Title insurance is a unique financial instrument when compared to other insurance products. Simultaneously, the latter is for protection from future eventualities, title insurance guards against past incidents.
Title insurance companies have to be cautious when they conduct title search operations; else it can backfire. Hence, choosing a reputable outsourcing title search and settlement service provider is crucial for title insurance companies. Outsourcing to mortgage and title search companies not only helps decrease burden but also helps business grow as they work accurately and flexibly.
What considerations must title insurance agents take while outsourcing title search operations
Title Insurance companies must find out about the brand image a title search company has in the market. A company with the below traits will have the right name for itself in the industry.
- Ample amount of experience conducting the entire range of searches required for title insurance companies
- Robust systems.
- Trained and skilled professionals
- Nationwide coverage and vast network.
- Advanced technologies and software products
- Transparent workflow
- Adherence to the latest information security protocols
- Multiple delivery centers
- Quickly implementable business continuity plan.
The above list can serve as a checklist to shortlist the probable companies to outsource title searches. After doing thorough due diligence, associate with a reputable organization. In doing so, it also inspires confidence in title insurance companies.
Range of Service
Looking at the long-term, it is always advisable to partner with a title search and settlement company that provides the entire range of searches.
Title insurance agents must check if these organizations are offering the below searches.
- Current Owner Search – Provides details of the current titleholder of the relevant property.
- Two Owner Search – Provides details of the present and the immediately preceding title holders of the subject property.
- 20-year/40-year/60-year- Provides details of all the titleholders starting from the current to the and the earlier title holders up to the number of years in the past based on the subject property’s requirement.
- Full Search – Provides details of all the titleholders starting from the present to the first titleholder when the property was created.
- Judgement Lien Search – Looks for if there are any judgment liens on the property or its owner and if it is pending or not.
- Environmental Lien Search – Finds out if there are environmental liens due to the property’s exposure to toxic and environmentally harmful products or substances.
- Municipal Lien Search – Finds out if there are liens placed on the property by the property’s jurisdictional municipality and its present status.
- Property Tax Search – A thorough search if the property owner or the titleholder has paid all the taxes levied on the property.
- Utility Search – Finds out if the bills to utility providers of electricity, water, sewerage, fire, etc., are paid.
- Update Search- Updates the details of a recently conclude title search.
- Date Down Search – A second search conduct just before closing
- Foreclosure Search – Finds out if the property is foreclosed or not.
Most of the well-known title search companies provide ancillary services like
- Indexing and Data Extraction- Extracting data from the comprehensive reports and indexing it according to your needs. It makes the recording of these documents easier.
- Policy Typing & Commitment Typing – Typing the extensive documents required for the insurance policy and commitment.
These enterprises can provide these services due to their experience, industry knowledge, skillful professionals, and broad network.
The Search Package Contents
The title search companies should be able to provide the following reports, certificates, and relevant documents.
- Appraiser Review Report
- Property Tax Statement
- Probate/Divorce/Will/Death Certificates
- Judgment Dockets & Liens
- Lease Documents
- Municipal Lien Certificate
- Easements/Right of Way/Restrictions
- Maps – Plat, GIS, Assessor & Tax
- Subdivision Plans
- Vesting Reports
- Ownership Reports
- Encumbrance Report
- Property Tax Report
- Property Tax Certificate
Nationwide Coverage and Wide Network
When you find fresh customers from new territories or plan to expand into new regions, the title search company with nationwide coverage would be a great asset. You can rest assured that your needs will be met with ease due to the vast network.
As you move into new states, some may mandate the requirements like the presence of an attorney for closing, ground abstractors, etc. In such scenarios, title search companies with a nationwide network will have these professionals readily available to support you.
Information Security Protocols
Reputable title search outsourcing companies take the data security of their clients seriously as the process involves gathering huge amounts of information. It includes financial, family, marital, personal, etc. All these pieces of information are private and should be treated with the highest security.
Title search companies must use the latest software products, their workflow, office spaces, and employees must strictly adhere to the newest information security protocols. Following the information security management systems like SOC II Type 2 and ISO 27001 is an excellent practice. Organizations that have implemented these systems can be blindly trusted with the data you share.
Modern software applications meant for title search delivers speed to the process. The turnaround times are negligible because of the automation. As manual entry is minimized, human errors are avoided, and it guarantees accuracy to the reports. These applications also render transparency to the workflow, which gives confidence to title insurance companies.
Experienced examiners are the assets of a title search company. They must hire those who are the best in the business. The job requires them to detail-oriented and highly analytical as the process is data-driven.
Robust Business Continuity Plan
2020 proved that organizations without a healthy business continuity plan lack resilience. It showed that an easily implementable plan must be in place to face such eventualities. Title search companies with a healthy BCP can spring back into action in no time. It is possible for them because they have invested in advanced technology, the right people, and multiple delivery centers (offshore and onshore).
Customizability and Scalability
Whenever you have a specific requirement, the title search company should accommodate it seamlessly. And as you grow, the title search companies should be able to expand along with you.
Choosing the best title search company is similar to how you decide on a real estate agent, it’s vital to select the best title search company. A good title search company should deliver accuracy and fast turnaround times along with E&O insurance. When researching for title search companies, it is advised to take the above points into consideration to get the best result. To avail Title Search and Settlement services, get in touch with us at Orchestrate.com