3 Steps How to Become an Escrow Officer

(doylc.com) How to Become an Escrow Officer - Escrow officers are known as title closing agents or title insurance agents in some states. Although the specific title may differ, the tasks are essentially the same. A trustee holds money involved in a real estate transaction until the sale is complete. To become a trustee, you must demonstrate knowledge of your state's title insurance law and the skills required to fulfill this role. Typically, you must also apply for a license from your state.

• Learning Necessary Skills

Talk to working trustees. If you are interested in becoming a trustee, working trustees may be your best source of information. Arrange information meetings with several trustees in your area.

Call title insurance companies in your area and see if anyone would be interested in speaking to you about becoming a trustee.

Emphasize that you are not asking for a job, just looking for information on how to become a trustee.

When you have your interview, dress appropriately in professional attire. Ask the trustee questions about how they decided to become a trustee, what their education is, and what they enjoy about their job.

You can also ask what aspects of their job they find challenging and if they wish they had done something differently.

Acquire the appropriate training. In general, no higher education is required to become a trustee. However, a bachelor's degree or two-year associate's degree in a related field such as business or accounting may be an advantage.

If you're already in college, talk to your college advisor about your goals. They may be able to recommend specific courses for you to take to prepare for real estate.

You can usually get an associate's degree relatively inexpensively by attending a local community college.

These schools are ready to fit your schedule, even if you work full-time, by offering classes in the evenings and online.

Work in a related office. Many states require you to work in this field for at least a year before you can begin the licensing process. An entry-level position in a title insurance or real estate law firm will also allow you to receive on-the-job training in your chosen field.

Some states require you to work a specific amount of time, while others require you to have worked a specific number of hours. Keep this in mind if you have a part-time job with a legal expenses insurance or real estate law firm.

You should also ensure that the work you are doing is something that qualifies as relevant experience under your state's insurance law.

If you're not sure, tell your employer (or potential employer) that you want to be a trustee and ask if your position meets state licensing requirements.

There may be an affidavit or other form that must be completed by your employer to certify that you have the required work experience.

When the form is called an affidavit, it generally means it must be signed by your employer in the presence of a notary.

Complete a face-to-face course. Some states require you to complete a specific state-provided licensing course before you are eligible to sit the state licensing exam. This course covers your state's insurance laws and the responsibilities of a trustee.

Most states offer a license exam preparation course that you should consider, even if it's not required.

An exam prep course will help you understand the admissions requirements and the types of questions the exam will ask, so you can focus on your studies.

If your state requires an in-person class before you are allowed to take the exam, that class may not be specifically a "exam prep class". However, it will teach you aspects of your state's title insurance law that will be included in the license exam.

In some states, such as Florida, you can take the license exam after the face-to-face course even if you don't have relevant work experience.

Pass your state license exam. Most states have an exam that you must take and pass with a certain minimum score before you can apply for a license to work as a trustee. You can obtain information on your state license exam from your state insurance company or another supervisory authority.

Once you pass your exam, you will receive information on what you need to do to apply for a license.

Some states require you to use a title insurer to sponsor your application. The requirements for this are set by the insurance authority in your federal state.

If you need a sponsor, take the certificate you received after passing the license exam to title insurance companies in your area and ask if they will be willing to sponsor your application.

Typically, you will obtain a title insurance company that you have worked for or intend to work for after licensing to sponsor you.

If you fail the exam, you will receive information on how to retake the exam with your score report. Some states require you to wait at least 30 days after failing an exam before you can take it again.

• Getting licensed

Meet the basic eligibility requirements. Generally, you must be at least 18 years of age and a legal resident of that state to become a trustee in that state. Some states may have additional requirements that you must meet to be eligible for a license.

States typically do not require fiduciaries to have any special education in addition to a high school diploma. However, you may be required to complete courses offered by the government.

In most states, you can be anywhere in the state. However, there may be additional residency requirements, e.g. B. The requirement that you have been a resident of a state for at least six months.

If you were previously licensed in another state, your requirements may be different. However, you usually still need to take the licensing exam and reapply to be licensed in your new state.

Complete your application. In most states, you can find an application online that you can fill out to obtain a license to practice as a fiduciary in that state. If you can't find it online, you may need to drive to a local office of your statutory health insurance company or other regulatory agency to obtain a paper application.

The application typically requires basic background and contact information, as well as details of your work experience, education, or certifications relevant to your application.

You must include a copy of the certificate you received proving you passed the licensing exam.

You must also attach any employer declarations or affidavits related to your work experience.

Get a fingerprint. Some states require all title insurance license holders to have a fingerprint. Your state's insurance agency will have details on whether you are required to be fingerprinted and what type of fingerprints are required.

Fingerprints are usually required for the state to conduct a criminal background check on you. Contact your state's insurance agency or other regulatory agency to ensure you are getting fingerprints according to their procedures.

Your fingerprints must be current. For example, if you were fingerprinted in anticipation of submitting your application and then failed your driving test and had to retake it, you may need to be fingerprinted again.

For this reason, it's a good idea not to get fingerprinted until you've passed the licensing exam, met all other requirements, and are ready to submit your application.

Expect to pay around $50 for your fingerprints.

Submit your application package. Once you have all of the application documentation required by your state, submit it, along with your application fee, to your state's insurance agency or other regulatory agency. The correct address is usually noted on your application form.

You have to pay a fee to apply for a license. The amount of this fee varies widely from state to state, but is typically less than $100.

Make copies of any document you send to the state to apply for your license before you mail it so you have it for your own records.

Keep in mind that while you can complete and submit your application online, you may need to mail certain paper documents. Observe all deadlines carefully.

Get your license. The state will examine your application. Assuming everything is complete and correct, and you meet all eligibility requirements, you should receive your license in the mail within a few weeks.

You cannot work as a trustee until you have received your license in the mail. Even after you have submitted your application, you still have to wait until you have your license.

In some states, you can check the status of your license application online. Typically, you set up a profile with the state insurance division or division. Then you can log in and check your status and other information regarding your license validity.

When you receive your license, make a few copies for your records. Keep the original in a safe place to avoid losing or damaging it.

If you work for a title insurance company, you may be required by law to present your original license at your office.

• Retention of your license

Take Continuing Education (CE) courses. Most states require license holders to complete a certain number of hours of continuing education each year to keep their license in good standing. Check with your statutory health insurance company or another supervisory authority.

Keep in mind that you cannot simply take courses – they must be approved by your state authority for CE credit.

Some states allow you to take distance or online courses. If you decide to go this route, you will usually have to take and pass a final exam related to the content of the course you are taking.

Tuition for CE classes can be expensive. Depending on the number of hours your state requires, you could end up spending several hundred dollars a year to get your license.

Your state may offer free classes at certain times of the year. Enroll in CE course announcements so you can meet CE hour requirements and still stay on budget.

Maintain error and omission (E&O) insurance. E&O insurance is a type of professional liability insurance that covers you in the event you make a mistake in a financial transaction that results in a loss to a client. Some states require trustees to have at least a minimum amount of E&O insurance coverage.

Even if your state doesn't require E&O insurance coverage, these policies are a good idea to protect you and your company from liability if something happens in one of your transactions and you're sued as a result.

In some states that do not require E&O insurance, you will be required to post a security deposit. The amount varies depending on the license. For example, in the state of Texas, you are required to post a $10,000 bond if you are a title agent. However, if you are a trustee, the deposit required is only $5,000.

Note that some states do not differentiate between these licenses. To be a trustee in these states, you must be licensed as a title agent.

Submit annual accounts. As a trustee, you hold other people's money during property closures. Some states require you to submit quarterly or annual financial statements to the state insurance agency or other regulatory agency.

Other states require you to provide security clearances for your escrow accounts or to submit to quarterly or annual audits.

You'll learn your state's specific requirements when you apply for your license, and questions about them may arise during your license exam.

Renew your license if necessary. A license as an escrow officer or title insurance agent does not last for life. Rather, it must be renewed periodically if one wants to continue working. Most states require you to renew your license every year or every two years.

If your state has online access to your license account, you typically have the option to renew your license online.

Assuming you've met all maintenance requirements, renewing is as easy as paying an annual license fee.

Make sure you fill out your renewal application well in advance of the expiration date. It is illegal to continue working on an expired license even if you have already submitted your renewal application and are waiting for the state to process it.