Breaking News! Fidelity is competing directly with real estate agents for the tight inventory of available homes for sale in California.
Did you know that Fidelity National Financial, Inc. “Fidelity” owns 100% of at least one California real estate brokerage company?
We just learned that J. Rockcliff, Inc. is a Fidelity-owned company. According to their own website, they are one of the fastest growing real estate companies in California with offices in eight (8) cities and they have hundreds of agents.
Interestingly, the J. Rockcliff website does not appear to disclose the Fidelity ownership. We learned of this ownership through an “Affiliated Business Arrangement Disclosure Statement.” In the document, Fidelity discloses that it owns 100% of the real estate brokerage firm, thus competing directly with brokers and agents in the residential market. The Disclosure Statement further reveals that their affiliated settlement service providers are also owned by Fidelity.
What could be a ground breaking first in the real estate industry, is that Fidelity, by way of its ownership in a brokerage firm is now doing business in every facet of the real estate industry. This includes escrow, title, NHD, home warranty and now home sales! So every dollar you spend on Fidelity products and services, may be funding their expansion into your business.
By the way, Fidelity also discloses in the same document that Fidelity subsidiaries own 100% of Disclosure Source NHD, Chicago Title, Ticor Title, and many Fidelity-branded settlement services. They also own 40% of Pacific Coast Title Company. Click here to view the Affiliated Business Arrangement Disclosure Statement. This is a real client document so the names were removed to protect their privacy. Also, at the top of J. Rockcliff’s website, the Fidelity-owned broker discloses that they use Transaction Point, which was previously owned or affiliated with Fidelity and which was the subject of a multi-million dollar settlement with HUD based on alleged RESPA violations.
Would you send your settlement services business to a competing brokerage?
Are you as surprised as we are to learn about this business relationship? Will this change the way you do business with Fidelity? We want to know!