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However, until just this past August 31, 2007 other parties to a real estate transaction other than the one who buys the policy could dictate which company procured the policy.  This generally meant the transaction would close at the title company of that demanding parties' choosing. 

Not any more says the Illinois Legislature, and good work by the way.  

The new law, 215 ILCS 155/18.1 codified what was only tradition in Illinois in that the party purchasing title insurance (typically it's the seller of the property) has an absoulte right to purchase it from any title company they choose.

What is the effect?  It prevents bullish contract negotiation behavior by the buyer of real estate and their agents; i.e. lawyer, mortgage lender, broker, other business affiliates.  

Why would a buyer of real estate wish to dictate which title company sells the insurance policy to the seller when that person doesn't pay a nickel for it?  Good question.  The answer is because that buyer of real estate in this circumstance, typically developers and general contractors, have a strong relationship with the title company of their choosing.  "Relationship" entails discounts on those title company fees normally charged in a transaction; to the detriment of the selling party by way of exorbitant title fees!

The new law performs an important task of removing selfish buyers and more importantly self-interested third parties completely out of the picture.