Real estate transactions are complicated, and title work is especially nuanced from one area to the next. Keeping the closing on track requires a delicate balance of time management, knowledgeable team members, and cross-industry collaboration. The real estate market remains strong, and there is a positive outlook for the coming year.
Unfortunately, the title industry continues to face many challenges, including unexpected delays, hiring and training enough staff, and educating real estate agent partners and consumers.
According to the 2021 State of the Title Industry report, among CEOs, Owners, Presidents, and Executives, the greatest of these challenges is hiring and training new staff (48.9%).
As a result, many are looking to outsource parts of their title production to specialized vendors.
Don’t miss our 2021 State of the Title Industry Roundtable with special industry guests!
What do title agents outsource?
The title insurance policy begins with a title search or title report. This piece of real estate due diligence is arguably one of the most important parts since it serves as the foundation for the title commitment, which establishes what will and won’t be covered by the final policy.
Nearly 73% of respondents outsource title searches, which is the third most outsourced item.
Municipal lien searches and utility searches were ranked as number one (83%) and two (75%) respectively.
Other popular items listed on the title commitment to outsource include special assessments (71%), Tax information (62%), UCC searches (59%), Judgment searches (55%), and HOA estoppel letters (42%).
Find the right title support solutions for your title operations. Learn more about PropLogix services!
Why do title agents outsource?
Outsourcing isn’t right for every operation, but for those who do, several themes emerge when asked why they choose to outsource, including:
- To focus on other aspects of title work
- Lack of talent or not enough time to train new employees
- Trust in specialized operations to complete the research
69% of title professionals surveyed in the State of the Title Industry Report said outsourcing allows them to focus on other important aspects of the closing. Undoubtedly, professionals prioritize building relationships with their key industry partners and educating consumers on how to complete a wire transfer safely. Sitting on the phone with a property manager late in delivering a homeowner’s association estoppel letter or constantly emailing and faxing municipalities for current water and sewer information isn’t how anyone wants to spend their time.
One title professional we spoke to described working with associations as particularly painful, but outsourcing HOA estoppels to PropLogix alleviated the irritation for her and many others. When every file with a property governed by an association is added up over time, the time saved can be substantial.
Other respondents noted that they trusted the knowledge and expertise of their outsourcing partners. 45% of title professionals said they outsource because specialized experts perform these searches better and faster than they can.
As more leaders in the industry struggle with finding and retaining the right talent, outsourcing becomes an economic stopgap. Finding the right people with the right personality traits for success can be challenging, but working with third parties to supplement research efforts is a great way to give you more time to recruit and train or ensure that your current team doesn’t experience burnout.
Others say they outsource because:
“[It] Saves time and is more efficient”
“We do not have the resources”
Before outsourcing, decision-makers should ask themselves these six questions.
Working with PropLogix
Our integrations with some of the industry’s most popular title production software make the ordering process even more convenient. We also have an easy-to-use ordering platform where you can request, track, cancel, and pay for the services that best suit your operations. We understand it can be difficult to feel like you have less control when working with a third-party vendor and that’s why we are in constant communication about delays and changes.
PropLogix is committed to being a partner that helps you close with confidence. Our researchers undergo rigorous training and mentorship and are highly specialized in their areas of service and geographical niche. We aim to deliver a product that will live up to your standards.
Hear from one South Florida Closer about why she loves working with our team!
If you are interested in learning more, be sure to check out this demo of our ordering platform and request pricing!