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Source of Title Blog

Licensing Sales Reps in California
by Robert Franco | 2007/07/30 |

California S.B. 133, sponsored by the California Land Title Association, will require title insurance sales representatives to be licensed, if it is passed. I was a bit surprised to hear that this bill was pending - I thought sales reps were already required to be licensed. Apparently California, and New York, are just now catching up to many other states.

"We need clarification of the law given the uncertainty title companies face in terms of what is prohibited marketing behavior," said Mark Bogetich, a CLTA spokesman. "That may sound strange, but the law right now is mostly gray areas, meaning companies don't have clear guidelines as to what they can and can't do in terms of marketing activities. That leads to situations where companies get fined and publicly accused of violating 'kickback' laws."

If California is able to provide clear direction to the licensed sales reps, it may help clean up some of the problems. The real problem, which seems to be common across the country, is that the regulations are a bit vague. They are open to interpretation and they aren't "officially" interpreted until someone is accused of violating them. The CLTA is quite correct... those violations are then presented publicly and it tarnishes the reputation of the industry.

Licensing sales reps is a good idea and it is nice to see the CLTA taking the lead on this bill.

Robert A. Franco

Source of Title Blog ::


Categories: California Legislation, Title Industry

339 words | 3577 views | 2 comments | log in or register to post a comment

Be careful what you wish for here. ...
Be careful what you wish for here. Look at this carefully: a title agent probably pays for the Rep's license. The Rep goes out and is successful on Agent's behalf. The Rep has her/his own license and x number of files. Underwriter hears about Rep and gives Rep his own agency.

Now, getting an agency in California isn't so easy, but most other states it is. It's not clear what I get out of having my Rep licensed. It's not clear what the public gets out of it. It sure does make things easier for others, though.
by John Povejsil | 2007/07/30 | log in or register to post a reply

The sales reps do not have the same...
The sales reps do not have the same kind of license as a title agent. At least, that is the way it works here. The sales rep has a title insurance sales license, which permits them to quote rates. They cannot sign commitments and title policies, to my knowledge.

Also, it is not likely that sales reps would make good title agents. The two jobs require very different skill sets. I don't know that an underwriter would be willing to help a sales rep open their own office without the necessary title and escrow experience.

There would be more danger in your scenario if it were a licensed title agent, rather than a sales rep. However, many title offices have more than one licensed agent.

Furthermore, the license is only a small part of opening your own agency. It also takes a large investment of capital and much more time. Not everyone would even want to do such a thing.
by Robert Franco | 2007/07/30 | log in or register to post a reply
Source of Title Blog

Robert A. FrancoThe focus of this blog will be on sharing my thoughts and concerns related to the small title agents and abstractors. The industry has changed dramatically over the past ten years and I believe that we are just seeing the beginning. As the evolution continues, what will become of the many small independent title professionals who have long been the cornerstone of the industry?

Robert A. Franco



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