How Does The Title Company know how much money each agent gets for commission in your real estate transaction? Surely they ask to see the listing agreement you signed. They must ask to see office policy or some sort of written statement as to how much the Selling Office gets paid? Nope, the title company simply asks the Listing Agent, not the Broker in Charge but the Listing agent, and what ever this listing agent verbally says that the commission is - then that is what the Title Company charges the Seller.
You would hope that the Seller will look at the settlement statement before closing and that if they do not agree for some reason that they would simply call the agent or the title company and complain. However, you can see the room for error here. The agent just says what the commission is and the title company requires No Proof of this.
The title company simply ensures your legal description. They often times give out too many document to different parties to a transaction and expose your business, they do not ensure your safety or that your home or property is habitable in ANY way. The Title company does not ensure acreage size, so Make sure your Legal is right for the acreage you think you are buying. And when you have future trouble and need copies of documents in your transaction, NEVER assume that the title company has these documents or that they will give these document to you. The Title Company SHOULD have a copy of EVERYTHING that is in the Realtor's file, that way in the future, when something goes wrong and the Realtor forgets what happened or what they told you than you have a 3rd party to the transaction that is unbiased and really is looking out for the consumer.
But what really happens is that the Realtor's file is theirs, and if the Title Company really does have proof of what you need then they will most often NOT choose you. You do not represent Repeat Business, the Local Realtor or Franchise Does, therefore they Just Do Not Have a Record of that. When in Fact they Do. And if your Attorney requests the records they will get the same story however the twist being the file will be "cleaned up". There are little notes on faxes, there are many little tidbits that prove things happened or were said during a real estate transaction that really is in the Title Companies File. Should they choose Your Side, they are a wealth of information and do offer some protection.
The Title Company is NOT required to keep a copy of a home inspection or a Statement of Why a Deal Failed. This is VERY WRONG.. This is one more thing in YOUR real estate transaction that could easily be put into place to protect you but the powers that be are simply NOT looking out for your best interest in your real estate transaction.
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