Saving You Money For Life

A story out of Washington State has brought to light a little known practice in the real estate market that may well be costing consumers money. A report issued by the state’s Insurance Commissioner said that Washington title insurance companies are wining and dining real estate agents, lenders and builders at the expense of home buyers. Title insurance is a relatively minor part of mortgage closing costs, but still often amounts to hundreds, if not thousands of dollars. State law allows an expenditure of $25 per year for this sort of business solicitation.

The Commissioner’s 10-month investigation looked at 11 major companies doing business in the Seattle area. The worst offender was First American Title Insurance Company, which subsidized builder and real estate agent advertising, including more than $23,000 for a single King County real estate agent. The company provided gifts, food and drink, event tickets, ski trips and outings, including an agent’s $2,000 season tickets for University of Washington football games and a $7,000 “symposium” aboard a boat.

“Some of the companies on the lower end of the scale committed in the neighborhood of 100 violations during the 18-month period under review,” the report said. “First American easily surpassed those numbers on a monthly basis.”

Thomas Hartman, First American’s Northwest regional vice president, said in a written response to the Commissioner’s report that his company has, over the past several years, “consistently sought clarity and uniform enforcement of the rules within our industry.”

New regulations are pending.

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