Posted by sue_pa on 3/11/09 12:31pm
Msg #280311

"Title Closer Pick Up Fee"

this may be a NY state thing. Does anyone know what this actually means? the settlement sheet I am looking at is FILLED with overcharges and completely illegal in PA fees but this one has me baffled.

Reply by MikeC/NY on 3/11/09 1:15pm
Msg #280317

It's a NYC area thing. The title closer charges a fee (which is actually voluntary) for verifying the mortgage or lien amount and getting the check to the right place. Usually there's a pickup fee for each lien being paid off. Closers don't get paid much per closing, so that's where they make their money.

It's traditional, and completely voluntary. I don't think it usually appears on the settlement sheet because it's usually separate from the transaction, but I could be wrong about that. Some attorneys won't allow it.

Reply by sue_pa on 3/11/09 1:20pm
Msg #280322

I thought I read that somewhere. COMPLETELY not done here but with what else I saw on that sheet that's the least of their worries if the PA Ins. Dept. or their underwriter audits this file at some point in time.

Glad I said no to that $125 for the undisclosed 200 page loan package this came out of.

Reply by Kevin/Ct on 3/12/09 5:19am
Msg #280397

Is that what they refer to as the famous New York "tip". My sister lives in New York, and has said that while the "tip" may be voluntary...the closer will not perform without it, and the closing will not proceed. She has been advised of this by New York attorneys.

Reply by MikeC/NY on 3/12/09 5:31pm
Msg #280515

The "tip" is different - that's paid by the buyer, while the pick up fees are paid by the seller. If there are no liens to be paid off, there's no pick up fee. OTOH, I know of one closer who had a closing where there were 9 liens to be paid off; pick up fees are typically $100 to $150 or more per lien, so multiply that by 9 and it's not bad pay for a couple of hours of work (although the less greedy closers will discount their fees in a case like that)...

Both fees are totally voluntary, but the attorneys don't always tell their clients that because it's a tradition. Both are paid at the end of the transaction; I imagine one or both attorneys would have a fit if the closer attempted to kill the deal over their client's refusal to pay it. The pick up fee MAY be on the HUD, but the "tip" isn't.