Before you hand over thousands of dollars to an escrow company, you need to know their track record. Complaints about missing documents, delayed closings, and miscommunicated terms happen more often than they should. Here's how to dig into a provider's history and spot red flags before they become your problem.
Where to Find Escrow Service Complaints
The most obvious starting point is the Better Business Bureau (BBB). Search your state and the company name—you'll see complaint summaries, response times, and whether issues were resolved. BBB doesn't catch everything, but patterns emerge quickly. A company with 15 complaints in 18 months has a real problem; one complaint resolved favorably five years ago doesn't.
State licensing boards are equally important. Every escrow officer and escrow company must register with your state's department of corporations or real estate regulatory body. Pull their license records and check for disciplinary actions, violations, or suspensions. These documents are public and often more detailed than BBB entries. A company might have a polished website and decent reviews while carrying a recent citation for improper handling of earnest money deposits.
Check Online Review Platforms Carefully
Google Reviews, Yelp, and industry-specific sites like Trustpilot show customer feedback, but interpret them correctly. One negative review among dozens of five-star ratings isn't necessarily concerning—disgruntled sellers or buyers are more likely to post. However, look for recurring complaints about specific issues:
- Slow communication or unresponsive staff
- Unexpected fees appearing at closing
- Mistakes in title searches or disclosures
- Delays beyond the stated closing timeline
- Difficulty obtaining final documents after closing
If ten reviews mention "they never answered my calls" or "fees weren't disclosed upfront," that's a pattern worth avoiding.
Request References and Talk to Agents
Real estate agents and mortgage brokers work with escrow companies regularly and have insider knowledge. They know which ones consistently close on time and which ones create headaches. Ask your real estate agent directly: "Who do you see causing problems?" and "Who would you use for your own transaction?"
Agents have financial incentive to stay quiet if their preferred company is flawed—they don't want to lose referral relationships—so listen for hesitation or deflection. The best answer is "We use Company X because they've never missed a deadline in five years."
Request at least two references from the escrow company itself, ideally recent clients who closed on similar property types. Ask them specifically about communication frequency, accuracy of documents, and whether the closing happened on the projected date.
Investigate Financial Stability and Bonding
Escrow companies hold your money in trust. You need confidence they're solvent. Check their E&O (Errors and Omissions) insurance and fidelity bond coverage—these should be current and substantial. A company holding millions in client funds should carry at least $1 million in fidelity bonding.
Search the company's history using your state's UCC filing database or business registration records. How long have they been in business? Have they changed ownership recently? Sudden management changes sometimes precede operational problems.
Ask Specific Questions Before Hiring
Schedule a call and pose scenario-based questions:
- "If a title issue isn't discovered until after closing, how is it handled?"
- "What's your typical timeline from signed contract to closing?"
- "Are there fees beyond what's listed in the initial estimate?"
- "Who's my direct contact if problems arise during escrow?"
Listen for clear, specific answers. Vague responses or reluctance to detail their process is a yellow flag.
Take Action Now
Comparing multiple providers before choosing one saves stress later. Platforms like Mercoly help you research and compare trusted Title & Escrow Services providers in one place, making it easier to cross-reference reviews, credentials, and complaint histories at once.
Get those background checks done before you sign anything. A thorough pre-hire investigation takes 2–3 hours and prevents weeks of potential closing delays.
Frequently Asked Questions
Q: How long should I expect a title search to take, and what's a reasonable timeline if a problem is found? A: Title searches typically complete within 3–7 business days. If issues like liens or previous ownership claims surface, resolution can take 1–4 weeks depending on complexity; your escrow officer should provide a specific timeline.
Q: What's the typical escrow fee range, and how is it usually calculated? A: Escrow fees typically range from $300–$1,500 depending on property value and transaction complexity, often calculated as a percentage of the purchase price (0.1–0.5%) or negotiated as a flat fee.
Q: Can I switch escrow companies mid-transaction if I'm unhappy? A: It's possible but disruptive; you can technically change providers before closing, but it creates delays and requires re-ordering documents, so it's best to select carefully upfront.
Use these research steps to find a reliable escrow partner and close with confidence.