Who Chooses the Escrow Company?

When it comes to buying or selling a home, one decision that often flies under the radar is the choice of escrow company. Because most people only go through a few real estate transactions in their lifetime, this choice is usually left in the hands of the real estate agent.

Agents typically select a trusted company—one known for professionalism, responsiveness, and the ability to resolve issues quickly and efficiently. This partnership helps ensure the transaction moves smoothly from start to finish.

But what if a seller insists on using a specific escrow company?

It’s important to know that the selection of an escrow company or settlement attorney depends on state laws and, in many cases, can be negotiated. For example, in Michigan, Wisconsin, and Minnesota, split closings are common—allowing the buyer and seller to each choose their own closing company. This is permitted under Section 9 of the Real Estate Settlement Procedures Act (RESPA).

In most other states, however, when a federally related mortgage loan is involved, RESPA’s Section 9 clearly states that:

A seller may not require a buyer to purchase title insurance from a specific title company.

Any seller who violates this provision is liable to the buyer for an amount equal to three times the title insurance charges.

That’s a costly risk for sellers to take. While they have the right to request a different company, it’s worth reminding them that agents typically choose escrow partners for a reason—reputation, reliability, and experience that help protect all parties and keep the closing process on track.