A Win-win Relationship - How Title Agencies Can Help To Get New Affiliated Business Arrangements Sta
By Jane Muder
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

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