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Title company settles illegal kickback charges
We've felt very loanly as the only major real estate company in the area that seemed concerned about title companies having "close" relationships with real estate brokerages.
I've often been concerned about a company and/or real estate agent unilaterally deciding who the title company would be when we were helping a client purchase a home.
I even got the Federal Trade Commission involved about 10 years ago when one local company "insisted" that we use their choice of title company.
So now we hear that First American Title Insurance Co. has agreed to pay Ten Million dollars to settle allegations that they brought in business by making cash payments and other "gifts" to real estate professionals. These gifts included trips to casinos, riverboat cruises, tickets to special events, the whole nine yards.
The deals were basically structured as a $100 bribe per transaction that the real estate professional brought into the title insurance provider.
I'll say it again. We don't think buyer's agents or designated buyer's agents should take bribes or "additional compensation" from anybody. And, if they do, it certainly should always be disclosed to the buyer clients at a time where the clients can be involved in the decision making.
I've often been concerned about a company and/or real estate agent unilaterally deciding who the title company would be when we were helping a client purchase a home.
I even got the Federal Trade Commission involved about 10 years ago when one local company "insisted" that we use their choice of title company.
So now we hear that First American Title Insurance Co. has agreed to pay Ten Million dollars to settle allegations that they brought in business by making cash payments and other "gifts" to real estate professionals. These gifts included trips to casinos, riverboat cruises, tickets to special events, the whole nine yards.
The deals were basically structured as a $100 bribe per transaction that the real estate professional brought into the title insurance provider.
I'll say it again. We don't think buyer's agents or designated buyer's agents should take bribes or "additional compensation" from anybody. And, if they do, it certainly should always be disclosed to the buyer clients at a time where the clients can be involved in the decision making.
Labels: Buyer Agent, Designated Buyer Agent, Title Company
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