In Illinois, the law and policy are very clear that whoever pays for title insurance gets to select the provider of the policy. In other words, no one can legally be forced to use a particular title company in their residential real estate sales transaction, where they are paying for the title insurance.

For the stated policy and statutory authority on this question, go to 215 ILCS 155/18.1 “Choice of Title Insurance Company”.

Here are the highlights:

• It is Illinois public policy that whoever is obligated to provide title insurance in a residential sale gets to choose the title insurance provider.
• No service provider, e.g. lender or “producer of title business” shall, as a condition of making a loan, or providing services of any kind such as broker, agent, lender or attorney, require a party to the contract for residential real property where they are obligated to pay for the title policy, to use a particular title company.
• In short, the party who must provide title insurance and pay for it gets to choose.

For related information under federal law (the Real Estate Settlement Procedures Act RESPA), go to The Requirements of RESPA & Relationships between Settlement Service Providers (Revisited)