Behind the Closing Table: What Clear Title Really Means and Why It Matters More Than You Think

Jerad Larkin
5 days ago
5 min read

What actually happens behind the scenes before you get to the closing table and why clear title is such a big deal?

Clear title means all liens, judgments, and ownership issues have been fully reviewed and resolved so a property can legally transfer ownership. It is one of the most critical and misunderstood parts of a real estate transaction.

I recently sat down for a podcast interview at the closing table inside our Cherry Creek office, and the conversation went way beyond title insurance. We talked about what clear title really means, why the title company you choose matters, how I ended up in title insurance, and why community and education have become the foundation of how I do business.

I wanted to turn that conversation into a deeper breakdown for agents, buyers, sellers, and anyone curious about what really happens before keys change hands.

What Does “Clear Title” Actually Mean?

Clear title means the property is free and clear of issues that could prevent a legal transfer of ownership.

Behind the scenes, the title company is reviewing things like:

Outstanding liens
Mortgages and deeds of trust
Judgments
Ownership history
Easements or restrictions
Any red flags tied to the property’s past

Once everything is reviewed, resolved, and approved, a title commitment is issued. When all requirements on that commitment are cleared, the transaction can move forward to closing.

This is the part most buyers and sellers never see, but it is the reason the closing table even exists.

Why Title Insurance Is Different Than Other Insurance

Most insurance policies protect you against future events. Title insurance is different. Title insurance protects you against the past. It is a one time premium that covers you for as long as you own the property. If something shows up later that was missed in the title search, such as a forged document or an undisclosed lien, the title company is responsible for defending the title and covering potential losses.

That is a massive responsibility, and it is why the strength and experience of the title company matters.

Does It Matter Which Title Company You Use?

Yes. It absolutely matters.

Here is something most people do not realize. In Colorado, it does not take much money to start a title insurance company. But the average home price in the Denver metro area is well into the hundreds of thousands of dollars.

If a title company insures a property and something goes wrong, they are financially liable.

Over the years, I have seen title companies come and go. Some enter the industry, incur a major claim, and simply disappear. That is why reputation, resources, and experience matter so much in this space. As much as I support small businesses in general, title insurance is one area where scale and stability matter.

Who Typically Chooses the Title Company?

In Colorado, it is common for the seller to pay for the owner’s title policy, but everything in real estate is negotiable. In other states, buyers often pay. In some markets, lenders heavily influence the decision.

Because title insurance is not well understood, most buyers and sellers lean on their real estate agent and ask a simple question:

Who do you recommend? That is why it is so important for agents to understand the differences between title companies and to work with partners they trust.

My Role at Chicago Title and Why Community Matters

I am not a closer. I am not sitting behind the desk preparing documents.

My role at Chicago Title is business development. My job is to earn the trust of real estate professionals so that when they are asked for a recommendation, they feel confident putting our name forward.

Early on, I realized something was missing in the real estate industry.

A lot of agents feel isolated.

Real estate can be a lonely business, especially if you are not part of a strong team. That realization pushed me to start building community through:

Educational classes
Marketing workshops
Content creation days
Happy hours and networking events

Sometimes it is a CE class. Sometimes it is just bringing people together. Either way, connection matters.

How I Stumbled Into Title Insurance

Nobody grows up saying they want to work in title insurance.

In my case, I fell into it. After traveling through Europe and Asia for a year, I came home broke, living in a basement, and needing a real job. A family friend mentioned title insurance, I Googled it halfway, sent out a few emails, and Chicago Title happened to be hiring at the right time.

I was honest from day one. I told my manager I would learn title insurance, but my real value would come from helping agents with marketing, video, social media, and business growth. That approach shaped everything that followed.

Real Estate Agents, Activity, and Building a Business

There is no secret formula for success in real estate.

It comes down to activity.

More conversations create more opportunities. Some of the most impactful relationships in my career came from things that felt random at the time:

A small class with one person attending
A networking event that felt awkward
An event where nobody showed up

Even when turnout is low, you are still staying in front of your database and signaling that you are active, engaged, and adding value.

That matters.

Many of the most successful agents I work with host at least one event per quarter for their database. Face to face connection moves relationships faster than any postcard or ad ever will.

A Simple Tip for Buyers, Sellers, and Agents

One practical takeaway I always share is this:

Order an Owner and Encumbrance report early.

This quick report shows:

Who owns the property
Existing mortgages
Liens or judgments
Potential issues before listing or going under contract

For sellers and listing agents, this can prevent major surprises later in the transaction. For buyers, it adds another layer of confidence.

If you want help pulling one, that is something my team and I can assist with.

Why I’m Optimistic About Real Estate and the Future

I am bullish on real estate and I am equally bullish on technology and AI.

Real estate has historically been one of the strongest wealth building tools available. Combine that with modern tools, automation, and AI, and there is massive opportunity for those willing to learn and adapt.

The agents who lean into education, activity, and innovation are the ones who will thrive long term.

What does clear title really mean in real estate? Learn what happens behind the scenes at the closing table, why title insurance matters, and how the right title company protects buyers and sellers.

Final Takeaway

Clear title is not just a box to check at closing. It is the foundation that protects property ownership and makes real estate transactions possible.

The people you choose to work with, from your agent to your title company, matter more than most realize. My goal is simple. Help educate, connect, and support real estate professionals so they can grow stronger businesses and better serve their clients.