Title Representation Changes…..
November 5th, 2008 Categories: Real Estate News
Effective January 1, 2009, SB 133 changes the way Title Marketing Representatives and Title Companies can solicit business in Californian.
Activities covered by the legislation are:
- Reps can no longer take a person out for lunch/dinner, drinks or entertain to market title insurance.
- Reps can no longer take people out to sporting events to market title insurance.
- Reps cannot pay for any advertising in newspapers, newsletter, magazines or publications on behalf of Industry participants.
- Reps cannot take photographs on behalf of Industry participants.
- Reps cannot create or provide any marketing materials on behalf of Industry participants.
- Reps cannot provide food or refreshments for any broker caravan, open house or any other function on behalf of an Industry participant.
- Reps cannot quote or charge any title or escrow fees below their company’s filed rate.
- Reps cannot distribute any items that have a specific monetary value, including gift cards, movie tickets, car washes, etc.
- Rep can provide educational classes and material exclusively related to the business of title insurance or escrow. Excluded are food and drinks during the seminar.
- Title Company employees are prohibited from using their own money to entertain customers.
- Reps may not engage in any prohibited activity through a separate entity controlled by the Rep or Rep’s employees.
- Reps will be required to be licensed by the Department of Insurance in California.
- Reps found in violation of the new law can be subject to fines, revoke of license and if license is revoked the Rep cannot apply for reinstatement of license for a period of 5 years.
For additional information on this law visit www.CLTA.org.
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