In a recent Wall Street Journal, James R. Hagerty writes an article entitled “Title-Insurer Fees Draw Scrutiny.” From my interpretation and reading in between the lines, the essay encouraged two particular points.

First, Mr. Hagerty comments on the fact that the US title-insurance industry faces increasing pressure regarding the fees associated with title insurance.  The article purports that for the consumer title insurance remains a mysterious fee, ranging in price from a few hundred dollars to several thousand dollars.  Simply, the Wall Street report maintains that some sort of regulation appears to be missing from title companies to monitor possible kick-backs, as well as any other forms of financial impropriety.

Second, the newspaper author outlines some tips recommended by Jack Guttentag, a finance professor emeritus at Wharton Business School.   Essentially, this man of scholarship advises that the consumer who either is buying or refinancing a home should educate him or herself about the real estate process and to notify the other parties, such as the real estate agent and lender, that he or she will select his or her own title insurer.

While the article highlights the pros and cons about formal regulation, it is my opinion it lacks substance about the integrity of the real estate industry.

I believe it is important to educate the consumer wisely about each part of the real estate process, including the participation of the assigned title company and any fees associated with any specific transaction.  Colorado Springs Realtors of the Selley Group absolutely discourage collusion with any title company.  And as for kick-backs or other forms of financial incentives, the Selley Group does not accept any sort of bribe like this.

We offer the consumer more than one option for the use of a title company.  We also educate our buyers, sellers and investors about the ever-changing nature of the industry during these financially recessive times. 

Personally, I totally agree that the consumer should have increased knowledge about title companies and their roles regarding the real estate process.  But quite frankly, it is difficult to get transactions to a closed status when consumers randomly pick and choose their providers without adequate knowledge or regard for the dynamics of the local Colorado Springs Real Estate market, including real estate agents, lenders, title companies, appraisers, contractors, and many other participants, and how they professionally interact to bring a contract to closing.

When regulation becomes the Obama standard for title companies, I’m concerned about the future trickle-down effect upon every provider within the real estate industry, including Colorado Springs Realtors.  We must not dismiss the noteworthy precepts of capitalism and free enterprise.  From my experience, title companies are competing across the board ethically and fairly.  These types of businesses do not fall categorically within the Wall Street abuses that we hear about daily on cable news.  Title companies are also concerned about providing optimum service to the customer while watching the bottom line.

Erroneous regulation is the last thing we need during this recovery… Wouldn’t you agree?

Please click on to www.cheriseselley.com for more information from the perspective of an Elite 25 Colorado Springs Realtor.