|Own a Title Insurance Agency via Affiliated Business Arrangements Make More on your Closings, Generate More Income|
Benefits of Owning an Interest in a Title Agency
Real Estate Agents, Homebuilders, Developers, Mortgage Lenders and consumers want the best title service they can get. By owning an interest in a title agency real estate professionals have more control over the the quality of service and can generate additional revenue.
Integrity Title Records assist clients with underwriting, licensing, accounting, personnel, banking, title software, processes, management, regulatory issues and finding the right management company. It is important to engage a highly skilled escrow and management team to operate the Title Agency effectively and within the law.
Traditionally, it’s been difficult to enter the title business because of the high cost of title plant access. Integrity Title has made it easier to participate by lowering the cost of title plant access. Our goals are to help our clients minimize cost and maximize revenues.
Affiliated Business Arrangements
Ownership of a title Agency by real estate professionals is legal under RESPA but does require important disclosure information be provided to the parties to the real estate transaction. Typically, these firms are referred to as Joint Ventures or Affiliated Business Arrangements.
The Real Estate Services Providers Counsel “RESPRO” assist Affiliated Businesses with the regulatory environment enabling its members to efficiently offer mortgage and title services legally through subsidiaries, joint ventures, and strategic partnerships.
Producers are already in the title business by virtue of their relationship with buyers and sellers and it makes sense to leverage those relationships to legally generate revenue from title premiums.
|AFFILIATED BUSINESS ARRANGEMENTS (AfBAs) OBJECTIVES● Create a title insurance agency to support ABA● Share in membership and profitability● Create a service model that helps streamlines the closing process, facilitates one-stop shopping and retention of highly productive real estate agentsCOMPANY FORMATION ● Structure: Limited Liability Company (L.L.C.)
● Purpose: Act as a title insurance agency and to perform services incident thereto
● Real Estate Broker/Agents [Entity] and ABA Manager
● Monthly Financial Statements
● Day to Day Management of Operations
● Work Flow Management
● Assistance with Formation and Organization of ABA, including:
o Preparation of Operating Agreement
● Employee Training
● Refer Title Business to the ABA Title Company
● Adequately capitalized (Minimum $10,000 net worth)
● Written Disclosures
If you are interested in generating more cash flow from your transactions, getting your clients better service, and having access to know that the transaction is going to close, call A1A Title Services to learn about our process and how we can help you own your own title insurance company. Email Jenifer Caplan, Director of ABA programming or call her at 305-707-1907