🐐State-by-State Guide to Cancelation & Commitment Fees

One of the thorniest questions title agents face is whether they can charge for work that never makes it to the closing table. Some states permit cancelation or commitment fees outright, some prohibit them, and many fall into the gray area of “not required but not forbidden.”

This guide breaks it down state by state so you know what’s allowed where you work. Each section points to state insurance department rules, rate manuals, or other regulatory sources whenever possible.

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Want to Check for yourself instead? Here’s what to look for…

To determine whether you can charge a commitment/cancelation fee in your state — and how much — these are the usual things to look for, the things we looked for in compiling this guide:

1. Rate Manual Filings
   See if the state requires rates and fees for cancelations/commitments to be filed and approved. Some states only allow the fee if in the filed rate manual.

2. Definition of “Commitment” vs. “Issue of Policy”
   Often, the law or rule will define at what point a “commitment” is issued—and whether work done after that point or before should be compensated.

3. Statutory Language
   Look for “permitted,” “required,” or “prohibited” terms in your state’s insurance code. Words like “shall” vs. “may” matter.

4. Customary Practice
   Sometimes the regulations are silent, but industry norms, underwriter manuals, or agent agreements signal what is accepted in practice.

5. Disclosure Requirements
   If you plan to collect a cancelation fee, your client/referrer agreement should clearly disclose that fee and when it becomes non-refundable.

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Or you can get a copy of the full State-by-State Guide in my book:

“How I Stopped Bleeding Money: Title Agent’s Guide to Minimizing Losses from Canceled Deals”

where you’ll also learn how top agents are protecting their bottom line with smarter policies, better timing, and practical strategies to mitigate the losses from canceled title orders that you can implement immediately.

Stop Bleeding Money on Canceled Files, Get the Book Now | Kindle | Print

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Stay Wicked,
Cheryl

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