A bad title or escrow company can delay your closing by weeks, lose critical documents, or worse—expose you to fraud. You need to verify credentials, understand fee structures, and confirm they'll actually protect your interests. Here's your step-by-step checklist to vet any title or escrow service before you hand over your transaction.
Check State Licensing & Regulation
Title and escrow companies are regulated at the state level, not federal. Your first move: visit your state's Department of Insurance or Attorney General website and search the company name in their licensing database. In California, that's the Department of Insurance; in Texas, the Department of Licensing and Regulation. A licensed company will have an active license number you can verify—if it doesn't appear in the database, walk away immediately. Many states also maintain disciplinary records, so check whether the company has any complaints or violations on file.
Verify E&O Insurance Coverage
Errors and Omissions (E&O) insurance protects you if the title company misses a lien, forges a document, or botches the escrow. Ask for proof of active E&O coverage and confirm the policy limit—most reputable firms carry $1–$5 million depending on transaction volume. Request documentation directly from the company; don't rely on their word. Your real estate attorney or lender can also confirm this coverage is in place before closing.
Review Title Search & Examination Procedures
Ask the company to walk you through exactly how they'll search the property title. Standard practice includes: checking county deed records going back 40+ years, reviewing tax assessments, examining liens and mortgages, and running judgment searches. Confirm they'll conduct a lien search specifically—this catches contractor liens and unpaid taxes that could cloud the title. A thorough title exam should take 5–10 business days; if they promise results in 2 days, they're cutting corners.
Compare Fee Structures Transparently
Title and escrow fees vary by state and transaction size. In most markets, expect:
- Title search: $150–$400
- Title examination: $200–$500
- Title insurance (owner's policy): 0.5–1% of purchase price
- Escrow fee: $300–$1,000+ (splits between buyer and seller)
Request an itemized fee quote in writing before committing. Some companies bundle services; others charge à la carte. Watch for inflated "convenience" or "processing" fees tacked on at closing—these should be minimal ($25–$50 maximum) if they exist at all.
Confirm Fraud Prevention Measures
Title fraud and wire fraud are rampant in real estate. Ask whether the company:
- Verifies seller identity via government-issued ID
- Uses dual-approval signatures on wire transfer instructions
- Provides wire instructions via phone call, not email alone
- Flags unusual transactions (cash deals, out-of-state wires, last-minute changes)
- Uses encrypted communication for sensitive documents
A solid company will have documented anti-fraud protocols they can explain without hesitation.
Look for Real Estate Industry Integration
Check whether the company has established relationships with local real estate attorneys, agents, and lenders. Call your agent or attorney and ask for referrals—they'll know which local title companies are reliable. Companies that integrate with popular transaction platforms (like Dotloop or TransactionDesk) often streamline document delivery and reduce closing delays. This matters because bottlenecks in communication cost you time and stress.
Check Response Times & Availability
Send them a test email or call with a basic question. How long until they respond? Competent title companies typically reply within 4–8 business hours. Also confirm their closing hours—do they accommodate weekend or evening closings? If you're on a tight timeline, this detail can make or break your deal.
Use Comparison Tools
Services like Mercoly help you compare and find trusted title and escrow service providers in one place, making it easier to evaluate multiple companies side-by-side before deciding.
Frequently Asked Questions
Q: How long does a title search and examination typically take? A: Most title companies complete a title search and exam in 5–10 business days for straightforward residential transactions; complex properties or foreclosures may take 2–3 weeks.
Q: Can I negotiate title insurance rates? A: Title insurance rates are often set by state regulators and don't vary much between companies, but escrow fees and service charges sometimes are negotiable, especially for larger transactions.
Q: What happens if the title company finds a problem before closing? A: The company will issue a title commitment outlining any issues (liens, easements, unpaid taxes); you and your lender then decide whether to resolve them, take title insurance exceptions, or walk away.
Get your fee quotes in writing and verify licensing today—don't wait until one week before closing.