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Q: I’m representing sellers in a real estate transaction. The sellers want to use a local title company to represent them in the transaction. The buyers chose a different title company, and the buyers’ agent is claiming the sellers cannot use their own title company. Is this correct? 

A: Virginia Code section 55.1-1006 provides that the purchaser in a real estate transaction has the right to choose the settlement agent for the transaction to provide escrow, closing, or settlement services. Often the settlement agent is a title company. The law makes clear that there is only one settlement agent, and the purchaser has the sole right to choose that settlement agent.  

On the seller’s side, sellers may retain an attorney to represent their interests and provide legal advice pertaining to escrow, closing, or settlement services. The services performed by these attorneys may include deed preparation, fee negotiation, review of applicable documents, and advising on any legal matters related to the settlement or closing process. Furthermore, if a seller retains an attorney, the settlement agent may not collect any fee from that seller without first obtaining written consent from the seller’s attorney.  

There is no express provision prohibiting sellers from hiring a title company. However, it is unclear exactly what services a title company hired by a seller can provide because the seller’s title company cannot be the settlement agent. While many title companies have attorneys on staff, hiring a title company may not provide the same protections as retaining an attorney in private practice.  

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