$3.79M D.C. Attorney General Settlement Ends Litigation Over Alleged Title Company Kickback Scheme

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Several title companies have agreed to a combined $3,790,000 settlement with the District of Columbia Office of the Attorney General to resolve allegations that they illegally offered financial incentives to local real estate agents in exchange for the agents steering customers to a specific title company.

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Settlement agreements worth a combined $3.29 million were first announced in late August 2024 by District of Columbia Attorney General Brian L. Schwalb, whose office alleged Allied Title & Escrow, LLC; KVS Title, LLC; Modern Settlements, LLC; and Union Settlements, LLC took part in “the widespread use of illegal kickback schemes in the title insurance market.” The D.C. Attorney General announced in October of that year that Universal Title would pay a $500,000 settlement after being found to have also been engaged in “an illegal title insurance kickback scheme.”

According to the official settlement website, DCOAGTitleInsuranceRestitution.com, District of Columbia residents who used any of the following title companies during the relevant time period are eligible to receive a $500 payment:

• Allied Title & Escrow (operating as  Allied Title; Allied Title Services; Allied Title Agency; Allied Title Closings; Allied Title Metro; Allied Title Network; and Allied Title Organization);
• KVS Title (operating as Alliance Title Services; Clear Title Solutions;  Eversure Title; Title Pro Group; and Washington Title Team);
• Modern Settlements;
• Union Settlements; and
• Universal Title (operating as UTCP Collective and Fundamental Title).

To file a D.C. title settlement claim form online, eligible consumers can head to this page and log in using the claim number and PIN found on their copy of the settlement notice. Consumers who do not have a PIN can begin their claim form using their email address.

The settlement site notes that consumers who log in to file a claim form using their email address will be required to provide documentation proving their status to support their claim. Similarly, the D.C. Office of the Attorney General reserves the right to ask any consumer who files a claim form for additional information and/or documentation to confirm their eligibility in the settlement, the website says.

All D.C. title insurance settlement claim forms must be submitted online by May 5, 2026.

Finally, as part of the settlement, all five title companies have also agreed to stop giving real estate agents consideration and other compensation in exchange for referring homeowners to their title insurance services, and will either cease their operations in the District or divest the ownership interests of real estate agents in their shell companies.

The District of Columbia title insurance lawsuit claimed that five major providers of insurance protections for homeowners and lenders offered unlawful compensation to real estate agents who referred D.C. residents to their title insurance and escrow services after buying property, in violation of the District of Columbia Consumer Protection Procedures Act.

“[B]oth federal and District law prohibit kickbacks and other forms of compensation for the referral of title insurance and escrow business,” the August 2024 press release states. “These laws ensure that real estate agents act in the best interests of their clients—rather than themselves—and help prevent closing costs and fees from becoming artificially inflated by anticompetitive practices.”

The lawsuit maintained that this compensation came in the form of split shares of profit (also known as kickbacks), discounted investment opportunities in the title insurance companies themselves or in highly lucrative shell companies, and lavish yacht parties in the Chesapeake Bay.

Title insurance is required by most lenders for home loans, as it protects the lender and the homebuyer from defects in a property’s title, such as a previous owner’s debts.

Did you know that some class action settlements require no proof to submit a claim? Check out the latest open class action settlements.