What Is Title and Escrow?

Your agent just recommended a title company. Here's why that might be the worst time to make this decision.

You're about to wire six figures to a company you've never heard of. Most buyers let their agent pick this company in the chaos after an accepted offer. That's like choosing your surgeon in the emergency room.

Here's what title and escrow companies actually do, and why smart buyers choose their own.

What Title and Escrow Companies Do

Think of them as the neutral quarterback of your home purchase. Their job is to coordinate between all parties and ensure that the legal and financial pieces are handled properly.

Their three core jobs:

• Research the property's history - They confirm legal ownership and check for liens, unpaid taxes, or legal claims
• Hold your money safely - They act as a neutral third party, holding your down payment and managing funds on closing day
• Handle the legal transfer - They prepare and file documents, coordinate the closing meeting, and transfer ownership to you

Why it matters:

• Without title research, you could inherit unpaid debts or ownership disputes
• Without secure escrow, your money could be at risk during wire transfers
• Without professional coordination, closings get delayed and paperwork errors pile up

When You'll Deal With Title and Escrow

Week 1: Your agent usually recommends a title company right after your offer is accepted

Weeks 2–3: The company investigates the property and coordinates with your lender

Week 4: You receive final numbers, wire your down payment, and attend your closing

Most buyers make this choice when emotions are high and time is tight. That is not the best moment to pick a company handling your largest financial transaction.

Don't Wait Until You're Under Contract

Start researching now, while you can think clearly.

[Compare Maryland Title Companies →]

Why Your Choice of Title Company Matters

Security and Protection

Wire fraud risk: Real estate is a top target for cybercrime. Some title companies carry strong wire fraud insurance and use secure communication platforms. Others rely on unsecured email and offer minimal protection.

Title insurance coverage: Protection levels vary significantly between companies. Not all policies protect against the same issues or offer the same claim support.

Wire Fraud Alert: According to CertifID, U.S. real estate transactions faced more than $1.4 billion in attempted wire fraud in 2022. Your title company choice directly impacts your protection.

Service and Communication

Timeline management: Reliable companies keep your closing on track. Disorganized ones can delay it, costing you money on rate locks and moving expenses.

Communication style: Some teams provide frequent updates and answer questions quickly. Others only reach out when problems arise.

Experience and Expertise

Local knowledge: Companies familiar with your area often catch issues early and resolve them faster.

Transaction volume: Companies that handle many closings typically have better systems and fewer errors.

Your Closing Day Checklist

The Money Part

• 3–4 days before closing: You'll get a Closing Disclosure with your final amount due
• Contact your bank early: Large wire transfers often have daily limits or require appointments
• Always call directly: Verify wire instructions with your title company by phone, never email

The Timeline

• Two weeks out: Confirm your title company's security protocols and closing process
• One week out: Review all documents and clear up questions about fees
• Closing day: Bring government ID, review all paperwork carefully, and get copies of everything you sign

The Smart Buyer's Timeline

Start researching title companies while you're house hunting. That way, you'll be clear-headed and prepared when it matters most.

What to do now:

• Get fee quotes based on homes you're considering
• Compare closing timelines, communication styles, and security protocols
• Add this to your prep list alongside mortgage pre-approval and neighborhood research

Avoid the Most Common Pitfalls

Red flags that cost buyers money and peace of mind:

• Choosing a company without wire fraud insurance
• Accepting poor communication or last-minute surprises
• Going with the cheapest provider without evaluating service and protection
• Waiting until you're under contract to start researching

Take Control of the Process

You have the legal right to choose your title company in Maryland. Don't default to whatever name gets handed to you without understanding the differences.

Start by researching companies with strong security practices, consistent communication, and local experience. The cheapest option is rarely the best value when you're making the largest purchase of your life.

Want to ask the right questions? 👉 [Download our Title Company Interview Checklist] to avoid surprises and compare companies properly.

Ready to Take Control?

Your home purchase is too important to leave vendor selection to chance. Make the decision that protects your money and your peace of mind.

[Find Maryland Title Companies with Strong Security →]

[Download Our Title Company Interview Checklist →]

Maryland law protects your right to choose your own title company. For more information, visit the Maryland Real Estate Commission.

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