Title company does not want to do closings under 100 K

[Joe S.]

Title company does not want to do closings under 100 K….(San Antonio area)

So I have a title company that I have used almost exclusively for the past eight years and have given them tons of business and referrals. I realize they’re not the only title company out there it’s just they’re not too far from where I live and once you find something that works you just keep working it.

We sent in a contract yesterday and they sent word that due to a lot of business that they do not want to accept  closings less than 100 K. Keep in mind that they are able to make two escrow fees/closings off of one property, because we typically either resell the property or refinance the property after we fix it up. The resale or the refinance is typically way over 100,000. Most of the business I bring them is over 100,000 on the front in as well.

Is this sort of thing common with title companies to get a lot of business and then get a bit cocky? The thing is if we have to change title companies for small fry closings I will take all of my business to the title company that does small fry closings and not just hand-deliver larger files to the cocky title company and then deliver smaller closings to a hungry workable title company.

Has anyone experienced something like this?

[Owen Dashner]

That is a stupid policy.  I am part owner of a title company - they still make closing fees on smaller size deals plus they also make money on title insurance.  Poor business practice in my opinion.  Small deals still keep the lights on.