Compass acquires Dallas-based title, escrow company

The brokerage’s purchase of LegacyTexas Title is expected to close by the end of the year

National /
Sep.September 14, 2021 01:00 PM
Compass CEO Robert Reffkin and Legacy Title Texas president Laurence Henry (Getty, iStock, Legacy Title Texas)

Compass CEO Robert Reffkin and LegacyTexas Title president Laurence Henry (Getty, iStock, Legacy Title Texas)

Compass, its coffers swollen by the housing boom, shows few signs of slowing its shopping spree.

The brokerage said Tuesday that it will buy Dallas-based LegacyTexas Title, expanding its title insurance and escrow business in the nation’s second-most populous state. Compass didn’t disclose terms of the deal, which is expected to close by the end of the year pending Texas regulatory approval. It entered the title and escrow business in October 2020, when it acquired startup Modus in October 2020.

The purchase brings to seven the number of states where New York-based Compass offers title and escrow services, including California, Florida, Washington, Maryland and Virginia. Compass spent $103.8 million in the first half of 2021 to buy four brokerages, Washington D.C.-based title and escrow company KVS Title and Glide Labs, a transaction management platform, public filings show. It also launched in 15 new markets in the second quarter and announced a mortgage joint venture with Guaranteed Rate.

Compass CEO Robert Reffkin told analysts on the second-quarter earnings call that the pace of acquisitions would probably slow in the second half of the 2021 and that costs associated with them will be reported in coming months. Reffkin and CFO Kristen Ankerbrandt, spent a large portion of the call explaining how the company will become profitable and why the brokerage is, in fact, a technology company.

Compass has plenty of company when it comes to investing cash in new lines of business. Douglas Elliman’s parent company is pouring surplus cash into a venture capital investment arm. EXp World Holdings announced its first cash dividend, a mortgage venture and has extended its business to Israel, Spain, Columbia and Panama. Realogy, meantime, is repaying corporate debt and planning to plough cash into its iBuying program.





    Related Articles

    arrow_forward_ios
    Frank Lloyd Wright with 1425 Valley View Drive (Getty, Re/Max)
    Unique Frank Lloyd Wright home available … for now
    Unique Frank Lloyd Wright home available … for now
    A photo illustration of the Arizona Ghost Town Museum in Pearce, Arizona (Getty Images, Facebook/oldpearcepottery)
    Night at the museum: Ghost town general store turned-home lists at $1M
    Night at the museum: Ghost town general store turned-home lists at $1M
    Ben Simmons and Olympia Dumbo (Photo Illustration by Steven Dilakian for The Real Deal with Getty Images and Olympia Dumbo)
    Fortis’ Olympia Dumbo lures Brooklyn Nets star
    Fortis’ Olympia Dumbo lures Brooklyn Nets star
    Fredrik Eklund and John Gomes (The Society Group, 53w53)
    Eklund-Gomes couples 53W53 open house with magazine launch
    Eklund-Gomes couples 53W53 open house with magazine launch
    Alec Baldwin with 335 Town Lane (Getty, Hampton Real Estate)
    Alec Baldwin bailing on Amagansett estate
    Alec Baldwin bailing on Amagansett estate
    Steve Gold with 534 Riversville Road (Corcoran Group, Compass)
    “Million Dollar Listing” star Steve Gold buys 10-acre Greenwich estate
    “Million Dollar Listing” star Steve Gold buys 10-acre Greenwich estate
    OKO Group’s Vlad Doronin and the Aman New York at the Crown Building (Getty Images, Aman New York, Google Maps/Aman New York)
    TRD Pro: The most expensive Manhattan homes sold in August
    TRD Pro: The most expensive Manhattan homes sold in August
    Raquel Lomonico (Raquel Lomonico, Getty)
    Nest Seekers’ Raquel Lomonico jumps to Compass’ top Brooklyn team
    Nest Seekers’ Raquel Lomonico jumps to Compass’ top Brooklyn team
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...