A title firm just lately agreed to a stipulation and waiver with a penalty of $1 million, together with a $185,000 reimbursement for the investigation and authorized prices, after a California Department of Insurance investigation alleged that one of its title advertising representatives violated anti-inducement legal guidelines by offering unlawful advantages to actual property brokers. In January 2021, the identical title firm agreed to pay $50,000 to settle related allegations.
The investigation discovered that the corporate’s advertising consultant supplied unlawful inducements by means of the use of tour buses to deliver brokers to view and promote listings, social media coaching, gross sales teaching, and customized video advertising. The investigation additionally discovered that the advertising consultant managed a 600-member real-estate group, the place he was the one advertising consultant within the group. Despite the title firm’s inner tips for complying with anti-inducement legal guidelines, the corporate inspired the advertising consultant’s involvement with the real-estate group.
The title firm neither admitted nor denied any wrongdoing.