Have you been thinking about starting your own title company? First, you’ll want to make sure your foundational skills are set to go: like industry knowledge, stellar customer relations, and an emphasis on organization. With these skills in place, you can begin to methodically take the numerous steps involved in getting your title company up and running.
Obtaining your License
In order to offer title services, you’ll need to become licensed as a title producer by the National Insurance Producer Registry (NIPR). The process of applying for licensure changes in each state, but most states, including Michigan and Florida, require that you complete Pre-licensing Education (PE) coursework and successfully complete a licensing examination. Some states also have continuing education requirements that must be met to maintain your license.
Establishing your Company
Make sure you have a firm understanding of your state’s insurance requirements. Then, you can get down to the business of establishing your new title company. It will be necessary to:
- Choose a company name
- Register as a corporation or limited liability company (an attorney can advise you on which type of entity is ideal for you)
- Choose a domain registrar and get your website up and running
- Apply for your Employer Identification Number from the IRS
- Brand your company and logo with a service mark
- Form an entity for your company license
- Find a location, secure office space, and buy furnishings and equipment
- Get bonded with the following:
a. Errors and Omission (professional liability) insurance
b. Cyber insurance (covers your business’s liability for a data breach)
c. Fidelity bonds (generally no less than $50,000)
d. General liability
Selecting an Underwriter
Once you’ve established your company, you can start the process of being appointed by a qualified underwriter. You can only produce title and closing services if you have the ability to produce title insurance policies — and the only way to do that, in most states, is by being appointed by an underwriter.
This starts by contacting an underwriter and, essentially, going through an application process. You’ll need to forge a relationship to understand the necessary course of action to become appointed and issue insurance policies on the underwriter’s behalf.
Staffing and Technology Needs
Of course, the formation of your new company wouldn’t be complete without the personnel to operate it. You’ll need to adequately staff your business by hiring experienced title professionals.
You’ll also need to purchase computer software and a back-office platform, as well as pay for the associated installation, license, and training. And you must be trained on the software by whomever you purchase it from. I.T. can be a costly and time-consuming part of your business, as you’ll need to research multiple options and determine if each will allow you to be competitive.
Prepare to Produce a Title
With the many steps to launching your company completed, you’ll finally be ready to receive orders, produce title commitments, closing disclosures, and final title policies.
All the steps above might seem like a daunting task. But there’s a much simpler path to title company ownership…
Put Proliant’s Proven System to Work for You.
With the myriad steps involved, it’s clear that opening a title company is a complex process that is often met with difficult barriers, such as growing I.T. security demands, burdensome compliance complexities, consumer protection requirements, and more. Fortunately, there’s a simpler path to achieving your goals.
Proliant can dramatically simplify the process of starting, owning, and operating a successful, full-service title agency. Our private-label franchise system lets you focus entirely on building your brand while we provide you with all the necessary production support. Once you have your Title Producer license, Proliant will also help with your underwriter application and appointment.
Along with helping you get appointed by an underwriter, we simplify your staffing and technology needs. Our fully compliant system can help you with:
- I.T. Infrastructure: Our unique, customizable title software platform that is intuitive, easy to use, and easy to learn. What’s more, it’s a plug-and-play system, so you don’t have to incur the costs or headaches typically associated with I.T.
- Title Production Support: We provide all our franchisees with title production support and assist in the title closing process. Every requested property is thoroughly researched by our veteran title staff who then prepare your title report. This also helps you cut down on your staffing needs.
- On-Going Training & Support: From simple tasks to complex processes, we are your first line of support. We have the tools and resources to help you grow your skills the moment you open the doors and provide continuing I.T. and operational support throughout the process.
- Quality Control Review: Our comprehensive quality control review process eliminates errors before you get to the closing table.
- And much more!
Don’t go it alone. Let Proliant’s unique franchise opportunity provide you with everything you need to start your own title company. Contact us today to learn how you can start your own title company the simple way – the Proliant way.