Generally the seller or buyer paying the escrow fees selects the escrow and title company. If that seller or buyer has had a good business relationship with a title company, it shows 2 things, 1. the person is experienced in real estate transactions and 2. there should not be a problem with in the case of financing for the buyer or the with the seller there should not be any problems with the property, they’ve probably dealt with several previous transactions. In most cases though, buyers and sellers do not have a lot of experience once they get into contract. They depend on their agent for advice and to guide them through a successful transaction. Agents will have a title company and escrow office they’ve established a working relationship with. Something always happens, and a good escrow officer is worth their weight in gold. A couple of things that happened in my transactions have been, convincing an underwriter to waive a certain funding condition, keep me informed on buyers loan status, do special recordings, persuade an administrator of a closed lender to locate a reconveyance that wasn’t recorded on the sellers second.
Regardless of which side of the transaction you’re on an, agent needs a good escrow officer to work with to insure any issue on the loan or property gets every effort to get resolved.