Posted by Elizabeth Rinert on 8/1/12 11:28pm
Msg #429060
Are we allowed to take tips if we are contracted by the sign n/m
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Reply by Elizabeth Rinert on 8/1/12 11:29pm
Msg #429061
Re: Are we allowed to take tips if we are contracted by a
Signing company? I just turned down a pretty large tip because I wasn't sure....
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Reply by JanetK_CA on 8/2/12 1:06am
Msg #429066
Re: Are we allowed to take tips if we are contracted by a
Have you signed any contract that prohibits it? I think a tip falls into a different category than payment for services, which should be included in the HUD (but I'm no expert on that). If that's the case, seems to me it should be between you and the borrower. Some people are really appreciative... 
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Reply by Clem/CA on 8/1/12 11:29pm
Msg #429062
Re: Are we allowed to take tips if we are contracted by the sign
only the sign of the cross
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Reply by dutchcloser on 8/2/12 6:47am
Msg #429077
Re: Are we allowed to take tips if we are contracted by the sign
I don't think there is anything wrong with that. In parts of New York it's actually customary to tip closing agents.
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Reply by Gina/VA on 8/2/12 7:47am
Msg #429081
Re: Are we allowed to take tips if we are contracted by the sign
I was offered a tip from a business owner upon the completion of a signing a few months ago but declined it only because I didn't know if that would be another amount to report to IRS.
Life has me confused enough, didn't need the extra help.
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Reply by Linda_H/FL on 8/2/12 7:53am
Msg #429082
I've taken tips...when they insist..
But I treat it as income and it all gets reported to IRS.
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Reply by FlaNotary2 on 8/2/12 1:12pm
Msg #429110
I add the tip to my travel fee n/m
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Reply by GOLDGIRL/CA on 8/2/12 1:04pm
Msg #429107
WOW!
<<In parts of New York it's actually customary to tip closing agents.>>
I want to start that tradition where I live!
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Reply by MikeC/TX on 8/2/12 4:40pm
Msg #429133
Re: Are we allowed to take tips if we are contracted by the sign
"In parts of New York it's actually customary to tip closing agents."
It's customary in NYC, Long Island, and parts of Westchester County, but in those locations real estate is done differently than in the other 49.75 States.
These are title closers, not signing agents or closing agents. They represent the TC at the table in purchase closings, and are often not even paid by the TC - the tip (paid by the buyer) is their payment, along with what's known as a "pickup fee" from the seller for determining the payoff amount on mortgages and liens and making sure the payments get to wherever they're supposed to go.
This is just custom, not a requirement - both buyer and seller can refuse to pay anything (in the case of the seller refusing to pay, the title closer will do nothing about getting the existing liens paid - it becomes the seller's problem). It can be quite lucrative for the title closer in some cases. Typical buyer's tip is $100 and up, and pickup fees are usually at least $150 PER LIEN, so if you've got a situation where there are a couple of mortgages and a judgment or two to be paid off, you're talking about some serious money...
If $150 seems high for just sending in a payment, the title closer is taking on responsibility for making sure the payment gets there in a timely fashion so that no more interest is charged (they will often build in a day or two to the final payoff amount, which will then be credited back to the seller if the check arrives earlier than expected).
If payment gets delayed or lost in transit, the title closer is personally responsible for the accruing interest. I know of one closer who sweated out a lost payment for three weeks (with hefty daily interest accruing) until the check was finally found in the bank's mail room. Since the package was misplaced by the bank, he was ultimately not responsible for the accrued interest.
Not a bad job if you can get it, but it takes some training because the title closer has to make sure all exceptions to title are clear and has to know how to clear them if necessary.
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Reply by GOLDGIRL/CA on 8/2/12 9:28pm
Msg #429168
Verrry interesting, MikeC! n/m
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Reply by LKT/CA on 8/2/12 10:13am
Msg #429092
Re: Are we allowed to take tips if we are contracted by the sign
I do accept tips. We are independent contractors/business owners.
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Reply by Elizabeth Rinert on 8/2/12 11:02am
Msg #429099
Re: Are we allowed to take tips if we are contracted by the sign
thank you all. Next time I know. man, I passed up an very generous tip. but he gave the signing company a outstanding review for my services so hopefully I get more business.
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Reply by MikeC/TX on 8/2/12 4:51pm
Msg #429136
Re: Are we allowed to take tips if we are contracted by the sign
There's no reason why you can't accept a tip if it is offered - that's between you and the borrowers, and has nothing to do with what the signing service is paying you. These people are offering the tip because they appreciate the work you've done; nothing wrong with that.
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