Chicago TItle may offer illegal incentives to developers and large sellers of real estate to steer consumers to use Chicago TItle's services.

Investigation and pending class action lawsuit against Chicago Title on behalf of consumers in California who used Chicago Title for escrow and title services when they purchased residences from sellers, such as developers and institutional sellers.

California, as well as the federal government, have enacted strict laws that prohibit title and escrow companies, like Chicago Title, from giving incentives, including discounts, to sellers of residential real estate in an attempt to obtain business from them. The purpose of these laws is to protect consumers from steering, and to ensure competition among escrow and title companies. Chicago Title is one of the largest providers of escrow and title services in the nation. Chicago Title offices are owned by Fidelity National Financial.

This class action lawsuit alleges that Chicago Title has offered to enter, or has entered, into relationships with institutional and large sellers of residential real estate in California whereby sellers receive incentives in exchange for the actual or potential referral of escrow and title transactions. Consumers who purchase residential real estate from these sellers, as well as others who use Chicago Title's services for residential real estate transactions, effectively pay for the discounts and incentives that sellers receive because Chicago Title inflates the fees that it charges for its services, and adds a premium or upcharge to the charges of third parties. Moreover, Chicago Title does not disclose its pricing arrangements with sellers to consumers, which is a further violation of the law.