Starting a title company can be a lucrative business venture for those interested in the real estate industry. Title companies help ensure that real estate transactions are legally binding and secure for all parties involved. Several states do not require a formal real estate attorney, but rather a title agent for real estate closings. Title companies charge a fee for the "abstract of title" or title search, as well as for title insurance for each property.

How to Start a Title & Escrow Company

If you're considering starting a title company, there are a few key steps to follow to ensure you're meeting all legal requirements and positioning your business for success. In this guide, we'll go over the essential steps to start a title company.

Determine Your State Insurance Requirements

The first step in starting a title company is to research and understand your state's insurance requirements. Title companies are typically required to be licensed and insured to operate legally. This means you'll need to obtain a title insurance license from your state's insurance regulatory agency. The specific requirements for obtaining a license vary by state, so it's important to research your state's requirements thoroughly. In addition to licensing requirements, you'll also need to purchase insurance policies to protect your business from liability.

Get Bonded

In addition to obtaining insurance, you'll also need to get bonded. Being bonded means that you have purchased a surety bond that acts as a form of insurance for your clients. If your company fails to perform its duties correctly or commits fraud, the surety bond will provide a source of compensation for affected parties. The cost of a surety bond varies by state and is typically based on the size and scope of your business. You can purchase a surety bond through an insurance agent or bonding company.

Partner with an Underwriter

Once you've obtained your license and insurance, you'll need to work with an underwriter. An underwriter is a company that provides title insurance policies and works with title companies to ensure that real estate transactions are legally binding. Underwriters typically have strict requirements for working with title companies, including financial stability, experience, and compliance with state regulations. To find an underwriter to work with, you can research different companies online or contact your state's insurance regulatory agency for recommendations.


Starting a title company can be a complex process, but by following these essential steps, you'll be well on your way to operating a successful and legally compliant business. Remember to research your state's requirements thoroughly, obtain insurance and bonding, and work with a reputable underwriter to ensure that your title company is providing the highest level of service and protection to your clients. With dedication and hard work, your title company can become a trusted and respected part of the real estate industry.