A title company can make or break your real estate transaction—getting it wrong means delays, hidden fees, or worse, a failed closing. Spotting an unreliable title company early protects your money, timeline, and peace of mind. Here's what to watch for before you sign anything.
They Don't Provide a Clear, Itemized Estimate
A trustworthy title company sends a Closing Disclosure or fee estimate at least three business days before closing, with every cost broken down line by line. If they're vague about fees, bundle costs together without explanation, or say "we'll send it later," that's a red flag.
Look for specifics like:
- Title search and examination fees (typically $200–$500)
- Title insurance premiums (usually 0.5–1% of purchase price)
- Recording fees (varies by county, often $50–$300)
- Closing/settlement attorney fees (if applicable, $300–$800)
- Wire transfer fees ($15–$30)
If you ask for this breakdown and get pushback, find another company.
Communication Is Slow or Vague
Title companies that don't respond to emails within 24 hours or take days to answer basic questions about your closing are unprepared or understaffed. You should have a dedicated point of contact—a closing attorney or settlement agent—assigned to your transaction.
Red flags include:
- Generic responses that don't address your specific questions
- No clear timeline for when documents will arrive
- Staff who can't explain what title insurance covers
- No confirmation of your closing date until a week before
Good title companies proactively send status updates and answer questions thoroughly. If you're chasing them for information, that's a sign they're not organized or don't prioritize customer service.
They Rush Your Review of Documents
Your title company should send final closing documents at least 2–3 business days before closing, giving you time to review loan terms, deed information, and title commitment details. If they email documents the morning of closing or push you to sign without reading, walk away.
A reliable company will:
- Explain what each document means in plain language
- Point out any title issues or liens that were discovered
- Let you ask questions without pressure
- Verify all names, addresses, and loan amounts match what you agreed to
Rushing this step can lock you into unfavorable terms or miss problems that could affect your ownership rights.
Their Online Reviews Show Repeated Complaints About Fees or Delays
Check Google, the Better Business Bureau, and local real estate forums for patterns. One complaint might be an outlier, but multiple reviews mentioning surprise fees, unexplained delays, or unprofessional behavior indicate systemic problems.
Pay attention to complaints about:
- Hidden fees not mentioned upfront
- Closing delays that weren't the buyer's or seller's fault
- Difficulty getting refunds for overpaid amounts
- Poor communication about title issues
Also check if the company has been in business for at least 3–5 years in your area—newer or out-of-state companies may lack local knowledge about county recording processes.
They Won't Provide References or Proof of Insurance
Title companies handle hundreds of thousands of dollars in client funds. They should carry errors and omissions (E&O) insurance and be able to name local real estate agents, lenders, or attorneys who regularly work with them.
If a company refuses to provide references, that's a deal-breaker. Ask your real estate agent or lender which title companies they recommend—they work with multiple providers and know which ones close cleanly and on time.
Also confirm the company is a member of the American Land Title Association (ALTA) or your state's title association. This shows they follow industry standards and have accountability.
Making Your Move
Before signing, get fee estimates from at least two title companies, compare timelines, and check their reputation. A reliable title company shouldn't cost significantly more than others in your area, but the cheapest option isn't always the best—you're paying for accuracy and reliability, not rock-bottom rates.
Mercoly makes it easy to compare and find trusted Closing & Settlement Services providers in your area, so you can vet multiple companies side by side before committing.
Frequently Asked Questions
Q: What's the difference between a title company and a closing attorney? Some states use title companies; others require closing attorneys (or allow both). Both handle escrow funds, prepare documents, and ensure clear title transfer—the main difference is licensing and regulation. Ask which is standard in your state and which is required by your lender.
Q: Can I use any title company, or am I stuck with my lender's recommendation? You have the right to shop around for a title company, though your lender may require they meet certain criteria. Always ask if your lender has preferences and get at least two independent quotes before deciding.
Q: What should I do if I discover title issues right before closing? A good title company flags these during the preliminary title commitment phase (weeks before closing). If issues appear late, ask for a written explanation and whether title insurance will cover the problem. Never close if liens or ownership disputes aren't resolved first.
Ready to protect your transaction? Compare vetted title and closing services in your area today.