Jun 8, 2011
Frequently, it’s to your advantage to pick the title company that closes the luxury home purchase. Title companies will typically hold the earnest money pending closing and if a title company does a lot of business with one party or the other it may be more likely to favor that party in the event there is a dispute over the earnest money.
During disputes or real estate litigation proceedings, it is a typical occurence when title company employees become witnesses for one party or the other, so it is important to have some rapport. Also, many purchase agreements stipulate that a title company should pay the earnest money to the seller if the buyer defaults in any material terms. Many buyers are not even aware that they may be in default when they find out the seller has already been paid their earnest money as “liquidated damages.”