At Hallmark Abstract Service very little time is spent having to explain the fees that we charge for the title insurance portion of a New York State commercial or residential real estate purchase or refinance!
One reason for this is the fact that the premium charged for title insurance is fixed and will not vary from firm to firm.
The other reason is more company specific and has to do with the fact that the fees we charge for the non-premium expenses incurred with title insurance are among the lowest in the industry.
For attorney’s who have used other firms or for individuals comparing title bills that fact is clear.
For firms in other industry’s, however, discussions that revolve around billing may arise more often.
We received the following short story about this issue that we wanted to pass along.
The story goes by the name, ‘The Hammer‘!
‘There was a fishing ship in the North Atlantic sea whose engine had frozen up. Despite all the efforts put in by their employees to get the engine started, they couldn’t. They called in an expert to fix the engine.
They flew him in by helicopter.
Once on the ship he was brought down to the engine room and inspects the problem.
He studies the engine, pulls out a little hammer from his pocket and bangs it firmly. The engine starts right away!
Everyone is baffled. The expert mails the bill in. The CFO of the company is even more baffled when he gets a bill for $20,000.
He calls the expert and says: “We don’t think it is worth $20,000 for you to come in with a little hammer, bang the engine just once to get the engine started! That must be a very expensive hammer”.
The expert says: “Would you like me to itemize the bill for you?”
The CEO sternly says: “Yes, as a matter of fact, we would!”
$19,995……Knowing where to strike it.