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from Local Attorney, Michael H. Wasserman

Thursday, February 6, 2014

AP: Illinois Title Company Owner Admits Defrauding Clients

by Michael H. Wasserman


I review title company charges and all other closing costs with the Buyers and Sellers i represent. Many (often rightfully) comment on the vast array of different fees that must be paid and the total cumulative effect these charges have on their closings. Akin to all the regulatory charges on a telephone or cable bill. Industry jargon and abbreviations provide an easy short hand to us practitioners but does not make the numbers any clearer to consumers.

One such charge / classification is the CPL (Closing Protection Fee). This state mandated collection obligates a title insurance company's underwriter to cover any losses suffered to a buyer, seller, and lender in the event that the closing agent either does not follow closing instructions or misappropriates funds from the closing.  In Illinois, Sellers pay $50.00 per transaction. Buyers pay $25.00 ($50 if there is a mortgage loan).
This is a relatively new charge, so many buyers and sellers who do not remember it from past transactions comment.

Then, every once in a while we see news like this and it becomes clear why this money well spent.