Artificial intelligence is transforming nearly every corner of the housing industry. Real estate professionals are using AI tools to streamline workflows, improve document processing and enhance compliance processes.
The title industry is no exception. Title companies across the country are investing heavily in automation, analytics and digital tools to make transactions more efficient. These technologies are helping the industry manage increasingly complex regulatory requirements, detect fraud patterns and process large volumes of property data.
But as conversations about AI in real estate accelerate, it’s important not to overlook a fundamental truth: technology can assist the title process, but it cannot replace the professional expertise that ensures property ownership is clear and protected.
A new study by the American Land Title Association provides a closer look at what actually happens behind the scenes before a real estate transaction closes. The research, conducted with ndp | analytics, surveyed title professionals across the country about the work required to produce a clean and insurable title.
The results illustrate just how complex that process can be.
More than 80% of purchase transactions require reviewing at least 11 documents tied to a property’s ownership history, and more than one in five require examining over 50 records. Those records can include deeds, mortgages, tax liens, probate filings, easements and court judgments — often spanning decades of property history.
Finding those documents is only the first step. Title professionals must analyze the records, identify potential defects and resolve issues before the property can be transferred.
In fact, the study found that nearly 60% of transactions require clearing three to five title issues before closing. These problems can range from unreleased mortgages and unpaid tax liens to errors in legal descriptions or gaps in the chain of title.
Resolving these issues—known as curative work — often requires coordinating with lenders, courts, local governments and prior property owners. It is detailed investigative and legal work that depends on professional judgment and experience.
Technology can help identify potential risks faster, but it cannot negotiate a lien payoff, resolve a probate issue or correct a decades-old recording error.
The study also highlights another growing responsibility for title professionals: fraud prevention. More than half of respondents reported spending at least 11 hours per month on anti-fraud measures, addressing risks such as wire fraud, identity theft and forged property documents.
These threats continue to evolve alongside new technology, making professional oversight even more important.
This is why the title industry’s model is fundamentally different from most other forms of insurance. Rather than waiting for losses to occur, title professionals work to identify and eliminate risks before a transaction closes. That preventative work is one reason title insurance claims occur less frequently than in many other insurance sectors.
When problems do emerge after closing, the financial consequences can be severe. Research conducted with Milliman found fraud and forgery claims average more than $143,000, while refinance fraud claims average more than $207,000. That reality helps explain why title companies devote substantial time and resources to resolving issues before closing, and why approximately 70 cents of every title insurance premium dollar goes to search, examination and curative work before closing.
Yet the rise of AI and blockchain technology has fueled speculation that the title process could someday be fully automated.
There is no doubt that these technologies will continue to improve the efficiency of real estate transactions. But even the most advanced technology cannot resolve the real-world legal and human issues that often complicate property ownership.
Public records remain fragmented across thousands of jurisdictions. Property histories can involve decades of filings, corrections and legal actions. When defects appear — and they often do — they must be resolved by people who understand the legal and practical complexities of land ownership.
Technology can accelerate the work. It cannot replace it.
As the housing industry continues to innovate, we should embrace the tools that make transactions faster and more secure. But we should also recognize the essential role title professionals play in protecting homeowners, lenders and the integrity of property rights.
Because when it comes to the largest purchase most families will ever make, accuracy, accountability and human expertise still matter.
Chris Morton is CEO of the American Land Title Association (ALTA).
This column does not necessarily reflect the opinion of HousingWire’s editorial department and its owners. To contact the editor responsible for this piece: [email protected].
