If PLTA and the various commenting members would get as outraged over wasted money and manhours spent processing cancelled title transactions as they got over the PA Data Call, we'd make some headway.
I'll likely go to my grave still wondering why our industry places little or no value on its prime work product. I am proud of our work. It has value. I kills me to be forced to give it away in fear. Yesterday I fielded a call from a consumer who casually cancelled a transaction because the property has termites. We paid roughly $300 out of pocket plus significant manhours including clerical and expert services. We examined title, resolved problems, prepped documents and were ready to close.
Outsiders just don't understand how often this happens. People think we work on a commission. If the deal doesn't close, we shouldn't get paid. This is not a commission business. We are paid for service rendered and to cover risk. If a transaction doesn't close, well then the services we render are fewer and we haven't taken on insurance risk, so we shouldn't receive our entire compensation. We have, however performed numerous pre-closing services for which we justly ought to be paid. The most outrageous cancellations are the ones in which we identify a title problem which cannot be resolved. We have done our job and protected the lender and the prospective buyer and if the deal falls thru we don't get paid. Doesn't anyone see the conflict that creates for title agents?
Trust me. Any long time reader of this blog knows I have run the gauntlet of charging fees and taking people to court, etc. etc. etc. until I finally realized I was committing agency suicide. Since our trade associations aren't out there leading us on the right path, I walked that walk alone and we suffered for it.
We have to support the industry together. We need leaders who understand. We need leaders who are not afraid.
The law is on our side. All we have to do is step up to the plate.