Escrow can be opened at any title company accept when the property is bank owned. Bank owned properties require the buyer to open escrow at a specified title company because of the volume being done by the lender. Most lenders will specify one title company to handle all their business to prevent fraud or liability in a sale. For example, a double close or double escrow that does not disclose buyer A’s purchase price could be grounds for buyer B to sue for nondisclosure. The title companies assigned to banks know this and are aware of other types of liabilities to the lender such as an assignee clause. Which allows the contract to be sold to another buyer for a price above what the bank agreed to sale the home. The title company the bank chooses are familiar with what is allowed under the banks terms which is why they do not prefer using other title companies.

When a bank forces a buyer to use their title company, the buyer has the right to request the lender to pay for all the title fee’s associated with the purchase. If the lender does not permit this, they could be found guilty of Anti Trust Laws.