Orlando Home Buyers BE AWARE: You have the right to pay for and choose your own title company (RESPA rules) and don’t let any real estate agent tell you something different. NO ONE, including the seller, can force you to use “their” title company…contrary to local custom.
Many local real estate offices have controlled business arrangements with select title companies aka “legal profit sharing”. Others may engage in “benefits” aka “Illegal kickbacks” to the agent or company…which is the main reason that a listing/sellers agent might “throw a fit” when the buyer chooses to pay for and use their own title company. One title company had to pay $4.5 million in fines for illegal kickbacks…
$$ Four million, five hundred dollars $$ in Title Company Kickback fines alone…now that’s a lot of illegal steering of business.
Think about that…Sellers agent is upset because their seller gets to pay LESS for closing costs? Why should a sellers agent even care where the buyer buys their title insurance from? It is none of their business who the buyer chooses for a closing agent, so don’t be intimidated.
Title companies are a dime a dozen and most title agents are in my opinion, sub-standard. They don’t truly understand all the nuances of doing good, accurate title work and the research that goes along with it and worse, they don’t care. Instead of fixing a problem they will write an exception to the title insurance policy and/or sweep the problem under the carpet…and lately I am seeing more extra charges to pay for endorsements to cover issues that the title company just excluded in the policy. (Yes, Title agent removes this from the title policy and then charges extra for an endorsement to cover it.)
Did you know title insurance underwriters are rated just like car insurance? Did you know that 70% of title work in Florida is flawed and most title searches are outsourced to another continent? Have you heard of the Florida Foreclosure “ROBO” scandal…still being investigated by the state? That is where the title company mills did not bother to read documents and forged signatures routinely, just like “ROBOTS”. One company did 1,500 fake signatures a week! Are you under contract for one of those forged paperwork properties?
Home Buying is a big investment; IT’S YOUR MONEY and your peace of mind. The Sellers Title company is not going to rock the boat, because their business relationship is not with you…it is on the side of the partnership that is feeding them business.
Smart Home Buyers should always pay for and choose their own Title Attorney to scrutinize the title work and make sure that they are indeed buying an unencumbered and marketable property, that all the liens are paid off so that there are no costly surprises after closing. You can always say no to Title Company Kickbacks in Orlando. It’s YOUR CHOICE to use your own title company.
Buyers Broker of Florida receives nothing of value from the attorney owned title company that they recommend other than excellent service and accurate title work.
Copyright @Buyers Broker of Florida 2011 “Orlando: Title Company kickbacks are alive and well”