Key facts
- The title search and exam process in real estate closings has not automated to the same extent as other transaction steps.
- Underwriters' trust in human review is a key reason for the manual nature of title search and exam.
- The mechanical tasks of locating documents and assembling a chain of title are distinct from the judgment required in examination.
- Automating mechanical tasks allows examiners to focus on decisions requiring human judgment.
- Industry-wide closing timelines have improved, but title search and exam remains a frequent cause of delays.
- Optimized processes provide examiners with organized files, allowing them to concentrate on curable defects.
While most aspects of real estate closings have become digital over the past decade, the crucial process of title search and exam has largely remained manual. This involves examiners reviewing property records to ensure clear title transfer, a step that has resisted automation despite advancements in areas like remote notarization and automated underwriting.
Industry professionals often cite trust as the primary barrier to automating title search and exam. Underwriters, who must stand behind title commitment letters, perceive a higher risk in automated processes compared to human review of every document. This stems from the significant financial and legal consequences of missed liens or unresolved judgments.