How Investors Should Choose a Title Company

Choosing a title company is one of the most important decisions in any real estate transaction. For investors, the stakes are even higher because the transaction structure, timeline, and title issues may be more complex than a standard retail purchase. Here are ten questions every investor should ask before selecting a title company.

Ask These Questions

1. Have you handled this type of transaction before? If you are doing a double closing, ask if they have closed double closings before. If you are using transactional funding, ask if they have experience coordinating with transactional funders.
2. Can you close in my timeline? Some title companies need weeks. If you need to close in five business days, confirm the company can deliver. Read about why speed matters in investor closings.
3. Who will communicate with me? Will you have a direct contact who understands your transaction, or will you talk to a different person each time?
4. What happens when a title problem is found? Does the company work to solve problems, or does it reject the file? See how title defects are cured.
5. Do you work with entity buyers? If you buy through an LLC, trust, or other entity, confirm the company has experience with entity transactions and knows what documents are needed.
6. What underwriting resources do you have? Some transactions need underwriting review. Does the company have access to underwriters who understand investor transactions?
7. Do you understand nontraditional financing? Hard money, private money, seller financing, and owner financing require specific documentation and underwriting. Does the company have experience with these?
8. Do you coordinate with my lender or funding source? Confirming coordination early prevents delays. See what investors should send to title when opening an order.
9. What are your fees? Understand the full fee structure, including any additional charges for curative work, rush processing, or document preparation.
10. Can you handle out-of-state transactions? If you invest in Texas or Arizona, confirm the company is licensed and experienced in that specific state's practices. Requirements may vary by jurisdiction.

One Particularly Important Question

Beyond the checklist above, there is one question that can reveal a lot about a title company: "What happens when something goes wrong?" The answer tells you whether the company works to solve problems or simply walks away from difficult files.

For more on what an experienced team can do when problems arise, read how experienced title teams save investor deals.

1st Option Title's Difference

1st Option Title was founded by Scott Horne, a title attorney and real estate investor who built the company to handle the transactions others avoid. The team understands investor structures, compressed timelines, difficult title issues, and creative financing. For additional educational information from Scott Horne on real estate investing, visit the Horne Real Estate Law YouTube channel.