You will need a title-closing agent any time you complete a real estate transaction. Agents are impartial parties who ensure that everything is in order before finalizing a sale—indeed, they are vital to the process. The process to become a closing agent varies from state to state. Many locations require a combination of education, experience, and licensing. Texas is no exception.
What Does a Closing Agent Job Entail?
A closing is essentially a meeting between the seller and buyer of a property. During that meeting, the parties sign all relevant documents and all necessary funds are exchanged. The closing agent is an important part of this process.
Closing agents look at all the details involved in the sale to verify that everything is legitimate. They collect mortgage, insurance, and homeowner’s association fee information. Additionally, it is the agent’s job to order a title exam. This is a process to ensure the title is marketable and that there are no liens against it; once the examiner ensures there are no encumbrances, the closing agent schedules a closing meeting. The closing agent should be an impartial, independent party.
Become Licensed as a Closing Agent in Texas
Texas requires licensing for all title agents. One must attain sponsorship, however, before applying for this license. Here is a step-by-step guide to walk you through the process:
- Every state handles closings differently. It is important to familiarize yourself with all local laws regarding property transactions. Additionally, one must learn industry-specific vocabulary and title insurance laws. The best way to accomplish this is by getting an entry-level position with a related insurance company or title agency. This provides a fantastic opportunity to learn about titles and transactions, ask questions, and prepare for a job. It is also a golden opportunity to make contacts that could help with sponsorship when the time comes.
- Texas does not require a college degree in a related field. However, potential sponsors often prefer to see relevant classes on your resume. These can be real estate, business, or risk management courses. Even if you choose not to pursue a degree, consider completing some of these courses on the side. It will go a long way to demonstrate the seriousness with which you approach the position.
- Texas law requires that all applicants attain sponsorship from a title company. It also states that all those seeking a license must have an “abstract plant.” Otherwise known as a “title plant,” a records database agents uses this to investigate title information before writing title policies for clients. This database is another reason to get experience in the field before applying for a license.
- The Texas Department of Insurance will issue a title agent license application upon request. You can pick one up in the organization’s offices or download it online.
- Upon delivering your completed application, a $50 fee is due. The waiting process is usually six to eight weeks after submission. Once the application is approved, you are required to post bond with the Texas Department of Insurance in the amount of $10,000. You will receive your license as soon as you post the money.
Once you obtain your license, you may begin to work as a title agent. At this time, all the information and contacts gathered along the way will come in handy. Ideally, the title company that sponsored your application will also offer you a position. If this is not the case, do not fret. If you followed the above steps, it is likely that you are well prepared for a job hunt in this field.
