Realtors® Promote Competitiveness of Title Insurance Industry

Realtors® have a particular interest in ensuring competitiveness in the title industry as title insurance plays an important role in the real estate transaction, the president of the National Association of Realtors®, Thomas M. Stevens testified today at a hearing before the U.S. House of Representatives Subcommittee on Housing and Community Opportunity.

Real estate professionals assist in nearly all aspects of the home purchase transaction by serving as a valuable source of information and offering their expertise to both first-time and experienced home buyers. When real estate agents, for example, recommend a title company, they know their reputation and livelihood is on the line. Experience, trust, reliability and a commitment to providing quality service are critical to the recommendation. “Realtors® will recommend the provider that they believe will offer the best experience for their client,” said Stevens in regards to choosing a title insurance company.

“The Realtors®’ goal is to build a customer for life and their reputation rests on making the transaction a smooth one rather than protecting an affiliate business arrangement.”“There is no do-it-yourself way to issue title insurance,” said Stevens. “Purchasing a home requires weeks, if not one or two months, of work and there is tremendous liability at stake for all parties.”

Because of the nature of real estate transactions, NAR is committed to promoting competitiveness in any and all sectors of the real estate services industry.Stevens said, “NAR takes seriously any perception that illegal kickback schemes may occur in the real estate transaction. Real estate professionals want to see rogue companies or individuals who engage in unethical practices removed from the marketplace quickly.”NAR pledges to work with the U.S. Department of Housing and Urban Development on educating Realtors® on how to recognize a sham mortgage or title company. NAR encourages competition in real estate services, and ethical standards, by providing ongoing educational resources to its members through a comprehensive Real Estate Settlement Procedures Act awareness campaign, online seminars, training sessions at meetings, and the Realtors Code of Ethics training.