Questions to Ask a Title Company
For buyers, sellers and owners refinancing a home in the United States, whether you are still picking a title or escrow company or were handed one by the contract. The questions follow the file from start to finish: choosing the company, fees, the title search, title insurance, escrow money and wires, then closing. Who picks the company, who pays for which policy and whether an attorney has to be involved all change with the state, so confirm any custom mentioned here for the place the property sits.
The questions
Each question, and why to ask it
Choosing
Do I get to choose the title company, or has the contract already named one?
Why ask it
Who picks is a matter of local custom and of what the contract says: in some places the buyer chooses, in others the seller does, and often an agent simply suggests a company. Find the line in your contract that names the closing or escrow agent before you call around. If a company is already named and you would like another, ask your agent whether it can still be changed and what that would take.
Do you have a business relationship with my real estate agent, lender or builder?
Why ask it
Shared ownership and referral arrangements between these businesses are common, and where the rules require it you are given a written disclosure, so ask to see it. An affiliation does not make the company a poor choice. It does mean the recommendation was not a neutral one, which is a good reason to get a second quote before you agree.
Do you run the escrow and the signing yourselves, or only the title work?
Why ask it
In some areas one company searches the title, holds the money and conducts the closing. In others an escrow company or an attorney takes part of that. The answer tells you how many offices are on your file and which one to phone about what, so ask for a named contact at each.
How often do you close a transaction like mine in this county?
Why ask it
Say what 'like mine' means before they answer: a refinance, a condo, new construction, a cash purchase, a sale out of an estate or a trust. A company that sees your kind of file every week already knows the recorder's office and the paperwork the association will send. Listen for ease with the details more than for a big number.
Which underwriter stands behind the policies you issue?
Why ask it
A local title office usually sells the policy while a larger insurer, the underwriter, is the one that pays a claim. Write the underwriter's name down and look up its financial strength rating yourself, since a claim could come decades from now. An office that writes for more than one can tell you why it would choose a particular one for your file.
Who will be my escrow officer or closer, and how do I reach that person directly?
Why ask it
You want one name, a direct line and an email address, not a general inbox. The follow-up is who covers the file when that person is out, because the final week is when most of the questions arrive at once.
Are you licensed for this state, and what insurance or bond do you carry against mistakes and theft?
Why ask it
Which regulator licenses a title or escrow company depends on where it operates, so get the regulator's name and look the license up there. Errors and omissions coverage is for mistakes in the work, and a fidelity bond or crime policy is for money taken by someone inside the company. Neither necessarily reaches a customer who wired money to a fraudster, so put that case to them by name.
Fees
Can you send me a written quote that lists every charge, not only the premium?
Why ask it
The premium is one line among many. A full quote also shows the settlement or escrow fee, search and examination, endorsements, recording, courier, wire and notary charges. With that sheet from two companies you can compare line against line, which a single total never lets you do.
Which of these charges are set by the state or county, and which are your own?
Why ask it
Recording fees and transfer taxes are government figures that no company can change. Whether the insurance premium is fixed by regulation or left to each company is a state-by-state matter, and the office will know which applies to you. Whatever remains is the company's own pricing, and that is the part worth comparing.
Who usually pays for the owner's policy and the escrow fee around here, the buyer or the seller?
Why ask it
Custom shifts from one county to the next, and the contract can override custom anyway. Once you know what is typical locally, read what your own contract says and check the quote was built the same way. A mismatch is far cheaper to raise now than at the signing table.
Is there a reissue or refinance rate if the property was insured in the last few years?
Why ask it
Many insurers charge less when an earlier policy on the same property exists, but the time limits and the size of the discount vary, and it is often applied only when someone asks. Sellers can dig out the owner's policy from when they bought, and refinancing owners their own. Offer to send a copy, since that is frequently what the company needs to apply it.
What do the owner's and lender's policies cost when they are issued together?
Why ask it
When both are written at the same closing, one of the two is commonly priced far below what it would cost alone. Loan paperwork sometimes divides the two premiums differently from the title company's own sheet, so compare the combined total and not either line alone. If the totals do not match, ask the title company and the lender to explain it to each other with you copied.
Which numbers on this quote could still change before closing, and what would move them?
Why ask it
Payoff amounts, the number of pages to record, endorsements the lender adds late and a rushed or off-site signing can all shift the figure. Have them mark the lines that are firm and the ones that are estimates. Then ask for a fresh quote once the lender's instructions have arrived.
What will I owe you if the sale falls through?
Why ask it
Some companies charge a cancellation or search fee on a file that never closes and others charge nothing. Get the answer in the same email as the quote, including who would be billed, buyer or seller, and whether the amount grows with the work already done.
Title search
How far back does your search go, and which records does it include?
Why ask it
The depth of a search is set by the company, the underwriter and local practice, so there is no single standard to assume. A full answer names court judgments, tax records and searches on the buyer's and seller's names as well as the chain of deeds. Where the search starts from an earlier policy instead of going back through the records, it is fair to ask why that is enough.
When will I receive the title commitment, and will someone go through it with me?
Why ask it
The commitment, called a preliminary report in some states, is the document that says what was found and on what terms the company will insure. Request it with working links or copies of every recorded document it mentions. Ten minutes on the phone with the examiner or your closer makes more sense of it than reading it alone.
What has to be cleared before you will insure this title?
Why ask it
The commitment lists these as requirements: usually the seller's mortgage payoff, sometimes an old loan never marked as released, a judgment, or papers from an estate. For each one ask who is responsible, what document settles it and when it is expected. Any item with no name beside it is the one to chase.
Did the search find a judgment or lien against someone with my name, and what do you need from me to rule it out?
Why ask it
Searches are run on people as well as on property, and common names collect other people's debts. The usual cure is a signed statement that you are not that person, sometimes backed by a date of birth or part of an ID number. Raise it early, because a name match discovered in the last week can hold up a closing over a debt that was never yours.
Which easements, covenants or restrictions are recorded against the property, and can I read the documents themselves?
Why ask it
A commitment may describe these only by a book and page number, which tells you nothing. Get the recorded documents and read them against what you plan to do: a fence, an addition, a pool, renting the place out. The title company can show you what is recorded, but what it means for your plans is a question for an attorney.
Do I need a survey, and would a new one take any exceptions off the policy?
Why ask it
Whether a survey is expected depends on the lender and on local habit. Without one, a policy typically leaves out whatever a survey would have revealed, such as a neighbor's shed over the line. Before paying for a new one, find out whether the seller's old survey plus a signed statement would be accepted.
If a lien or defect turns up, who clears it and how long does that tend to take?
Why ask it
Clearing a title problem normally falls to the seller, with the title company chasing the paperwork: a payoff, a recorded release, a corrected deed, a signature from a former owner. The thing to pin down is the slowest item on your file and whether it puts the closing date at risk. If it does, tell your lender the same day, since a rate lock has its own deadline.
What are the options if a title problem cannot be fixed by the closing date?
Why ask it
Listen for the choices in practice: push the date, hold money back in escrow until the item is cured, have the insurer agree to cover the risk, or end the deal under the contract. The company can describe each of these but cannot tell you which protects you. Your contract probably sets a deadline for objecting to title, so get that date from your agent or attorney now.
Do you check for open permits, unpaid utility bills, municipal charges and association dues?
Why ask it
A standard search may not reach any of these, and whether they can follow the property to a new owner depends on local law. Some companies order a municipal lien search or a statement from the association as a matter of course, and others do it only on request. If yours is an on-request office, make the request in writing and settle who pays for it.
Will you update the search just before closing, and what covers the gap until the deed is recorded?
Why ask it
Days or weeks can pass between the first search and the moment your deed reaches the public record, and a lien filed in that window is a real risk. You are after two things: the date of the last update, and how the policy treats anything recorded after it, which the industry calls gap coverage.
Title insurance
What is the difference between the lender's policy and the owner's policy, and is the owner's one optional?
Why ask it
A lender's policy protects the lender, up to the loan balance, and does nothing for your down payment or equity. The owner's policy is the one that protects your own interest, generally for as long as you own the property. Have them point to each premium on your quote and say whether the owner's policy is your choice in this transaction or something the contract already settles.
What could be wrong with this title that even a careful search would miss?
Why ask it
A search only sees the public record, and some defects never appear in it: a forged signature on an old deed, an heir nobody knew about, a document filed under the wrong name. Those hidden risks are what an owner's policy is sold for. The claims this office has handled locally will tell you more about its value than a brochure does.
Can you walk me through the exceptions in Schedule B and say which are standard and which are about this property?
Why ask it
Schedule B is where the policy lists what it will not cover. Standard exceptions appear on almost every file, and the specific ones are about your lot: this easement, that agreement with a neighbor. Put a mark beside each specific one and get the document behind it.
Which of the standard exceptions can be deleted, and what would you need from me to do it?
Why ask it
Some general exceptions can come off in return for a survey, an inspection of the property or a signed statement from the seller about unpaid work and who is living there, though which ones is up to the underwriter and may carry a charge. It has to be raised before closing, because the policy is issued as the commitment stands on that day.
Do you offer an enhanced owner's policy, and what does it add for the extra cost?
Why ask it
In many places there is a basic owner's policy and a broader one that adds certain risks, sometimes including a few that arise after you buy. What is offered, and on which kinds of property, differs by state and insurer. Get the two side by side in writing, with the price difference, and decide at home.
Which endorsements is my lender requiring, and are any worth adding to my own policy?
Why ask it
An endorsement is an add-on that extends a policy to one named risk, such as a condominium, a planned community or matters a survey would show. The lender's list drives part of your bill, so ask for the price of each. Then ask which ones exist for an owner's policy, since the lender's endorsements protect only the lender.
What does title insurance never cover, whichever policy I choose?
Why ask it
Typical exclusions include problems that begin after the policy date, zoning and other government rules, the physical state of the house, and anything you knew about and kept from the insurer. That last one is a reason to mention what you know: a neighbor's remark about the driveway, an unfinished probate. Have them show you the exclusions page itself, not a summary of it.
How much coverage will the owner's policy carry, and can it grow if the home's value does?
Why ask it
The amount is normally tied to the purchase price, though some broader policies raise it over time and some insurers will sell added coverage later. This matters most if you plan a large addition or are buying well under what the finished home will be worth.
If I ever have to make a claim, who do I contact and what would you need from me?
Why ask it
Claims generally go to the underwriter in writing, and policies ask for prompt notice once you learn of a problem. Get the claims address now and keep it with the policy. A letter from a stranger's lawyer about your land is the moment to use it, before you answer the letter yourself.
Why do I have to buy title insurance again when I refinance, and is my owner's policy still good?
Why ask it
A new loan is a new lien, and the new lender will usually want its own policy dated to match. Your owner's policy from the purchase is a separate contract, so have them confirm in writing that the refinance leaves it untouched. Bring it along anyway, as it may be the document that earns a lower rate on the lender's one.
Escrow and wires
Where is my earnest money held, and what has to happen before anyone can release it?
Why ask it
You are looking for a trust or escrow account kept apart from the company's own operating money, and a receipt with the date and amount. Release normally follows the contract or a written instruction signed by both sides. The follow-up that matters is what the company does with the deposit when buyer and seller disagree about who gets it.
How will you send me wiring instructions, and how can I be sure they came from you?
Why ask it
Ask this on the first call, before any money is due. Good answers involve a secure portal, a sheet handed over in person, or a phone call you place yourself. Write the office's main number down today from their website or a printed card, and use only that number later.
Will your wiring instructions ever change, and what should I do if a message says they have?
Why ask it
The answer you want is that they never change by email or text. Criminals watch real transactions and send a polished 'updated instructions' message at the right moment, often from an address one letter off. Agree now that any such message means you stop, phone the number you already have, and send nothing until a person you know confirms.
What day and time do you need my funds by, and will you tell me when they have arrived?
Why ask it
Banks stop sending wires at a cut-off time, and a transfer started after it goes out the next business day. Plan to send the day before, so a hold or a typing error does not cost you the closing date. Just before you send, phone the closer on the number you already hold and read the account and routing numbers aloud, then phone again afterward so you are not left assuming it landed.
If a wire goes to the wrong account, what do we each do in the first hour?
Why ask it
Speed is the one thing on your side. The usual steps are to call your own bank's fraud line and ask for a recall, tell the title company, and report it to the authorities that handle online fraud where you live. A company with a written plan can recite it without thinking, and one without a plan will reassure you instead.
Will the underwriter issue a closing protection letter for my closing, and who does it cover?
Why ask it
A closing protection letter is the underwriter's own promise to make good certain losses if the office handling your closing misuses the money or ignores written closing instructions. In some states it is routine and has a set fee, and in others it is offered to lenders only or goes by a different name. If no letter is available to you as a buyer or seller, the answer about the company's bond and insurance carries more weight.
How do you protect the personal and financial information I give you?
Why ask it
A closing file holds your ID, bank details and often a tax or social security number. Good signs are an encrypted portal for documents and staff who log in with a second factor. If the office would take sensitive details by ordinary email, send nothing that way and offer to deliver it in person.
Can I bring a cashier's check instead of wiring, and up to what amount?
Why ask it
Rules on which forms of payment a closing agent may accept, and up to how much, are set by state law and company policy. A check removes the wire fraud risk but can take longer to clear, which matters if funding is tight. Get the exact payee name and the amount in writing before you go to the bank.
As the seller, how do you confirm my loan payoff and the account my proceeds go to?
Why ask it
Fraud runs in this direction too: fake payoff letters, and strangers posing as owners to redirect sale money. A careful company verifies the payoff with the lender at a number it already holds and takes your bank details in person or through its portal. While you are on the subject, find out which day the proceeds go out and whether the wire carries a fee.
Closing
What are the steps between today and closing, and which one are you waiting on now?
Why ask it
Have them name the milestones in order: search ordered, commitment out, requirements cleared, lender's approval to close, final figures, signing, funding, recording. The second half of the question is the useful part. Whatever they are waiting on is the thing to nudge, whether it sits with the seller, the lender or the association.
What do you still need from me, and by what date?
Why ask it
Expect a request for ID, your marital status, how you want to hold title, and proof of homeowner's insurance if you are buying. Sellers are asked about their loan and any association. Anything unusual needs lead time: a trust, a company as owner, a signer using a power of attorney, a recent divorce or death in the chain of ownership.
When will I see the final figures, and who do I call if a number looks wrong?
Why ask it
A day or two alone with the settlement statement is the least to hold out for. Check it against the first quote line by line, along with the spelling of names, the property address and how taxes and association dues were split between buyer and seller. Questions about loan charges go to the lender and questions about title or escrow charges go to the closer.
Who has to be at the signing, and what should each of us bring?
Why ask it
Unexpired photo ID is the minimum, in a name that matches the documents, and some lenders want a second form. Depending on the state, a spouse who is not on the loan or the deed may still have to sign something. Find out before the day, since a missing signer is hard to fix in an afternoon.
Can I sign remotely, by mail or with a mobile notary, and is there a charge?
Why ask it
Online notarization only works when state law, the lender and the underwriter all allow it. Mail-away and traveling notary signings are more widely available but add days or a fee. Bring it up the day you learn you cannot attend, not the week of closing.
Will the person at the table explain each document, and what are they not able to tell me?
Why ask it
A closer can usually say what a document is and where to sign. In many places a closer who is not an attorney cannot give legal advice or say whether you should sign. If you want that kind of advice, the time to hire your own attorney is before the appointment, and it helps to ask for the document package a day ahead.
When does the sale fund and record, and when do I get the keys or my proceeds?
Why ask it
Signing, funding and recording can fall on one day or stretch over several, depending on local practice and the lender. The contract says when possession passes. Agree how you will be told each step is done, by call, text or email, so you are not waiting in a loaded truck.
Who pays off the existing mortgage, and who checks that the release gets recorded?
Why ask it
The closing agent normally sends the payoff out of the sale or refinance money, and the old lender later records a release of its lien. That release can lag, and an unrecorded one becomes a nuisance in the next sale, so find out whether the company tracks it. On a refinance, check when the money actually goes out, since some loans carry a waiting period after signing.
When will the recorded deed and the title policy reach me, and what should I keep?
Why ask it
Both commonly arrive weeks after closing, by post or email, and it is easy not to notice that one never came. Put a reminder in your calendar for the date they give you. Keep the policy, the deed and the settlement statement for as long as you own the home, since a claim or a sale may call for all three.
How to choose and work with a title company
Practical guidance for the conversation itself
Before you ask for a quote
Find the line in your contract
A purchase contract usually says who the closing or escrow agent is and which side pays for which policy. Read that paragraph first. It tells you whether you are shopping for a company or checking up on one that is already chosen.
Have the facts of the deal ready
Property address, price, loan amount, whether it is a purchase, sale or refinance, and the target closing date. Premiums are worked out from the price and the loan amount, so a quote without them is a guess.
Send two companies the same request
Ask each for a full fee sheet on identical facts. Where the premium is regulated the two may match to the dollar on that line, and the difference will sit in settlement, search and courier fees.
Know who can answer what
A title or escrow company acts for the transaction and normally cannot advise either side. It can tell you what is recorded and what it will insure. Whether to accept an exception, extend the contract or walk away is a question for your own attorney or agent.
Reading the title commitment
Schedule A: the basics
Check the spelling of every name, the legal description, the policy amounts and who is shown as the current owner. A wrong middle initial or an old loan amount takes one email to fix now and a corrective document to fix after closing.
Requirements: the to-do list
These are the things that must happen before the company will insure: payoffs, releases, signatures, sworn statements. Ask for the list weekly with a name beside each item, and watch for any that has not moved.
Exceptions: what stays uncovered
Read every exception that names a document, and get that document. 'Easement recorded in book 412, page 87' could be a buried cable at the back fence or a neighbor's right to drive across your yard, and only the page itself says which.
Hold your plans up against it
List what you intend to do with the property in the next five years and ask whether anything in the commitment touches it. A restriction on outbuildings matters a great deal to someone planning a workshop and not at all to someone who is not.
Mistakes that cost people their closing money
Acting on an email about money
Treat every emailed or texted payment instruction as unconfirmed until you have checked it by phone, however right the logo and the signature look. Fraudulent messages often quote the real address, the real closing date and the real closer's name.
Calling the number in the message
A fake email comes with a fake phone number, answered by someone helpful. Use the number you wrote down on the first call or one printed on paperwork you were handed in person.
Wiring on the morning of closing
A wire sent at the last minute leaves no room for a callback, a bank hold or a typing error. Sending a day early costs you next to nothing and removes most of the pressure that fraud depends on.
Waiting to say something
If money has gone somewhere it should not, embarrassment is expensive. Phone your bank first, then the title company, within minutes, and let them tell you it was nothing.
From final figures to recorded deed
Match the final figures to the first quote
Lay the settlement statement beside the fee sheet you were sent at the start. New lines and changed amounts each deserve a one-sentence explanation, and the closer should be able to give it without looking anything up.
Check names and ID before the day
The name on your ID should match the name on the documents, down to a hyphen or a middle name. If it does not, tell the closer early, since the fix may be an extra signed statement that takes a minute to prepare and cannot be skipped.
Ask what happens after you sign
Signing is not the end of the file. Find out when the money moves, when the deed is recorded, when the old loan is paid and how you will hear about each.
Put the policy where you will find it
The owner's policy may arrive long after you have unpacked. Store it with the deed and the settlement statement, and note the underwriter's claims address on the first page, because the people who closed your file may have moved on by the time you need it.