SPRINGFIELD -- Customers have millions of dollars tied up in court – and possibly lost -- after Guaranty Title of Nixa suddenly shut its doors in June. That closure could have happened anywhere.  Here’s what you need to know to try to protect yourself before buying or selling real estate.

  People filed seven complaints with the Missouri Department of Insurance against Guaranty Title last year alone -- including one allegation of fraud and forgery.  But Guaranty is far from the only title company with a long list of problems.

  “Our money is in limbo,” said Guaranty Title customer Barry Schwartz.

  Schwartz and others found out the hard way that title companies are more than just the middlemen in home sales.  It's their job to protect your money.

  “We find often times people are simply buying a house and going with whatever agency they're told to,” said Emily Kampeter, communications director for the Department of Insurance, Financial Institutions and Professional Registration (the department’s formal name).

  But you do have a choice and, whether you go with a realtor's recommendation or choose your own, you should do your homework before closing on your home.

  “You want to know how long a title company has been in business,” said Keith Chaffin, an owner and vice president of Hogan Land Title in Springfield.

  You'll also want to know price and how many complaints have been filed with the Department of Insurance.  A reporter checked 35 local title companies and found anywhere from zero to 17 complaints last year.  They range from allegations of fraud and forgery to licensing issues.

  “There may be staff people also performing those tasks and they shouldn't be because they're not licensed,” said Kampeter.

  Of those complaints, we found the department took investigative or enforcement actions against agencies 24 times.  

   That’s just a little bit of research that could protect your biggest investments.  Be sure to consider to size of the title company when looking at the number of complaints; a larger company will have more complaints.  And your homework doesn't end with checking out the title company, you also want to get information on the underwriter or insurer of your title.

  At the Department of Insurance's Web site, you can get a complaint ratio, financial information and find out if there have been any legal actions taken against a company.
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