Title Firm Sees Clash in Federal, State Real Estate Rules

The thrust of the state insurance commissioner’s allegations [“Progressive Title Settles Agent-Kickback Case,” Nov. 16] are that when Fred Sands Realtors represents a client that buys or sells property through them and utilizes the services of Progressive Title, that Fred Sands Realtors was offering a $500 savings to its customers in each transaction.

The insurance commissioner’s opinion is that as a regulated industry, Progressive Title through Fred Sands Realtors was not free to provide this savings to customers since it might create an unfair playing field for Progressive’s competitors.

However, the federal government under HUD’s Real Estate Settlement Procedures Act provides for consumer discounts for what is called “bundling of services” and encourages programs that reduce the cost of home ownership.

Progressive Title and the insurance commissioner respectfully disagree on whether the law permits this $500 savings to be passed on to consumers. Progressive has reserved its right to have this issue resolved by a neutral court of law.

If, in fact, the law prohibits these savings in closing costs to be passed on to buyers and sellers, then that law needs to be changed; to find otherwise is to stand logic on its head. In the interim, until this matter is finally resolved, Progressive Title has agreed that it will not allow its brokerage affiliate to offer this savings to home buyers and sellers.

SHERRY BORKGREN

County Manager

Progressive Title Co.

Burbank