Do Some Realtors Need a Title Insurance License?

Date: July 27, 2015 Add to Reading List

Minnesota insurance solicitation laws may apply when Realtors refer a client to an in-house title firm (or one with which they have a Marketing Service Agreement). That means that they might need an additional state title insurance license in order to avoid being on the wrong side of the law.  

Recommending a title company is not an undertaking to be taken lightly. The due diligence necessary to really do a good job for a client is already a little overwhelming without adding conflicts into the mix. However, if the Realtor is recommending or steering a client into a title firm for which the Realtor or his broker is financially related that is when licensing problems arise.

Minnesota insurance licensing statutes state that an insurance license is required when a person urges a person to apply for a particular kind of insurance from a particular company.  In real estate almost all new purchase transactions involving a mortgage require the purchase of title insurance. That means the act of steering someone into an inhouse title company  is also the act of steering a client into a particular company where they will purchase a lender's title insurance policy. The law is pretty straightforward (see below).

If you are a Realtor and want to know the truth about this matter, you should probably not consult your broker's legal staff. Instead you should get independent and unbiased counsel or call the Minnesota Department of Commerce.

The safest thing you can do is to shop and compare title firms and let your clients decide. Let our title comparison tool help!

Here’s the law:


Subd. 15.Solicit. "Solicit" means attempting to sell insurance or asking or urging a person to apply for a particular kind of insurance from a particular company.



A person shall not sell, solicit, or negotiate insurance in this state for any class or classes of insurance unless the person is licensed for that line of authority under sections 60K.30 to 60K.56.