Well, I am impressed.

Anne Anastasi did call back after receiving my message concerning cancellation fees.  She noted that we do have a specific statute in Pennsylvania and wondered how we could address this nationally.  Here's our PA rule:

§ 125.2. Charges required for title reports and others.

 (a)  The issuance without charge of a title report, commitment to insure, guaranteed general search, information certificate or title insurance policy is an illegal rebate and inducement.

 (b)  The charge for the title report, commitment to insure, guaranteed general search or information certificate shall have a reasonable relation to the cost of production, but in no event may it be less than the rate for a minimum title insurance policy as set forth in the rate schedule of the title insurance company filed with the Insurance Department.

 (c)  The provisions of subsection (a) does not preclude the crediting of the amount paid for the title report, commitment to insure or information certificate to the charge or premium for the final policy of title insurance issued on the basis of the title report, commitment to insure or information certificate. 

If we were to charge the rate for a minimum title insurance policy, that would be $420 which, in my view reflects the value of our pre-closing work product in most cases.

We also have TIRBOP rules stating that we SHALL charge a cancellation fee AND the PAR sales agreement includes language stating that the buyer agrees to pay a cancellation fee in TWO places in the sales contract.

With all that muscle, you'd think we could accomplish something, right?  Well, it takes leadership.  Our trade associations, both PLTA and ALTA need to step up to the plate and lead the way.

After recently receiving short shrift from ALTA's Mike Pryor at a PLTI RESPA seminar and several years ago when I submitted an article to ALTA on the subject, I would be pleasantly surprised if ALTA stepped into a leadership role and recognized the work product of its membership as having value and not being afraid of retribution from lenders and Realtors.

We'll see.  Change is the norm and sometimes things change in the right direction.  ;)