HousingWireHousingWire
California Best Title Co. Inc. has agreed to pay $150,000 to the California Department of Insurance (CDI) to settle allegations that two of its employees violated state law that prohibits conflicts of interest in real estate transactions.
The payment from California Best Title is comprised of a $100,000 penalty and $50,000 to cover CDI’s investigative costs.
State investigators found that marketing representatives Jonathan Golden and Joshua Meador provided incentives to real estate agents to steer business to the company — a practice known as illegal inducement, according to an announcement from CDI.
Golden allegedly offered free photography and drone videography services, while Meador provided marketing advice for real estate sales.
“Title insurance protects property buyers and lenders against potential financial losses from title defects or unexpected claims,” CDI stated. “While consumers technically have the right to choose the title company in a real estate transaction, real estate agents almost always make this choice for consumers.
“Therefore, under California law, title companies or their representatives may not offer illegal perks or incentives to real estate agents in exchange for business referrals.”
Although California Best Title denied wrongdoing, it signed the settlement agreement and agreed to implement a formal employee training program on anti-inducement laws within 90 days.
Additionally, the settlement requires Golden to admit to violating state regulations and to surrender his certificate of registration as a title marketing representative, effective March 20. He is also barred from seeking any insurance license for the next three years.
Meador denied the allegations but accepted restrictions on his registration. He will pay $10,000 in penalties and costs, CDI reported.
