Several title insurance companies agreed to pay about $3.29 million to resolve claims they violated consumer protection laws by offering real estate agents kickbacks in exchange for business referrals.

The title insurance settlement benefits consumers who used Allied Title & Escrow, KVS Title, Modern Settlements or Union Settlements for a Washington, D.C., real estate transaction after being referred to the company by a real estate agent.

According to the District of Columbia Office of the Attorney General (OAG), the title insurance companies violated the Consumer Protection Procedures Act by providing financial incentives to real estate agents in exchange for business referrals. This practice allegedly caused consumers to be steered toward certain title insurance companies instead of allowing them to shop for the best price and service.

Title insurance protects lenders and homebuyers from defects in a title to property, such as a previous owner’s debts. Real estate agents commonly suggest title insurance companies to their clients.

The four title insurance companies have not admitted any wrongdoing but agreed to pay a combined $3.29 million to resolve the OAG’s allegations. Allied Title & Escrow will pay $1.9 million, KVS Title will pay $1 million, Union Settlements will pay $325,000 and Modern Settlements will pay $65,000.

The OAG will devote up to $1.75 million from the title insurance settlement to restitution for affected consumers.

Under the terms of the settlement, consumers who were referred to title insurance companies by real estate agents can receive a cash payment of up to $500.

The Superior Court of the District of Columbia approved the settlements on July 31, 2024.

To receive a settlement payment, consumers must submit a valid claim form by May 5, 2026.