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New Trend in Real Estate: Fly By Night Title Companies a growing trend.

We have a habit of placing into our offers that either our buyer or seller we represent will select the Title Company to handle our transaction.

We`ve been working with the same Title Company for 7 years.

It`s been my belief for the past 2 years that too many Title companies have decided to "Open Shop" with an entirely different agenda!

I`ve dealt with Mortgage Brokers who have insisted we use these "Fly by Night Title Companies" which is a direct conflict of interest and many times "Junk fee`s" mysteriously are tacked on for no reason,except to line the pocket of the Mortgage Broker and these title companies.It`s amazing to see who`s interest they represent! protecting?

Yesterday, we ran into a situation where we closed on a transaction in Port Saint Lucie last week. We represented the Seller, in most area`s of Florida as well as the rest of the country, the seller selects Title Companies. The agent representing the buyer decided to use their Title Company to hold escrow which is their right. The escrow check was for $3000, a check was sent to our Title Company at closing and everything went well, except the Tile Companies check went NSF!

The attorney called the other Title Company and was told that another check would be FedEx the next day, again nothing. We called the Broker of the Buyers agent to let them know what transpired, believing it of importance,after all, if they`re using this company to hold escrow it`s very important to insure their clients deposits are safe!

We were attacked by the Broker who told us the Title Agent and the Broker were great friends and her friend would make good on all monies owed! I asked her how long has her "Friend" been in business only to be told she opened 6 months ago!

Yesterday the title company closed down and went out of business without notifying anyone!So much for being great friends. Forget the legalities involved or the State Laws broken, this Title Company is guilty of co-mingling fee`s which is
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August 08 2007 - US

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I'm not aware of any new title companies in our area, but I agree the proper title company is very important.

We have one that we refuse to deal with, not because of solvency concerns, but because of incompetence and not handling claims properly.
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August 08 2007
Profile picture for Alan May
Real Estate Agent
Contributions: 4051
Florida is a bit of the "wild west" when it comes to title... there's a title company on every corner, and each of them run differently. And if there's a major hurricane, anywhere in the area... closing can be legitimately delayed. That can wreak havoc with the buy/sell domino effect.

I don't know how you guys do it.
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August 08 2007
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Charlie Mader, "chasmader"

San Francisco, USA

Real Estate Agent

View my 1 listings

Contributions: 333
A good Title/Escow Officer (it's done together in N. California) can make or break a difficult transaction. It's also the Officer, not the company's reputation you most interested in as these folks, like us, are independant contractors.
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August 08 2007
I would try and find out who this Title Comany was an Agent for i.e. Stewart, First American and what not and take this issue up with them! I am sure they would not be happy to learn that one of their Agents was insolvent. If it turns out it was either a Stweart or First American Agent, let me know and I can probably get a name of someone in there Corporate office to speak to.
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August 09 2007
Matt,
Thats why a lien has been filed..
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August 09 2007
 

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