Learn to set up and run a real estate business.
Real estate title and abstract work is an essential part of the real estate industry, and owning a title and abstract business can be an excellent way to be part of the real estate world without having to face the challenges of selling properties. Title and abstract companies assist both lenders and real estate agencies by completing the research about the property title's history and ensuring that the real estate transaction can proceed. Title and abstract companies also are responsible for submitting the property deed, thereby transferring legal ownership of the property from one owner to the next. Starting a real estate title and abstract business is a venture that requires careful preparation.
Instructions
Business Setup
1. Research your state's laws for title and abstract work. The state's department of insurance can provide you with the details of statewide title laws, as well as the most recent changes that may apply to the laws. Keep track of any updates or revisions that occur within title law to ensure that your business is operating according to state regulations.
2. Apply for all necessary licenses and certifications to conduct title and abstract work. Your state may or may not require that you also be a licensed real estate agent. If not, having a real estate license can be beneficial in establishing your business because it lends credibility to your understanding of the industry. Either way, you will still need a business license to open a title and abstract company. Contact the state's bureau of licensing, or the secretary of state, to find out whether or not you need special licensing to do title and abstract work.
3. Select the best location for your business. Title and abstract companies work closely with lenders and with real estate agencies, so try to locate your company conveniently to one of these businesses, if possible. For example, if you already have a good relationship with a real estate agency, consider offering to share space in an office building or find an office in a building that already has a real estate agency or lender.
4. Hire the staff that you will need to operate your title and abstract company. You will need to fill four major roles in your business: a title searcher, a title examiner, a closing agent, and a policy issuer. Be sure to hire employees who have experience, as well as all of the necessary certification to conduct this work.
5. Use your network of contacts to help you market your new business. Reach out to the real estate agents that you already know and tell them about your business. Establish your firm's reliability and you will be able to ensure consistent business from real estate agents and their agencies.
