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Old 09-07-2007, 10:54 PM
 
7 posts, read 44,515 times
Reputation: 11

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Hi all,

I was hoping someone would have some insight into my question:

I am currently selling my house in San Jose. I found out (and not through my agent) that my agent is using his wife's title company for the transaction. I was really irritated with this. It seems sort of a conflict of interest in terms of the price that they are charging. I would have preferred to shop around for both the escrow fee and the title policy.

When I brought this up to my agent he says in California, the fees and policy are governed by law and that they all must charge the same price. Does anyone know if this is correct? The company is charging me $860 in escrow fees and $1,254 in something called an Eagle Owner's Policy. Does anybody have any sense if this is a fair price or if I could have done better?

Any help would be greatly appreciated.

Scott
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Old 09-08-2007, 01:33 AM
 
Location: California
510 posts, read 2,968,533 times
Reputation: 383
First American Title charges a "One Rate" and is cheaper than any other title company out there.

I personally use Financial Title in CA, and they've always done an amazing job.

However, a title company and how they perform is really based on the escrow officer you actually get for your transaction. So with that said, it could be worth shopping around. You want to ask them for "ALL" of their fees, including the escrow cost, the buyers and sellers policies, and then any junk fees from there on out. Recording fees are about the only legit fee, anything else is just fluff they charge. Doc prep fees, wire fees, is all just additional income. In theory they are sorta legitimate fees, however many title companies will not charge them to be competitive, which essentially makes them junk fees.

So, if you want the cheapest costs call First American. It is generally the seller who chooses the escrow company, not the buyer, and not the sellers agent.
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Old 09-08-2007, 04:13 AM
 
106 posts, read 287,176 times
Reputation: 32
Quote:
Originally Posted by scotts0725 View Post
Hi all,

I was hoping someone would have some insight into my question:

I am currently selling my house in San Jose. I found out (and not through my agent) that my agent is using his wife's title company for the transaction. I was really irritated with this. It seems sort of a conflict of interest in terms of the price that they are charging. I would have preferred to shop around for both the escrow fee and the title policy.

When I brought this up to my agent he says in California, the fees and policy are governed by law and that they all must charge the same price. Does anyone know if this is correct? The company is charging me $860 in escrow fees and $1,254 in something called an Eagle Owner's Policy. Does anybody have any sense if this is a fair price or if I could have done better?

Any help would be greatly appreciated.

Scott
I agree with UseJeff. I am very sure that you do not have to use your agent's suggestion for a Title Co. You are free to use whomever you like. I'm also sure he does this with every real estate transaction he can so as to drum up business and profit for his wife's business. It is a huge conflict of interest...that is unless it benefits you too. Keep shopping...
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Old 09-08-2007, 10:35 AM
 
Location: Virginia Beach, VA
2,124 posts, read 7,779,101 times
Reputation: 811
He should have disclosed that to you before engaging her. You have the right to choose whomever you want for your title and escrow company. You can shop around.... call around and see.

shelly
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Old 09-08-2007, 08:07 PM
 
Location: Southern New Hampshire
4,541 posts, read 11,748,068 times
Reputation: 4107
In NH, the rule is disclosure, disclosure, disclosure. This is likely a RESPA violation, or at the very least, a conflict of interest. Many lenders have preferred title companies, but since you are the consumer, it is your choice who to use for your lender and title/settlement company. At the very least, your agent SHOULD have disclosed this to you, in writing. Shop around!!
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Old 09-08-2007, 10:18 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,095,994 times
Reputation: 1007
it seems that the ball is totally on your court.

if they didnt disclose you of any affiliated parties...you can take them to court. they would NORMALLY have you sign a document that discloses their affiliation. I would bring this up to your realtor. He can lose his license for this! I'm sure he will give you a nice discount afterwards!

Quote:
Originally Posted by scotts0725 View Post
Hi all,

I was hoping someone would have some insight into my question:

I am currently selling my house in San Jose. I found out (and not through my agent) that my agent is using his wife's title company for the transaction. I was really irritated with this. It seems sort of a conflict of interest in terms of the price that they are charging. I would have preferred to shop around for both the escrow fee and the title policy.

When I brought this up to my agent he says in California, the fees and policy are governed by law and that they all must charge the same price. Does anyone know if this is correct? The company is charging me $860 in escrow fees and $1,254 in something called an Eagle Owner's Policy. Does anybody have any sense if this is a fair price or if I could have done better?

Any help would be greatly appreciated.

Scott
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