Are Title Insurers Gouging Buyers, Sellers?

Seattle Post-Intelligencer (03/28/08); Cohen, Aubrey
A homeowner in Puyallup, Wash., filed a lawsuit in U.S. District Court in Tacoma earlier this month that accuses title insurance companies of colluding illegally to inflate the cost of title insurance. The litigation, which seeks class-action status, says real estate agents, lenders and builders are making the decision for home buyers and sellers on which company to use and adds that some large real estate brokerages are affiliated with title insurers and keep a share of the profits. "Title insurance companies have expressly or passively agreed not to compete based on the rates charged consumers," says Seattle lawyer Steve Berman, who filed the lawsuit on behalf of homeowner Dawn Sorensen. Fidelity National, First American Corp., LandAmerica Financial Group and Stewart Title Guarantee Co. are named in the suit.