How to Start a Title Search Company

bizfluent article image

business image by peter Hires Images from Fotolia.com

Title search companies help home buyers with the process of purchasing a property. Such companies examine real estate records, located in the county courthouse, to determine whether there are any liens preventing a property from being sold. If you desire to protect people who buy property and have a love for real estate transactions, you can start a profitable title search company.

Understand the title search industry. Consider working for a title search company before you open your own business to develop an in-depth understanding of areas such as property record databases and real estate contracts and to obtain an overall knowledge of the entire real estate industry. Study how the title search company for which you work conducts business on a daily basis so you can learn how to mirror their successes and eliminate many of their mistakes.

Become bonded. Obtain a surety bond, which will allow you to offer your clients monetary funds called bond funds in the event they are wronged by your company during the title search process. Plan to spend up to $1,000 to obtain your surety bond.

Search for a suitable location. Locate a place that is situated in a professional environment. Consider sharing offices with another real estate-related company, such as a mortgage company or real estate brokerage, to save on expenses.

Find reliable employees. Interview potential workers to assist you in your title search company. Hire people who have experience working with title search companies in the past, understand real estate from both a commercial and residential perspective, and are willing to stay with your company on a long-term basis. Examples of employees you will need include title searchers, processors and salespeople.

Obtain the proper licensing and insurance. Contact the Department of Business located in your state to find out which types of licenses, permits and insurance are required to operate a title search company in your area. Set aside the needed cost to pay for any fees associated with obtaining these items.

Market your business. Attend real estate investor association meetings in your area to let the investors know you own a title search company. Drop fliers off at local real estate agencies in your area with your contact information to establish relationships with real estate brokerages.