This year we’ve seen a disturbing trend reappear.

Here is what I experienced at a closing yesterday:

At a closing the title company asked the buyers to sign a hold harmless agreement that stated the buyer will not ever sue the real estate brokers for anything. That is what we call a broker weasel clause. The listing brokers have asked title companies to put that clause in the closing documents to take away a buyer’s rights after closing.
In fact this is re-negotiating the relationship between the buyer and the real estate companies involved.

These weasel clauses show up as parts of other normal closing documents.

There was even one company a few years ago, Greco Title, who wanted the purchaser to indemnify the title company against legal action brought against them buy the seller or others.

We feel this is both crazy and offensive.

The title company should not be re-negotiating the contracts between the buyer and the real estate companies at closing. Most buyers are not prepared to argue these items and it is totally inappropriate for them to have to.

If you as a buyer refuse to sign these inappropriate documents the title company will back down. They have no right to force you to sign that.


In the closing yesterday the title company checked with their legal department after I objected and they were happy to scratch out that paragraph.

Here is an example of wording from one we saw recently:

“Purchasers hereby release the real estate broker and their agents from any claim whatsoever with regard to the condition of the herein described premises.”

This issue should have been covered in the purchase contract form or the contract between the real estate broker and the buyer. It has no business showing up at closing mixed in with the dozens of legitimate documents a buyer needs to sign.

And I would be embarrassed if a title company I recommended used one.