A title company handles legal paperwork, ownership verification, and insurance during property sales—and choosing the wrong one can cost you thousands in delays or overlooked issues. Most homebuyers don't vet their title and escrow provider thoroughly, assuming their realtor or lender will steer them right. Here's how to actually evaluate and hire local experts who'll protect your transaction.
Why Your Title & Escrow Choice Matters
Title companies do far more than file documents. They conduct title searches to confirm no liens, unpaid taxes, or competing claims exist on the property. They also hold your earnest money deposit and down payment in escrow—meaning they're custodians of your capital until closing. A sloppy title search can land you with a property burdened by a contractor's lien. A disorganized escrow process can delay closing by weeks. The right firm catches problems early and moves transactions smoothly.
Get Specific Recommendations & Track Record Data
Start by asking your real estate agent for three title companies they've worked with over the past 12 months—not generic "we use these guys" answers, but firms they've actually seen handle complex transactions. Ask what percentage of their deals closed on time with this company. A solid title firm should close 95%+ of transactions on their target date.
Next, check your state's title insurance licensing board or department of insurance website. Most states publish complaint ratios and disciplinary records. Look for firms with zero or very low complaints relative to their volume. A company handling 500+ closings per year with two filed complaints is cleaner than one handling 200 closings with three complaints.
Pull recent reviews on Google, the Better Business Bureau, and Zillow. Pay attention to specifics: "They were slow responding to my email for three days" is more useful than "Great service!" Look for patterns around communication responsiveness, missing documents, and closing delays.
Verify Credentials & Insurance
Confirm the firm holds an active title insurance agency license in your state—not just as a settlement agent, but as an actual title company. Call your state's insurance commissioner office if you're unsure. Verify they're bonded and insured with errors and omissions (E&O) insurance. This protects you if the company makes a mistake that affects your ownership claim.
Ask whether they use a national underwriter (Fidelity, Chicago Title, First American, Old Republic) or operate independently. National underwriters provide stronger financial backing and standardized processes. Independent title companies aren't inherently worse, but verify they have adequate E&O coverage—at least $1 million per claim.
Compare Costs Upfront
Title insurance and escrow fees vary by state and property value. Get written quotes from at least two firms. Typical title insurance costs range from $500–$1,500 depending on purchase price and location. Escrow fees often run $300–$800. Some firms bundle these; others charge separately.
Ask about all-inclusive closing costs in writing. Surprises at closing—document fees, rush fees, courier charges—are red flags for poor management. Reputable companies itemize everything upfront.
Assess Communication & Process
Call the title company with a specific question: "I'm buying a home in [neighborhood], $[price range]. What's your timeline from contract to closing?" Listen for:
- Clear, specific answers instead of vague "usually 30 days"
- Acknowledgment of potential delays (title defects, survey issues)
- A named point of contact who'll handle your transaction
- Clear explanation of what happens at closing
Request a sample closing disclosure and closing statement ahead of time. This shows they're organized and prepared.
Make Your Hire Decision
Once you've narrowed to two finalists, ask each one: "Have you ever uncovered a title issue that prevented a sale, and how did you handle it?" A quality company can cite specific examples and show how they solved problems.
Finally, confirm they're available for your target closing date—some firms get booked during peak season. Get your service agreement in writing before committing.
Frequently Asked Questions
Q: Can I use any title company, or do I have to use my lender's choice? Your lender can't force you to use a specific title company in most states, but they can require you to use one they've approved. Ask your lender for an approved list and vet them using the steps above.
Q: What happens if a title search finds a problem? The title company works with you and the seller to resolve it—typically by obtaining a release letter from the claimant, securing a title insurance exception, or taking out a title insurance rider. A good firm handles this communication.
Q: How long does the escrow process typically take? From contract signing to closing, expect 30–45 days in most markets. The title company coordinates the final week heavily, managing last-minute document exchanges and preparing closing statements.
Use Mercoly to compare and vet trusted title and escrow providers in your area—side-by-side reviews, credentials, and real pricing data.