Paying For A Title Search

Is a borrower required to pay for a title search, if they did not request it and if mortgagor ordered one before a commitment?

1 Answer

NO. You are only required to pay for a title search if you closed a loan, or signed a form with the mortgage broker authorizing him or her to order third party services on your behalf. This is often known as " third party fee agreement."

Borrowers hardly ever "request" a title search, though it is required on almost every loan. The standard practice is for the mortgage broker to order this and the client will pay it at closing.

If you go up to bat with a mortgage broker on who should have paid for what, it all comes down to what you signed. Unless there is some written agreement allowing the mortgage broker to incur third party costs on your behalf, you don't have to pay anything.

Be sensitive to one case here though and that's this. If your mortgage broker was acting in your best interest and the loan fell through due to your qualifications or choice to go elsewhere, they may be left holding the bill for the title search (if they were really charged for one).