“Where title is altering, where you’re taking an individual off and doing a quitclaim deed, there could be some reporting requirements from the title business that they’re going to need to do,” Green said. “So there’s just a great deal of unpredictability with respect to that. I’m getting a fair variety of concerns in regards to that area.”
Green said brokers need to reach out to title agencies and closing representatives, particularly if they’re doing refinances that include entities with modifications to the deed, to see if they might be impacted.
“I believe they need to be speaking to their title business and closing agents about how that rule is going to affect what they’re doing,” he said. “Keep in mind, on a purely finance transaction, it’s not going to matter. It’s due to the fact that you currently have anti-money-laundering rules that remain in place to handle that.
“You may have some title companies, because of those reporting responsibilities, they become less ready to prepare a few of those documents, due to the fact that now they have monetary duty to report. If they do not report, the remedies are pretty extreme, like up to $250,000 in charges, potentially.”
Hold-ups are possible
There could be smaller title companies that may not want to get involved in these types of deals due to the fact that the ramifications for errors are heavy.