diehl | November 24th, 2009 at 7:11 am
I agree that it’s important to work with a title company you can rely on. Luckily for me, I have Pacific County Title in South Bend, WA!
3. Rhonda Porter | December 15th, 2009 at 4:30 pm
Title and escrow are one of those things where consumers (and some professionals) have no idea how important they are until something goes wrong.
4. Kenneth @ Dallas Real Estate | January 13th, 2010 at 4:23 pm
Great post! Title companies can sometimes determine the fate of repeat buyers. If you close with an incompetent title company they can sometimes cause you to lost future business. Sometimes even a few days can make the difference between short and long term consequences.
5. Jim Reppond | January 14th, 2010 at 12:34 am
I couldn’t agree with you more, Kenneth!
Sometimes what seems like a small detail blows up and can have a dramatic affect on your relationship with your client. Remember, they hold YOU accountable for any referral or introduction you make to them.
I have learned to take all referrals seriously and have discussions with any referee BEFORE I ever give out their name now. This is ESPECIALLY critical for core real estate services such as title, escrow, and inspectors. “Very good” is not good enough. EXCEPTIONAL is the only acceptable rating!
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