Running a title company or AMC involves navigating all sorts of legal complexities – there’s no way around it. While there are many “one-off” scenarios where it’s easy to simply hire someone to deal with a specific  issue, there are also numerous ongoing legal tasks that need regular attention. Aside from underwriting, these include:

1. Regulatory compliance and licensing;
2. New client relationships or joint ventures;
3. Claims and/or litigation management;
4. Contract and other document review and preparation;
5. Corporate governance.

This is easy for the big companies – they can afford to hire a proper General Counsel. Mid-sized and smaller firms, however, often struggle to fill this need, particularly because hiring a full time General Counsel can be so expensive. Because so many title companies are owned or run by people with a legal background, they often handle these matters internally.

“The man who represents himself, has a fool for a client.”
-Abraham Lincoln

Before bringing a title or AMC company to market (or in evaluating either company to buy), we take a close look at its operations. Issues almost always become apparent at some point during the process, and we’ve learned that it’s better to resolve them before selling. Part of that involves undoing the consequences of subpar legal work. A key characteristic of a well-managed company is a thoughtfully designed legal strategy that effectively tackles the inevitable challenges that come up.

Between many years of practicing real estate law, working in a legal capacity for a “Big-3 Underwriter,” and now running an investment bank, I like to think I’ve learned a thing or two about spotting the good from the bad when it comes to lawyers. The simple truth is that (like anything) some are better than others. After all, half of them graduated in the bottom half of their class! The consequences of hiring the wrong lawyer can have a meaningful impact on a company’s valuation.

Because smaller or mid-sized title companies generally cannot afford to hire a full-time General Counsel who is experienced and knowledgeable, it makes sense to establish something where they can share a General Counsel on a fractional basis.

Aside from wanting our clients to operate correctly, a big part of our ‘why’ revolves around our desire to level the playing field between the independents and Big Title. All title agencies and AMCs deserve access to quality, affordable legal services.  That’s why we’re now offering introductions to title industry and AMC legal experts we’ve worked with and who we know understand the nuances specific to the title and AMC sectors. These professionals are ready to provide fractional legal services and support. Simply reach out (via Discovery Call or email), and we will connect you.

A fractional General Counsel provides a flexible, cost-effective solution for title and AMC companies to access high-level legal expertise without the commitment and expense of hiring a full-time General Counsel.

Here are some key advantages of hiring a fractional General Counsel:

1. Cost-Effective: A fractional General Counsel allows companies to access title and AMC legal expertise on a part-time basis, significantly reducing overhead costs. It’s always a good idea to have expenses which are variable.
2. Flexibility: Fractional General Counsels work on a part-time or project basis, giving companies the flexibility to scale up or down their legal needs depending on the company’s situation. This is particularly valuable for growing businesses or startups that need legal support only during certain phases of their development. This mostly comes to play in state licensing expansion or RESPA compliant JV formation.
3. Expertise Without Full-Time Commitment: A fractional General Counsel brings extensive legal experience to the table without the need for a full-time commitment. Companies benefit from expert guidance without having to pay a fully loaded salary and benefits package.
4. Risk Mitigation: The right legal experts help businesses stay compliant with laws and regulations, reducing the risk of lawsuits, regulatory fines, and reputational damage. Our panel already knows title and AMC rules and regulations. They are on top of the latest applications of RESPA.
5. Scalability: As companies grow, their legal needs can change. Fractional General Counsel can adapt their support to meet those evolving needs, whether it’s handling an evolving regulatory environment, scaling up business operations, or preparing for complex transactions.
6. Time Savings: Having a fractional General Counsel in place means leadership and management teams don’t have to spend as much time handling legal issues themselves or relying on outside law firms. This can free up internal resources and improve overall productivity.
7. Tailored Legal Strategy: Fractional General Counsel can provide personalized advice and develop tailored legal strategies that align with the company’s goals. They can step in to handle specific legal issues, allowing business owners to focus on their core operations.
8. Access to Network: Many fractional General Counsels have a broad network of legal professionals and specialists, allowing companies to tap into external resources as needed without having to build these relationships themselves.
9. Interim Leadership: In situations where a company’s full-time General Counsel leaves, fractional General Counsel can serve as an interim leader until a permanent hire is made, ensuring continuity in legal operations.
10. Efficiency and Focus: By outsourcing the General Counsel role, business leaders can focus on strategic decisions and growth, while the fractional General Counsel takes care of legal issues, ensuring that the company’s interests are protected.

Overall, a fractional General Counsel offers a strategic blend of cost efficiency, flexibility, and high-level expertise, making it an excellent choice for businesses that need legal support but don’t require or can’t afford a full-time, in-house General Counsel.

If this interests you, please book a Discovery Call or email me at .

–Howard Turk