What to look for in a title agency?

Here are some quick points to remember when looking for a title agency to close your real estate transaction. I'm not trying to be self-serving here but think it is a basic checklist for anyone looking to safely close their transaction at any title agency.

• Length of business; How long have they been in business? Experience level is priceless. We at Eagle have been serving central Ohio for over 30 years with professional, ethical and friendly service.
• Value; Look for a title company that looks for ways to save you money! Compare prices - No Closing Fees, No Junk fees, No Padding; we at Eagle save customers between $400-$800 dollars on most of our closings!
• Independent Agent? - Are they affiliated with their lender, real estate agent or builder? Beware of affiliated business arrangements. They drive cost up and present many "conflicts of interest". Title Agent must be a neutral third party.
• Get it in Writing; Make sure they put estimate of title closing costs in writing. Have them prepare you a preliminary HUD settlement statement. Also, get a good faith estimate in writing from your lender.
• Closing Protection Coverage; It is now Ohio law that you should be offered Closing Protection Coverage. This protects you against possible title agent theft, misappropriation, fraud and any other failure of Licensed Title Agent; get the actual letter sent ahead of time before you close. It should be presented to you on initial contact.
• Survey; Make sure they offer you a survey if purchasing a new property before you close. You should review with your legal counsel before the closing takes place!
• Title Commitment; Make sure they provide the Title Commitment before you close. This is the results of the title examination. It has extremely valuable information regarding the propery that again should be review with your legal counsel before the closing!
• Valid Title Agents License; Check with the Ohio Department of Insurance (ODI) using their agent lookup feature to verify they have a valid Title Insurance Agents license and in good standing with their underwriter.
• Valid Underwriter; Check with their underwriter and make sure they are a valid agent. Make sure underwriter is a highly rated and reputable company.
• E & O Insurance Coverage; Check that they have E & O insurance coverage and make sure you get proof of the current policy.
• Other Important items; Ask about their cutting edge technology; CD-imaging of signed closing papers, website services such as online ordering and consumer information.

Independent Title Agents Matter

Top Reasons to use an Independent Title Agent

• CHOICE - We empower you to make the best choices possible. We suggest you shop and compare 3 different independent title agencies for price, service and convenience. We are confident that you'll like what you see and that you will come out on top!
• CONFLICTS OF INTEREST - We believe that real estate professionals have a fiduciary duty to their client and need to keep their clients best interest in mind. Self-dealing, unfair business practices, anti-competitive business practices, conspiracy to defraud, unjust enrichment and interference with a fiduciary relationship are just a few of the problems. Notwithstanding, we caution, what better way to lock-in business, destroy competition and raise prices without consequences than to incentivize fiduciaries to manipulate their clients about choosing a title company?
• SAVINGS - We don't participate in Affiliated Business Arrangements (AfBAs). This is an active choice we make to better meet your needs and serve you. We do not pay referral fees, inducements or incentives to real estate or lending professionals. Instead, we pass these savings on to our customers.
• AUTONOMY -With freedom of one's action, we are less pressured into doing business with any particular person or company, therefore, customer service, competitive pricing, quality of work and higher standards are always in mind for our customers.
• HONESTY/DUTY- We keep our relationships honest, allowing us to focus on what we do best: looking out for your needs, providing choices and protecting you, our customer. We feel it is a duty and privilege to serve you.
• ALLIANCE - Being a proud member of the Ohio Association of Independent Title Agents. We believe that truly independent title agencies make title insurance costs more competitive, help lower title insurance claims and protect the ultimate consumer from costly real estate related litigation, displacement from their home and horrible inconveniences.
• REPRESENTATION - We believe that you should be represented by legal counsel throughout your transaction.
• PLEDGE - We not only adhere to higher standards of professionalism and integrity but have made a pledge to the consuming public.
• TRANSPARENCY - Since when does it make sense to have the real estate professional examine their own title work? Homebuyers are often completely reliant on a real estate agent for expertise and advice on all aspects of a real estate transaction , including finding a title company, but the real estate agent and lender knowingly places their client in a position of complete vulnerability and then "takes financial advantage" of them by sending them to their in-house title company. A person should never violate Trust for secret profit.
• SAFEGUARDS - We are neutral third parties providing the safeguards, integrity and "checks and balance" to the transaction. It is our position that people involved in controlled business arrangements should have NO involvement with the title agent who is supposed to uncover and disclose to all parties all problems with the transaction.
• TRUTH - We don't believe in the "One Stop Shopping" OSS concept. In-house title agencies are just smoke and mirrors. Even more startling is that consumers are actually told by the real estate associations like RESPRO.ORG that they want OSS and bundled services. If OSS were properly disclosed to consumers we believe that the truth would far outweigh any benefit. OSS removes all the safeguards, eliminates competition, representation and violates the consumers best interest.

New Document Recording - ORC 317.114

Effective July 1, 2009, Ohio Revised Code §317.114 establishes new rules for the recordation of documents in Ohio as follows:

(A) Except as otherwise provided in division (B) of this section, an instrument or document presented for recording to the county recorder shall have been prepared in accordance with all of the following requirements:

(1) Print size not smaller than a computer font size of ten;
(2) Minimum paper size of eight and one-half inches by eleven inches;
(3) Maximum paper size of eight and one-half inches by fourteen inches;
(4) Black or blue ink only;
(5) No use of highlighting;
(6) Margins of one-inch width on each side of each page of the instrument or document;
(7) A margin of one-inch width across the bottom of each page of the instrument or document;
(8) A three-inch margin of blank space across the top of the first page of each instrument or document to accommodate any certification or indorsement of the county engineer, county auditor, or county recorder, as may be required by law, with the right half of that margin being reserved for the indorsement of the county recorder required by section 317.12 of the Revised Code; and
(9) A one and one-half-inch margin across the top of each of the remaining pages of the instrument or document.

The county recorder shall accept for recording an instrument or document that does not conform to the foregoing requirements but shall charge and collect the following additional fees for each such instrument or document: an additional base fee for the recorder's services of ten dollars and a housing trust fund fee of ten dollars, which shall be collected pursuant to section 317.36 of the Revised Code.

(B) This section does not apply to any of the following:
(1) Any document that originates with any court or taxing authority;
(2) Any document authorized to be recorded under section 317.24 of the Revised Code;
(3) Any plat, as defined in section 711.001 of the Revised Code, that is required or authorized by the Revised Code to be recorded;
(4) Any document authorized to be recorded that originates from any state or federal agency;
(5) Any document executed before the effective date of this section.

Closing Protection Coverage - what's that?

Many think they don't need it but you better think twice. Many real estate agents and professionals don't even know what it does or why we as a title agent bug everyone to death to get the required notice signed by all the parties at the beginning of each transaction which is required by law.

Closing Protection Coverage (CPC) was created to protect the consumer directly from the title agent. Simply because of the many title agent defalcations and fraud that happened right here in the state of Ohio and even here locally in Columbus that crushed and financially destroyed many consumers. Unfortunately, there were title agents that forgot to pay off mortgages among other things and then went out of business.

First, let me say that CPC has always been offered to lenders and most lenders have always required it. It wasn't until recently January 1, 2007 that the Ohio legislature put into law that we have to offer it to all parties of a real estate transaction. This includes both the buyers, sellers and the lender. I know, I know, you are thinking, you just want to sale this coverage to make money. No, not at all. Actually, we as the title agent do all the logistical work of creating, collecting, reporting and remitting to our underwriter and never receive one cent.

So, your now thinking so why does he want to sell this so bad? Well, because this is probably one of the best things the lawmakers have done to protect the ultimate consumer from all the fly by night title companies and unscrupulous agents. Actually, in these times, I personally would purchase it no matter where I closed and no matter whether it was a purchase, sale or refinance. The public and the real estate professional think that because there is title insurance involved that they simple don't need it.

The official description of coverage says the following:

The Closing Protection Coverage indemnifies you against the loss of settlement funds resulting from any of the following acts of the Licensed Agent or anyone acting on behalf of the Licensed Agent, subject to certain conditions and exclusions specified in the Closing Protection Coverage Form:

1) Theft, misappropriation, fraud, or any other failure to properly disburse settlement, closing or escrow funds; and 2) Failure to comply with any applicable written closing instructions, when agreed to by the Licensed Agent.

There are just two many things that can go wrong that could effect you as the consumer that could possibly be covered with this insurance. Plus, more importantly it puts the underwriter on the hook for the agents actions.

Still, even today, we have many real estate professionals that advise their clients not to purchase it in order to save the mere $15 dollars if purchasing and $50 if selling a home. They usually say this because they have high regard for our company, maybe because we have been around for 30 years, and we appreciate that, but it won't hurt our feelings one bit if you recommend it, and that advice doesn't do the consumer any good if something happens even beyond our control.

Welcome

One of the main reasons for this blog is to help educate consumers and real estate professionals here in the Columbus Central Ohio marketplace. When I say real estate professionals, I wish to include the following: Real Estate Agents, Lenders, Bankers, Mortgage Brokers, Attorneys and others.

Most consumers are fairly familiar with real estate agents and mortgage people but have little knowledge of the real estate process, title insurance issues and the costs associated with it. I believe that when you are going to make such a big investment like a house you should know everything that will go into the transaction.

Part of the reason is that they typically leave it up to the real estate professionals to take care of everything. This may work well for some but may not always be in the consumers best interest.

It is up to all real estate professionals to help consumers make the best choice when it comes to their entire transaction. Our goal as fiduciaries should be to assist the consumer in making decisions that are best for them. In return, this will lead to long term benefits for the real estate professionals in the form of referrals and repeat business. If your client trusts you they will be willing to tell their friends, family and other business associates about you.

It's time for consumers to learn more about the closing process and take control of their real estate transaction. Consumers, mortgage lenders, real estate and title professionals are invited to add comments and questions that contribute to the overall goal. Thank you for joining us.