RESPA Rules on Agents

A home sale cannot be conditioned on the use of a specific

title insurance company. Violators can face stiff penalties.
| MARCH 2013 | BY PHILLIP L. SCHULMAN

Its not unusual for a listing agent to have a favorite closing agent and
want the buyer to close the transaction using that agent, along with
the agents title insurance and settlement services. What many
practitioners dont realize, however, is that Section 9 of the Real
Estate Settlement Procedures Act prohibits sellers from conditioning
the home sale on the use of a specific title insurance company, and in
fact violators can be subject to penalties, with the most -typical being
a fine of up to three times the amount of the title insurance fee.