ALTA has proposed a $195 annual license fee for Title Agents and Underwriters to use the ALTA standard forms. ALTA members would not be charged.First, let me disclose that our title insurance agency is an ALTA member and plans to remain one, so this new fee won’t directly impact us.
There are times when I don’t agree with ALTA, but this isn’t one of them. Title Agents have been getting a free ride on the back of ALTA and the large underwriters, and ALTA is wise to have serious title agents pay up for the privilege.
ALTA forms are a thing of value and cheap at $195. It’s hard to think of another tool, and yes they are a tool, that we use as frequently to as great an impact in the title business. Every day and every transaction, we are using the ALTA forms (or a state variant thereof). My telephone service, computer software and copier are all used as frequently and are key parts of our business, and I don’t complain about their cost (well, maybe the phone bill…).
One hundred and ninety five dollars should not break the bank of any title agent. If it you can’t afford to pay less than $200 for one of the most important tools in your business, I suggest you revisit your business plan.
There are others, many of whom I respect, that have concerns about these changes. I don’t feel this is a ploy to drive membership in ALTA, if it were, they would be charging significantly more in licensing fees to drive the perception of a “membership bargain.”
Some fear the “slippery slope” that will lead to ever increasing fees and pressure on smaller agents. If that’s your fear, then join ALTA, participate (ALTA’s LinkedIn Group) and have your voice be heard.
I personally feel this is a step in the right direction for ALTA – by widening their sources of revenue they reduce their reliance on dues from large underwriters and agents. This gives them an opportunity to open the association to a more diverse set of voices – one that is representative of all the interests of the industry. Everyone wins.
