Title Company Ethics and Regulations

[Denise White]

Complicated:  Our Closing agent, at a local title company, is the in-law of the Buyer of our home.  I'm the Seller's agent (of course-my home), and the Buyer's Agent for the buyer of our home.  I found out later that the Closer and the Buyers are related, living next door to each other.  Everything was going excellent up to the day before closing.  Very long story...short..the Closer stated to the Buyers/My clients, that we had another offer on our home, and it was no longer available.  We did not close the next day, as scheduled, and the Closing Date Modification expired that day, BUT that does not release the Buyer from the purchase agreement. They went out the next day and put an offer on another home with another agent, of the home for sale.  That other agent never checked in with me to see that I have an Exclusive Buyer's Agreement, and if the Purchase Agreement, on our home was terminated (which is not).   

Not only am I the Realtor working with the title company, but we are clients of the title company (Sellers).  The Closer went around me, to my Buyers (Closer's in-laws), and repeated everything that was said to them, by me as a title client (Seller) and as a Realtor.  I'm trying to figure out where to find information about my rights as a customer/client with the title company, and as a Realtor.  I have emails that the Closer stated she did talk with my Buyers.  

Buyers walked, other Realtor placed a contract on another house, for the Buyers (down the street from ours), Title company employee caused our home to fall out of escrow.  

Thoughts???

[Denise White]

Hi Lydia,

Thanks for taking the time to write.  The escrow closer knew there was going to be a possible back-up offer because I told her.  We were discussing when to extend the closing date, due to our Buyers needing more time to get their home, they were selling, situated.  It was a contingency offer, on our home, stating they needed to sell their home first...which was happening.  Meanwhile, while the closing agent and I were talking, we were trying to coordinate everything...I mentioned that we were probably getting a back-up offer that evening, another Realtor had just called me, and we need to get this sorted quickly so we all have some direction (very normal in our state of Arkansas.  In AR, the only way to terminate a purchase agreement is either by all parties signing a Termination of Contract (agreeing to terminate), or by a Judge.  If a contract date "expires" that does not automatically terminate a contract.  Also, we are required to ask any new buyers/sellers if they have a signed contract with anyone else.  But, in this case, the Realtor did not do due diligence because the day after the closing fell through, she put the buyers under another contract.  Any Realtor should know that if a buyer's escrow did not close, the day before, that there is a very good chance that there is some unfinished business.  The Realtor, sent me a text when I asked her what was going on, and she wrote back that she was aware of the previous day the escrow was cancelled.... Yes, our Brokers are now minimally involved, because I am deciding on an ethics complaint..which I have never done before (licensed in several states).  I want to think about it.  But, as a Seller, we are looking at options.  The bottom line, as far as the title company goes, is that regardless of what was said...should never of been repeated to the Buyers.  Title companies are supposed to be neutral.  I have since looked up information about contacting the insurance commissioner's office.  Thanks again Lydia!