What are the differences between a title company, a title agency and a title research company?

Title Companies vs. Title Agencies vs. Title Research Companies: Understanding the Differences

What Is a Title Company?

A title company is fundamentally an insurance provider that specializes in real estate transactions. These companies underwrite and issue title insurance policies to protect buyers against financial losses caused by undiscovered title defects between opening escrow and closing a transaction.

The four major title insurance providers in the United States include:

• Fidelity National Title Group
• First American
• Old Republic Insurance Group
• Stewart Title

Several dozen independent companies also underwrite title insurance throughout the country.

What Is a Title Agency?

A title agency (also known as an escrow agency or settlement service company) processes real estate transactions, similar to some law firms. While title companies also handle real estate transactions, not all title agencies underwrite insurance.

To operate legally, title agencies must be:

• Insured and bonded according to state and federal regulations
• Appointed as authorized agents of underwriting title companies

In smaller communities without dedicated title agencies, law firms frequently serve as authorized agents after submitting applications and proving they have the necessary credentials and professional liability insurance.

Legal Services and Title Companies

Most title companies and agencies employ attorneys or maintain legal departments for internal issues, but they do not provide legal advice to clients. Services typically include:

• Providing blank legal forms
• Offering assistance completing forms at client direction
• Processing real estate transactions

Title company underwriters operate numerous offices and authorized agencies nationwide, with each title company, agency, or partnered law firm serving specific counties or regions.

What Is a Title Research Company?

Title research companies focus exclusively on providing specialized research services, including:

• Title searches
• Document retrieval
• Abstracts of title
• Lien reports
• Real estate consulting

Unlike title companies or agencies, title research companies do not provide escrow services, title commitments, or issue title policies for closing transactions.

U.S. Title Records: A Nationwide Title Research Solution

U.S. Title Records exemplifies a modern nationwide online title research company offering:

• Title and property record search services
• Document retrieval
• Consulting services

Their services are delivered:

• At flat fees
• In downloadable/printable format via email
• Seven days a week (including holidays)
• Without requiring subscriptions, memberships, or logins

The company serves a diverse client base including:

• Individual real estate investors
• Investment groups
• Real estate professionals
• Brokers and lenders
• Insurance companies
• Financial institutions
• Equity groups
• Law firms
• General public

While U.S. Title Records doesn’t provide legal advice, their consultants have real estate or legal backgrounds to answer questions thoroughly and promptly in writing.

Key Differences: Quick Summary

Title Company or Authorized Agent

• Purpose: Issues title insurance policies and provides settlement services
• Process: Begins when parties execute a contract and open escrow
• Services: Performs title searches, prepares preliminary reports with title commitments, records documents
• Primary users: Buyers and lenders closing real estate transactions who want protection against undiscovered title defects
• Note: Some experienced real estate investors perform their own title searches and close transactions without title companies, though this carries significant risk

Title Research Company

• Purpose: Provides title search services, document retrieval, and consulting for research purposes
• Limitations: Does not issue title commitments, underwrite policies, or close transactions
• Primary users: Real estate investors, professional groups, law firms, and individuals
• Common uses:
  1. Pre-offer or pre-bid research
  2. Convenient document retrieval (recorded documents, customized reports without commitment or policy)
  3. Professional real estate consulting (company-dependent)