[WSBARP] Can Realtor Have "In House" Title/Escrow Company?

[Kary Krismer]

I think what you may be remembering is that the Insurance Commissioner 
cracked down on title companies giving things to real estate agents.  
Not sure it was a change in the law as much a change of enforcement 
effort.  This upset me greatly because all I ever got from a title 
company was a mere hotdog.  Little did I know they were giving things of 
value away!

I would say that change occurred about 10 years ago.  It got to the 
point where title companies started charging for cancellation fees on 
title policies, practically unheard of before, and $3.50 for an address 
list of people living in a certain neighborhood.

Somewhat on this topic though, I do remember one office I was associated 
with about that same time decided to obtain an in-house affiliated 
lender.  I remember they were required to have a separate door, and 
maybe a separate address, but I don't know the basis for those 
requirements or if they were even based on actual law or fiction.

Kary L. Krismer
John L. Scott, Inc.
206 723-2148

On 10/21/2019 9:39 AM, MK Henderson wrote:
> I remembered the law changed probably many years ago. It was customary 
> for real estate offices to "refer" clients to an escrow company and 
> receive a kick back but then the law required notice of the process.  
> I found the statute by a google search.  Also, there was a CLE years 
> ago about lawyer's acting as real estate agents and escrow agents and 
> the need to keep the two separate even though you could do both.  It 
> seems like disclosure is the key.
>
> On Mon, Oct 21, 2019 at 9:30 AM Kim Sandher 
> <KSandher at pivotallawgroup.com <mailto:KSandher at pivotallawgroup.com>> 
> wrote:
>
>     Thank you! I found that RESPA section 1024.15 requires disclosure
>     for an affiliated business arrangement, but can’t find anything
>     specific to disclosing in Washington authority. Can I assume
>     that’s where you got the disclosure requirement?
>
>     	
>
>     *Kim Sandher*
>     Attorney at Law
>
>     cid:image001.jpg at 01D33B6F.7E8D8990
>
>     	
>
>     IBM Building
>     1200 5^th Avenue, Suite 1217
>     Seattle, Washington 98101
>     Telephone 206.340.2008
>
>     Direct 206.805.1490
>     Facsimile 206.340.1962
>     www.PivotalLawGroup.com <http://www.pivotallawgroup.com/>
>
>     *From:*wsbarp-bounces at lists.wsbarppt.com
>     <mailto:wsbarp-bounces at lists.wsbarppt.com>
>     [mailto:wsbarp-bounces at lists.wsbarppt.com
>     <mailto:wsbarp-bounces at lists.wsbarppt.com>] *On Behalf Of *MK
>     Henderson
>     *Sent:* Saturday, October 19, 2019 6:47 AM
>     *To:* WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com
>     <mailto:wsbarp at lists.wsbarppt.com>>
>     *Subject:* Re: [WSBARP] Can Realtor Have "In House" Title/Escrow
>     Company?
>
>     Look at RCW 18.44.305. The agent must disclose the relationship
>     and party may chose to close with another company. If they are
>     being required to use in house title/escrow that is wrong.
>
>     On Friday, October 18, 2019, Kim Sandher
>     <KSandher at pivotallawgroup.com
>     <mailto:KSandher at pivotallawgroup.com>> wrote:
>
>         Hi All,
>
>         Would anyone be able to point me to any legal authority that
>         says whether a realtor can or cannot own an “in house”
>         title/escrow company?
>
>         Thank you in advance!
>
>         Kim
>
>         	
>
>         *Kim Sandher*
>         Attorney at Law
>
>         cid:image001.jpg at 01D33B6F.7E8D8990
>
>         	
>
>         IBM Building
>         1200 5^th Avenue, Suite 1217
>         Seattle, Washington 98101
>         Telephone 206.340.2008
>
>         Direct 206.805.1490
>         Facsimile 206.340.1962
>         www.PivotalLawGroup.com <http://www.pivotallawgroup.com/>
>
>
>
>     -- 
>
>     Mary K. Henderson
>
>     Henderson Law Office PLLC
>     1123 Maple Ave SW, Suite 225
>
>     Renton, WA 98057
>
>     206-650-2472
>
>     ***Disclaimer: Please note that RPPT listserv participation is not
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>     and others.***
>
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>
>
> -- 
> Mary K. Henderson
> Henderson Law Office PLLC
> 1123 Maple Ave SW, Suite 225
> Renton, WA 98057
> 206-650-2472
>
> ***Disclaimer: Please note that RPPT listserv participation is not restricted to practicing attorneys and may include non-practicing attorneys, law students, professionals working in related fields, and others.***
>
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