When you're buying or selling a property, the title and escrow process protects your money and ensures the property is legally yours—but only if you hire qualified professionals. Verifying that your title company and escrow officer are actually accredited cuts through misrepresentation, reduces fraud risk, and keeps your transaction on track. Here's how to spot the real deal.
Why Accreditation Matters for Title & Escrow
An accredited title company and escrow service operates under state licensing, carries errors and omissions insurance, and follows standardized underwriting guidelines. Without verification, you could end up working with an underfunded operation, a one-person shop without backup systems, or worse—someone committing title fraud.
Accreditation isn't optional bureaucracy; it's your primary line of defense. Most lenders and title insurers won't close a transaction without confirmation that your escrow holder meets baseline standards.
Step 1: Check State Licensing Records
Every title company and escrow officer must be licensed in the state where they operate. These licenses are public records.
- Visit your state's Department of Insurance or Real Estate Commission website
- Search the company name and individual agent names
- Verify the license is active and note any disciplinary history
- Cross-reference the address listed—scammers sometimes use nearly identical names with slightly different locations
For example, if you're in California, use the California Department of Insurance's lookup tool. For Texas, check the Texas Department of Licensing and Regulation. Most states publish this data online for free in under a minute.
Step 2: Confirm Title Insurance Underwriter Backing
A legitimate title company acts as an agent for a title insurance underwriter. The underwriter is the company that actually issues your title insurance policy and backs claims.
Ask your title company directly: "Which underwriter am I insured by?" Common national underwriters include Fidelity National Title, Chicago Title, First American Title, Old Republic, and Stewart Title.
Call that underwriter's customer service line independently (use the number from their official website, not from the company's paperwork). Ask if the title company is an authorized agent. If there's any hesitation or the underwriter has no record of them, walk away immediately.
Step 3: Verify Financial Stability and Insurance Coverage
Title companies handle your earnest money deposit, down payment, and sometimes hundreds of thousands of dollars in escrow funds. You need assurance they won't disappear with it.
Request proof of:
- Errors and omissions (E&O) insurance with a minimum of $1 million coverage
- Fidelity bond ($100,000–$500,000 depending on transaction volume)
- Recent financial statements or bank references
A reputable company will provide these documents without friction. If they deflect or say "it's all standard," that's a red flag. E&O insurance typically costs $3,000–$8,000 annually for smaller offices, so legitimate operators budget for it.
Step 4: Review Their Track Record and Complaints
Search the Better Business Bureau (BBB), Google reviews, and your state's Department of Insurance complaint database. Look for patterns—one complaint might be an outlier; five complaints about money being held longer than promised suggests systemic issues.
Pay attention to resolution. Did the company respond to complaints? Did they fix the problem? A company with zero complaints is suspicious; a company with complaints and documented resolutions is more trustworthy than one that ignores feedback.
Also ask for references from recent clients (within the last 6 months) and lenders they've worked with. A company that won't provide references is hiding something.
Step 5: Confirm Escrow Timeline and Fees
Accredited companies publish their fee schedules and timelines upfront. Title and escrow fees typically range from $600–$2,500 depending on your location and transaction complexity. Coastal markets and high-transaction areas trend higher.
Request a written estimate that breaks down:
- Title search fee
- Title insurance premium
- Escrow handling fee
- Recording and filing fees
- Notary fees
Legitimate companies won't surprise you with hidden costs at closing. If a company quotes $800 then sends a closing statement for $1,400, that's unprofessional and potentially fraudulent.
Step 6: Use a Comparison Platform
Vetting each company manually takes time. Platforms like Mercoly let you compare accredited title and escrow providers in your area, review their credentials, and request quotes side-by-side—saving hours and helping you spot inconsistencies fast.
Frequently Asked Questions
Q: Can I use any title company, or does my lender have to approve it? A: Your lender has the right to require you use a lender-approved title company, and most do. Always confirm with your lender first, then verify that company's credentials using the steps above.
Q: What happens if the title company goes out of business after closing? A: Your title insurance policy remains valid regardless—the underwriter (not the agent company) guarantees coverage. However, you lose ongoing support. This is why verifying E&O insurance and financial stability matters.
Q: How long should an escrow process typically take? A: Standard residential transactions close in 30–45 days from offer acceptance. Anything over 60 days without major complications (inspection issues, appraisal problems) suggests inefficiency on the escrow officer's part.
Start verifying your title and escrow provider today—your equity depends on it.