Do you have to use the builder's title company when buying new construction in the DMV? Know your RESPA rights to choose your own settlement provider. Get a free quote from Pruitt Title.
Planning a closing?
Get a local title quote for Virginia, Maryland, or Washington DC.
Get a Title Quote →You found the house. You signed the contract. Then the sales agent says it: "Our preferred title company handles all our closings."
If you are buying new construction in the DMV, this question comes up constantly. And the answer may surprise you.
In most cases, no — you do not have to use the builder's title company. Federal law protects your right to choose your own settlement provider. Builders do not always make that obvious, and many buyers assume they have no options.
Here is what DMV buyers need to know about their rights, what RESPA actually says, and how to decide whether to use the builder's recommended company or bring in your own.
When Builders Push a Preferred Title Company
New-construction sales offices often have a title company already wired in. It may be an in-house affiliate, a long-time partner, or a company the builder has an ownership stake in. From the builder's side, that arrangement keeps closings smooth and communication in familiar channels.
But from the buyer's side, that can feel like a requirement rather than a recommendation. Contracts may include pre-selected title company language in the boilerplate. Sales agents may imply that choosing your own will slow things down.
That pressure — implied or explicit — is exactly what federal law was designed to address.
RESPA Section 9: Your Right to Choose
RESPA Section 9 (12 U.S.C. § 2608) is brief and direct:
"No seller of property that will be purchased with the assistance of a federally related mortgage loan shall require directly or indirectly, as a condition to selling the property, that title insurance covering the property be purchased by the buyer from any particular title company."
In plain English: if you are getting a mortgage — and almost every new-construction buyer is — the builder cannot legally require you to use their title company. They can recommend one. They can offer incentives. But they cannot say "use ours or no deal."
What Counts as a Violation
Builders rarely put "you must use our title company" in bold contract language. The pressure is usually softer. Red flags include:
- Contract language that names a specific title company with no option to change
- Sales agents telling buyers they "must" close with the builder's affiliated provider
- Builders refusing to cooperate with a title company the buyer has chosen
- Threats to delay closing or cancel if the buyer insists on their own provider
- Contract addenda that penalize buyers financially for using a different company
If any of these happen, that is worth flagging. Buyers in Virginia, Maryland, and DC all have the same federal protections, plus additional state-level consumer protections depending on jurisdiction.
Recommended vs Required
Builders can recommend their preferred provider, include that provider as a contract default, and offer closing cost credits or upgrades for using their affiliated company. They can also decline to pay certain incentives if you choose a different provider, as long as the contract is clear about it.
Builders cannot make their title company a non-negotiable condition of the sale. They cannot refuse to sell to you for choosing your own, and they cannot obstruct the company you select.
The difference comes down to whether you actually have a choice.
Should You Use the Builder's Recommended Company or Choose Your Own?
There are valid reasons to go either direction.
Stick with the builder's provider if they already know the community and development documents — that familiarity can translate into smoother coordination. If the builder is offering a meaningful credit (say $3,000 toward closing costs), that may make their provider worth considering even if fees are slightly higher.
Choose your own if you want to shop around. Title insurance rates and settlement fees vary, and the builder's company may not offer the most competitive pricing. You also get more control over the process, especially if you or your agent already has a trusted closing partner. The builder's preferred company works for the builder — not for you — and that relationship dynamic matters.
What This Means for DMV Buyers
New construction is a significant share of inventory across Northern Virginia, Maryland, and DC. From Loudoun County to Prince George's County to suburban Maryland, many of those transactions involve builder-preferred title company arrangements.
Virginia law gives additional transparency rights around settlement provider selection. Maryland has similar consumer protections. DC has the strongest disclosure requirements in the region, including the TOPA framework. But regardless of jurisdiction, your RESPA Section 9 rights apply to every purchase involving a federally related mortgage — which covers nearly all residential loans.
What to Do If Your Builder Pushes Back
If you decide to use your own title company and the builder resists:
- Check your contract for language naming a specific title company. If it says "buyer shall use X," that may violate RESPA.
- Talk to your agent — they can navigate the conversation and confirm your right to choose.
- Get a quote first so you have real numbers to compare against the builder's provider.
- Document everything — if the builder says you must use their company or implies consequences for choosing your own, save that communication.
- Ask about incentives — a meaningful credit toward closing costs may make their recommended company worth considering.
The Bottom Line
You have the right to choose your own title company when buying new construction in the DMV. Builders can recommend. Builders can incentivize. Builders cannot require.
Understanding that difference before you close gives you leverage, clarity, and often a better deal. Whether you use the builder's provider or bring in a separate company like Pruitt Title, the key is making an informed choice — not accepting a default because nobody told you alternatives existed.
Frequently Asked Questions
Can a builder force me to use their title company?
No. Under RESPA Section 9, a builder cannot require you to use their preferred title company as a condition of the sale. They can recommend one and offer incentives for using it, but the final choice is yours.
What is RESPA Section 9 and how does it protect me?
RESPA Section 9 prohibits sellers — including builders of new construction — from requiring homebuyers to purchase title insurance from a specific company. It applies to any purchase involving a federally related mortgage, which covers nearly all residential home loans.
What should I do if my builder says I have to use their title company?
First, check your purchase agreement for any language that names a specific title company. Then ask your real estate agent to help navigate the conversation. If the builder continues to insist, document the request and consider flagging it as a potential RESPA violation.
Can a builder offer a discount for using their preferred title company?
Yes. Builders can offer incentives such as closing cost credits, rate buydowns, or upgrade packages in exchange for using their recommended title company. That is allowed as long as the choice remains yours.
Is there ever a good reason to use the builder's recommended title company?
Yes. If the builder's preferred provider already knows the community and development documents, that familiarity can lead to smoother coordination. If the builder is offering meaningful incentives, the financial trade-off may also make sense. Just make sure you are actively choosing rather than being pressured.
Can I switch title companies after signing the purchase agreement?
In most cases, yes, but timing matters. Changes early in the process are straightforward. If the closing is imminent, the switch may create delays while the new title company conducts a search and prepares documents. Talk to both the builder and the new title company about timing. Related reading: Title Company for Builders: A Closing Partner Built for Volume — understanding how builder-preferred arrangements work from the builder's side Title Insurance for New Construction: What Buyers of New Builds Actually Pay For — what you are actually buying when a title policy is required on a new build Get a free title quote → Pruitt Title | DMV Title Guy — Serving homebuyers across Northern Virginia, Maryland, and Washington DC.
Ready to Get a Title Quote?
Send your transaction details through DMV Title Guy. Will can answer initial questions and, when eligible, refer the request to Pruitt Title LLC for review.
