How to Start a Title Company

Summary: Looking into American market one can easily predict the scopes of Title business, there is a wide opportunity for entrepreneurs to excel in this business. It is worth to invest and explore in title business.

People who are into real estate dealings generally need the services that are provided by a title company.

This is perhaps one of the reasons why operating a title company can be a very profitable venture these days given the number of people and organizations that engage in the selling and buying of properties. By operating a title insurance agency, you will help ensure that the real estate property titles that are being sold to your clients are free from defect. You will also be giving protection to sellers of real estate properties as you will also be providing title insurance policies. The following are things that you will find very helpful if you are interested to start a title insurance company:

Are you fit to operate a title company?

If you are planning to operate a title company, it is a must that you assess yourself whether you are fit to be in this business or not given the complexity of a title company’s operation. Most of the people who manage title companies are real estate attorneys but you can still be capable of operating a title insurance company as long as you have been previously employed in a title company and you already have a good background in operating a title insurance agency. Experience in the industry is very important so you will more likely succeed in this business if you have had considerable experience working in the title insurance industry.

What you need to start a title company

You must make sure that you have all the legal requirements before starting your real estate title company. Inquire from your business bureau and department of insurance for a list of requirements that you will need to get started. You will also need to hire employees and staffs who will man your title company’s operation. You will basically need a title searcher, closing agent, title examiner, and somebody who will issue policies.

Getting Clients

Your experience working for a real estate title insurance company can prove to be very helpful in getting clients for your real estate title company. You can take advantage of your network of colleagues who can refer you to potential clients. You can also contact lenders and realtors in your areas to get potential clients for your title company. In addition to this, it will be a good idea if you can promote your business by paying for ad spaces in real estate magazines and local newspapers.

74 Responses to "How to Start a Title Company".

17. Sylvia on 8/18/2009 1:39:55 PM

I run title for mineral companies. I am interested in expanding my business to include title and abstracts for real estate. I have created abstracts from patent before so that is not new to me. My question is what do I need to expand as far as legal or otherwise. I am also interested in taking online courses to become a closing agent and title examiner. I am newly incorporated in Illinois and could use some input. Thank you!

34. Michael Reed on 11/29/2009 6:28:42 PM

Gaithersburg, MD. Good evening - I may be able to offer some suggestions on starting a title company in the Maryland, DC and Virginia area (I am looking to expand into Florida, West Virginia and/or Pennsylvania now).
1. Go to your state's Secretary of State website and conduct a name/entity search (assuming you've decided on a corporation or llc).
2. Check the US PTO (Patent and Trademark site) for a trademark search to avoid any infringement issues (speaking from personal experience with this).
3. Go to the state's local dept. of insurance administration for requirements.
4. Visit a bank experience with title escrow accounts.
5. Make appointments with title insurance underwriting companies (Southern Title, Fidelity, Chicago Title), and the local rep can walk you through the remaining steps (E&O insurance, surety and fidelity bonding).
6. Find a nice place to lease or sublease
7. Phones, business cards, e-fax, copiers.
*Please note: not all states requirements are alike, and you should consult local officials, but the above-listed steps should be helpful.

37. Chris on 12/23/2009 5:35:08 PM

I just started my own title company in October in PA. As others have pointed out, unless you have previous experience in the industry, it will be almost impossible to effectively get a company going, let alone be able to properly service your customers. Anyway, in addition to the licensing, insurance and office supplies, it is essential to invest in title and closing software, preferably a web based version so you can also conduct mobile closings. The most difficult part of starting a title company is not setting up the company, it is getting clients. The Title industry is a tough one to get into because many real estate brokers and mortgage companies have long standing relationships with established providers and that makes it difficult to get them to use your company.

38. melvin on 12/24/2009 10:02:15 AM

I WAS IN LOUISIANA UNTIL ALL OF THE SO CALL NEW RULES WITH TITLE COMPANY TO CLOSE THE SMALL BUSINESSMAN DOWN OR RUN THEM OUT OF TOWN. BEING RIGHT ABOUT THE INDUSTRY BEING TOUGH AND UNJUST TO GET IN; I KNOW OF COMPANY CHARGING THERE EMPLOYEE $20.00 MORE FROM THERE PROFIT, THERE MONEY IF THEY WENT OUTSIDE AN AGENCY THEY DEAL WITH AND OTHER TITLE COMPANY GIVING KICK BACKS. SO TELL ME HOW DO YOU STAY IN BUSINESS LOUISIANA WITH BUSINESS BEING RUN THAT WAY.

44. Alicia Hoppie on 1/25/2010 12:14:29 AM

I'm writing form Georgetown, Guyana, Country located in South America. There is no such businesses here and I would really like to start one here. I hold a law degree and have been working with a Law Firm that handles a great deal of work in realty. Having such a background and knowledge in the field of real property, I would like take my knowledge and experience further by providing a complete title search business here in my country. Can you assist me with the necessary steps/information in starting, owning and running an effective title company?

53. Danny on 3/28/2010 8:34:48 PM

Columbus, OH USA. Could you send me some information on starting a title company? I have 5 plus years in the mortgage industry, mostly on the back end as a loan closer, drawing closing documents, reviewing title work and HUD-1 settlement statements. I am also a licensed real estate agent and would love to be an entrepreneur, but as you know, a real estate agent is a commission based career and with a child on the way, i do not want the risk. I appreciate all you can provide. Thanks, Danny

64. Mandi on 5/24/2010 2:21:11 PM

I manage a car lot in TX, and we're trying to expand our services to include title transfers to people without them having to buy a car from us. Didn't realize so many people were trying to get into this business. I'm looking for information on what, if any, licenses I will need. Since we are already somewhat known, what are the best ways to advertise? Do we just put a sign out front? How is transferring individuals different from what we already do with the car lot? Please feel free to email with information that will be beneficial...mandi_416@hotmail.com

65. Chuck on 6/17/2010 1:21:39 AM

There seems to be a lot of people requesting a how-to guide to starting a Title Company from you. My wife and I have been wholesaling and flipping houses part time for several years now and we would like to legitimize our work through an official LLP. I assume you already have a prepared guide to starting a Real Estate Title company and I would appreciate if you could share that information with my wife and I (aaminsa@yahoo.com). It may also benefit all of us if you would post some of the pros and cons experienced over the years of being involved in this type of venture. As an experienced professional, your advice would mean much more to all us than the hundreds of books it feels like I've read on the topic. Thanks in advance for the help!

72. Raghavendra N on 8/30/2010 3:08:23 AM

Hi, I'm from located outside USA, to be straight I'm located in India, have 5 years of experience as tile examiner for the vendors here in India who provide title services to title companies in USA. I want to become a vendor for title insurance companies, I'm familiar with State of Florida & Texas. If anyone has the details or any ideas please share thanks a lot. e-mail me at the above address :-) nraghu2007@gmail.com

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