Acquisition In January 2012 , a subsidiary of the Company, ITIC, entered into a membership interest purchase and sale agreement under which it agreed to acquire a majority ownership interest of United Title Agency Co., LLC ( United ). United, a Michigan limited liability company, is an insurance agency doing business in the State of Michigan. On April 2, 2012 , ITIC purchased a 70% ownership interest in United, with both ITIC and the seller having the option to require ITIC to purchase the remaining 30% interest not less than 27 months from the closing. The acquisition date fair value of the total consideration to be transferred was $1,041,250 . This fair value total was equal to $350,000 ITIC had already paid toward the purchase price, as well as $691,250 in estimated contingent payments. As of June 30, 2013 , management s calculation of the fair value of consideration to be transferred is materially unchanged from its acquisition date amount. During the second quarter of 2013, ITIC paid an additional $350,000 toward the purchase price. The resulting contingent payments of $341,250 and $691,250 are categorized in the Consolidated Balance Sheets as accounts payable and accrued liabilities as of June 30, 2013 and December 31, 2012 , respectively. The contingent payment arrangement requires that the purchase price for the 70% majority interest be paid over the next two years and determined by multiplying United s actual GAAP net income for the first full 24 calendar months subsequent to closing by an agreed upon factor. In no event will the purchase price for the majority interest exceed $1,041,250 . The fair value of the contingent payment was derived using the Company s best estimate (Level 3 inputs) of net income of approximately $859,000 during the 24 -month period, discounted at a 15% rate, and limited to the contractual maximum. The amounts previously paid will be used to offset contingent payment amounts calculated for final consideration, and is eligible for refunding in part or in its entirety if greater t