To:   Colorado Division of Real Estate,
         Colorado Real Estate Commission &
         Board of Mortgage Loan Originators
         1560 Broadway, Suite 925  
         Denver, CO 80202    

 
 
Re:  Complaint Letter – The Business of Title Insurance and Closing Services
      

To Whom It May Concern:   

The purpose of this letter is to voice my concerns about real estate professionals (i.e., licensed real estate brokers and mortgage loan originators) that have no duties of advocacy, fidelity and loyalty in representing their client’s best interest when recommending a title company for their client’s real estate transaction. 

Until today, I was under a false belief and expectation that my real estate professional would automatically be looking out for my best interests, inclusive of their recommendation of a title company.  I also learned that is the consumer’s ultimate responsibility to shop and select the title company for their title insurance and closing services, rather than my real estate professional.  Furthermore, I understand that our regulatory environment does not require title companies to possess any form business insurance (i.e., fidelity, crime, errors & omissions) that would protect my money and safe guard my real estate transaction.  The combination of these facts cause me grave concerns.

Whether selling, buying or refinancing one’s home, a real estate transaction is a major financial investment and consumers expect their money and transaction to be sufficiently protected.  Such an important recommendation by a real estate professional must be reliable and encompass the duties of advocacy, fidelity and loyalty in representing their client’s best interest and a mere and unsupported recommendation of a title company is totally unacceptable.  Consumers should not be misled in their beliefs and expectations through a lack of poor guidance and/or communications by their real estate professional. 

I strongly believe that if a licensed real estate professional provides a recommendation of a title company, such recommendation must; 1) be reliable and encompass the duties of advocacy, fidelity and loyalty in representing their client’s overall best interests inclusive of services, protections and cost.  Or, the real estate professional must clearly inform their client that they cannot provide such a recommendation and that the consumer must take on the responsibility of researching and selecting the title company for their real estate transaction.  

The Colorado Division of Real Estate, Colorado Real Estate Commission and the Board of Mortgage Loan Originators should either make their licensees accountable when providing a recommendation of a title company, or instruct their licensee to clearly inform consumers of their responsibility to shop the services, protections and costs when selecting a title company for their real estate transaction.

Respectfully,