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Where's the Courtesy?

I'm writing this to vent my irritation at some escrow companies. I know I'll feel much better after I write here, so I want to say up front that there are some first class escrow officers out there, that escrow companies provide a valuable service and that the escrow officers have no say about their company policies etc...

That being said, my most recent closing left a bitter taste. My buyers are purchasing property in another county and the escrow officer asked them if they would like to have a courtesy signing take place at their home. My clients appreciated the courtesy and were given the appointment.

The courtesy signer was a local notary public who wrapped up the signing in 30 minutes, due to the fact that she offered little explanations as to the forms, but mostly directed where signatures or initials were required. On the final HUD statement my clients found an additional charge of $150.00 for the courtesy signing service.

There are two items here that I take issue with:

1. When offering the courtesy, the escrow officer should have explained that it comes with a $150.00 price tag.

2. $150.00 is an outrageous charge, in my opinion, for a 30 minute service. Since the signer was local she did not need to travel.

I can see that the escrow companies like offering this service to their clients. That way they can earn additional money and at the same time save their escrow officers an hour of their time. I admit it saves my clients a 30 minute car drive, but at $150.00 it's hardly a win-win situation.

There's a lot to be said for being able to direct transactions to one's escrow company of choice.

POST SCRIPT: I have contacted the escrow officer and asked her if it was company policy to offer courtesy signings without disclosing the additional cost up front. She told me that they usually disclose the cost, but in that particular instance neglected to inform my client. The escrow officer apologized and promised to see what could be done do to shave off some of the other fees to come close to saving my buyer the $150 on some of the additional escrow costs. I appreciated her candor and her efforts to make things good.

Sandy Nelson
Realtor for Olympia area real estate
www.sandynelsonrealestate.com

Posted by Sandy Nelson Realtor® Olympia Real Estate on 12/27/2007 05:27 PM

Comments (15)

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15 Comments on Where's the Courtesy?

DEC

2007

Amazing I guess they just forgot to mention that it was a little extra. I guess I would pay it for them.

$150.00 is very reasonable price for their services. It is quite bold for you to complain about a service that is being provided as a COUTESY to the borrowers. Not only was it only 30 minutes, but many times these notaries have to take time to print the docs themselves, they have to pay for the gas to and from the meeting from distances you do not know. $150.00 is very reasonable and quite cheap. Maybe your comission for the sale was quite excessive if all you had to do was find the house on the MLS and show it to the client and they write a contract. In some peoples mind that may not be worth the 3% or more that you and your real estate company made for the transaction. As for the fees that a title company charges....i NEVER heard of a title company quoting exact and total fees for their part of a closing until they get the closing docs from the lender. many title companies can provide a preliminary HUD, but it is basically an estimate also.

Maybe you should be more thankful that the loan closed and you will be getting a paycheck. Many realtors aren't that fortunate due to todays mortgage environment.

Sean Allen

Hi Sandy,

I guess courtesy signing and complimentary signing is not the same thing. Now we all know that the client should be informed ahead of time so that they can decide if they want the service and how much it will cost. Thank you for the information.

I worked in escrow for 2 years in California and the company I worked for 1st American Title totally did away with us doing our own signings. It was all about liability I guess and so they brought in a signing company to handle all of the signings. Of course in a pinch we would do them. There was always a charge. It was just part of the closing costs. Now if a client needed to be signed in their home or after hours they always were told up front of ancharge. Without travel $150 is excessive if you ask me. In the market area I worked I always made the copies and had them available for pick up. I would usually quote $50 for each set. If I was you I would have told the EO to eat it since it wasn't disclosed and was explained as a "courtesy" signing.

DEC

2007

Price should always be stated upfront...IMO... I hope you have a great 2008!

Your friend in Charlottesville!

John, I'd like to believe that they just forgot to mention the extra charge.

Sean, I see....as long as I get my paycheck, why care about my clients money?

Leslie, the name "courtesy signing" sure is misleading.

Charles, Agreed! If the price would have been mentioned, no feathers would have been ruffled.

Thanks for letting me vent. I appreciate your comments.

DEC

2007

Wow,

It amazed me to read the unprofessional response of one of the lenders out there. Guess you hit a nerve. Maybe they charge even more than $150! I thought this was a place for folks to learn and grow together, but in my oppinion the response was more of an attack. What a shame.

Since "courtesy" signings aren't a normal escrow cost, the company should have stated it when they offered the service.

This wasn't your normal escrow company, was it?

DEC

2007

Al, I have added a post script to the story. I was able to get the escrow officer to make good with my buyers, and I think everybody is happy. The rules are simple: Costs should be stated up front. Imagine a listing agent asking their sellers if they'd like courtesy advertisements in the New York Times, and at close of escrow adding additional commission charges for it.

Sandy

DEC

2007

From my past experience, if you call the local president of the title company. They may waive and refund the fee if you happen to mention that you are going to try to avoid using this company based on your recent experience. I promise that escrow officer will be talked to and it won't happen to a client of yours again!

Todd,

Thanks for the tip. I'm glad the escrow officer made things good.

Sandy

JAN

2008

Good for you for making that call following up Sandy!

You are right- we are lucky to linve in an area with such top notch service from Escrow professionals. You are probably safe in your trust that it was a simple oversight.

Really, in so many ways, we are in a wonderful place to practice our profession. Keep pushing this- I think it is common courtesy to mention there is an additional charge for additional services.

And I agree whole-heartedly: the term Courtesy Signing is a misnomer. If you were in a restaurant or hotel, the term Courtesy would mean "on the house".

I would figure that your escrow agent assumed that you had been in the business long enough to realize that there is a charge for courtesy signers. She made the mistake of not verifying that with you, and not making certain you understood there was a fee for that service. However, I would say the fee is reasonable and fair; it's also a nice gesture on the part of your escrow officer to offer to shave some of the other fees.

Back "in the day," I would never have charged a notary fee. It was a free service I offered to clients. Today, though, they charge for a Kleenex if they sneeze.

Sarah,

It was an oversight that has fortunately been corrected to every one's satisfaction. As they say: "All's good that ends good."

Elizabeth,

I'm aware that most title companies charge for courtesy signings. This signing was originally to take place at the out of county escrow office. The offer to send a courtesy signer was made by the escrow officer in a phone conversation between her and my buyer. She made the mistake of not verifying that the buyer understood that there would be an additional charge. The appointment was set first thing the following morning. The preliminary HUD statement wasn't emailed until the evening before.

Sandy

JAN

2008

This signing was originally to take place at the out of county escrow office.

Hi Sandy:

Ah, well that puts a different slant on things. Where I work, it's the listing agent who chooses the title and escrow company. OK, it's really supposed to be the seller who selects the companies, but we all know it's the listing agent's decision. As such, when I represent a buyer and get stuck using an out-of-area escrow, I often ask for the documents to be sent to a local office for signing. We are never charged for this. If my buyers received an extra charge for signing at another office, I would demand a refund, too.

Elizabeth,

Here it is also customary for the large escrow companies to offer courtesy signings in one of their offices in another county, free of any additional charge. Now that's what I consider a true courtesy signing. The escrow company the seller (or listing agent) chose, does not have an affiliate office in our county. I was told by the escrow officer that they could have made arrangements with one of our local escrow companies, but that would have cost an additional $180.

Sandy

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