California Best Title Company, Inc. has agreed to pay the California Department of Insurance $150,000 to settle allegations that two of its licensed employees violated state laws designed to protect consumers from conflicts of interest in real estate transactions.
Title insurance protects property buyers and lenders against potential financial losses from title defects or unexpected claims.
While consumers technically have the right to choose the title company in a real estate transaction, real estate agents almost always make this choice for consumers.
Therefore, under California law, title companies or their representatives may not offer illegal perks or incentives to real estate agents in exchange for business referrals — a practice known as illegal inducement.
The department launched an investigation after receiving multiple complaints from industry professionals who alleged that California Best Title’s marketing representatives were providing illegal inducements to real estate agents for those agents to steer consumers to use California Best Title.
The investigation found that title marketing representative Jonathan Golden offered free photography and drone videography services to real estate agents, while Joshua Meador, another marketing representative, allegedly provided real estate sales marketing tips as inducements.
These actions violated California Insurance Code § 12404, which prohibits offering any form of compensation or benefit to influence the placement or referral of title insurance business. Importantly, the law applies even if no business is ultimately referred — creating the possibility of inducement alone constitutes a violation.
Although the company denied the allegations, it signed a Stipulation and Waiver and agreed to pay $150,000 in penalties and costs. Additionally, the company must implement a formal, written employee training program on state and federal anti-inducement laws within 90 days.
As part of the settlement, Golden admitted to providing the illegal services. He agreed to immediately surrender his Certificate of Registration as a Title Marketing Representative, effective March 20, 2025, and will be prohibited from seeking any insurance license for the next three years.
Meador denied the allegations but accepted ongoing restrictions on his Certificate of Registration. He will also pay $10,000 in penalties and costs.
The California Department of Insurance remains committed to enforcing fair practices and protecting consumers from illegal inducements that can result in higher rates for title insurance.
Information Provided by Lassen News
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