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Show CONSUMER- v-xgjg Higher Prices For Land Title Services? Home buyers will face less competition and higher prices for land title services unless limitations are placed on controlled business arrangements. ar-rangements. Under controlled con-trolled business, real estate professionals direct purchasers pur-chasers to title insurance agencies in which they have -.tlPanc'?Li.nterest- Xj-"" 1 a study mmm- ' entitled, "The L - Pricing and If t.' Marketing of Insurance," I " j the U.S. De- awUI partment of McDonald Justice documented docu-mented these "major evils" of controlled business: Payment of unreasonably high premiums Acceptance of unusually poor service Acceptance of faulty title examinations and policies Late in 1982, the National Association of Insurance Commissioners approved a model title insurance law for use in drafting legislation legisla-tion in individual states which would place an annual ceiling of 20 per cent of gross revenue on business received by title insurers and their agents from real estate professionals with financial interests in such organizations. Legislation with a similar 20 per cent controlled business limitation was introduced in-troduced in Congress last year although the measure has not yet been enacted, according to Thomas S. McDonald, president of the American Land Title Association. Associ-ation. "If controlled business is left unchecked, the inevitable inevit-able result will be less competition in the marketplace market-place and higher prices to consumers for title services," ser-vices," McDonald said. "Home buyers should consider con-sider contacting their members mem-bers of Congress, and their state legislators and insurance in-surance regulators, about placing reasonable restrictions restric-tions on controlled business- title insurance business will continue to rje earned on the basis of P"ce' service and product quality." |