Choosing the right title and escrow company can make or break your real estate transaction—literally. A poor choice leads to delays, hidden fees, or missed issues that cost you thousands. Here are the specific questions you should ask before hiring.
Understand Their Licensing and Insurance
Start by verifying credentials. Ask directly: "Are you licensed in my state, and can you provide your license number?" Title companies must be state-licensed, and you should verify this independently with your state's department of insurance or real estate commission. Also ask about errors and omissions (E&O) insurance—a reputable company carries coverage of at least $1 million. This protects you if they make a mistake.
Get Pricing Details Upfront
Title and escrow fees vary wildly by state and lender. Ask: "What is your full fee schedule, including title insurance premiums, examination fees, and escrow holding charges?" Request a written quote in advance. Most companies charge $500–$2,500 for title insurance and examination combined, depending on your home's purchase price and state regulations. Don't accept vague answers—you deserve itemized costs.
Equally important: "Are there any fees not listed here that might appear at closing?" Hidden fees or unexpected charges at the last moment create stress and can derail transactions.
Clarify Timeline and Responsiveness
Real estate moves on tight schedules. Ask: "How long does title examination typically take, and what's your average closing timeline?" Standard title examination takes 5–10 business days, but this varies. Then ask: "How will you communicate updates with me, and who is my primary contact?" You want a named person, not a voicemail maze. Request their response time standard—most reliable companies commit to 24-hour email or phone responses.
Evaluate Their Title Search Process
This is where problems get caught early. Ask: "What does your title search include?" A thorough search covers liens, judgments, property taxes, and prior deeds going back decades. Specifically ask: "How far back do you examine the title?" Best practice is at least 50 years, sometimes longer. Also: "Do you perform a flood plain search and homeowners association (HOA) review automatically?" These issues affect property value and insurability.
Ask About Common Problems They've Handled
Get a sense of their experience. Ask: "What are the most common title issues you've discovered in transactions like mine?" Their answer reveals competence. Listen for specific examples—boundary disputes, unpaid property taxes, missing heirs in estates, or utility easements. Companies that can articulate these proactively are more thorough.
Understand the Title Insurance Policy
Title insurance protects your lender and you against future claims. Ask: "What does your standard title insurance policy cover, and what does it exclude?" Coverage typically protects against prior ownership claims, forged documents, and unpaid liens—but it won't cover things you should have known before closing. Also ask: "Can I get owner's coverage as well as lender's coverage?" Owner's coverage costs extra but protects your equity; it's often worth the $100–$300 investment.
Confirm Escrow Handling and Security
If they're holding earnest money or conducting escrow, ask: "What security measures protect escrow funds, and how are they held?" Escrow funds must sit in trust accounts segregated from the company's operating accounts. Ask for their federal identification number and verify their trust account setup with your state regulator.
Check Their Experience With Your Specific Situation
Ask: "Have you handled transactions similar to mine?" If you're dealing with a short sale, cash transaction, investment property, or estate transfer, you want a company familiar with those complexities. Their answer should give you confidence they won't stumble over title issues specific to your situation.
When comparing multiple providers, services like Mercoly let you view and evaluate trusted title and escrow companies in one place, making side-by-side comparisons easier.
Frequently Asked Questions
Q: What's the difference between a title company and an escrow company? Title companies examine property records and issue insurance; escrow companies hold funds and coordinate closing. Many companies do both, but some specialize in one function.
Q: Can I choose my own title company, or does my lender decide? You can typically shop around and choose your own title company, though your lender has final approval. Always ask—shopping can save you hundreds.
Q: How long does the entire closing process usually take from contract to completion? Standard closings take 30–45 days, but this depends on title examination speed, appraisal timeline, and loan approval—so clarify with your specific company upfront.
Start asking these questions today, and you'll hire a title and escrow partner who protects your investment.