Title companies in Louisiana handle property purchases made in the state. Individuals and businesses hire title companies to research properties and ensure it is free from liens and claims. Title companies also put together a comprehensive history of property ownership. Other duties include preparing escrow accounts, securing title insurance and providing settlement forms.
Pass all Louisiana licensing requirements for your title company. To obtain a license in Louisiana, you must be over 18, own a business or reside in Louisiana, and pass a title licensing examination. Anyone in your office who handles title and insurance transactions must obtain a current license.
Incorporating Your Title Company
Contact the Secretary of State Department in Louisiana and fill in the paperwork to incorporate your title company. You must present financial records and pay the required fee to receive approval through the department.
Notifying the Taxation Department: Visit the Louisiana Department of Revenue and Taxation. This department handles the collection of state and federal taxes along with providing a new business with a state and federal tax identification number. Use this tax number during all financial transactions.
Bonding and Insurance: Bond and insure your title company. Insurance requirements include liability and errors and omissions coverage. Bonds protect your clients in the case of fraud. A surety bond covers 10 to 20 percent of the total value of your company.
Locating Office Space: Find rental space in Louisiana. Title companies need at least a small office to manage operations. The area needs to be able to accommodate a workspace, reception area, meeting room and file room. Check Louisiana zoning requirements to ensure your space adheres to all regulations.
Staffing Requirements: Staff your title company. Hire the required personnel to run your operation. At a minimum, title companies need a receptionist, search agent, title examiner and closing agent.
Networking and Advertising: Network with realtors and industry insiders. Title companies work directly with realtors and lenders who have clients looking to close on a property. Send out announcements to let contacts know you are opening a new title company in Louisiana. Place ads in industry publications and attend real estate conventions.
Once you build up a name for your company, you could consider expansion opportunities. Keep in mind that starting a title company can be costly and should only be ventured into established professionals from the real estate industry. Besides Louisiana, most states have similar requirements for launching a title company.
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