Is the real estate industry writhing with the pain of change, or in dire need of regulatory overhaul?

Title insurance and escrow companies owe California home owners hundreds of millions of dollars the industry appropriated by charging them fees for services never provided and by failing to return money placed in escrow, according to a lawsuit filed May 21.

The suit highlights a troubling pattern: At a time when consumer demand for real estate services is at a peak, virtually every segment of the industry is under siege, charged with some form of consumer fraud.

Ironic, isn't it?

In recent years and with alarming frequency, litigation, complaints and questions about dubious practices have hit home improvement contractors, home builders, home inspectors, private mortgage insurance companies, hard money mortgage lenders and REALTORS® with agency disclosure issues, among others.

The irony doesn't stop there.

At a time when the industry faces this litigious barrage, critics are mounting probing questions about the way the industry conducts its business, often shrouded in esoterica, often with its cards held close to its vest.

More and more often, critics say much of what the industry does should be ported to the Internet to generate more openness and greater consumer access.

Is the real estate industry writhing with the pain of change, or in dire need of regulatory revamping?

Probably a bit of both.

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Published: May 27, 1999

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Editor's Note: This article reflects the opinions of Broderick Perkins only and not necessarily the views of this or any other publication, organization or Website owner.