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Abstract: 

Purchasing a new house is one of the most important investments in the lives of many people. The closing costs are a small part of the purchase price, and title insurance is generally a small portion of the closing costs, particularly in comparison to the commission to the real estate broker. A number of decisions are usually made for both the buyer and the seller by the other participants in the closing, and the buyer, who usually pays for the title insurance, will take the suggestion of his lawyer, or the broker, or even a builder, as to which title agent to use. The buyer may not even be aware that there is a choice of title agents or some comparison shopping might produce $1,000 or more in savings. “They all cost about the same” is commonly heard. But perhaps this refrain is not as true as it once was because the lawyer, or the broker, or the builder making the recommendation may actually have a stake in which title agent and which title insurance are used. An increasing number of kickback arrangements are being found in many states, and consumers are losing because of these schemes, some of which are legal because of insufficient regulation, or effectively legal because of nonexistent enforcement.

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