Become a Title Abstractor
A title abstractor's job includes locating title information for various properties and confirming the legal description of each one. While there are no national certifications or degrees required for this type of work, there are several considerations to be made when starting your own abstracting business. Here are a few tips on how to become a title abstractor
Steps
- Qualify yourself for this business. At the minimum, you need to have a diploma from an accredited high school or earn a GED. A college degree is not necessary, but classes related to finance, banking, real estate and law can be helpful. Gain experience in reading legal property descriptions and lien information. This will help you translate legal documents into understandable terms. Working for an established title company will help prepare you for the job, as well.
- Apply for and receive a tax identification number. Your country's taxing authority can help you with this. If you live in the United States, contact the IRS for an Employer Identification Number (EIN). You can apply online, by fax, by phone or by mail. If you live in the United Kingdom, check with the HM Revenue and Customs office.
- Research any particular requirements for becoming a title abstractor where you live. The government department that oversees business and labor will have useful information that will help you through the legal process. For instance, in the United States, if you are a resident of Oklahoma, specific steps are required before you can legally perform abstractor duties. The three legal steps you must take to start your business in Oklahoma include filling out an application for a "Permit To Develop An Abstract Plant," building a plant (a series of real estate-related documents and maps), and applying for and receiving a Certificate of Authority. More information can be found by contacting your state's Secretary of State office.
- Set up your office. Establish your abstractor's office near other businesses that you will be working with directly. Abstractors partner with real estate agencies, banks, title companies and mortgage lenders. If you have a relationship with one of these businesses, it would be beneficial to inquire as to whether or not they have office space available for you to rent. Another good location in which to establish your abstractor business is near the courthouse because most abstractors visit the courthouse almost daily. Your office will need to be supplied with standard office equipment including a computer with Internet access, a FAX machine and telephone. A printer capable of producing maps and large-scale prints will also help your business.
- Acquire Errors and Omissions Insurance. E&O Insurance protects you from any lawsuits filed for inaccurate or alleged inaccurate work. Most licensed insurance agents will be able to provide you with this type of coverage.
- Network, network, network. If you have previously worked with an abstractor office in the past, it is important to utilize the connections and relationships you built while employed there. Connect with previous clients and partner businesses. If you are new to the business, contact banks, mortgage lenders, real estate agents and title companies and educate them about your business, knowledge and expertise.
Tips
- Hone your math skills. These skills are necessary to being a good abstractor.
Things You'll Need
- Office location
- Computer with Internet access
- Fax machine
- Copy machine
- Telephone
Related Articles
References
- https://www.youtube.com/watch?v=5sxEoT1LgnY
- https://careertrend.com/how-4879138-become-title-abstractor.html
- https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online
- https://www.irs.gov/businesses/small-businesses-self-employed/how-to-apply-for-an-ein
- https://www.entrepreneur.com/article/202566
- https://www.entrepreneur.com/article/65692
- https://sciencing.com/improve-math-skills-2314474.html
