I agree with Pat, who said:

But those charges are paid by the consumer directly.  So, really the consumer who does not complete the deal is receiving the benefit of the wash - not the referrer of service.

I think you are quite right that waiving cancellation fees is a "thing of value."  However, what is prohibited is giving a thing of value in exchange for the referral of business.  If you waive fees on business you have already received in the event that it cancels, you are not doing it to get more business from the consumer who benefited from the "think of value." 

This is a consumer protection mechanism.  Forcing agents to charge a cancellation fee could hardly be construed as protecting the consumer.  It is more accurately described as protecting the title agent.  You would think that from a public policy perspective, the legislatures would rather see the fee waived for the consumers who are often times not responsible for the cancellation of the order.  More times than not, the actual referral source placed the order too soon - like before they had a good appraisal.  Why punish the consumer for that?

It is unfortunate that the costs of generating a commitment is so expensive in Pennsylvania.  I can understand why an agent would want to charge a cancellation fee when they have so much invested.  And, it is good that you are permitted to do so.  However, I don't think it should be required.

Best,
Robert A. Franco
SOURCE OF TITLE