Expenses - Lines 50-90

  • 09/18/2013 6:54 PM
    Message # 1392766
    Questions about "Expenses"   Lines 50-90
  • 11/21/2013 9:33 PM
    Reply # 1443810 on 1392766
    What is the difference between lines 61 and 62?  Is 62 supposed to reflect the total of lines 61 (a) and (b)?
  • 12/11/2013 2:34 PM
    Reply # 1456287 on 1443808
    Anonymous wrote:

    What are they getting at in lines 60, 61 (a)-(b) and 62?

    Answer:  In these four lines, the Office is attempting to get a better understanding of what costs are incurred by agents in producing or acquiring their title information.   If you maintain your own plant or “rent” access to a plant, line 60 is intended to pick up the non-labor costs of running that plant.   Labor costs are separately accounted for in the data call and on Schedule B. 

    We understand that many title agencies purchase searches and access from other parties.   Some agencies acquire what amounts to an old fashioned abstract, a list of the documents in the chain, and copies of those instruments.   Other searches also include suggested requirements and/or exceptions, based on the searcher’s review/examination of the documents.  We need to better understand how this difference in business models affects the costs of operating an agency, and that is the distinction being drawn.

  • 12/11/2013 2:39 PM
    Reply # 1456295 on 1443811
    Anonymous wrote:

    What should be included in line 68 "Business Legal"?  Our agency has a lawyer on staff who assists in closings, escrow questions and functions as our general counsel.

    Answer:   Many Florida agencies are attorney-owned or have an attorney involved on a more or less full time basis. The payments to lawyers who are an integral part of your business should be reflected in the various categories of lines 50 (Employee compensation) and 55 (Employee benefits).  

        This category is intended to reflect the cost of obtaining outside legal counsel for corporate, business, HR and other matters not directly related to defending a title or closing claim.

       Costs incurred in defending a specific closing or title claim should be reflected in line 87.

  • 12/11/2013 2:42 PM
    Reply # 1456298 on 1443814
    Anonymous wrote:

    What portion of my FLTA and ALTA membership and attendance at programs may I allocate to Line 73 "Employee and Owner Education"?

    Answer:   Much as we would like to believe that you joined FLTA because “All title agents should belong to FLTA” or because “the Executive Director is beautiful, smart and stylish,” the reality is you joined the associations for the value they provide to your business.   And a substantial portion of that value is from our formal and informal education programs, including for-Credit webinars, continuing education programs offered at the convention, zone meetings and elsewhere and the regular flow of the latest information about changes in the law, current cases, regulatory interpretations and other informal education.    Based on that, we think it is appropriate for an agency to allocate 50% of its membership dues and 50% of the cost of attending FLTA/ALTA and similar conventions as an educational expense.  Note the travel and lodging relating to attending educational and other programs are not included here, but are separately reported on line 72. 

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