Why choosing Your Own Title Insurance Company is Important

Section 9 of the Real Estate Settlement Procedures Act (RESPA) “…prohibits a seller from requiring the home buyer to use a particular title insurance company, either directly or indirectly, as a condition of sale. Buyers may sue a seller who violates this provision for an amount equal to three times all charges made for the title insurance.”

The purposes of RESPA is…

1.    to help consumers become better shoppers for settlement services and

2.    to eliminate kickbacks and referral fees that unnecessarily increase the costs of certain settlement services.

Sellers are barred from requiring you to use their affiliated title insurance company. This means that it is entirely up to YOU, the buyer or borrower, to select your own title insurance company.

Why is this important?

1. It is important that you find a title insurance company that works for YOU.

2. It is important to have great communication with your title insurance company.

3. Choosing your own title insurance company can save YOU money.

4. Ensure that YOUR best interests are being looked after.


  • Individuals have one (1) year to bring a private law suit to enforce violations of Section 8 or 9.
  • Lawsuits for violations of Section 6, 8, or 9 may be brought in any federal district court in the district in which the property is located or where the violation is alleged to have occurred.
  • HUD, a State Attorney General, or State insurance commissioner may bring an injunctive action to enforce violations of Section 6, 8 or 9 of RESPA within three (3) years.

If you have any questions, please contact the Maryland real estate insurance experts at Colony Title Associates by calling 410 884-1160 or visit ColonyTitle.com today!

About Colony Title Associates:

Founded in 1995, Colony Title Group handles in excess of 2000 real estate closings per year in the central Maryland area. The founder Tee Tillman has over 23 years experience in the title and real estate law fields. Colony handles closings for several lenders, including banks, credit unions and mortgage brokers. Colony is the preferred choice for many real estate brokers in the area.

Colony Title specializes in real estate title insurance, real estate settlement services, and real estate closings in Baltimore, Columbia, Maryland, Washington DC, and Virginia. Our staff consists of licensed Title Insurance Agents, Real Estate Agents, Settlement Processors, & Attorneys to handle all of your real estate needs.

You can also follow Colony Title on FacebookTwitter, and LinkedIn.


Why choosing your own title company is important.

More Information About RESPA

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