How to Work With Title Companies as a Wholesaler: Building Key Relationships

Title companies are the unsung partners of every wholesale deal. They search title, hold escrow, prepare closing documents, and distribute funds. A good title company makes closings smooth. A bad one creates delays, confusion, and lost deals. This guide covers how to find, evaluate, and work effectively with title companies as a wholesaler.

What a title company does in a wholesale deal

1. Title search: Examines public records to verify ownership and identify any liens, encumbrances, or defects in the chain of title.
2. Title insurance: Issues a policy protecting the buyer (and their lender) against title defects that were not discovered during the search.
3. Escrow: Holds earnest money deposits and other funds in a neutral third-party account until closing.
4. Closing preparation: Prepares the HUD-1 settlement statement (or closing disclosure), deed, assignment agreement, and other closing documents.
5. Closing facilitation: Conducts the closing, collects signatures, records the deed, and distributes funds to all parties.

Finding investor-friendly title companies

Not all title companies understand wholesale transactions. Many are set up for traditional buyer-seller transactions with lender involvement. An investor-friendly title company:

• Handles assignments regularly and has standardized processes for them
• Can facilitate double closes (same-day back-to-back closings)
• Understands transactional funding
• Communicates proactively about title issues rather than discovering them at closing
• Processes closings quickly (7-14 days for cash deals)
• Is comfortable with cash buyers who are not using traditional financing

How to find them

• Ask other wholesalers and investors at REI meetups which title companies they use
• Ask your buyer list — active cash buyers know which title companies are investor-friendly
• Call title companies directly and ask: "Do you handle assignment closings and double closes for investors?"
• Check with your local REIA (Real Estate Investors Association) for recommended providers

What to discuss upfront

Before sending your first deal to a title company, have a conversation about:

• Assignment fees: How do they handle them on the closing disclosure? Are there limits on the fee amount they will process?
• Double close procedures: Will they facilitate same-day double closes? Do they require transactional funding or can the buyer's funds flow through?
• Timeline: What is their typical turnaround from opening escrow to closing for a cash deal?
• Communication: Who is your point of contact? How will they update you on title search progress?
• Costs: What are their closing fees? Who pays for title insurance?

The closing process step by step

1. Open escrow: Send the executed purchase agreement to the title company. They assign a file number and begin the title search. Send your earnest money deposit promptly.
2. Title search results: The title company provides a title commitment showing the current status of the title. Review it for issues. Address any title problems immediately.
3. Assignment submission: Once you have your buyer, send the executed assignment agreement to the title company. They will update the file to reflect the new buyer.
4. Closing preparation: The title company prepares the settlement statement showing all debits and credits for each party. Review it carefully for accuracy before closing day.
5. Closing day: All parties sign (or provide signed documents via mobile notary). The title company collects funds from the buyer, pays the seller, pays your assignment fee, records the deed, and issues title insurance.
6. Funding: You receive your assignment fee via wire transfer or check, typically on the day of closing or within 1-2 business days.

Common problems and how to avoid them

Title company refuses to handle assignments

Some title companies have a policy against processing assignment transactions. Always confirm this upfront before sending a deal. Keep 2-3 investor-friendly title companies in your network so you always have a backup.

Delays in title search

Complex title histories (multiple owners, old liens, probate) take longer to clear. Set expectations with the seller and buyer that closing may extend if title issues are discovered.

Earnest money disputes

If a deal falls through, the earnest money disposition can become contentious. Your contract should clearly specify the conditions under which earnest money is refundable. The title company holds the money in escrow and will not release it without agreement from both parties or a court order.

Building a long-term relationship

Your title company should be a partner, not just a vendor. When you find a good one:

• Send them consistent business
• Be professional and responsive — send complete documents, answer questions promptly
• Refer other investors to them
• Ask them for buyer referrals (they know who the active cash buyers are)
• Include them in your networking — bring them to REI events as a guest speaker

Related guides

• Finding Investor-Friendly Title Companies
• How to Handle Title Issues
• How to Assign a Contract
• Closing Costs by State
• Escrow vs Title vs Attorney States

Related Articles

• Escrow Meaning
• What is the Difference Between Pending and Under Contract
• Active Under Contract Meaning