Tipping at closing?

Is this the norm?

If so, who do you tip and how much?

Re: Tipping at closing?

We didn't tip but we did get our RA a nice bottle of wine as a thank you. I have heard of people tipping though

Re: Tipping at closing?

There's no tipping. The title closer gets an attendance fee from the buyer. Years ago some started referring to this as a tip and the name stuck. The seller pays the title closer based on how many mortgages or judgments are paid off at closing (sometimes none) and the buyer pays an attendance fee. A customary attendance fee nowadays is $150-250.

Re: Tipping at closing?

Did not tip

Re: Tipping at closing?

We tipped the title closer - our lawyer suggested $100-$150.
We gave her $100, we had so much $$ going out at closing.

Re: Tipping at closing?

Re: Tipping at closing?

Re: Tipping at closing?

Posted by missfabulous

Posted by bookworm

Posted by marieSand

We tipped the title closer - our lawyer suggested $100-$150.
We gave her $100, we had so much $$ going out at closing.

We tipped the title closer $125. I thought it was obnoxious but our lawyer made us.

Same here. I think we gave $50 though. So ridiculous.

Re: Tipping at closing?

Posted by Century 21 Dallow - Christine Braun

Posted by missfabulous

Posted by bookworm

Posted by marieSand

We tipped the title closer - our lawyer suggested $100-$150.
We gave her $100, we had so much $$ going out at closing.

We tipped the title closer $125. I thought it was obnoxious but our lawyer made us.

Same here. I think we gave $50 though. So ridiculous.

My understanding -- from conversations with title closers at the closing table -- is that this so-called "tip" or fee is really all they get paid for the work they do in connection with your closing. It's not as if they make a salary and the tip is something that's a little extra on top. It's really the money that they've earned for doing the work. If they don't get their tip, they get nothing for the work, because there is no other source of payment for them (again, I am just basing this on what title closers have told me).

The title closer does have a key role at closing. It's pretty important for any buyer to know they are getting clear title, right? So why begrudge the title closer their fee? They are doing a job that is helping you buy your home, just as the bank is, your attorney is, and your real estate agent is. They are a necessary part of the process. In the grand scheme of what is being paid, why begrudge the title closer his or her $150-$250 fee? I don't think it's "obnoxious" for someone to ask to be paid for the time and the work they've done.

Yes, closing costs as a whole are high (often due to prepayment of taxes). But that is not the title closer's fault, and should be completely irrelevant to the issue of their fee, in my view. To me, it would be like getting your house renovated, but then saying "Well, I am paying so much money to the guy who is painting my house, I am not going to pay the floor guy his fee."

I just wanted to clarify this because I really had no idea what the title closer's "tip" meant until I started working in real estate, so I figured others might not know! Tip is a completely misleading word in this context. So now maybe those of you who are closing in the future won't be as put off by having to fork over some more $ to the title closer.

Re: Tipping at closing?

I am sure there is someone on here who has worked as a title closer on Long Island and can clarify, because I am by no means an expert on the intricacies of how title closers get paid.

BUT with that disclaimer: I think it's actually true that some title companies don't pay title closers anything, so what they earn is strictly the fee the seller pays them for each lien being paid off and the "tip" or fee that the buyer pays at closing. Other companies may pay a nominal fee -- but the majority of money is earned through fees paid by the buyer and seller.

And yes, it is customary but not mandatory for the buyer to pay the tip (or fee -- I really think "tip" is misleading). So if they refuse, the title closer could walk away with nothing for their efforts. That's why we are saying tip is really a misnomer here.

As for why someone would choose to do the job -- There are plenty of jobs where people rely mostly on tips (waiters/waitresses, for example), because tips are customary and expected. I mean, even as an agent, you can work very hard on a transaction that never closes, and then you get nothing for your hard work. Most of the times transactions close (and I am sure most of the time title closers get paid), but again, as an agent, you understand going into this career that a deal has to close for you to get paid.

I am not and I never have been a title closer, so I don't have a vested interest here. And I fully recognize that closing costs are high and can be a big burden for buyers. I just found it surprising that so many people were upset that they were expected to give the title closer something at closing, and thought that maybe people would feel differently if they realized that the fees at closing make up the bulk (if not all) of their income.

Re: Tipping at closing?

Posted by Century 21 Dallow - Christine Braun

Posted by missfabulous

Posted by bookworm

Posted by marieSand

We tipped the title closer - our lawyer suggested $100-$150.
We gave her $100, we had so much $$ going out at closing.

We tipped the title closer $125. I thought it was obnoxious but our lawyer made us.

Same here. I think we gave $50 though. So ridiculous.

My understanding -- from conversations with title closers at the closing table -- is that this so-called "tip" or fee is really all they get paid for the work they do in connection with your closing. It's not as if they make a salary and the tip is something that's a little extra on top. It's really the money that they've earned for doing the work. If they don't get their tip, they get nothing for the work, because there is no other source of payment for them (again, I am just basing this on what title closers have told me).

The title closer does have a key role at closing. It's pretty important for any buyer to know they are getting clear title, right? So why begrudge the title closer their fee? They are doing a job that is helping you buy your home, just as the bank is, your attorney is, and your real estate agent is. They are a necessary part of the process. In the grand scheme of what is being paid, why begrudge the title closer his or her $150-$250 fee? I don't think it's "obnoxious" for someone to ask to be paid for the time and the work they've done.

Yes, closing costs as a whole are high (often due to prepayment of taxes). But that is not the title closer's fault, and should be completely irrelevant to the issue of their fee, in my view. To me, it would be like getting your house renovated, but then saying "Well, I am paying so much money to the guy who is painting my house, I am not going to pay the floor guy his fee."

I just wanted to clarify this because I really had no idea what the title closer's "tip" meant until I started working in real estate, so I figured others might not know! Tip is a completely misleading word in this context. So now maybe those of you who are closing in the future won't be as put off by having to fork over some more $ to the title closer.

Re: Tipping at closing?

Christine is 100% correct. Title closers do not have a salary. They get paid on a per closing basis and there is no set fee. There should be a set fee, however the nature of the job is that the pay is unsteady. I have seen title closers earn as little as $0 and as high as $500 at closings. Fees, like closings are always different with some lasting 1 hour, some 5 hours.

If the seller (as most do) has a mortgage, the title closer is responsible for paying it and gets a 'pick up fee', usually $200-250. If the seller does not have a mortgage to be paid off, the seller does not pay the title closer anything. The only example of a ‘tip’ would be in this case if the seller gave something. Most do not.

The title closer is arguably the most important person in the room at the closing. The deed that you paid $xxx,000 for is walking out with the title closer.

Everyone gets hung-up on the connotation the word 'tip' brings. In this context, ‘tip’ is a misnomer. This fee is not optional. A more proper name for it is an "attendance fee".

Re: Tipping at closing?

we didn't tip anyone, nor did we give them gifts

Re: Tipping at closing?

i remember having to write a check for the title person.. i think it was like $150. Our lawyer just told us to do it so I didn't even think of it as a tip.

On the other hand, the RE agent we were working with gave us a $25 BBB certificate, which we thought was really nice.