Title Closer Tip? (New York, York, Florida: sales, broker, buyers)
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I have gone through 2 closings with one in Nassau and in Suffolk county.
In 2005 buying my first home when I was young, my lawyer had told me ahead of time to tip the title closer. At closing, I simply said NO. The seller's lawyer raised her voice at me asking if I tip when I eat at restaurant. My lawyer also tried to "convince me" to tip by raising her voice also which made me felt my lawyer was betraying her professional obligations in representing me. I almost thought of filing a complaint against my lawyer for that little episode though she was great but to force me to pay a tip to someone that provided me no service and is being paid already. In the end MY LAWYER stated she's tipping the title closer out of her own pocket.
In my second home closing this year, my lawyer told me to write a check for $100 (not a suggestion to) but said I should. I told him no. My lawyer kept his cool but I can sense some kind of dissatisfaction but he kept it professional and not said anything further other then ok. My buyer's real estate agent told me afterward they were talking about me not tipping in the hallway outside and why I didn't follow traditions. Sorry but nobody tips me for DOING MY JOB. I get something call praises, raises, and promotions when I do a good job. My RE agent is new at this and was not familiar at the process and she was thoroughly confused but careless. In the end, if the title closer purposely does anything screwy, that's what the title insurance I paid for will cover and I will personally sue that closer directly. So I think don't be scared to simply say NO to this lame practice in the NY area.
This whole tipping thing has lost its original intent. ABOVE AND BEYOND the call of duty. To show your appreciation for their extra efforts. NOT because they simply do their job. When I tip at a restaurant, do you think I have that feeling of really appreciating what the waiter did for me? Sadly no, it's more a feeling of obligation. Very rarely does a waiter go above and beyond and when they do I have to decide between 15% vs. 20%. Instead of tip vs. no tip. That is not right.
I have a problem with waiter tipping (still do it because of the societal norm) but that's the fault of owners and not the waiters. If you think food prices would go up because the wait staff has to be paid normal wages, then why are these restaurants still charging so much while a fast food place (ie. Five Guys) can get you a burger at a fraction of the price? Both have overhead and staff to be paid. We're ALREADY paying more for the food at real restaurants.
Lastly, we're so accustomed to hearing about the below-minimum-wage waiters and how they're at our mercy but in reality they can make a couple hundred or more a night. That's not even an 8-hour shift like the rest of us suckers. No, it's not an easy job like filing papers, but really - stop whining about tips. Isn't there a law that requires the owners to make up the difference anyway?
Sold my house in January. I kept asking my lawyer about any "tips" to the title person. He said "no". Of course during closing he pulls us out and says we should tip her, it's a customary"fee". We balk, but say ok, but we want it itemized on our HUD closing statement. All "fees" should be on the statement. Then the title lady tells our lawyer to forget it bc she collects disability?? Our lawyer tells us to forget too. The whole experience left us w a very bad taste in our mouth. In the end we actually gave her a check for$100 bc we were afraid she would retaliate and not pay off our mortgage correctly.
Sold my house in January. I kept asking my lawyer about any "tips" to the title person. He said "no". Of course during closing he pulls us out and says we should tip her, it's a customary"fee". We balk, but say ok, but we want it itemized on our HUD closing statement. All "fees" should be on the statement. Then the title lady tells our lawyer to forget it bc she collects disability?? Our lawyer tells us to forget too. The whole experience left us w a very bad taste in our mouth. In the end we actually gave her a check for$100 bc we were afraid she would retaliate and not pay off our mortgage correctly.
Your lawyer should be reported to the Bar Association for trying to make you pay the title closer in an unreported transaction and attempting to falsify HUD federal government documents by leaving the "tip" off.
If more people fought back against this nonsense, it would end. Aren't we being ripped off enough on Long Island? Where else in the country do they do this? Probably nowhere.
Since you wrote the title closer a check, you have her name and from your paperwork you have the name of the title closing company she works for. She should be reported for pretending to be disabled and collecting our tax money on disability. The more fakers out there taken off the rolls, the better. She should also be reported to both federal and NYS income tax authorities for unreported income.
Your lawyer should be reported to the Bar Association for trying to make you pay the title closer in an unreported transaction and attempting to falsify HUD federal government documents by leaving the "tip" off.
If more people fought back against this nonsense, it would end. Aren't we being ripped off enough on Long Island? Where else in the country do they do this? Probably nowhere.
Since you wrote the title closer a check, you have her name and from your paperwork you have the name of the title closing company she works for. She should be reported for pretending to be disabled and collecting our tax money on disability. The more fakers out there taken off the rolls, the better. She should also be reported to both federal and NYS income tax authorities for unreported income.
You are right. I will look into this. When your closing (and already selling your house at a loss) its so stressful that you give in to these shenanigans.
You are right. I will look into this. When your closing (and already selling your house at a loss) its so stressful that you give in to these shenanigans.
That is so horrible, unprofessional, and downright dishonest to take advantage of people that were already at a financial loss. Best of luck. Especially with the attorney. The authorities that govern lawyers' conduct and ethics really need to take this problem in hand.
As I believe I stated way back in this thread, it really should be called a fee and not a "tip". That way, it would be fully disclosed and would not be considered discresionary by the buyer who is being provided with the service.
The bank doesn't make payment of their thousands of dollars in fees optional (and believe me there are lots of really questionable ones thrown in there), nor do the attorneys. It should not be optional when it comes to the title closer.
As a real estate agent, I certainly do not consider my fee optional. I have had situations where the attorneys have tried to chisel me down at closing and I've told them in no uncertain terms that I would rather see the deal not close then for me not to get paid.
In the greater scheme of things, it seems that people do not so much object to paying fees as they object to paying when they know they are not required to.
As an aside, the acronym TIP comes from the phrase "To Insure Promptness". I understand that people used to tip waiters before the start of a meal rather then at the end. I once decided to try this out when we were hosting a business dinner at an upscale restaurant. It worked like a charm. Best service we ever received!
As I believe I stated way back in this thread, it really should be called a fee and not a "tip". That way, it would be fully disclosed and would not be considered discresionary by the buyer who is being provided with the service.
The bank doesn't make payment of their thousands of dollars in fees optional (and believe me there are lots of really questionable ones thrown in there), nor do the attorneys. It should not be optional when it comes to the title closer.
As a real estate agent, I certainly do not consider my fee optional. I have had situations where the attorneys have tried to chisel me down at closing and I've told them in no uncertain terms that I would rather see the deal not close then for me not to get paid.
In the greater scheme of things, it seems that people do not so much object to paying fees as they object to paying when they know they are not required to.
As an aside, the acronym TIP comes from the phrase "To Insure Promptness". I understand that people used to tip waiters before the start of a meal rather then at the end. I once decided to try this out when we were hosting a business dinner at an upscale restaurant. It worked like a charm. Best service we ever received!
Title closers get their compensation from the title company they are working for. Or are you going to try and make people believe that title closers go work at closings for free, all in the hopes of getting a "tip" or "optional fee?" Sure!
You are an independent contractor and a salesperson who works on commission. Of course your compensation is not considered optional or why would you be working as a real estate salesperson? Your compensation is fully documented and fully accountable to income tax (annual 1099 form) in your transactions, unlike the title closer "fee," which is completely fishy.
In the case of Fmwjuly, when she asked for the "fee" to be included in the official documentation, they refused to do so. What other LEGITIMATE fee at a closing has to have no documentation? The reason they wouldn't give documentation is because the title closer "fee" is just a little bit of tax-free extortion at the closing. People on this thread have stated they didn't give the title closer a "fee" or "tip" ... and nothing happened to them! If this were a legit cost, the closing would not have gone on with the refusal to pay the "tip" or "fee." So why didn't anything happen if they refused to tip?
People have also stated that their attorneys paid the title closer the "tip" or "fee." I think it's just real estate attorneys trying to pass their desire to "tip" the title closer and keep in his/her good graces off on the consumers. If attorneys want to tip, they can go ahead and make that business expense. The consumers don't have to absorb that business cost for the attorney. The attorney's fees for his/her services should be enough.
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