Custom usually dictates who pays for title (buyer or seller). Buyers and sellers alike have the right to choose a title company. The responsibility to pay for such title issuing services usually belongs to the person who chooses the title company. However, No. 12 U.S.C. 2608 RESPA Section 9 states:
(a) No seller of property that will be purchased with the assistance of a federally related mortgage loan shall require directly or indirectly, as a condition to selling the property, that title insurance covering the property be purchased by the buyer from any particular title company.
(b) Any seller who violates the provisions of subsection (a) of this section shall be liable to the buyer in an amount equal to three times all charges made for such title insurance.
To fully comply with RESPA section 9, a seller who chooses the title company bears the burden of paying substantially all related title fees to avoid issues with HUD.
In Miami-Dade and Broward County, for example, the buyer customarily chooses the title company and pays for the title issuing services. In Palm Beach County, the burden of who chooses the title company and pays for the title insurance policy, including related title service charges, shifts to the seller of the real property.
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