Landing in Hot Water

When I took a new listing today, one of the documents that the sellers signed was an Affiliated Business Arrangement disclosure. Since Coldwell Banker is a large company, and our parent company owns other affiliates, it is important that our clients know that they don't need to choose any of these companies in order to work with us.

RESPA is an abbreviation for the Real Estate Settlement Procedures Act and state insurance commissioners are citing Title companies and brokerages all over the country for violations of this law. Recently, Washington State’s insurance commissioner, Mike Kreidler, issued a notice of hearing to Stewart Title, seeking almost two million dollars for its alleged violations of the insurance law. Kreidler stated that the alleged violations were discovered during an investigation this summer and total thousands of dollars in illegal inducements paid to real estate agents, brokers, and agencies.
State law prohibits title insurers from giving anything in excess of $25 per person, in any 12-month period, as an inducement or reward in connection with the placement of title insurance business.
Among the violations are advertising costs for real estate agents, brokers and agencies, “Desk fees” (These hefty monthly payments to real estate agencies, some exceeding $1,000, are paid ostensibly for renting desk space, that often sits vacant.)real estate agency golf tournament sponsorship, banquet and refreshments expenses, auction donations, and gifts...They are really in hot water!