Posted by bfd110_IN on 5/29/08 12:58pm
Msg #249245

Indiana TPL and closings

I will keep this short (hopefully). Had a call for a closing scheduled for Friday. Title company messed up and it was supposed to go today. I am working fire department and couldnt leave and do the closing due to their mistake. The title company had the Realtor notarize documents and the LO for the bank closed the loan. In Indiana we are required to have out TPL. Wouldnt this be considered an illegal closing?? 1) No one doing the closing had a TPL and 2) the Realtor has a large financial interest in the closing.

Reply by Les_CO on 5/29/08 2:26pm
Msg #249261

I'm no IN expert.
Was this a purchase? If so the RE Broker often closes their own deals (in fact in most States they are responsible) as do the bank personnel.

Reply by bfd110_IN on 5/29/08 2:42pm
Msg #249267

Was a purchase but historically realtor's don't do their on closings here in Southern Indiana. I cant vouch for the rest of the state. But the impression that I was given since we are required by the state to have our TPL, was that if you explain the Settlement Statement you are required to have your TPL.

Reply by Les_CO on 5/29/08 3:32pm
Msg #249272

It does not sound like anything illegal to me. Historcally here in CO realotr's are to lazy to do their own closings, so they hand off to Title Companies. Most states that require a TPL (Maryland, Ohio, etc.) see your job (NSA) as a substitute of what is normally done in the Title Companies office. So if a typical refi of some kind would normally done by the title company, in their office, but is instead assigned to you for whatever reason (borrower convenience) and you are acting as the closing agent, not just a notary you would need a TPL. The RE broker is already licensed to do ER transactions, and is usually given a bit more latitude when if comes to UPL. It is my belief that if you, the bank, or anyone buys, or sells their own property you don't need any third party involved. This may not be true everywhere, especially Attorney States.

Reply by WDMD on 5/29/08 4:11pm
Msg #249281

"Was a purchase but historically realtor's don't do their on closings here in Southern Indiana. I cant vouch for the rest of the state. But the impression that I was given since we are required by the state to have our TPL, was that if you explain the Settlement Statement you are required to have your TPL. "


Don't know about Indiana, but I can tell you how it is in Maryland with TPLs.

Under the 1995 Reform of Title Insurance Law the general assembly enacted legislation that enlarged the scope of regulation for settlements. The legislation expanded the definition of the terms "title insurance agent" and "title insurance broker" to encompass not only a person who "for compensation....solicits,procures,or negotiates title insurance contracts....", but also any person "who provides escrow,closing, or settlement services which MAY result in the issuance of a title insurance contract. See Section 10-101(i) of the Insurance Article.

Under that law anyone who does anything (ex. presenting documents for signatures) other than notarizing at the statutory fee during a closing/settlement that may result in the issuance of a title contract is in violation of Maryland law. See Attorney General Opinion No. 00-028 dated October 30, 2000.

Reply by Sherri_IN on 5/29/08 4:10pm
Msg #249280

Bulletin 135 issued by the DOI on Dec. 6 2005 allows the lender to close the loan without being licensed.

Reply by bfd110_IN on 5/29/08 5:14pm
Msg #249294

But is the realtor allowed to

go over the settlement statement and notarize the title docs in the closing? Seems like a conflict to me.

Reply by Les_CO on 5/29/08 9:18pm
Msg #249343

Re: But is the realtor allowed to

Never forget, or underestimate the local bureaucrat’s virtually divine right to interpret the law as they please.

Reply by Les_CO on 5/29/08 10:11pm
Msg #249347

Re: But is the realtor allowed to

As for Realtors it's part of their job to analyze and disclose. If you really want to find out, why, not become one? RE agent, or broker. Can't hurt and may do you some good someday?

Reply by bfd110_IN on 5/30/08 10:41am
Msg #249393

Nope.. to many irons in the fire...

wife would shoot me. I was involved in teaching Loan officers for the bank in past life and how to solict real estate agents for busy. Seen too many of them come and go.....