Comment on Special report: Real estate brokers’ ties with title insurers might cost Colorado consumers

Special report: Real estate brokers’ ties with title insurers might cost Colorado consumers

Real estate agents in Colorado are required both to disclose to their clients whether they have a financial interest in the title company they are recommending in a home sale and to register that affiliation with regulators. The reason for the safeguards is to ensure that consumers are aware of these profit-sharing relationships and have the opportunity to choose a title company for themselves. But a Denver Post review of more than 2,200 Colorado home sales in the past year involving about a dozen of the state’s largest affiliated business arrangements found that the title work mostly stayed within those partnerships. Three-quarters retained at least 90 percent of the transactions they controlled, and three of them were involved in all of their real estate deals, The Post found. The findings indicate that some real estate agents — it is not clear how many — intentionally steer business to their title-company partners, a practice regulators sought to curtail a decade ago.

 

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