What would you do if you knew: That the title agent is WILLFULLY and INTENTIONALLY holding money from the buyer for transfer taxes and stamps "just in case" the deed gets rejected?

I was of the impression with the new rules governing the current rendition of the HUD-1 that all fees for transfer taxes and stamps had to be EXACT? Perhaps I misundersood! In the instant case the seller's title agent is insisting that the buyer be made to pay a sum of money for "possible" transfer taxes that may be applicable. Because the GFE did not disclose these "possible" fees, the lender has had to do a GFE credit on the HUD. Once the deed is on record then the funds will be returned to the BUYER!! But, the LENDER is the one who has to give the GFE credit. A willful violation by the title agent of RESPA rules that, at least based on discussion I had with the title agent, is the normal way in which this agency does business. (a pattern of violations) Despite the fact that the title agent was informed time and again that the "possible" fees were not applicable they would not back down.
WHAT WOULD YOU DO