How to start a title company?

To start a title company, you will need to pass the licensing exam, get bonded, and find an underwriter. Insurance license requirements vary from state to state, so you will want to look into what is specifically required where you will practice.

1. Pass the licensing exam

   In most cases, you will be required to complete a pre-licensing course before the exam. This will vary from state to state. Passing the exam, and then obtaining your license, will allow you to legally begin work at your title company.

2. Get bonded

   Title companies are generally required to carry either fidelity or a surety bond. Most likely, this will need to be for no less than $50,000. This bond will protect both the company and the consumer. Many states will also require Errors and Omissions Insurance, which is professional liability insurance.

3. Form a company

   You will need to form a legal entity for your company. The type will depend on your specific needs. You will get an Employee Identification Number (EIN) for tax purposes. It is basically your business's social security number.

4. Find an Underwriter

   Underwriters are essential for title companies. They check over titles and ensure that they meet all requirements and regulations. There are national, regional, and local providers. You will want to go with what works best for your business vision.