You'll love this e-mail I got on Friday.
"Paula just called regarding this file. It is on hold but they want to close in 2 weeks. She said she cannot afford to have this person charged if the appraisal would come in low. She wanted to know if we would waive the fee for cancellation. I told her that I did not think that would be an option. We bill $300 for cancellations. She then said that she does not want to but she would go ahead and have REDACTED do the closing unless she hears from you concerning the same."
I find it fascinating that Paula would not only expect us to work for free but to pay for the privilege as well. Sure we'd love to work really hard getting this file ready to close by month end - perhaps setting aside other files to make that happen - and pay at least $200 out of pocket to get an abstract and lien letters while getting the job done. We can afford to do that if the appraisal would come in low, why not? FOR HEAVENS SAKE.....
This is the real life cancellation issue at work. it's not so much leveling the playing field as it is part of why title agents charge consumers so much. They are expected to do lots of free work AND pay out of pocket while doing so. If consumers - rightly - understood that title examinations are services rendered for which payment is due, then all consumers might enjoy a price break.
This is also about the title industry - mainly agents - facing the fact that the work product - abstract and examination boiled into a title insurance commitment - has value and should not be given away for free. Have alittle self-respect. Stop giving it away and maybe you can pay the abstractors, too!
The Pennsylvania Association of Realtors sales agreement contains two clauses in which the homebuyer agrees to pay for title cancellation. It's on this basis combined with the mandatory cancellation fee in TIRBOP that I take a hard line and stand my ground in these circumstances.
I let this deal go to another agency. That's my business decision. Since we are regulated in PA and cancellation fees are part of that structure and I absolutely consider free work a "thing of value", I keep singing this tune.
Just thought I'd sing it in your direction today. ;)
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