Escrow & TitleIntermediateDelaware Exam

In a Delaware closing, who typically selects the title insurance company?

AThe lender always selects the title company
BThe seller always selects the title company
CEither party may select, and the party paying typically chooses; RESPA prohibits seller from requiring buyer to use a specific companyCorrect
DThe Delaware Real Estate Commission assigns title companies randomly

Why Either party may select, and the party paying typically chooses; RESPA prohibits seller from requiring buyer to use a specific company Is Correct

Answer C: Either party may select, and the party paying typically chooses; RESPA prohibits seller from requiring buyer to use a specific company

RESPA prohibits a seller from requiring a buyer to purchase title insurance from a specific company as a condition of sale. In practice, either party may suggest a title company, and the paying party typically makes the final selection.

Exam Tip: Escrow & Title

Escrow questions test the neutral third-party role and the sequence of closing events. Remember that the escrow agent acts as a dual agent for both buyer and seller and cannot advocate for either side.

Key Escrow & Title Terms in This Question

Title Insurance

Insurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.

Related Delaware Escrow & Title Questions

Practice More Delaware Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Delaware Quiz →