Study: Most real estate deals require multiple curative steps before title insurance

The American Land Title Association (ALTA) released a new study measuring the complexity of title production, underscoring how much research and curative work title professionals complete before a real estate transaction can close.

The report, titled Measuring the Complexity of Title Production: A Study of Operational Demands, Risks, and Curative Challenges, surveyed 449 title professionals across 47 states, according to the association’s announcement. The research focuses on the work required to identify risks, review property records and resolve issues before issuing title insurance.

“Technology and artificial intelligence are helping the title industry become more efficient, and our members are embracing those innovations,” ALTA CEO Chris Morton said in the announcement. “But the work required to identify and resolve issues in a property’s ownership history still depends on professional expertise. Title experts play a critical role in protecting consumers by resolving problems before closing and ensuring buyers receive clear and insurable title.”

What the study found

• More than 80% of purchase transactions require reviewing at least 11 documents, while 21% involve reviewing more than 50 records tied to a property’s ownership history.
• Nearly 60% of transactions require clearing three to five title issues before closing.
• More than half of title professionals spend at least 11 hours each month on fraud prevention, including wire fraud, identity theft and forged property documents.
• Mortgage payoffs occur in more than 90% of transactions.
• HOA dues and transfer fees appear in nearly 57% of transactions and must be resolved before closing.
• In the curative process, 59% of title professionals identified securing releases for prior mortgages as the most significant challenge.

Title production typically begins with a comprehensive search and examination of a property’s history, often spanning decades of public and private records. Title professionals review deeds, mortgages, liens, easements and probate filings to flag issues that could affect ownership rights.

Once problems are identified, curative work can include resolving unpaid liens, correcting legal descriptions, addressing gaps in the chain of title and coordinating with lenders and government offices to obtain releases for prior mortgages.

Why this matters for housing professionals

The findings come as lenders, real estate agents and title companies face elevated fraud risk and pressure to shorten closing timelines. While automation and AI tools are increasingly used to search and organize records, the study emphasizes that much of the value in title insurance still lies in human judgment and problem-solving during curative work.

For originators and real estate agents, the data helps explain why title timelines can vary and why early file delivery and clear payoff information matter for closing efficiency. For title and settlement companies, the study offers benchmark data on typical document loads, issue counts and time devoted to fraud prevention.

Despite heavier operational demands and growing fraud risks, ALTA said investments in technology and process modernization have improved title production efficiency. Citing industry analysis of NAIC Form 9 annual statements, the association noted that the cost of title insurance coverage has decreased by about 5% in recent years, even as the cost of many other insurance products has climbed.

Title insurance protects buyers and lenders from losses tied to title defects such as liens, ownership disputes, recording errors or undisclosed heirs. Unlike other forms of insurance that respond after a loss, title work is designed to identify and clear issues before closing.

“The title process is far more than a document check,” Morton said. “It’s a detailed review of a property’s history and a problem-solving process that helps ensure buyers can take ownership with confidence.”

The full study is available at alta.org.

This article was generated using HousingWire Automation and reviewed by a HousingWire editor before publication. The system helps convert company announcements and industry data into HousingWire-style news coverage.