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hotelcalie
LIF Adult
Member since 12/05 1392 total posts
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Re: tipping at closing?
Posted by Eireann
Posted by shamrock124
Until til this post, I had no idea that closers didn't receive a salary.
I was not told to tip at closing so I am hoping that it was included.
I think the term "tip" is misleading and should really be stated as a fee so not to be confused with something that is optional.
I think you're right about that. That's kind of why I put "tip" in quotes--I guess it does sound insane to tip someone at a closing with all of the other money changing hands. 
I think many closers call it an "attendance fee" so that the clients don't balk over "tipping."
Now we are talking...NOW it makes sense..thanks all for the clarification. Question..Why would anyone go into this line of work then? It doesn't seem you would make enough to live if you only got $40 a closing?
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Posted 10/22/08 3:49 PM  |
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Prudential Douglas Elliman Real Estate
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Aries14
Can't plan life...
Member since 8/08 2860 total posts
Name:
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Re: tipping at closing?
Posted by hotelcalie
Posted by Eireann
Posted by shamrock124
Until til this post, I had no idea that closers didn't receive a salary.
I was not told to tip at closing so I am hoping that it was included.
I think the term "tip" is misleading and should really be stated as a fee so not to be confused with something that is optional.
I think you're right about that. That's kind of why I put "tip" in quotes--I guess it does sound insane to tip someone at a closing with all of the other money changing hands.
I think many closers call it an "attendance fee" so that the clients don't balk over "tipping."
Now we are talking...NOW it makes sense..thanks all for the clarification. Question..Why would anyone go into this line of work then? It doesn't seem you would make enough to live if you only got $40 a closing?
A lot of people do it part time or as a second income.
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| Posted 10/22/08 3:53 PM |
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csorisi
My 2 LOVES
Member since 11/05 1984 total posts
Name:
Corinne
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Re: tipping at closing?
Posted by hotelcalie
OK...so they do not get paid..That seems crazy! Why would you go to a closing in the hopes to get a tip!! Why would someone take on a job like this? Seems crazy! So do I ask my mortgage broker if I need to tip title person or my RE lawyer if they already included it in someway?
Speak to your attorney about this because they are the person who will discuss this with you at the closing.
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| Posted 10/22/08 4:31 PM |
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csorisi
My 2 LOVES
Member since 11/05 1984 total posts
Name:
Corinne
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Re: tipping at closing?
Posted by hotelcalie
Posted by Eireann
Posted by shamrock124
Until til this post, I had no idea that closers didn't receive a salary.
I was not told to tip at closing so I am hoping that it was included.
I think the term "tip" is misleading and should really be stated as a fee so not to be confused with something that is optional.
I think you're right about that. That's kind of why I put "tip" in quotes--I guess it does sound insane to tip someone at a closing with all of the other money changing hands.
I think many closers call it an "attendance fee" so that the clients don't balk over "tipping."
Now we are talking...NOW it makes sense..thanks all for the clarification. Question..Why would anyone go into this line of work then? It doesn't seem you would make enough to live if you only got $40 a closing?
At times title closers use to make alot of money, when the boom happened and that is why alot people got into it. Most closers can get anywhere from $100 to $300 a closing. IF they do commercial closings they can make $500 a closing. I know alot of people that do it for a living full time, many attorneys stopped being attorneys to do this. If you are a good title closer you can make a decent living doing it especially if you work with an attorney and they request you for every closing they have. SOme title closers for extra money work at the title companies that they work with. It really depends on the situation. You make your own hours so it is great for SAHMs.
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| Posted 10/22/08 4:34 PM |
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SuzyQ
Mama to 3!?!?!?
Member since 7/06 8069 total posts
Name:
Susan
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Re: tipping at closing?
No tipping here. We live in Illinois though and I was told (on this board and by DH's friend) that it is done in NY. The title person at our closing worked for/with the realty company the seller used and I'm pretty sure she made money through them. There may have even been a fee incuded in our closing costs. I have forgotten already. 
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| Posted 10/22/08 5:47 PM |
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Kristin616
Member since 8/06 3595 total posts
Name:
Kris
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Re: tipping at closing?
Our attorney told us at closing we had to pay $100 for the title closer.
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| Posted 10/22/08 6:53 PM |
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JML83
LIF Adolescent
Member since 12/07 540 total posts
Name:
Lauren
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Re: tipping at closing?
QUOTE]
A lot of people do it part time or as a second income.
My uncle is retired and does this on the side. From what I understand he works off of tips. He did my closing and told us not to pay him but still gave him a gift.
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| Posted 10/22/08 9:17 PM |
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EmmaNick
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Member since 12/06 16001 total posts
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Re: tipping at closing?
I used to prepare closing statements in our office. Every single title closer charged a fee, it was usually $75 to $150. It was a separate line item and not built into the title charges. As far as a survey, the title company, not the closer is responsible for reading it into the survey and they charge accordingly.
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| Posted 10/22/08 10:54 PM |
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browneyedgirl
family is all that matters
Member since 6/06 6513 total posts
Name:
browneyes
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Re: tipping at closing?
never heard of this except for on this website.
when we closed, we did not tip.
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| Posted 10/23/08 8:31 AM |
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ARIELSMOM
Love my Babes
Member since 8/05 5889 total posts
Name:
MEREDITH
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Re: tipping at closing?
I didnt, but i also had never heard of it until after i bought my house. I was so broke.
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| Posted 10/23/08 9:04 AM |
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Aries14
Can't plan life...
Member since 8/08 2860 total posts
Name:
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Re: tipping at closing?
Like others have said, you probably did "tip" or pay their "fee" and just didn't realize it. Our attorney had it all already worked in bc it is a standard thing to do. The only reason I even knew that we were giving the tip the first time was bc I took a few real estate law classes and we had to do mock closings. Even in these classes you are taught to just include it with the closing fees.
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| Posted 10/23/08 9:18 AM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: tipping at closing?
Sorry but I don't buy the idea of tipping the title closer.
There was no separate title closer at any of my closings. I don't know who was handling the title... maybe my attorney?
My attorney never said anything about tipping a title closer.
I don't tip the guy at McDonalds just like I don't tip the Title Closer.
If title closers really get paid nothing, they should DEMAND their fee and issue an invoice. Don't expect it in a tip.
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| Posted 10/23/08 10:54 AM |
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dandr10199
Grace is growing up too fast!
Member since 10/05 11561 total posts
Name:
Dina
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Re: tipping at closing?
I am a title closer. That is my career.
I was at a networking morning meeting today from 7am-9:30AM, so I am just seeing this now.
WOW. There are a lot of misconceptions floating around here so I will do my best to answer any questions that were on this thread.
First, let me answer this:
"Posted by hotelcalie
OK...so they do not get paid..That seems crazy! Why would you go to a closing in the hopes to get a tip!! Why would someone take on a job like this? Seems crazy!"
I became a title closer so that I can have a flexible schedule as I am a mom to a two yr old little girl. My DH works a 14 hour day (Including a commute) so it was important to us that one of us have a flex schedule. I used to work in non-profit and a flex schedule was NOT an option. So, BEFORE I became preggo, I got into title insurance as a sales rep., eventually I became and independent title closer.
1099 is not a union. It is a TAX code. Meaning that you are in your own small business as a independent contractor. I pay for any own expenses (gas, fed exs to title company, pens, stapler, everything). Meaning that the title company DOES NOT pay me a salary. They pay me $40-$50 per closing. So if everyone stiffed me and did not tip, I would make $50 bucks a week, $150-$200 per month if there is no mortgage pay off (they happen at about 30% of all closings).
I work for tips and mortgage pay offs. A mortgage pay off can be $150-$200; but that DOES NOT happen at every closing. Mortgage pay offs are necessary for the seller to sell their home to the buyer. Also I prepare docs for recording.
Also, if you think for a second in THIS market I am doing 3-5 closings a week, you are mistaken...try 3-4 a month. Three years ago 3-5 a week would have been a fair assessment.
I did Jess' (Ophelia) closing. She can attest that I did A LOT of behind the scenes work BEFORE her closing. There is so much more that happens that the purchaser NEVER sees.
Putting the tip into the title bill is kinda dishonest IMHO...like when a restaurant automatically charges you 18% on parties that have over 6 people. I always tip waitstaff 22-25%, even if the 18% is mandatory, I give extra, especially if the service was GREAT. I want to purchasers to KNOW what I do, that I do BUST my AZZ, and I want them to give me what THEY feel I deserve as a tip, just like you would a waiter, tip based on what you feel is the right thing to give.
The title bill covers your title insurance, municipal searches, underwriter's fees and other searches that the federal gov mandates. After the title comp pays out the companies that do the searches, the examiners, the surveyors, etc. they get maybe 35-40%% of what you pay on your "title insurance bill" after everyone else is paid out.
For those of you who did not tip, or thing it is not necessary...would you not tip a waiter? a hairstylist? It is NOT different. Title closers facilitate your closing and make sure your document that are required by NYS are filed properly so the state recognizes that you are the new owner and the you have to right to sell later on. We are also notary public's and without someone notarizing your signature that is not your atty, your docs would be considered as NOT binding or LEGAL. So we make sure that the state and town you are buying acknowledges and accepts that YOUR are new the rightful owners. Keep that in mind the next time you are at a closing...the closer is a necessary part of your closing and should be treated accordingly.
ETA: In NY and NJ there are HUGE differences. NJ does not use title closers, NY does. NJ has the atty be the closer, NY does not because of the RESPA act (NY views it as a conflict of interest) and NJ is moving towards doing it the way NY does b/c of fraud in recent months. If your atty owns a title company and is the closer, the argument can be made that they have a conflict of interest.
Message edited 10/23/2008 11:00:16 AM.
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| Posted 10/23/08 10:55 AM |
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PotofLuck06
Our Baby Boy Is Here!!!
Member since 11/06 13241 total posts
Name:
Betsy
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Re: tipping at closing?
We tipped $100. Our lawyer told us about this while we reviewed contracts. He said it was customary and asked our opinions. We said include it, and it was part of our closing costs with the check we had to bring.
The title person went to Town Hall after closing for us to process all the paperwork, etc and ensure the Town did it's end of the deal as well.
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| Posted 10/23/08 11:00 AM |
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dandr10199
Grace is growing up too fast!
Member since 10/05 11561 total posts
Name:
Dina
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Re: tipping at closing?
Posted by Summerrluvv
I used to prepare closing statements in our office. Every single title closer charged a fee, it was usually $75 to $150. It was a separate line item and not built into the title charges. As far as a survey, the title company, not the closer is responsible for reading it into the survey and they charge accordingly.
FYI...The fees have changed and are now $40-$50. They have been that way for 2-3 years now.
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| Posted 10/23/08 11:01 AM |
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dandr10199
Grace is growing up too fast!
Member since 10/05 11561 total posts
Name:
Dina
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Re: tipping at closing?
Posted by ave1024
I don't tip the guy at McDonalds just like I don't tip the Title Closer.
If title closers really get paid nothing, they should DEMAND their fee and issue an invoice. Don't expect it in a tip.
Whoa. To liken what someone does as a career to working at McDonald's is below the belt, IMHO.
AND...demand it??? The title companies wil not pay it or put in the title bill and pay us that way. That is UNFAIR to the customer, IMHO. How would you feel if your atty said "now this $200 is for the title closer" on your bill? I would rather be honest and explain WHY the title closer deserves a tip.
WOW I am just flabbergasted at your ignorance.
Well,l I hope that your docs (deed, mortgage, transfer documents) are recorded properly b/c you will have a h3ll of a time trying to sell your home if that are not.
Message edited 10/23/2008 11:06:53 AM.
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| Posted 10/23/08 11:03 AM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: tipping at closing?
Posted by dandr10199
Whoa. To liken what someone does as a career to working at McDonald's is below the belt, IMHO.
AND...demand it??? The title companies wil not pay it or put in the title bill and pay us that way. That is UNFAIR to the customer, IMHO. How would you feel if your atty said "now this $200 is for the title closer" on your bill? I would rather be honest and explain WHY the title closer deserves a tip.
WOW I am just flabbergasted at your ignorance.
Listen... it's not personal so you don't have to call me ignorant. In fact it's pretty ignorant to call me ignorant just because I don't believe in this practice.
Anyways... if you can figure out how to discuss this rationally answer me these questions then:
Why is tipping the title closer a NY only practice? How come this isn't done throughout the country?
Why can't you just invoice the client for the money? Why does there have to be gratuity involved?
What happens to titles outside of New York? People are not tipping title closers outside of New York. Do those title closers work for free then? Who pays them?
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| Posted 10/23/08 11:23 AM |
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dandr10199
Grace is growing up too fast!
Member since 10/05 11561 total posts
Name:
Dina
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Re: tipping at closing?
Posted by ave1024
Posted by dandr10199
Whoa. To liken what someone does as a career to working at McDonald's is below the belt, IMHO.
AND...demand it??? The title companies wil not pay it or put in the title bill and pay us that way. That is UNFAIR to the customer, IMHO. How would you feel if your atty said "now this $200 is for the title closer" on your bill? I would rather be honest and explain WHY the title closer deserves a tip.
WOW I am just flabbergasted at your ignorance.
Listen... it's not personal so you don't have to call me ignorant. In fact it's pretty ignorant to call me ignorant just because I don't believe in this practice.
Anyways... if you can figure out how to discuss this rationally answer me these questions then:
Why is tipping the title closer a NY only practice? How come this isn't done throughout the country?
Why can't you just invoice the client for the money? Why does there have to be gratuity involved?
What happens to titles outside of New York? People are not tipping title closers outside of New York. Do those title closers work for free then? Who pays them?
I was not saying you were ignorant b/c you disagree with tipping on principle, wrote it b/c you compared what I do to someone working at McDonalds. To me, that was an ignorant satement.
To answer the rest of your questions, I know that this issue is left up to the states. So I have no idea why some states have title closers and some do not. The title companies I work with do businesss in NY, NJ, PA, CT and FL. All five states do it differently. I know that if I am a notary public in NY, I cannot be one in NJ if I do not work there or live there. Therefore, I coould not close in NJ. Southern NJ uses title closers, Northern NJ and central NJ does not. Different towns within a state like NJ, can even do this differently. Except in southern NJ they are called "notary signing agents". They do less work than a closer in NY...they just notorize the docs for the attys.
To add to the bill and not disclose it would violate RESPA, so an atty may reqest to have it added on but then I have to ask if the atty explained to the purchasers at closing that XXX amount is dedicated to my "attendance fee". It is uncomfortable and awkward. Sometimes the atty does not explain it and it becomes a MAJOR problem at closing, as you can imagine.
The RE atty is supposed to educate this/her client as to all the work the title closer does. If they choose not to tip after that, then the atty did not explain it well or the purchaser feels that the closer does not warrant a tip. If the purchaser feels that way, I truly feel bad for every service person that purchaser comes into contact with.
JMHO... but if on principle, if you do not tip someone who is working hard for you that is just wrong on so many levels. If anyone does not tip based on that fact that you feel that title closers should be paid by the title company, you are entitled to your opinion. I disagree with you. I feel that your atty should explain why you should tip a title closer a little better. I also feel that you should hope that you or your S/O will never be in an industry where tips are your main source of income...karma will bite you in the azz.
Message edited 10/23/2008 12:21:29 PM.
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| Posted 10/23/08 12:19 PM |
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EmmaNick
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Member since 12/06 16001 total posts
Name:
*
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Re: tipping at closing?
Posted by ave1024
Sorry but I don't buy the idea of tipping the title closer.
There was no separate title closer at any of my closings. I don't know who was handling the title... maybe my attorney?
My attorney never said anything about tipping a title closer.
I don't tip the guy at McDonalds just like I don't tip the Title Closer.
If title closers really get paid nothing, they should DEMAND their fee and issue an invoice. Don't expect it in a tip.
Actually on the closing statements that we prepare, it's referred to has a "title pickup charge" So maybe you paid for a closer, just didn't realize it?
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| Posted 10/23/08 12:36 PM |
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dandr10199
Grace is growing up too fast!
Member since 10/05 11561 total posts
Name:
Dina
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Re: tipping at closing?
Posted by hotelcalie
Posted by shamrock124
Based on Payscale.com, the average scale for a new closer is $36,423. Not a bad starting salary and above average for the average US salary. Now, add $20,800 to it in tips - based on 4 closing per week for one year, and you're at $57,223 annual salary with is a darn good salary.
I still don't see where tipping should come into play. I don't tip my mailman every time he drops off mail and he makes about that.
IMAGE
Based on this info I don't think a tip is necessary. They seem to be doing fine!
Please tell me where in NY I can do four closings a week and I willbe there! this info was accurate 3-5 yrs ago. NOW, present day it is way, way off.
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| Posted 10/23/08 12:37 PM |
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EmmaNick
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Member since 12/06 16001 total posts
Name:
*
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Re: tipping at closing?
Posted by dandr10199
Posted by Summerrluvv
I used to prepare closing statements in our office. Every single title closer charged a fee, it was usually $75 to $150. It was a separate line item and not built into the title charges. As far as a survey, the title company, not the closer is responsible for reading it into the survey and they charge accordingly.
FYI...The fees have changed and are now $40-$50. They have been that way for 2-3 years now.
Maybe for you, not for the ones I've typed.
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| Posted 10/23/08 12:38 PM |
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dandr10199
Grace is growing up too fast!
Member since 10/05 11561 total posts
Name:
Dina
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Re: tipping at closing?
Posted by Summerrluvv
Posted by dandr10199
Posted by Summerrluvv
I used to prepare closing statements in our office. Every single title closer charged a fee, it was usually $75 to $150. It was a separate line item and not built into the title charges. As far as a survey, the title company, not the closer is responsible for reading it into the survey and they charge accordingly.
FYI...The fees have changed and are now $40-$50. They have been that way for 2-3 years now.
Maybe for you, not for the ones I've typed.
WOW...can I send your company my resume??? That is GREAT that your company pays closers very well and that is over and above the pick up for the mortgage right?
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| Posted 10/23/08 12:43 PM |
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EmmaNick
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Member since 12/06 16001 total posts
Name:
*
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Re: tipping at closing?
Our company doesn't pay anyone, the purchaser does. I work for a law firm.
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| Posted 10/23/08 12:44 PM |
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dandr10199
Grace is growing up too fast!
Member since 10/05 11561 total posts
Name:
Dina
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Re: tipping at closing?
Posted by Summerrluvv
Our company doesn't pay anyone, the purchaser does. I work for a law firm.
So then your atty has his clients tip very well.
Are you putting the attendance fee on the HUD? I guess that this is how he does it?
Message edited 10/23/2008 12:46:38 PM.
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| Posted 10/23/08 12:46 PM |
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EmmaNick
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Member since 12/06 16001 total posts
Name:
*
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Re: tipping at closing?
Posted by dandr10199
Posted by Summerrluvv
Our company doesn't pay anyone, the purchaser does. I work for a law firm.
So then your atty has his clients tip very well.
Are you putting the attendance fee on the HUD? I guess that this is how he does it?
I don't type HUD's only closing statements to send to our client from our office after their closing.
The buyer's aren't tipping, it's the title closer's fee. The buyer doesn't have a "choice" in what they want to pay. A choice would be a tip.
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| Posted 10/23/08 12:49 PM |
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