When is service revenue recognized at Corcoran's Title Group?
Corcoran Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Service revenue primarily consists of title and escrow fees at Title Group and are recognized at a point in time at the closing of a homesale transaction.
Title Group
The Company provides title, escrow and settlement services to consumers, real estate companies, corporations and financial institutions with many of these services provided in connection with the Company's real estate brokerage and relocation services businesses. These services relate to the closing of home purchases and refinancing of home loans and therefore, title revenues and title and closing service fees are recorded at a point in time which occurs at the time a homesale transaction or refinancing closes.
Source: Item 23 — RECEIPTS (FDD pages 75–276)
What This Means (2025 FDD)
According to Corcoran's 2025 Franchise Disclosure Document, service revenue at the Title Group, which primarily consists of title and escrow fees, is recognized at a specific point in time. This recognition occurs when a homesale transaction closes.
Specifically, the Title Group provides title, escrow, and settlement services to various entities, including consumers, real estate companies, corporations, and financial institutions. These services are often connected to Corcoran's real estate brokerage and relocation services. The revenue from these title and closing services is recorded at the time a homesale transaction or refinancing is completed.
For a prospective Corcoran franchisee, this means that revenue from title and escrow services is not recognized until the deal is finalized. This could impact cash flow, as expenses may be incurred before revenue is recognized. Franchisees should be aware of this timing difference when forecasting their financial performance.