The title industry is comprised of a diverse group of financial managers and support staff who work together to insure property titles and assist with real estate closings. These companies also conduct in-depth research to check for liens against properties, and to uncover records of past ownership or title problems.
Some title companies have a unique niche in this industry. They act as title consultants, seeking out and partnering with companies that share a common philosophy about the title industry. The consultants have the industry knowledge and experience to assist other individuals and groups with establishing in-house title agencies.
The funding of these new title operations, or joint title ventures, is usually shared between the parent title company and the company seeking its assistance via consultation. Typically, the parent title company will only partner with companies that demonstrate financial solvency, and can help fund the new, managed title partnership with start-up capital. Obviously, the company providing consultation services should have the same business ethos and marketplace values as the company with which it partners to form an affiliated title business.
Successful joint title ventures are RESPA-compliant. RESPA stands for Real Estate Settlement Procedures Act. This term is used to denote the fact that managed title partnerships cannot engage in bad business, such as enabling each member of the partnership to take advantage of kickbacks, or unfairly limiting market competition. Lenders are required to be transparent in their actions, and to provide fair, "good faith" estimates of the sundry costs associated with closing a loan. Ultimately, RESPA-compliant joint title ventures help consumers by keeping prices low and business fair.
Once the consulting company and its partner company have united to negotiate the terms of the managed title partnership, basic aspects of the business must be determined and planned. The organization that is created can be a managed title partnership, or an eventual stand-alone title company. In either case, these nascent organizations often need some assistance with staffing, as well as with attracting and retaining business. Managing title companies who act in consulting capacities can provide guidance in many of these areas.
How can the managing title company help the compliant title joint venture to operate?
Most businesses need a human resources department. In the case of financial businesses, a human resources department is an asset in finding the most-qualified individuals to work for the company, and the people who offer skills best suited to the needs of a managed title partnership. Human resources activities can range from targeted recruitment of job candidates, to candidate screening, to employee management and retention efforts and practices. Oftentimes, administrative functions fall under the human resources umbrella of a title company, as well. The managing partner of the joint title venture can provide administrative staff or services to handle company payroll duties, as well as escrow reconciliation, and the management of company and partnership records.
Employee training can be a costly and time-consuming endeavor, as well. When a title partnership is arranged, employees who are unfamiliar with specific nuances of training might wonder where to turn for training tips and techniques. The managing company of the partnership can help in this area, as well, ensuring that new hires are familiar with the repertoire of skills and practices necessary to succeed in an affiliated title business.
Some individuals involved in managed title partnerships do not consider themselves to be especially technologically savvy. This is another area in which the managing partner of a joint title venture can be of assistance. A new company needs skilled information technology staff to select and set up computer operating systems, proprietary industry software, and Internet connections and networks. Staff might also be needed on- or off-site to assist with computer maintenance and technical support, or software upgrades.
Marketing a new compliant joint venture is another important aspect of starting a financial business. Specialists in the title industry can target would-be clients and audiences, conducting in-depth campaigns to advertise business services through print and media advertising outlets. Strategic marketing usually distinguishes successful business from struggling businesses, and strong initial efforts to market a business can pay off handsomely later.
When a managing company partners with a new business to get a compliant title joint venture running, the experience can be eye-opening, nerve-wracking, and sometimes, fun. Title companies that offer consulting and management services can be the greatest ally for the success of a new affiliated title business.
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