It's an industry law that somewhere someone decided that paying for any kind of title services could wait until the deal closed.
Who made up that "rule"? Firstly, in NJ, the law states that all title services must be paid for - "forgiving" the search fees when the deal doesn't close by the title agency is illegal. It is inducement.
Second, unless you are in the position to carry someone else's credit line, why wouldn't you collect your fee when the search is ordered? A catalog purchase still charges you for the item, even when it is on backorder. . .
Third, refers back to 1. - "we" have allowed this situtation to happen to ourselves. I am always reading posts about XYZ bank or title agency that doesn't pay timely and then like 30 other people are whining about the same company. WHY ARE YOU DOING BUSINESS WITH COMPANIES THAT DON'T PAY?
I have a very good friend who is a banker and real estate investor. He has about 90 rental properties he manages. When his renters are late on their payments, he files with the courts for eviction. No begging for rent or numerous phone calls for weeks trying to get rent.
So, you can either take the hard line or the soft line about getting paid on time. When my clients don't pay me by the agreed date, they get one phone call or email. If it's not sent immediately, then our services stop until the bill is paid. If it is not paid within a week, I file a Theft of Services complaint and let the police deal with it. Some clients have to go on COD in order for us to process the file.
I've retained the good clients for years and years. The bad ones get fired. I don't have time to waste with non-payers.
There's a lot of business out there to be had. It's your choice as to how you run your business.
Wherein lies the problem is those in our community of business who still allow their clients to take advantage of them through the fear of loss of business. If you really are good at what you do, you should be fearless.
Carry on friends. . .
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