The Complex Work of Clearing Title
TITLE PROFESSIONALS ACROSS THE COUNTRY help prevent hundreds of billions of dollars in potential financial risk from entering the housing market each year.
New research from ALTA shows the work performed by the title insurance industry, which includes searching property records, identifying defects and resolving issues before closing, helps mitigate between $600 billion and $900 billion in potential risk exposure annually for homebuyers, lenders and other real estate market participants.
The findings come from a new report produced with ndp | analytics, “Measuring the Complexity of Title Production: A Study of Operational Demands, Risks and Curative Challenges.” Based on responses from nearly 450 industry professionals across 47 states, the study offers one of the most detailed looks yet at the operational demands involved in clearing title.
The report builds on ALTA’s 2024 research, “More than Pushing a Button: Estimating the Time and Complexity of Clearing Title,” reinforcing a key theme: Producing a clean and insurable title requires extensive research, judgment and coordination long before a real estate transaction reaches the closing table.
“This report showcases why the expertise of title industry professionals is essential to a safe and efficient real estate market,” said ALTA CEO Chris Morton. “Successfully clearing a title requires a comprehensive process carried out by experienced professionals to ensure homebuyers and lenders are fully protected. This survey highlights several of the important measures these professionals routinely undertake. Such processes depend on expert judgment and accountability—qualities that go beyond the important use of technology and automation and demonstrate a strong commitment to safeguarding consumers.”
A Small-business Industry Protecting the Housing Market
The survey also highlights the structure of the title industry itself. Most respondents operate small businesses serving local markets. Nearly three-quarters of respondents conduct business in a single state, while about 26% operate in multiple states. The industry’s small business structure is also reflected in revenue levels: 68% of respondents reported annual revenue under $1 million, while 20% reported between $1 million and $5 million.
Staffing patterns mirror those figures. Seventy-three percent of companies employ 10 or fewer people, while fewer than one in 10 employ more than 50 workers.
Despite their relatively small size, these companies collectively perform the complex work required to support millions of real estate transactions each year.
Fraud Prevention Increasingly Central to the Job
The report highlights the growing role title professionals play in preventing fraud. Real estate transactions have increasingly become targets for sophisticated schemes involving wire fraud, seller impersonation, identity theft and forged deeds.
More than 52% of survey respondents reported spending at least 11 hours each month on fraud prevention. Among them, 37% spend between 11 and 50 hours on anti-fraud efforts, while nearly 15% spend more than 50 hours per month addressing fraud risks.
These efforts are critical because many fraud schemes cannot be detected through traditional public record searches alone. Identity verification, transaction monitoring and communication safeguards have become essential parts of the title production process.
Fraud and forgery risks also represent the largest segment of title insurance claims, highlighting the financial stakes involved.
“Behind every real estate closing is critical work that consumers rarely see,” said ALTA President David Townsend Esq., NTP. “Title professionals invest their efforts in resolving defects and preventing fraud to make sure buyers receive clear ownership of what is often their largest investment.”
Title Searches Require Extensive Research
Before a buyer or lender can rely on a property’s title, professionals must conduct a comprehensive search and examination of the property’s ownership history— often spanning decades. This work involves gathering records from multiple public and private sources, including deeds, mortgages, liens, probate filings, HOA assessments and easements. Nearly all respondents rely on records from both local recorders’ offices and taxing authorities, while also conducting court record searches and other investigations to uncover potential risks.
Although many records are available digitally, the system remains far from fully modernized. Twenty-seven percent of respondents reported they must still retrieve certain records in person, adding time and cost to the title production process. The number of documents reviewed per transaction highlights the depth of analysis required.