Why a TIPIC-Licensed Notary Is Required for Title-Insured Real Estate Closings (Maryland)

Buying, selling, or refinancing a home is one of the biggest financial decisions most people make—and with it comes a maze of documents, disclosures, and legal requirements. In Maryland, one of the most important (yet often misunderstood) requirements is who can legally handle the closing when title insurance is issued.

Many people assume that any notary public can notarize real estate documents, but that’s not always the case. If the transaction involves an owner’s or lender’s title insurance policy, the notary must also hold a Title Insurance Producer or Title Insurance Producer Independent Contractor (TIPIC) license. This distinction ensures that the person facilitating your closing is not only authorized to perform notarial acts but also trained and licensed to manage the escrow, settlement, and compliance responsibilities tied to the issuance of title insurance.

Maryland law defines a Title Insurance Producer Independent Contractor (TIPIC) as someone who:

1. Is licensed as a title insurance producer; and

2. Provides escrow, closing, or settlement services that may result in the issuance of a title insurance contract for or on behalf of a licensed and appointed title producer.

In short: if real estate documents need to be notarized for a settlement transaction that involves the issuance of title insurance, the notary must be licensed as a TIP (or, if independent, a TIPIC).
Source: Maryland General Assembly

The Maryland Insurance Administration reinforces this: both Title Insurance Producers (TIPs) and TIPICs must be licensed to conduct business in the state, and title insurers are responsible for ensuring they only use properly licensed professionals. Using unlicensed personnel for these functions is a violation of Maryland law.
Source: Maryland Insurance Administration

Maryland statutes also regulate how TIPs may work with TIPICs. A TIP may not use a TIPIC unless the TIPIC is properly appointed with the title insurer and covered under the TIP’s required bonds; the TIP is the legal principal and is liable for the TIPIC’s actions within the scope of the engagement. Recorded mortgages/deeds of trust in such transactions must list the names and license numbers of both the TIPIC and the supervising TIP.
Source: Justia Law

COMAR regulations complement these rules by imposing oversight and audit requirements on title insurers and producers, including confirmation that only licensed insurance producers control trust/escrow money and that producers and any TIPICs utilized are properly identified and appointed.
Source: Legal Information Institute+2

What this means in practice

If a closing will result in the issuance of title insurance, the professional responsible for the closing/settlement functions must be a licensed TIP (employee) or licensed TIPIC (independent contractor). A notary public alone is not enough for these transactions.
Source: Maryland General Assembly+1

A notary who does not hold a TIP/TIPIC license may participate only if a licensed TIP/TIPIC (or attorney acting as a licensed title producer) is the one conducting and taking responsibility for the settlement/closing. In that setup, the notary’s role is limited to performing the notarial act, while the licensed producer is responsible for the title-insured closing and compliance obligations. This arrangement flows directly from the statutory definition of TIPIC and the MIA’s licensing/oversight framework for who may provide settlement services that lead to a title policy.
Sources: Maryland General Assembly+2, Maryland Insurance Administration+2

Sources (Maryland)

• Insurance Article § 10-101(m) — definition of Title Insurance Producer Independent Contractor.
  Source: Maryland General Assembly

• Insurance Article § 10-121.1 — restrictions on a TIP’s use of TIPICs (appointment, bond coverage, and responsibility/liability; mortgage/deed recording identifiers).
  Source: Justia Law

• Maryland Insurance Administration (MIA) FAQ — “Title Insurance Producers and Independent Contractors” — licensing requirements for TIPs and TIPICs; violations for use of unlicensed personnel.
  Source: Maryland Insurance Administration

• COMAR 31.04.22 (Title Insurers) — audit/oversight, producer/TIPIC identification, and ensuring only licensed producers control trust money.
  Source: Legal Information Institute+1

This section is for educational purposes and reflects Maryland sources. It is not legal advice.