Washington State Office of the Insurance Commissioner

Title insurance - New rules

Title insurance is a policy you purchase from a title insurance company when you buy or refinance a home or property. It protects you and your lender from loss if a property ownership dispute occurs. Title insurance companies search some public records, such as liens, claims, deeds, tax records and maps, to determine what it will and will not insure.

Read our fact sheet and the Consumers guide to title insurance and escrow services for more information.

New rules for title companies - effective March 21, 2009

In recent years, there have been widespread allegations that some title companies provide gifts and incentives to real estate agents to buy their customers’ business. Insurers have expressed confusion about what incentives are and are not allowed under title insurance rules.

In response to this confusion, we have developed new rules that clearly outline what can be given to real estate agents. If it’s not specifically listed in the new rules, it is not allowed.

Following is a brief summary of those rules. Please note that many of the summaries use real estate agents as an example, but the rules apply to anyone who is in a position to refer business to a title company. For more information, read the complete rules.

Listing packages

Title companies may provide the following information about a specific piece of property free of charge:

  • The last deed.
  • Current deeds of trust, mortgages and contracts.
  • A map that shows the dimensions and/or location.
  • Restrictive covenants.
  • Tax information
  • Property characteristics, such as the size, number of rooms and year built.

More information is available in the rules (WAC 284-29-210).

Advertising

Title companies can only advertise themselves (not a real estate agent and not a property the agent is trying to sell) and they must pay the standard rate charged to the public. This applies to all forms of advertisement, including newspapers, phone books, the Internet, TV and the radio. Read the rules for details (WAC 284-29-215).

Title companies may give self-promotional items, such as pens and mugs, with their logos on them as long as each item costs less than $5. (WAC 284-29-225)

Trade associations

Each title company may donate up to $1,000 per event, up to three total trade association events per year. Read the rules for details (WAC 284-29-220).

Business entertainment including meals

A title company may provide meals for real estate agents under certain circumstances. These situations and a definition of "meals" are described in the rules (WAC 284-29-230).

Training

Title companies may provide free training on title-related topics and may provide refreshments that cost a maximum of $10 per person. They can provide training on another topic as long as it is open to everyone and the attendees pay to attend. Details are included in the rules (WAC 284-29-235).

Title agents located in real estate offices

Title companies may rent a workspace from a real estate agent if the arrangement is covered in a lease, the rent reflects true market value, the person actually uses the space at least 30 hours each week and he or she pays proportionately for any common fees. More information is included in the rules (WAC 284-29-245).

Donations and memorials

Title companies may donate to registered political action committees. (WAC 284-29-240)

Title companies can provide gifts in the event of a death up to a value of $200. Charitable donations must be made directly to the charity. (WAC 284-29-250)

Other

The rules include a list of other things that are and are not permitted. Read sections 255 and 260 for more information.

Future activities

We are developing new rules that will change the way title insurance rates are regulated. Under the new rules, title companies will have to have rates approved before they use them. They also will have to provide specific information to support their rates. For more information, read the CR-101.

Questions and complaints

More detailed information is included in the rules. Please read them first. If you still have a question or comment, please e-mail us.

If you have a complaint about your title insurance or think an agent is breaking the rules, file a complaint.


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