Tipping the Title Closer

$125

We're closing next week (finally, thank God!) and our lawyer just told me to have a $75-100 tip ready for the title agent. Is this an okay amount or do you think it is too little? In some places, I've read $200-250 which IMO is just absurd.

Can someone tell me what the reason for this tip is, other than that the title agent might "misplace" some papers?

Is anyone else supposed to get a tip? If the bank/loan officer asks me for a tip I'm going to freak out.

Tipping the title guy pisses me off. I got in a shouting match with the title guy during one of my closings just because I hate title guys.

I don't know who the title person is yet so I don't bear any ill will towards them. I trust our lawyer though, he is a close friend of the family. He's also a magician and can breathe fire. Seriously.

But banks, don't get me started. How is it that whenever I get a roll of quarters from the bank there is always at least 1 canadian quarter in there? But guess what, the low-tech mechanical coin intake on the washing machine somehow knows that they are canadian quarters and will not accept them no matter how many times I put them in. I wonder how much money the banks make by purposefully putting canadian money in their coin rolls. Mock me if you must. They save one cent for each roll where they pull this trick. If 100million people in this country each buy a roll of quarters, that comes out to one million dollars that is being stolen from us.

www.entitledirect.com

What is the tip for? Is it just a tradition or do they get paid only a small stipend from their company like a waiter?

Since title insurance is by far the most rediculous government sanctioned racket going, I can't imagine adding to the robbery called title insurance. Has anyone even heard of anyone making a title claim on such a policy, and/or being paid? With the vast improvements and ready access to property records, on-line jusgment records, etc., this should cost a fraction of what is now charged.

The simple way around this is to not attend your real estate closings. That is what lawyers are for. I went to my first, and will never again attend.

"What is the tip for? Is it just a tradition or do they get paid only a small stipend from their company like a waiter?"

The tip is for living expenses, like all other tips.

Usually it's preferred you just leave a wad of cash on the table at the end of the closing.

Assuming that you are in the mood to attend your closing and pick up the keys, what is the origin and purpose of this tip? A tip seems out of place at this type of event. With all the money flying around there, it could be included in their fee, no?

I've only been to one real estate closing when we sold our one bedroom coop 14 years ago. I'm pretty sure that we needed to sign papers at the closing- I remember many papers being passed around the table. Can you sign everything before the closing or how does that work that you don't have to attend the RE closing?

Ask other drama queens like Nicole Kidman or Madonna.

So what is a good amount?
Or should I just tell them they're lucky they even have a job in today's economy?

nope...find out how far behind on their mortgage they are and make up the difference.

You give a big check and a limited power of attorney to your lawyer and s/he signs all of the papers needed for closing. When I bought my weekend house a few years ago, I was already putting toys in the pool when the closing finished in midtown.

Thanks for the help, nyc_sport. I'm looking forward to not attending my RE closing now. Yesterday I heard about your loft and today a weekend place with a pool. If you mention that you have a vacation home somewhere in Europe, I'm going to begin to get a little envious. The universe isn't always fair it seems. Thanks again.

It is customary in commercial transactions as well. And was told to me by my attorney. And $100 sounds about right.
Maybe it's a pee on job by the person who is actually showing up and your covering their travel and parking expenses? Or only real form of payment (like waiters/waitresses?)

And to my knowledge the only who gets any "tips" in these transactions.

Is $100 really a big deal in the scope of 500K plus transactions?

I just wanted to make sure it was the right amount.

A $100 tip for someone who is just doing their job is still a large tip in my opinion.
We're very frugal (read: will not have much savings left after the closing).

We were told to tip $200 two yrs ago.

somewhereelse
about 4 hours ago
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www.entitledirect.com

for a moment I thought that was aboutready's web site, but hers has another d in the middle: www.entitleddirect.com

NO TIPPING REQUIRED - Do not purchase or refinance without contacting Mike Scarsellato at Entitle Direct (a direct title insurance underwriter) for the absolute lowest title insurace rates/premiums. 877-936-8485x6276

"Maybe it's a pee on job by the person who is actually showing up"

LOL! I think the word is "peon"; it derives from a spanish word for unskilled laborer, and is the origin of the word "peonage". It does NOT mean someone you "pee on"! Too funny.

What I want to know is, all you people who think tipping the title closer is stupid---How many properties to do you own? How many closings ON YOUR OWN PROPERTIES have you participated in?

I own 7 pieces of real estate with buildings on them, and I own acreage as vacant land. And that's a lot more than 7 closings because selling also happens. Look, that's small potatoes, but it's enough to have seen the underbelly of the beast.

Title closers do NOT get paid what they are worth, that's why tips.

Whenever you see tips, people, there is a reason for it. Before you don't pay or get rude about it make sure you understand why the custom is there in the first place.

I am delighted to tip title closers. They get paid like secretaries, and yet they can save my deal when somebody's attorney drops the ball (usually) or when somebody else didn't quite get it together. It's a lot more expensive for a deal to go haywire than for me to toss $100-$200 to a good title closer.

Here's one real life example that happened to me. We're at the closing, and the seller forgot about a loan in Florida that they had paid off, they said, but that was just discovered by the title company as a lien on title. Everybody overlooked it somehow, but it showed up at the closing table. We can't close, it's a big loan, we stop. Title closer excuses herself to go make a phone call. We wait awhile. She comes back with a fax and hands it to the attorneys. We close.

"I am delighted to tip title closers. They get paid like secretaries, and yet they can save my deal when somebody's attorney drops the ball (usually) or when somebody else didn't quite get it together."

So we should be tipping secretaries too?

$100 is sufficient. Purely tradition. At my last closing, the lawyer hung around to make sure the title guy was shtipped.

Well I was just told to bring 150 in cast to tip the title guy. Yes its and 800K apartment and 150 more won't kill me but I feel so raped and gouged by so many people.
6% to he realtor; 5000 to the title insurance people; 4 months common charges to add to the building's reserve fund, application fee to the management company, 2200 grand to an attorney who has already make 3 mistakes and two typos in telling me how many checks to pay. The list goes on and on. It just adds insult to injury to have to tip the title guy. If i don't tip.. is the title guy going to screw up my papers?

the little guy will screw up the papers and the distribution of checks regardless of the tip. I had Kingston Title recently and they made so many mistakes that my only option was to lough. needless to say that lawyers are attached to specific title insurance that they recommend. Do not use your lawyer title guys. Title premium is regulated in NY so everyone charges the same.

just pay the $150. Or some point down the road you'll be wondering ...

There are good closers and there are bad closers, the same goes for title companies, the buyers attorney looks to protect his client and tries to pick a good title company.Most closers are reps for the title company and are not on their payroll and rely on the monies they make at the closings. Ask your self "would you give of your time to travel , work for 2 to 3 hours , incur UPS or Fedex fees up to $100 and not want to get paid for your time and services?" If that the kind of job you would like then you should become a title closer , because it does happen . But when we do get paid it does help offset the other times.

To realtime:
Lawyers usually title companies that wont foul up closings, after all they get paid when it goes well and get recommendations for other closings based on their performance.The "title guy" is usually very careful about getting the checks to the correct people.It seems you had a bad experience , but in many cases thats not the norm. And yes, you as a buyer do have the right to request any title company you wish to have at the closing .
BY THE WAY ITS TITLE GUY NOT LITTLE GUY AND ITS LAUGH NOT LOUGH.

Looking for an update on this topic. A recent streeteasy article and poll showed most people did not tip. http://streeteasy.com/blog/tipping-the-title-closer/#ViewPollResults

Follow-up questions:
1) If you do tip, how much? Who determines this amount?
2) Does the amount correlate to the transaction size or complexity of the close?
3) If you didn't tip were there any issues with your closing or filing of documents?

no tip

a nice tall cup of "give me a f---- break " should be tip enough

My lawyer said it was customary and was firm that I should do it. She designated the amount: $150 by check, not cash. This was 2014.

I have had two closings and didn't tip at either. It was never mentioned and I was totally unaware that it is customary.

I paid a title closer fee on a transaction. I'm fine with that, someone's doing work and wants to be paid, but call it what it is, it's a fee, not a tip.

I have closed real estate transactions in CA, DC, NY, FL and OH on both sides of the table and have never heard of tipping anyone involved.

I think for some it may be described as a "title closer fee" or such by the attorney so you may or may not be aware of it.

I think the lawyer who suggests tipping gets a piece of the action. Over 10 years ago when I closed on a house my lawyer told me to tip the title guy. I was all confused but did it any way. I later on heard him settle with the title guy about the "split". I recently closed on an apt with a diff attorney and no tip was mention.

If a lawyer suggests tipping, you should ask him/her what's their cut and why you shouldn't report him/her to the bar association?

Also, a tip should never be disguised as a fee. They are two entirely different things...

I paid a "Title Closer Fee" of $250 by personal check at my closing. . . now I am wondering if that fee was actually a tip!!

The proper way to tip a title closer requires the element of surprise: step firmly on one of his feet and give him a good solid shove from the shoulder or so. Works like a charm every time.

We did a blog post about this "oddity" -- take a look: http://streeteasy.com/blog/tipping-the-title-closer/