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Title Companies Can No Longer Provide Necessary Information in CA?

I heard some little rumor about this today and now, there it is in my email....Gulp, it's true! Here it is, straight from theCALIFORNIA ASSOCIATION OF REALTORS®

"TITLE COMPANIES TRIM DOWN PROPERTY PROFILES IN RESPONSE TO DEPARTMENT OF INSURANCE LETTER

Effective immediately, title companies may be eliminating much of the information they provide on property profiles. The California Department of Insurance recently issued a letter taking the position that title companies may only give the following information on property profiles:

Names of owners of record of a specified real property;

Description of real property; and

Property characteristics as defined under section 408.3 of the California Revenue and Taxation Code, which means year of construction of improvements, square footage, number of bedrooms and bathrooms, number of units, acreage, and other attributes or amenities (such as swimming pools, views, zoning classification or restrictions, and use code designations)."

Personally, I am fine in going without the lunches and some of the other cool perks that the title companies helped us with before SB 113 but now Realotrs(r) will be without additional tools that HELP THEIR CLIENTS.

No more recorded deeds to establish a chain of title?
No more comparable sales to help establish a value?
No more school, neighborhood, community information?
No more tax bills?

I for one can not believe this. Again, I agree that it was a bit out of control but agents and their clients have come to depend on these tools to help properly price and get the LEGAL information for properties.

They can't give it for free? Let me see if I have it straight. They can no longer give us the information we need to better serve the client who will ORDER AND PAY FOR the title insurance during escrow?

It is like me saying to a buyer, "I am sorry, I can no longer show you houses for free". HOW DO WE GET TO THE END IF THERE IS NO PLACE TO START?

Please don't get me wrong, you rarely see a vent or a rant of a blog from me but it is so costly to be a good real estate agent these days and the little help in getting information from the title companies that will get the order makes sense!

Agents in other states, I am curious. Do your title companies provide you with this information for no charge?

Total Bummer

Posted by Cristal Drake, Realtor Fullerton Real Estate on 07/01/2009 10:48 PM

Comments (12)

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Originally posted at: Cristal Drake's Fullerton Area Real Estate Blog: Title Companies Can No Longer Provide Necessary Information in CA?

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12 Comments on Title Companies Can No Longer Provide Necessary Information in CA?

JUL

Our title companies can no longer give us perks but they can still provide help with tax records, deed restrictions etc. What they can't help you with doesn't even make sense. It seems to me most of that would just be doing their job.

I have not seen a real change here yet, but I am going to check with my closer tomorrow just to be sure

Thanks Marchel, I guess that is my point. They can no longer provide us information that we need to serve the client who is in the end paying for the title report? IT IS NOT FREE OF CHARGE, they will get paid. I don't understand it.

It would be like me telling a client, "sorry, I can't show you a property for free?" It is not free! I will get paid at some point if I do my job right! Infact, I think I need to go back and add these points!

I'm sure there is something they can do they just have to play by the rules. Here in Texas I'm always trying to go the extra mile for my customers by providing them with the tools they need to bring in more business. I don't believe in doing anything not above board, but my nick name was loop hole in college because I could always find a legal way to a situation after people told me it was not allowed. Call our First American Team they are the best and bring with them the tools you might need. If that does not work call me and I will see what I can come up with and share it with my brothers in Cali! P-53 has been a huge problem regarding a lot of these things, but we find ways that are always legal to help and agent with out giving them money! We like them to get there money once they have closed with us on that transaction we help on! Keep us in mind if your ever looking to send a customer our way!

JUL

Thanks Kevin! Nate Call and jessica are great! This bomb was just dropped today...out of the clear blue sky. The other perks went away at the beginning of the year. I was fine with that but everyone is scared to do anything because all the CA rules are still so unclear. Thanks for your offer to help and you got it!

Most of the last four items you mentioned are in the county parcel records. I was a Realtor in CA and when I moved to WA , the first time I asked the title company for a "farm package" and labels they were almost laughing. They do almost nothing here for us. Our property profile has only the info that is available online at our county website. One of the most frustrating things for me in no mortgage information that is reliable.

Now you are really forced to order the prelim at the time of listing to know what is going on with the property.

It really upsets me. As a short sale agent, I really needed to have the loan info. Now I get nothing that zillow can't give me. I pulled title and it was worthless!

Here's what is on www.titleprofile.com:

ATTENTION CALIFORNIA REAL ESTATE PROFESSIONALS!

Special CA-SB 133 Message

LPS Data Services understands the importance of compliant products so we have the following changes on July 1, 2009 to comply with the specified guidelines of CA-SB 133.

The Title company logo on every page of the profile
Only Assessor data in the Profiles & Farms
Bar Codes, Carrier Routes, Phone filter, Mail Merge and Print Portal have been removed from the Farm Utility. Escrow Profile has been discontinued. AVM Reports have been removed.

We have created affordable lead solutions.
Please visit www.AgentPro247.com or www.LoanPro247.com

Sandra, I could imagine how that went. I am with you though, the current mortgage and the chain of recordings, NOD's etc....is what I really need.

Amiri, Thanks for the additional information. It looks the same as what I pulled. Funny, it read that it had nothing to do with CA-SB 133...hmmm...

Today will be interesting...Thanks for stopping by!

Crystal, I'd be ranting too and it honestly doesn't make any sense to do that. Maybe the information that was added will help you.

JUL

Good News!

July 7, 2009

Dear C.A.R. Member:

We have good news to report: Property profiles again may be provided to you by title companies. As you may have heard, the California Dept. of Insurance (CDI)

issued a letter June 12 that was unclear in this respect. C.A.R.'s Governmental Affairs Dept. met with the Dept. of Insurance on July 2 and expressed concern about the interpretation of the June 12 letter and its impact on the market. The CDI said they did not intend their letter to be interpreted to prohibit property profiles, and agreed to look at the matter, recognizing the urgency and the need for immediate action. Clarification was received today. View a copy of C.A.R.'s letter to the Dept. of Insurance here.

We are pleased that the Dept. of Insurance is so responsive to industry needs, particularly when it results in tangible benefits to consumers, such as detecting fraud and providing valuable information about the title when taking listings and servicing buyers and sellers.

Yesterday's letter makes it clear that the CDI's chief deputy "did not intend for my June 12 letter to be interpreted as a call for title insurers to change their business practices." It goes on to say that any conduct must continue to be within existing law and does not mean that "anything goes". However, the letter is clear that the department will not take enforcement action against title insurers for distributing information about properties in the manner that they did immediately prior to June 12. The CDI will be proceeding with possible regulations in a manner that will not result in continued market disruption. C.A.R. will continue to be vigilant and protect your interests. We will be proactively monitoring this process as it goes forward and will inform you immediately of any changes.

Sincerely,

Jim Liptak

2009 President

CALIFORNIA ASSOCIATION OF REALTORS®