Title Company

What it is

A title company is the neutral third party that runs the closing on a real estate transaction. They hold earnest money in escrow, order the title search, issue title insurance, prepare the closing documents, and record the deed with the county. Every conventional sale and most cash sales go through one.

In a direct-to-seller deal, the moment I get a contract signed, my virtual assistant is already sending it to the title company. That’s what I call peeing on the tree: “like a dog, you know, they go and they mark their territory. You got to mark your territory.” Before that moment, the deal existed between me and the seller in a living room. Once the title company has a file open, other people are calling the seller, it feels real, and the seller is less likely to back out or entertain another offer. Mark the territory fast.

Why it matters

A good title company is one of the quietest edges in this business. A bad one is one of the loudest problems. Deals die at the closing table when paperwork is wrong, liens weren’t cleared, or wiring instructions get fat-fingered.

I use one or two title companies repeatedly for every deal, not a different one each time. Repetition builds speed. They know my buy process, my entity structure, my entity name, my paperwork. The closing file is already half-built before they open it. That’s the relationship capital version of title work — same people, same process, same file format. Closings drop from three weeks to ten days because the friction is gone.

The neutrality also matters. In a direct-to-seller deal, the seller often doesn’t trust me. The title company is the third party both sides can accept. They’re not on my team, they’re not on the seller’s team. They’re on the deed’s team. That structure removes emotional heat from the closing table, especially when the seller is older or distrusting of investors.

How it shows up

On distressed off-market acquisitions, 1 in 10 title searches turns up something that takes work to clear: an unreleased mortgage from 20 years ago, an heir who was never deeded out of an estate, a tax lien, a mechanic’s lien, a judgment. Most clear in 1-4 weeks. A few kill the deal. That’s why I send every new acquisition to the title company the day we sign, before I’ve spent a dollar on inspections or contractors. If the title is going to kill this deal, I want to know that before I’ve ordered a dumpster.

Also: “you are not on this course going to talk about streamlining and automation for your business — not adding employees but adding other vendors like VAs — but anyway, mark the territory.” The VA executes the title submission. I’m already gone to the next thing.

Related

peeing on the tree, title search, escrow, closing costs, due diligence, relationship capital, entity structure