Potential Conflicts of Interest

1. Lack of Independence: In-house title companies may prioritize the realtor’s interests over the
client’s, leading to biased decisions.

2. Limited Advocacy: If issues arise, an in-house company might be less likely to challenge the
realtor’s actions or push back on questionable items in the title.
Limited Options.

3. Lack of Competitive Pricing: In-house companies may not offer the most competitive rates
compared to external providers.

4. Restricted Services: Independent companies may provide broader options and specialized
services tailored to your needs.
Perceived Pressure.

5. Reduced Autonomy: Clients may feel pressured to use the in-house company to maintain a
good relationship with the realtor, limiting their freedom of choice.

6. Loss of Transparency: Decisions made within the same organization can feel less transparent.
Potential for Higher Costs.

7. Bundling Issues: In-house companies might bundle unnecessary services or fees, increasing
costs without added value.

8. No Market Comparison: Clients might miss opportunities
for lower premiums or better terms without comparing other providers.
Quality Concerns.

9. Compromised Expertise: Independent title companies often specialize solely in title insurance
and escrow, leading to a more focused and skilled approach.

10. Limited Accountability: An in-house company may have fewer checks and balances than an
independent entity.
Consumer Rights.

11. Your Right to Choose: Buyers have the right to choose their title insurance provider by law.
Opting for an independent company allows you to exercise that right and ensure impartiality.

12. Avoidance of Kickbacks: Using an independent provider minimizes the risk of illegal or
unethical referral kickbacks.
Increased Risk in Disputes.

13. Bias in Conflict Resolution: If disputes arise, an independent title company may handle them
more fairly compared to one tied to your realtor.

Recommendations:

– Compare Providers: Research and get quotes from independent title insurance providers to
evaluate pricing and service quality.

– Ask Questions: If considering the in-house option, inquire about pricing transparency, potential
conflicts of interest, and any bundled services.

– Legal Advice: Consult a real estate attorney to protect your rights and interests.