The Title Report's National Real Estate Survey for Title Companies visited Los Angeles and Washington, DC this fall and spoke with 200 agents (with proven home sales) about their views of the title companies they use most often, online transactions, controlled business arrangements and business partner selection habits.

"There are noticeable differences between DC and LA agents," said Renee Becker, project manager of the national survey. "For instance, DC Realtors let personal relationships influence their decision to use a title company and use many more than in LA. Los Angeles agents value exclusivity and familiarity with the title company they do business with," she said.

The research team found that agents in Los Angeles are generally satisfied with the performance of their title companies, although some differences are noteworthy. In the "turnaround time" category, agent-customers favored Equity Title and Orange Coast Title, while Southland Title and Chicago Title scored slightly lower. However, customers rated all of these title companies above average.

"If one title company is ranked higher or lower than another but the ratings differences between them is small, we are not representing that the higher rated company is better than the lower rated one," said Evelyn Green, director of primary research at The Research Investment (TRI). TRI teamed up with October Research to conduct the survey. "However, for comparison purposes, it might be helpful to note any ratings differences that are 0.4 or greater," she added, "and the fact that there is so little variability significantly reduces the margin of error in the survey."

"Similar to LA, DC agents gave their primary title companies high marks in the performance categories," said Becker. "However, where they differ is that DC agents are highly likely to try out other title companies, whereas in LA they are extremely loyal to their primary title provider."

Sixty-six percent of LA real estate agents said they are "extremely loyal" to the title company they use most often. They said it's because these title companies provide great overall service, have good reps, are accurate and the title staff helps to solve the agents' problems. Despite all of this, some LA agents believe that the way they select a title company in the future will indeed change. They believe that if insurance companies are allowed to sell real estate, services will be consolidated. In addition, they believe that consolidation is not far off on the horizon.

DC agents also seem to favor small, local title companies over large, national brands. They see the smaller brands as offering more personalized and better service and seem to have better relationships with the staff of the title companies.

Of agents who said that a title officer is located in their realty office, the majority (73%) said this could be the reason they use that particular title company.

"The trend in Los Angeles is certainly leaning toward exclusivity," said Green. "We've seen it in the small number of title companies realty agents like to use, and the fact that they prefer to give repeat business to title companies they are familiar with," she added. "It might be very difficult for an emerging title company to get started in Los Angeles due to this; however, the opportunity for controlled business arrangements might be greater here than in DC."

The DC survey results indicate that 17% of realty offices own a title company but generally agents are not required to use that company. Still, DC agents do not anticipate that the realty company they work for will buy a title company in the short or longer-term. "In addition to not believing their realty company would buy a title company in the next couple of years, agents in DC indicated that they don't like to be told what company to use and that their customers become skeptical when they use an in-house company for their deals," said Becker. "The mentality is all about choice and flexibility in DC," she added.

In addition to the Los Angeles and Washington, DC markets, the National Real Estate Survey encompasses 15 major U.S. real estate markets, providing title insurance companies with insight into what forms of technology work well in each area of the country. Those polled were asked to characterize their relationships with title insurance companies, review them on the quality of their services and list which services they would prefer to see offered electronically.

Title companies named and reviewed in the Los Angeles edition of the survey included Fidelity National Title, First American Title, Chicago Title, Equity Title, Commonwealth Land Title, Lawyer's Title, Southland Title, Orange Coast Title, Provident Title, South Coast Title, Commerce Title, and Continental Title.

In the Washington, DC metropolitan statistical area (MSA), real estate agents named and reviewed more than 40 title companies, including:, RGS Title, MBH Settlement Group, Stewart Title, Lawyer's Title, Capital Title, Stonewall Title, Title Professionals, Beltway Title, Classic Title, Fountainhead Title, and Keystone Title.

To receive more information on the National Real Estate Survey and to check on the availability of a report for a certain MSA, call 1-877-6-OCTOBER or visit www.thetitlereport.com.

Published: December 24, 2002

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