The following is a partial, nonexclusive list of things of
value that a title company must not give to a producer. Even though a thing of
value is not included on this list a title company must not give any other
things of value to a producer unless clearly and specifically permitted by WAC
284-29-200 through
284-29-255.
(1) Except as permitted in WAC
284-29-200 through
284-29-255:
(a) A title company must not cosponsor,
subsidize, or contribute fees, prizes, gifts, or give things of value for a
promotional function or activity off the title company's premises whether the
function is self-promotional or not.
(b) Examples of off-premises functions or
activities include, but are not limited to:
(i) Meetings;
(ii) Meals, including breakfasts, luncheons,
dinners or cocktail parties;
(iii)
Conventions, installation ceremonies, celebrations, hospitality rooms or
similar functions;
(iv) Outings
such as boat trips, fishing trips, motor vehicle rallies, sporting events of
any kind, gambling trips, hunting trips, ski trips, shopping trips, golf
tournaments, trips to or events at recreational or entertainment
areas;
(v) Open house celebrations,
or open houses at homes or property for sale;
(vi) Dances; or
(vii) Artistic performances.
(2) A title company
must not sponsor, subsidize, supply prizes or labor, or otherwise give things
of value for promotional activities of producers.
(3) A title company must not give or offer to
give, either directly or indirectly, a compensating balance or deposit in a
lending institution for the express or implied purpose of influencing the
extension of credit by the lending institution to any producer.
(4) A title company must not disburse or
offer to disburse on behalf of any person escrow funds held by the title
company before the conditions of the escrow applicable to the disbursements are
met.
(5) A title company must not
advance, pay or offer to advance or pay money on behalf of any person into
escrow to facilitate a closing unless:
(a)
The property that is the subject of the escrow is owned by or being purchased
by the title company;
(b) The
payment is made in compliance with a court order requiring the title company to
make the payment; or
(c) In
settlement of a bona fide dispute for which the title company may be
liable.
(6) A title
company must not give, pay or offer to pay, either directly or indirectly, or
make payment to a third party for the benefit of any producer for:
(a) The services of a title company employee
or representative or an outside professional whose services are required by any
producer to complete or structure a particular transaction;
(b) The salary or any part of compensation of
an employee of a producer;
(c) The
salary or any part of the salary, commission, or any other form of compensation
to any employee of the title company who is at the same time actively engaged
as a producer;
(d) A fee for making
an inspection or appraisal of property, whether or not the fee bears a
reasonable relationship to the services performed;
(e) Services required to be performed by any
producer in his or her professional capacity;
(f) Any evidence of title or copy of the
contents of a document which is not produced or issued by the title
company;
(g) The rent for all or
any part of any space occupied by any producer, except as provided in WAC
284-29-245;
(h) Money, prizes, or other things of value
in any kind of a contest or promotional activity;
(i) Any advertisement published in the name
of, for, or on behalf of any producer;
(j) A business form of any producer which is
provided for the convenience and benefit of the producer, except a form
regularly used in the conduct of the title company's business;
(k) Any earnest money purchase agreements or
purchase and sale agreements;
(l)
Flyer boxes and stands, for sale signs and posts, or services for the placement
of any of them;
(m) Postcards,
stamps, flyers, newsletters, folders, invitations, copying, cutting or services
related to preparing any of these items;
(n) Car washes or coupons for car
washes;
(o) Pictures of
producers;
(p) Gift cards of in any
amount;
(q) Massages;
(r) Discount certificates; or
(s) The cost of or reimbursement for advisory
fees.
(7) A title
company must not provide, or offer to provide, all or any part of the time or
productive effort of any employee of the title company to any producer. For
example, title company employees must not be used by or loaned out to a
producer for the self-promotional interests of the producer except as part of
the title company's day-to-day business with producers.
(8) A title company must not give or offer to
give, pay for, or offer to pay for, furniture; office supplies, including but
not limited to, file folders, telephones, computers or other equipment; or
automobiles to any producer. A title company must not pay for, or offer to pay
for, any portion of the cost of renting, leasing, operating, or maintaining any
of these items.
(9) Delivery
services between a title company and a producer must be performed by the title
company's messenger service or employees and must consist only of delivering
items directly related to the title company's title insurance or escrow
business from the title company to a producer or from a producer to the title
company.
(10) In accordance with
its title insurance rates filed with the commissioner, a title company must not
provide a title insurance commitment without actually receiving payment for the
cancellation fee:
(a) For commitments on
noncommercial property, within the earlier of the following:
(i) One hundred eighty days of the first
issuance of the commitment; or
(ii)
Sixty days of:
(A) The cancellation of the
commitment;
(B) When the title
company reasonably should know that the commitment has been canceled;
or
(C) When the title company
reasonably should know that the transaction for which the commitment was issued
has been insured by another title company.
(b) For commitments on commercial property,
within sixty days of the earlier of the following:
(i) The cancellation of the
commitment;
(ii) When the title
company reasonably should know that the commitment has been canceled;
or
(iii) When the title company
reasonably should know that the transaction for which the commitment was issued
has been insured by another title company.
(11) A title company must not pay a producer
member of its board of directors fees in excess of those paid to nonproducer
directors.
(12) A title company
must not enter into, agree to, or pay anything of value to a producer under any
marketing agreement, access agreement, advertising agreement or any similar
agreement.
(13) A title company
must not make a donation to any charity in any manner that can reasonably be
associated with a producer in exchange for the referral of title insurance
business or obtaining customer service information from the title
company.
(14) A title company must
not pay any fee or consideration to any producer that is in any manner based in
whole or in part on the number of transactions between the title company and
the producer, regardless of the service being provided.
(15) A title company must not provide escrow,
closing, or settlement services for a charge (independent of the rate charged
for involved title insurance) that is less than the title company's actual cost
either for:
(a) The cost of all parties to the
escrow; or
(b) One party's
proportionate share of the cost of the escrow.