N.J. Title Agency Faces Class Action Over Closing Fees

A class action lawsuit has been filed against Regional Title Agency and the company’s owner, Thomas Swider, alleging that the company overcharged on closing fees in violation of New Jersey law.

Regional Title Agency is described in the class action lawsuit as wearing “two hats” — as a title agent and as a closing agent. The class action lawsuit is the result of the company’s work as a closing agent.

Plaintiffs Michael and Maureen Yanak purchased a home in Mt. Laurel, New Jersey, and claim that Regional Title Agency charged them an unlawful deed “recording fee” based on the company policy.

The policies at issue were created by Swider, the lawsuit claims.

“The claims against Swider are based on the actions of Swider, and on the fact that Swider personally participated, [created and approved] in the unconscionable commercial practices,” the class action lawsuit says. According to the lawsuit, Swider also benefited from the profits the company made as a result of the alleged illegal practices.
Another Regional Title policy at issue is that the company allegedly prepared “HUD-1 Settlement Statements for New Jersey real estate closings” and listed “the entire fee charged to buyers . . . for recording their deeds under a heading which describes the total amount of these charges as ‘Government recording charges.'”

However, according to the class action lawsuit, only a portion of the charge that is called a “Government recording charge” is the actual government charge. “The remainder of the charge listed  . . . is paid to, and retained by [Regional Title Agency].”

According to the suit, Regional has a “uniform practice” of omitting this fact.

“Defendants fail to inform real estate buyers in New Jersey that a portion of the charge for recording their deeds . . . are not government recording charges and instead are fees going to defendants.”

The Yanaks allege that these were “uniform policies” performed against all potential Class Members “with the knowledge and approval” of Swider.

“These practices originated with Defendant Swider, who determined the methods by which RTA employees would calculate the deed recording fees which were charged to RTA customers and who directed the procedures,” the class action lawsuit states.

This alleged practice is in violation of New Jersey law, which “limits the fee which may be charged to real estate buyers to record a deed.”

The Yanaks do not say exactly how much they were charged, but say it was less than $100, which makes the class action nature of the suit appropriate.

The Regional Title lawsuit is charging the title agency with violating the Consumer Fraud Act, Truth in Consumer Contract, Warranty and Notice Act and unjust enrichment.

Plaintiffs are asking that Regional Title be ordered to provide injunctive and declaratory relief and give each Class Member $100, as a statutory penalty. The New Jersey couple is also asking that the case be given class certification.

The law firm representing the Yanaks won a class action lawsuit based on similar allegations in April against North American Title Agency Inc.

The plaintiffs are represented by Stephen P. DeNittis and Joseph A. Osefchen of DeNittis Osefchen PC.

The Regional Title Agency Class Action Lawsuit is Michael and Maureen Yanak v. Regional Title Agency LLC and Thomas Swider, Case No. L-004730-13, in the Superior Court of New Jersey, Camden County.

All class action and lawsuit news updates are listed in the Lawsuit News section of Top Class Actions