When I signed with my listing agent, part of the contract was to use xyz title company. I had offers that included changing it to another title company. Are agents getting small referral rewards for using a specific company? Why would one party insist on using a specific title company?
Kickbacks? No. But it’s possible an agent owns or has a stake in a title company, or they might have a marketing agreement. If that’s the case, it has to be disclosed to you.
Wilder said:
Kickbacks? No. But it’s possible an agent owns or has a stake in a title company, or they might have a marketing agreement. If that’s the case, it has to be disclosed to you.
Good to know! I guess it’s more about familiarity and trust then?
No, agents aren’t getting kickbacks from title companies. That would be a RESPA violation. Often, agents recommend companies they’ve worked well with before to avoid delays or issues during closing.
Brooke said:
No, agents aren’t getting kickbacks from title companies. That would be a RESPA violation. Often, agents recommend companies they’ve worked well with before to avoid delays or issues during closing.
That makes sense. So it’s more about ensuring the process goes smoothly.
Referrals do go both ways. It’s about who you trust to get the job done. Agents know which title companies work fast and efficiently, and that’s why they might recommend them.
Alston said:
Referrals do go both ways. It’s about who you trust to get the job done. Agents know which title companies work fast and efficiently, and that’s why they might recommend them.
I guess it helps build a good working relationship too?
I don’t get kickbacks from title companies. I have a few I recommend because they’re competent and dependable. No shady dealings, just good service.
Palmer said:
I don’t get kickbacks from title companies. I have a few I recommend because they’re competent and dependable. No shady dealings, just good service.
Split closings sound like a headache. It’s great that you have reliable companies to work with.
Yes and no. RESPA makes kickbacks illegal, but there are workarounds like affiliated business relationships. It’s a loophole that should be illegal.
That’s illegal under RESPA. I don’t get kickbacks. I recommend companies because I trust them, and they do a good job for my clients.
Finley said:
That’s illegal under RESPA. I don’t get kickbacks. I recommend companies because I trust them, and they do a good job for my clients.
Makes sense. I guess it’s more about peace of mind knowing things will go smoothly?
Some agents might have ownership in title companies, but they need to disclose that. Always good to check!
I have a preferred title agent because she can handle some of the most difficult scenarios. It’s not about kickbacks; it’s about knowing the job will get done.
It’s amazing how much shadiness and dishonesty the general public is willing to accept as normal and customary.
Kickbacks are illegal, but in practice, agents work with companies they know will get the job done without hiccups.
Peyton said:
Kickbacks are illegal, but in practice, agents work with companies they know will get the job done without hiccups.
So it’s about familiarity and knowing the process will be smooth?