6 Steps for Starting a Title Company – Qualia Insight

This post is the first in a three-part series on starting and running a title business. Click here for Part II, which covers expert tips for making your business successful.

It’s an exciting time for the real estate title industry. Modern technology has made the once-dreaded phase of every real estate transaction, closing, highly efficient and noticeably less stressful than ever.

Reading: How to start a title insurance company

Thinking about starting your own title company? To be successful, industry knowledge, attention to detail, top-notch customer relationships, and organization are critical. however, none of these attributes matter if you can’t get your title business off the ground with a business model that’s within your budget.

While the legal requirements to open a title or escrow company vary from state to state, this blog outlines the basic steps to get started.

Each state requires its own set of insurance requirements. the good news is that they make it relatively easy to see what they are. simply go to the website of your state insurance department. For a state-by-state overview, NAIC compiled a survey of state insurance laws regarding title and title issues data using responses from regulators in each state.

There may be licensing, education, insurance, and financial stability requirements that must be met. You generally only need to provide proof of legal business registration (discussed below), insurance and bond documents (also discussed below), as well as a background check.

Some states require a title, settlement, or escrow agent to operate under an “attorney-approved system” in which a licensed attorney must oversee paralegal-handled closings.

alt Additional notes: In ME attorneys must close; can be title company or attorney in PA, can be escrow company or title company in TX

You may be required, depending on your state, to take a pre-licensing course and exam. The licensing exam will cover insurance regulation, general insurance concepts, principles of title insurance, title exception procedures for clearing a title, and real estate transactions.

Your state department of financial services can provide you with a list of approved educational entities for your prescribed classes. For example, here is the Florida portal to find courses and providers. If you are an attorney and are already licensed in your state, you may be able to waive this requirement.

Title companies are generally required to post a fidelity bond and/or a surety bond, generally not less than $50,000. Bail bonds protect both consumers and businesses, and their coverage ranges from 10% to 20% of the title agency’s net worth, and can range from $200 to $1,000.

Guarantee bonds ensure that your business can meet its obligations to your customers, and that customers will have the opportunity to recover their funds if something were to happen to your business.

Most states require errors and omissions insurance (professional liability insurance) in an amount of no less than $250,000.00. e & or insurance will cover you if there is a negligence claim against your business.

Consult an attorney for advice on what type of business entity you should form. Whether it’s a corporation or a limited liability company, you’ll need one for most state requirements and they give you different legal and tax benefits. today, this is relatively easy to achieve online.

as part of forming your entity, it will also request your employer identification number or “ein” from the irs. this service is free of charge and the response time is usually quite fast. the ein is like your company’s social security number. will help you set up your bank accounts and use it for taxes.

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name your business and maybe even seek a trademark to protect your brand. Please note that state laws vary on naming requirements. When you’re done, don’t forget to register the name of your title agency with your secretary of state or county clerk.

Before you can get started, you’ll need to choose a qualified subscriber. A title insurer is responsible for verifying the title and ensuring that ownership rights to the property can be secured. Her experience will affect the quality of the resulting title insurance policy.

qualia is integrated with multiple underwriters so you can easily complete all of your title work in one place. Below is a list of our partner national and regional vendors, as well as the contact information provided.

national partners:

national fidelity title group

linda grahovec itp iep ntp vp, national communications, regional director of education & marketing phone: 630-222-0778 email: [email protected]

old republic title

Jeffery j. bluhm executive vice president, old republic national title insurance company manager, agency services & administration t: 612.371.1148 or tf: 800.328.4441 [email protected]

stewart’s title

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visit website to find contact information for your area

first American title

See also: How to get insurance to pay for water damage

visit website to find contact information for your area

westcor title insurance company

visit website or email [email protected]

north american title insurance company (natic)

See also: How to get insurance to pay for water damage

visit website to find contact information for your area

regional partners:

chaotic

licensed in connecticut, massachusetts, rhode island, vermont, maine and new hampshire rosanne corsetti-ziogas v. president – mr. agency advisor (860) 513-3114 [email protected]

Send us an email at [email protected] for the most up-to-date list of integrated subscribers.

Once you’ve completed your state’s licensing requirements, it’s time to apply for a license. check your state website to access your registration documentation and/or portal.

next: the fun of building your business

Once your business is set up, you’re ready to start crushing your business goals. In our next post, we’ll provide pro tips on building your business, including customer service, marketing, and reporting. click here to read it now.

Want more live tips from a local expert? complete the following form to connect.

about the author

Known as “The Closing Expert,” Sandy has over 25 years of experience as an escrow and closing agent and has closed thousands of transactions across the country. she has been involved in real estate from every possible perspective: consumer, landlord, mortgage broker, land appraiser, real estate investor, consultant. She published Her Complete Guide to Real Estate Closing, the first book dedicated to explaining the subject of closing and escrow itself. the book has sold more than 750,000 copies and is in its updated sixth edition.

about qualias

qualia empowers title settlement professionals with an easy-to-use, all-in-one software platform for more efficient and secure real estate closings. its award-winning intuitive design and hassle-free onboarding are just a few of the many reasons professionals across the country are turning to qualia, the future of title settlement software. sign up for more information at www.qualia.com or call 855-441-5498

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