It is not Business it is Extortion!
I just left another Realtor appointment for my title company Family Abstract, Inc. 
A potential client in 2011, while everything else is going south, OF COURSE i will be there!! The referral came from a mortgage company that we currently deal with and have for many, many years. The Realtor was licensed in both New Jersey and Pennsylvania, wow, perhaps a “Buy 1 get 1 FREE”!
Reality Check>>>
- Eastern Pennsylvania Realtor
- Closes 1-3 deals per month between the 2 states
- Comes from Entitlement Generation
- Can’t make a living just selling Real Estate
We have been doing title for 26 years and it never ceases to amaze me the audacity of THE REALTOR to tell me what it is going to cost “IN LINCOLNS” to be able to do title work for his buyers! After all, he explains, he controls the buyer, therefore he is ENTITLED to 30% of out title premium and to make it cash, “Its just easier for him that way”. His philosophy, and one coincidentally that is shared by many Brokers in Eastern Pa is that they cannot make a decent living just selling real estate, that they NEED the money from the title company and the mortgage company in order to stay in business. When did it become the title companies responsibility to make sure that a real estate broker could stay in business?
I long for the days that the services that we provided was king. The days we said we would close a loan whenever, wherever and that offer was paramount to the idea of placing their hand so far in my pocket they could tickle my knees. We loved turning the industry competition on its side when, 26 years ago, we began to turn orders into commitments in 48 hours, unprecedented at that time. How nice it was to go out for a drink or a lunch or dinner and picking up the tab was good enough without adding 5 “Lincolns” to the Realtors pocket. Has every Broker/Agent in Eastern Pa gone this route? Please let me know there are still some of you that care enough to USE THE BEST!
We don’t offer cash, we don’t offer cars, we don’t offer “Payola!” We would never risk “dating a man named Bubba” in prison just because the Realtor can’t make an honest living.
WE OFFER SERVICE, KICK ASS SERVICE, 100% ON TOP OF OUR WORK SERVICE, FROM ORDER TO POLICY. WE HAVE SPENT 26 YEARS PERFECTING OUR AGENCY AND WE WILL NEVER resort to the extortion of the industry just to stay afloat, we will stay on the Hi-Road and catch the rising tide as it goes by.
Glenn:
You are absolutely right. The Real Estate industry is in a mess because everyone was trying to find away around the law rather than trying to do a good job for the client. What this Realtor wanted was illegal, and his activities need to be reported to the Real Estate commmission. We will have a great industry when we eliminate the riff-raff …. whether they are Realtor’s who need to line their pocket with everyone’s else’s money or Real Estate investors who will kill their mother for an extra point on the deal.
Thanks for being honest.
Fred, I can’t thank you enough for your response, as a title guy, it is greatly appreciated. Being a fan of “Underdog”, as I grew up in the 60′s and 70′s I believe you’ll need to get rid of the “Riff-Raff” as well as “Simon Bar Sinister”.
Why don’t you suggest they set up a JV to earn their money in line with RESPA? Oh, did you say 3 loans a month – LOL!
Exactly John, 3 loans a month and he thinks that, heaven forbid he did 5, I’d have to give him my my whole company!
Wow,
I would like to say I don’t believe it but I do. Here in GA I have never heard of that happening on on agent level but it probably has.
I refer all of my Buyers to a certain law firm, they also sell the title insurance here in GA. The reason I do is becuase he is good , quick and the cheapest in town bith with his closing fee and his Title Insurnace commission. No kickbacks except maybe a beer now and then but that is a favor I often return as well. My clients are served well, continually refer me to their friends and I sleep very well at night!
Hopefully the Real Estate Industry will weed through these types. Best of luck to you!
Thanks for the post.
Mike, Must be a “Southern Hospitality” thing! We are thankful in the north that realtors and mortgage people aren’t Octopus, then they could stick their hands in 8 pockets at once. I’m sort of kidding. We deal with a great group of “Like-minded” agents both in mortgage and real estate, together the client is the one on the pedestal so its a pleasure and easier to kiss their behind!
WhoooHooo! – You need to connect with some of CA’s title companies, who were stopped DEAD in their expense account Tracks a couple of years back, with the CA Ins. Commissioner literally made it TOTALLY against company policy for any title company employee to pay for or assist in or to provide ANYTHING that would basically be for the intent to compete with the other title company’s business or would have any connection in having to BUY the title referral business from any real estate agent or business-related client. This TOTAL freeze on any benefits from the title companies actually forced the greedy real estate agents to wake up and realize that they would have to do their OWN job for a change and pay for the services from their OWN POCKETS! Everyone who was used to having all of the gravy on the meat was jolted into reality and many didn’t survive without the financial perks! You should connect with some of the title people here! I can connect you with some of the big guys here! Stick to your guns!!
Nancye Woodward
Escrow Officer
Orange Community Escrow, Inc.
800 E. Dyer Rd.
Santa Ana, CA 92705
714-288-6300 x 3301
nancye@orangece.com
Nancy, i would love to continue this conversation with the big boys and the troops from CA. When I attended the last RESPRO conference I actually begged for the Respa Police to come to Philly. And that is the issue, until Respa stops threatening and starts arresting, we, as title agents are forced to sound like The nursery rhyme about the Sky is Falling.
As a professional surveyor I appreciate your attitude toward the title insurance industry. Keep taking the high road. Ethical behavior will win out in the end.
Patrick, I really appreciate the time you took to respond, we do appreciate it. We stay on the high road, we find that there are very few others up here so we at least won’t get into an accident! Be well.
Thanks for the honesty and bringing out in the open something that deserves to be exposed. We are in Florida and have faced similar situations over the years and share the frustrations you outlined. More often than not though, the “extortion” is more subtle and often driven by the broker.
We are routinely notified by agents on the non-referring side of transactions that they appreciate the service and experience of the closing and would love to close with us but they are pressured through various tactics to use their in-house title company. The tactics vary but commonly involve withholding of leads, additional fees or interoffice “blacklisting” to pressure agents. From time to time, we hear that they just simply offer a cash payment to the realtor for referral.
The other form of hidden extortion that routinely happens is the broker that constantly wants us to pay for every event they hold, regardless of any potential marketing benefit to us. I am not referring to sponsoring an event or education seminar, I think these often offer win/win opportunities. But, if you are asking us to pay for your employee Christmas Party or other in-house event, this is over the line. It is disappointing to see broker’s willing to cut corners on the service their clients receive in order to milk a few dollars out of the title company. It does not seem to me to be a strategy that helps the bottom line over the long term.
We too make the commitment to take the high road, regardless of the cost and with faith that “right is right” and honesty and integrity will always prevail over the long term.
Tom, thank you so much for your well written and thoughtful reply, it is much appreciated! I have been at it 26 years, it’s really starting to get to me!! But I’ll vent, I’ll blog and hope that one day I can look back at this and it will all seem funny, but I don’t think so!
Howard, I may do a followup with your additions, would that be ok?