Flipping Rich

I actually find this news late, having read it last week at behindthemortgage.com. However a few people have asked me about it since I work for Coldwell Banker Burnet

Now, I am sure there is all kind of information that is not getting reported, but from what I have read, it seems a little frivolous.  And I should also say, I work for Coldwell Banker Burnet as a realtor, but that does not mean I have any reason to defend them on this. We are independent contractors and NO, I am not offered any incentive for making the following statements.

However, the lawsuit suggests that agents are given kickbacks or incentives to use Burnet Title, and affiliated companies.  I for one have never been offered any incentive for doing this, and I use Burnet Title almost exclusively.  Here is why.  Burnet Title happens to have a closing agent that I have worked with since the beginning of my career. She is the best hands down.  My allegiance is to her and chances are damn strong if she leaves BT, Ill follow her for service (Ingrid are you listening?). In the end however, I have never gotten any benefit other than great service for using Burnet Title.

The other thing is this. I do not know about competitive rates, to be honest I have not checked on them in a few years. But I had in the past and the rates were comparable to Edina Realty Title.

Also we as agents are required to have clients sign a full disclosure of “affiliated business arrangement”.  This states the related companies to Coldwell Banker Burnet, AND the FEES.  I cannot speak for other offices, but our office will not accept purchase agreements being turned in without that document.  So really, fees are disclosed early on in the process.

Now the Star Tribune also reports:

The suit claims that the only disclosure Coldwell Banker Burnet makes that describes its relationship with Burnet Title is an affiliated-business disclosure that satisfies the minimum requirements of the Real Estate Settlement Procedures Act but “doesn’t satisfy the greater obligations of a fiduciary … to fully disclose all material facts of which it is aware.”

 

Okay if it satisfies the law, whats the problem?  I should also add, I dont think I have ever had anyone ever care to read this document word for word.  There is tons o’ paperwork in a real estate transaction.  Yes, we have a fiduciary duty to our clients. Here is a tip, if you want a discount broker and discount services, go with a discount broker and service provider. PERIOD.

I use Burnet Title because of one person, and the fact that I know my deal will close, without a hitch, and if there is a problem on the title end, Ill know about it WAY in advance.  Once you have a deal that the other side cant close or something comes up in the last minute you will be cautious, and I call that a fiduciary duty. Because once those moving trucks are loaded up, and the deal cant close, you are hosed!

If you go to the Best Steak House and expect a Manny’s steak… its just the way it goes folks.