Title Company Question (San Jose: sales, mortgages, home sales)

[scotts0725]

Hi all,

Im not sure if this is the right forum, but hopefully someone may know the answer to 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

[kettlepot]

If you don't get an answer, try the 'Mortgages' forum. I bet there are some professionals on that forum who will know California specific information.

[Ultrarunner]

I realize this is not directly related to your question... but as a buyer I have always chosen the title company and written it into my offer...

I like dealing with someone that I have a track record with...

[AimWithFocus]

Hi-

It really irritated me to read your post. Your agent gave you a 1/2 truth line. We shop for the best rates on title companies every 6 mos or so. There is sometimes a huge fluxuation in thier rates. Without knowing what your home sales price is I can't say what our title co would have charged for your policy & escrow. California only regulates the maximum price that can be charge, however title companies compete for your business like any other. I would say your gut instinct is right. There is a conflict. On one hand it is likely her company will do all they can to ensure the deal closes because her husbands commission is at stake, but you can call other companies and get pricing and ask them to match it. I would If I were you. I'm in the bay area too and know that right now sellers are getting hit with paying alot of fees right now due to market conditions. You should still shop around. Atleast you will know if they are gouging you and if you can trust through the whole transaction.


aimwithfocus

[LexusNexus]

Originally Posted by scotts0725

Hi all,

Im not sure if this is the right forum, but hopefully someone may know the answer to 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

My initial reaction is that yes, there is a conflict of interest. Your agent is your fiduciary and because of this has certain responsibilities to you. Unless he can convince you that his wife is providing rates lower than what you would normally be charged, he is not acting in your best interest. Stands to reason that he would be acting in his wife's best interest (benefiting himself in the process) and this violates his obligations to you. I don't have a sense of a fair price, but it is up to him to convince you that this price is more than fair since this is a concern of yours. He works for you. If he hasn't done this, recognizing your concerns, he is not acting in your best interest, and more than likely you could've gotten a better deal someplace else.

Would be interesting to see what you find out.