The role of the Title Company on the Real Estate "Dream Team."

Every agent needs to have a trusted Title Company  to  refer to our Buyers and Sellers.  This  interview with Amy Gregory, Chief Administrative Officer and President of Title Operations at Florida Agents Network Title.

From understanding how an earnest money deposit begins the escrow process to preventing wire fraud as we approach the closing date, this podcast is chock full of helpful information.

When we fully understand the process and what our partner professions do in the home sale process, we provide better services to consumers.  The role of the Title Company on  the  real estate "dream team" is essential.

Transcript

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Welcome to real estate. Common sense. I'm your host, Lisa Spencer international trainer and real estate coach. And author of the book real estate common sense. After you've mastered the basics of launching your real estate business. It is essential to partner with other professionals to ensure a smooth transaction for consumers. You are the conductor of a real estate train that needs to glide into the closing station right on time. Your ability to coordinate and facilitate the functions and roles of many other professionals will determine if buyers and sellers feel like their journey was a luxurious scenic ride, or like having a seat on a runaway train. How can you find the perfect partners and create a dream team of professionals that will support your clients and your business? Season two is dedicated to interviews with top professionals. They will explain their role in the real estate transaction and how we can work together to provide the best experience for buyers and sellers.

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Today, we're going to talk about the role of the title company in the real estate dream team.

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We started in our last episode with the mortgage lender, because of course, as a realtor, we want people to speak with a lender and find out their purchasing power. Really before we even get started. Now we have had this buyer out, we've been working with them. They've made an offer. They've turned that offer into a contract that contract usually involves earnest money deposits. And then what do we do? That deposit money either has to go to an attorney to an escrow account within a real estate company or to a title company.

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So today I'm going to be speaking with Amy Gregory, who is the chief administrative officer and president of title operations at Florida agency network, title or fan. And I love working with Amy. One of the biggest reasons is I love to work with people who love what they do, and that always comes across in working with Amy and Florida agency network title. So I've worked with her for many years. Welcome Amy Gregory to our show.

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So first, I just want to say, thank you, Lisa so much for the invitation. We have worked together for many years, and we've seen a lot of changes in the real estate industry together. So I love that we're doing this to share. what we've learned, what we know and, and just to make those agents the most successful. So as far as fan title, I think the best thing about fan title is our culture. we consider ourselves a"FANILY", just the play on words of fan, and what that means to us as a work family. And that's just that we are together through the good of life, the bad of life and the ugly of life. when you have a team that supports you, not just in your office, but in all of our offices, in all of our companies, we support each other and we want to be there. We want to celebrate together. We want to get through those tough times together because typically they're just seasons of life. And I will tell you that is what I feel is the best thing about FAN that allows us as team members, not to only love who we work with, but to really give our best foot forward to our agents, to our lenders, to those that trust us with their real estate transactions and their reputation. And so when I started at Florida agency network, 16 years ago, we just had one office. I actually started the second office. with Aaron and we have just grown, not only in title, but some ancillary IT company and some other companies, we've been very, very blessed on that path. and I just think that gives us the best opportunities. To support, not only our team members, but also our real estate agents or buyers or sellers. And all those that we work with through closing. Yes, Amy. I think you must have been, I don't know, a teenager when I worked with you. And, came to Florida and I did close my transaction with Hillsborough title way back when the very first baby FAN of the"FANILY.". So help us understand how the escrow process works. Because as I said, we're going to go ahead and write an offer that will then become a contract and often attached to that is. An earnest deposit. And we need, that's like a hot potato. We've got to either get it to our escrow holding within our company, or we've got to get it to an attorney's office in some states, or as here in Florida. A lot of times we work with the title company. So we rush that over to your office and then what happens? Yeah. So that's definitely the hot potato that's got to get in our hands or in our accounts, whatever means that the buyer feels necessary. So once we received that deposit, that escrow deposit, um, securing that. Contract. sometimes that's a check. Every once in a while, we'll have a buyer that tries to pay cash. Yeah, it depends on how much the cash is. If it's a low amount, we may make an exception, but most title companies don't want to secure cash. Yeah. I can't even buy groceries with cash. That's right. A wire is a very popular form that we receive escrow deposits. And then also, a service that we offer at FAN is we allow electronic delivery of those funds. Oh, I love that. So it can go right from the buyer's account, right. To our account. And once we receive those funds, we will send out a receipt for those, but know that there is a clearance period with some of those sources. So if it's a personal check, There's probably going to be seven to 10 business days. For that to clear a wire is immediate. There's no clearance that's needed on those funds. And then electronic delivery is very much like a check it's seven to 10 days to clear. So although we send the receipt to the real estate agent at the time we receive, there may be something. If it happens within the processing of those funds for a check. Or for the electronic delivery that you may get a notification that the funds weren't available, the check bounced whatever that may be. We do help handle those very delicately. They're not typical. It's not something that we typically get or if we get sometimes it's, the buyer has changed accounts and didn't realize they requested from the wrong whatever, and we can get that corrected right away. Perfect. That is an important point because if I sent over the earnest money and then we did a home inspection and they decide, wow, we don't want this house. And it's within that seven days for the money to clear, they might not get their money back immediately. But obviously, as soon as that clears, you're going to get it to them. So I think that's a really good. Expectation that we should set with buyers that if we decide not to buy this house, we do have to wait for a clearing time before you'll get your earnest money back, or we can just leave it with. The title company, and you can switch contracts. Correct. Yes. So as long as we have a cancellation of the first, right. Then we would remove that from that property and then replace it with the new property that has no problem. Perfect. Because people just don't like the hustle of. Letting their money float around all over the place. Right? Absolutely. But I think that's a really important point. And obviously. Sometimes we close very quickly. especially cash transactions. So if they're closing. In less than 10 days and they've made a substantial deposit. We want to make sure we're tracking that that deposit has cleared We can also get a copy of their account. Statements from their bank account, showing that the check has cleared. We've had to do that with certain situations where they do want to close really quick, but they put out on a$10,000 personal check. So we'll just ask for proof that it has cleared or statement from the bank or whatever that situation. So we'll take those on a one-off basis. And that's why we love working with the"FANILY" because you always find a way to say yes, that's the one that. Absolutely. So I would like to just share because some of the people listening to our podcast are brand new agents. And in today's world communication is something that we talk about a lot. And sometimes fail to do effectively. Sure. So what does ideal communication from a REALTOR look like for you? What is the best way to communicate and how often should we communicate with the title company? Help us with that a little bit. So I actually put the onus on us as the title company to make sure we're communicating with the real estate agent as to the status. Not everyone is you, I know.. I'm just talking from my point of view. I want you to know why we stand apart. Um, so from our point of view, we try to do those touch points and there's videos that go out to buyers and sellers. There's emails that go out when certain things happen within the transaction, the commitment is clear or the earnest money has been received. Those kinds of things. Typically our communication is email. Typically what we receive from our clients is either email or text, but we also train our team members that if it is important enough, Make a phone call. There can be an assumed attitude or tone within an email or a text or an assumed where you want there to be a heightened, you know, this is a priority and this is important to me. You want that to be heard? So a phone call is definitely applicable. And then following up with a text or an email was absolutely fine. I would say from a real estate agent, what works for you? Is it 8:00 PM? And you're just finishing your day and you need to send this. Probably an email is best. They'll get it first thing in the morning. Um, is it a text because you need an answer right now, send a text, but I think. You know, be reasonable with your expectation of response as a real estate agent, your hours vary. As a title company, our hours are set. And we do try to support our real estate agents and we have sales reps and those kinds of things available managers but your clothes are, may not be sitting at her desk at 8:00 PM. No. So just like you, you may not be sitting at your desk at 8:00 AM. Right. And they may be, so we just, I think just depending on the urgency, but if you have a question or you have a need or you just want to make sure. We would much rather you ask us and us be able to clarify that with you or. Answer a seller's question or whatever that may be, because they're more comfortable coming to you. we want to be that relationship based with you that you can always reach out. I love that. And I've always felt very welcomed to call, uh, or text or email. I always describe our role as realtors, as the conductor of the train. And I love that you guys work with that same assumption, but assumptions can be dangerous. And I feel it's really important as an agent to just establish a few touch points. And here are mine and you can validate or correct what I feel. Our touch points are. Escrow. I want to make sure that the file has been started. I like to touch base with the title company. Once our inspection is complete just to let them know inspection is done, we are moving forward with this property. There is a slight adjustment to the purchase price because we found something. So it's important for the title company to know if we're making any credits or if there was anything that came up in the inspection that we're looking to be repaired. And maybe a termite inspection has revealed termites. We expect a termite treatment before closing. So in your closing documents, please look for a receipt from a termite company. Sure. Right. So that's a really important touch point to connect and communicate with the title company after inspection. The other time is to make sure that the mortgage and the title company are talking to each other. Because I know you're really great at communicating and I love Lynn Whitefall who was our last interview, who is super communicating, but not everyone is. And

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And so we need to make sure that the title company and the lender are having really good communication.

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Because that final document has to be produced by both of them in cooperation. And then the other time is always a week before our closing date. A minimum of a week, I would stretch that even to 10 days and make sure a survey has been ordered or all the things that you feel are necessary for that closing that it's been ordered because we all went through 2021. And there were tremendous refinances that really overburdened our title company. We didn't feel that as realtors, we were busy running around trying to get buyers offers accepted, it was busy for all of us. And so we never want to wait and then point fingers. It's always better to communicate in advance. And I really think it's important to work with the title company like yours that is open to that communication. I agree with that. I think definitely an addendum if there's any kind of. Adenda any kind of change. Closing date, change, closing costs, change sales, price, change, whatever. Um, termite treatment. Those are super important. And sometimes the title company doesn't get those and then we're putting together the final figure. So those are definitely important. I also think that if you are working with the title company, that you have created a relationship with the title company, if you're working with FAN, I will speak for, we take ownership of those communications where. Lisa I've reached out to this lender. I'm not hearing back. Do you have another contact? Did the buyer change? We're going to make those initiations to take that off of your plate. We're going to do as much as we can to be that communication partner for you. So you don't have to do those. But sometimes you don't have a choice of who the title company is. So I love those steps when you don't have that relationship, that familiarity. Right. Thank you so much for bringing that out now. Is there anything else we should know about guiding consumers through the transaction? We've touched on quite a bit, but is there anything else we should know? Absolutely wire fraud and hackers. That is the biggest threat to our industry real estate wide. Right now it's really a bigger than that, but that's really where we focus. so at fan we will never email our wiring instructions and I encourage all real estate agents. Don't take that step on. Number one, you create liability and you go against the securities that FAN has put in place. And other title companies have put in place. We only send those through a secure portal. And the reason is, is because emails can be hacked. It can appear that an email is coming from Amy Gregory with FAN and it has wiring instructions that goes to X. Y Z company. Not even a title company and it doesn't say anything about FAN title or Hillsborough Title or one of our brands. And so when you take that step on as the agent, you're just creating some confusion, maybe to the borrower, that's waiting for those wiring instructions. So let the title company do that step. I would highly encourage that. And make sure the title company you choose to use if it's outside of FAN, but they have those protocols in place. The buyer needs to know about wire fraud also needs to know about email fraud Someone will pose. They'll put an extra"I" in the email address, you don't catch that, that there's an extra"I" and it's not really any Gregory. That's sending it. It's not really Lisa Spencer. That's sending it. It's someone else that's just posing as Lisa or posing as Amy. So I think that education is super, super important and our initial cost to the buyer and seller to something that we covered just to make them aware because they don't do this every day, even every year. Yeah, I think that is so important. And I believe I covered that in our initial season one podcast of the buyer consultation. I think this is so important that we bring it up the very first time we meet a buyer, I will never ask you for money. I will never instruct you to send money anywhere. And I believe this is where we should use that old fashioned thing called the telephone I always tell people, even if you get a request from something that looks like a portal, because portals are the most protected thing, but. We know hackers are very clever. Pick up the phone and call your title agent. That you've been working with and say, Hey, I've gotten a request to go into a portal and send money. Was that you? Yes, because. Because when we get to that final deposit, it can be a large sum of money. And there are just too many sad stories out there that we don't want to be a part of anyone's journey that ended with wire fraud.

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Amy. Thank you so much for that important reminder. So now I'm going to move into a question about what are three things that agents should never do. And then we'll follow that up with three things that you always want agents to do. So we're going to start out a little negative and they'll go quickly to the positive. And let's just say, what are three things that agents should never do?

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So one, I would, I kind of already mentioned as sending wiring instructions. I think in any transaction, don't take on a role. That's not yours especially in this world that we live in now 10 years ago. Maybe we could have done that, 2. Never over promise. Um, you know, when you over promise, especially something out of your control, I look at a transaction as puzzle pieces and putting a puzzle together, and there's so many people involved and circumstances that have a closing go successfully. Smoothly as less stress as possible. So just don't over promise. And then, make sure that you are not advising your client of anything that could be termed as legal. If you're not an attorney. Make sure you have an attorney as part of your referral network, that those clients that need that advice. Let's say it's a mother and son going in title, and you're like, oh, you should go and title this way for vesting. That's probably a legal role that needs to be played by an attorney or at the minimum, talk to the title company to see what advice they have. We have some documentation we can send out that our attorneys have put together so that it's informing the buyers as to what they're signing up for, for vesting. So just make sure you don't cross those, those lines. And you be the real estate professional and expert. And let the legal experts and the title experts in the lending experts be theirs. That is super good advice. So what three things should we always do All right. Yeah. I think, and I alluded to this is working with a title company, a lending company and inspection company that you trust. Creating those relationships is the base of our business. And I will tell you, I have been super blessed with amazing people that have worked with me for years. And they know me. I know them. I want to make them look good to their clients. And I want us to look good. I want all of our companies, so having those deep seated relationships I think are super, super important. I think asking for the referral of business is something that we have seen a lot of successful real estate agents do. And I would do it. Some people have a hard time doing the ask. So asking right at the closing. At the closing table. Yes. Who do you know? I mean, it is amazing even sometimes, friends that I have that don't know exactly what a title company is. They don't know exactly what I do and referring their deal to one of our title brands, you know? So I think asking, and when you're communicating about that, And then, um, another thing I would do is just stay in your client's thoughts. So whether that's email, whether that's a Christmas card, whether whatever that may be always stay in their thoughts, there was a realtor in the local area that, Had done some business with my parents years ago. And every year they got something from him every year. So, I mean, when they went to sell their house, who do you think they thought of? Just because he stayed in their thoughts. So you're saying don't end the relationship at the closing table. I know. No. Yes, absolutely. So I think that's definitely three things that would help an agent's business be more successful.

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I 100% agree. We actually recorded a previous podcast, titled eight ways to touch your sphere of influence and absolutely every person you've ever worked with is now a part of your sphere of influence. So, as you said, please, don't forget about them. That's really wonderful advice. Thank you so much.

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I think we all learned a little bit more about the title business today, it's been very informative for me and I hope it's also been informative for our listeners. So let's end with a question of what you are grateful for. Because this is a lesson that I want to bring to every podcast, regardless of the business I'm interviewing. So thank you so much for. answering kind of a personal question.

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so I'm a faith-based woman I'm definitely grateful for my faith. Um, my family is super important to me. We live on a family compound, so I'm surrounded by family and I'm super, super grateful for that Um, I think God has definitely paved my path in life. And I think sometimes even things that I've struggled with at the time, I'm like, why am I going through this? Why am I struggling with this? But maybe a year later, five years later, 10 years later, I realized why I went through what I went through. And I think recognizing. That the difficult times really make you stronger, prepare you for something that's to come. and I'm super grateful for my career path. I started in the title business. When I was in high school,, I started answering the phone at his, had a company cause I had to have a business job, with the business course I was in, in high school and really, I just fell into title. I fell in love with title. I did every step of title to get where I am today and I am so, so grateful for that. I'm just super grateful for my career path. The amazing mentors that I've had along the way, I will never forget them. And I think that's allowed me to be the leader I am too is because I recognize that with our team members that start with us are those that are at their fifth year or their 10th year or their 15th year in their career. Like I remember those and I try to stay grounded with that to never forget where you've come from and who's helped to get there Uh,

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Wow, that is a great way to end every day. And it's a great way to end our podcast. One of the things I'm grateful for is our relationship, Amy Gregory. And thank you so much for being here. I look forward to many more years with Florida agency network title.

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We hope you enjoyed our interview with Amy Gregory from fan title. And I hope that you learned some things that maybe weren't aware of about the title process. Please tune into our next episode of real estate. Common sense. This is Lisa Spencer, sending love and wishing you success.