Title and escrow services protect you during one of life's biggest financial transactions—but not all providers operate the same way. Choosing the right company means understanding what they actually do, how much they'll charge, and whether they'll catch problems before closing day. This guide walks you through the critical questions to ask before hiring.
What Exactly Will They Handle?
Your title and escrow company acts as a neutral third party between buyer and seller. They'll search property records to confirm ownership, issue a title insurance policy, hold your earnest money deposit, review all closing documents, and coordinate the final transfer of funds and deed. Before signing an agreement, ask your provider to list exactly which services are included in their quoted fee—some companies bundle everything, while others charge separately for title search, title insurance, and escrow account management.
How Much Will This Actually Cost?
Title and escrow fees typically range from $500 to $2,000 depending on your location and the sale price of the property. In many states, costs are regulated—check your state's real estate commission website to see if there's a standard rate. Ask for a written quote that breaks down: title search fees ($100–$300), title insurance premiums (usually 0.5–1% of purchase price), escrow holding fees ($150–$500), and any document preparation or settlement charges. Request quotes from at least three providers to compare; price alone shouldn't drive your decision, but significant discrepancies warrant questions.
What About Experience and Licensing?
Every title and escrow professional should hold proper state licensing and work for a company authorized to issue title insurance in your state. Ask how long they've been in business, whether they specialize in your property type (residential, commercial, investment), and if they've handled transactions similar to yours. Check online reviews on Google and the Better Business Bureau—look specifically for feedback about responsiveness, accuracy, and how well they explain documents to clients. A company with 15+ years in your local market likely understands regional title issues better than a national chain handling your area as a side operation.
Can They Identify Title Problems Early?
A strong title and escrow company proactively flags issues—not on closing day, but weeks before. Ask whether they'll conduct a preliminary title search as soon as you're under contract and share results with your real estate agent. Potential red flags they should catch include:
- Outstanding liens (unpaid taxes, contractor claims, HOA assessments)
- Easements or encroachments affecting property use
- Boundary disputes or split ownership issues
- Fraud or forgery in the deed chain
- Missing heirs from probate sales
Request that they explain any title defects in plain English, not legal jargon, and outline how they'll resolve them before closing.
What's Their Timeline and Communication Style?
Ask how long they typically take from contract to closing—most aim for 30–45 days, but some can accelerate for a fee. Confirm how they'll keep you updated: email updates on milestones, a dedicated contact person, or an online portal where you can track documents in real time. If you're a first-time buyer or handling a complex transaction, prioritize a company that offers phone consultations to walk you through the closing disclosure and answer questions. Avoid providers who only respond via email or disappear until final walkthrough.
Do They Coordinate With Other Parties?
Your title company needs to communicate smoothly with your lender, real estate agent, and the seller's attorney. Ask whether they have direct relationships with local title insurance underwriters, attorney networks, and mortgage servicers. This matters: a connected company can resolve title issues faster and prevent closing delays caused by miscommunication. Also ask if they'll handle final funds transfer directly to your lender and coordinate the recorded deed—don't assume these services are automatic.
Should You Use a Mercoly Comparison?
Finding trustworthy title and escrow services doesn't mean calling twenty companies blind. Mercoly lets you compare vetted providers in your area, see detailed pricing, and read verified customer experiences—helping you narrow down to the right fit before reaching out.
Frequently Asked Questions
Q: Can I use any title company, or does my lender get to choose? Your lender approves your choice, but you have the right to select the company; they can't force you to use a specific provider. However, some lenders have preferred vendors with streamlined processes.
Q: What happens if the title search finds a problem? The title company typically works to clear it before closing by contacting previous owners, negotiating releases of liens, or adjusting the sale price to account for the defect. In rare cases where it can't be resolved, you can cancel the deal.
Q: Is title insurance mandatory? Your lender requires it to protect their investment, and most buyers add an owner's policy (usually a one-time cost) to protect themselves after the sale.
Start your search today by identifying providers in your area and asking these questions—your closing day will run smoother when you've done the homework upfront.