How to Spot Title Insurance Fraud

Title insurance fraud is an unfortunate reality with not only fringe brokers but also mainstream companies. It is not uncommon for so many middlemen--including brokers, agents, lenders, assessors and title companies--to get involved that it can be hard to figure out just what your title company is doing and how much it is charging. However, by paying close attention to fees, you can determine if your title insurance company is being honest.

Always ask for an exact quote for the services and fees provided to you by a title insurance company ahead of time. When you receive bills, make sure the charges match the estimates. Look for itemized fees for each party involved in a transaction in order to make sure every vendor you use is charging the agreed-upon amount. Title companies are required to track all receipts and disbursements from any settlement or account, and there should be documents verifying that this was done. Consumer Affairs warns buyers to always keep track of these documents and receipts. When there is an unexpected or unwarranted item charged or fee assessed, you have a red flag that the title insurance agent may be engaging in some type of fraud.