The Pressure on an “independent” title insurance company in our local market

Most title insurance companies in our local market are ABA’s, or “Affiliated Business Arrangements”.  These companies are formed for the sole purpose of directly compensating real estate professionals for the referral of business. Many of the business arrangements they form are in direct violation of the Real Estate Settlement Procedures Act (RESPA). Therefore, most title insurance companies in our local market are operating illegally. This widespread practice has put pressure on all title insurance agents to either form similar arrangements or to lose out on the business. The founder of our title company, Fran Gaspari, started the company with the premise that we always remain “independent” and that we earn our business the right way, not pay for it. Anything that prevents a buyer from independently choosing a title insurance provider based on service and not compensation is controlled business and hinders the necessity of fair competition in the marketplace. Patriot Land Transfer, Inc. is often approached by real estate professionals and asked to form business arrangements for referrals, however we continue to honor our founder and take great pride in the fact that our business is earned transparently and organically by providing consumers exactly what they deserve: the best closing experience possible.  

RESPA Statute:

Links to additional information:

Consumer Finance Protection Bureau(CFPB):

National association or Realtors website:

Full RESPA statute:

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