Real estate brokers control their business costs, but don’t shop their client’s title insurance & closing settlement costs?

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Many Colorado licensed real estate brokers / Realtors® will balk at having to spend an additional $15 a year for their state required errors & omissions insurance, pay higher office /desk fees; and will shop their signs, lock boxes and advertising services. So why, do many brokers not care about the cost of their client’s title insurance and closing settlement services, which can possibly save them up to $1500 or more?

When asking brokers about recommending a Title Company and shopping the title and closing services and costs for their clients, their responses are as follows:

“It’s not about costs, it’s about getting good service and making sure the transaction closes smoothly”;
“The difference in cost is minimal to the value of the transaction”;
“I recommend XYZ Title Company because they have a great real estate closer / salesperson”;
“I have an ownership interest in XYZ Title Company and get a dividend check”; or,
“The title rates and closing fees are regulated, there’s not much difference”

To the contrary, many brokers will shop the title insurance and closing services for their personal real estate transactions. However, the real reason brokers don’t shop and compare services and costs when recommending a Title Company to you is because the Division of Real Estate that regulates real estate brokers states that brokers have no legal duty to do so, unless specifically requested by the client.

One would assume, that getting the best price when selling or buying your home, would also include paying reasonable associated closing costs, including your title insurance and closing services. It’s for this reason that was designed to educate and empower consumers with the ability to easily shop, compare and select their Title Company; or clearly request their broker to shop these services and costs.