Here are some reasons title companies fail:
Lack of capitalization - A title company is a business, and like any other business, it requires adequate funding to get started and to maintain operations. Title companies that do not have the necessary capitalization tend to fail.
Poor management - If the title company is not well managed, it is likely to experience financial difficulties and may eventually fail.
Bad decisions - Making poor decisions can lead to a company's downfall. This can be anything from making bad investments to hiring the wrong employees.
Not keeping up with modern technology - The title industry is constantly evolving, and if a company does not keep up with the latest advances, it will likely fall behind its competitors and fail.
Not diversifying - Title companies that do not have a balanced portfolio of services and products tend to fail.