I am not an escrow officer.
In my opinion this is way out of line.
You stated you were quoted $1200.
I would hold their feet to the fire.
I would speak to the head person there and let them know you quoted $1200 and that is what you are willing to pay.
A suggestion would be to say
Either make it $1200 or plan on a meeting between you and the Department of Insurance.
Be calm and realistic when you say it.
Be non threatening and let them know the going rate is around $800 - $1000.
I have to ask and I hope you let me know
Is this escrow company tied to a Real Estate company? Perhaps next door? or something similar?
Was the listing agent a Franchise?
you might find it better to get the info from the department of Insurance to see where you stand before you make the call.
Harold Sharpe - Broker
So Cal Homes Realty
California Department of Real Estate License # 01312992
Like all fees, escrow fees are negotiable. It's time to let your agent go to work and negotiate on your behalf.
In the future (and to all the readers of this thread) NEVER agree to an escrow company chosen for you without checking ALL of the following: 1.) are they licensed and bonded 2.)how long in business 3.) getting a WRITTEN estimate of closing costs. 4.) do they have any discounts available (senior citizen, first time buyer, repeat client, etc)
Then, agree to use the seller's choice IF (and ONLY IF) they will agree to match the cost of your escrow company. You will be amazed, especially in this economy, how often escrow companies will reduce their fees to earn your business.
It may be too late for you to negotiate with the seller, but it's never too late for your agent to negotiate with the escrow company.
ABR, CDPE, eAgent, CSP, SFR, HRC, CRE
(O) 310-571-1364 DIRECT
if something like that happened to me, i would go to the escrow office and ask politely to lower their fees to what they quoted, or let them know that you will stand out all day with a big sign [bring a ready made picket sign with you] saying how unfair their services are.....and that you will let every customer that comes into their office how unfair they are......i think they would change their tune......
just a random thought to a hypothetical situation.....
Calling the CDI on Monday won't do anything if your complaint will be that the escrow company refused to change their fees, that's more like an endorsement. A violation to the CDI would be one where they DID lower their fees.
So much bad advice on this forum, it's very discouraging!
After that conversation, the loan documents were sent to escrow and a change needed to be made and a few extra corrected pages needed to be sent to her. She said this is exactly why she doesn't want to lower her fees because of the extra work and she's not going to organize the paper and switch new documents with the old, that I would have to sign the documents with wrong info as well as the new corrected documents. I think this is totally unprofessional, I am paying her $700 more than average and this is what I get!
Now on the settlement statement it shows that the seller's fees for title and tax fees, but it doesn't show any fee for escrow, is this customary to do? I just wonder why she is showing sellers cost for title fees and tax fees but not for escrow. Seems fishy to me. I will be calling the dept of insurance on Monday.
Let us know what has happened after talking to the escrow officer. I've negotiated my clients escrow costs down, so I know that it does and can happen. Obviously, this should be done at the beginning of escrow, but I've questioned charges such as messenger service and or email fees at the closing table and they were removed. Ask your agent to talk to the escrow officer.
Again, keep us posted.
Keller Williams Realty
prudential california realty
1714 hillhurst avenue
los angeles, ca. 90027
In California, Escrow/Title companies must file their fees schedule with the California Department of Insurance (CDI). The filed schedule is used as a basis for comparison between companies.
My understanding is that a title insurer, underwritten title company, or a controlled escrow company offering a fee or charge which is less than the currently effective schedule for fees and charges filed with the CDI is unlawful.
I believe itâ€™s also unlawful to provide a rebate (a lender, real estate broker or homebuilder receiving free services, property, or money in exchange for steering business to a title company falls into this category). Paying a commission directly or indirectly to any person as a means of generating a referral or actual placement of title insurance is also a â€œno-noâ€.
To everyone else, escrow fees are not negotiable; escrow is regulated and they cannot arbitrarily lower their fees as they are on file with the department of insurance. This business of "all fees" being negotiable is not true. Any ethical company charges what they charge to everyone regardless or they would be sued in a minute.
Ask your agent to go over the fees with you. They don't seem off the mark from what you have sent. There are not "kickbacks" permitted. It's against the law.
The Carrabba Group
Keller Williams Hollywood Hills
Both answers by my com-padre's are Excellent BTW...