The ALTA Best Practices Framework establishes national standards for title insurance and settlement companies. These guidelines are designed to protect consumers and lenders, promote quality service, and ensure compliance with applicable state and federal laws throughout the real estate settlement process. The current version is ALTA Best Practices 4.2, effective August 19, 2025.

PILLAR 1 — Licensing

Establish and maintain current license(s) as required to conduct the business of title insurance and settlement services. This includes all state-mandated title insurance licenses, applicable individual licenses, and corporate registrations required to remain in good standing with local, state, and federal authorities.

PILLAR 2 — Escrow Trust Accounting

Adopt and maintain appropriate written procedures and controls for Escrow Trust Accounts allowing for electronic verification of reconciliation. Client funds must not be commingled with operating accounts. Three-way reconciliation is required at least monthly, with daily reviews and management oversight. All employees handling funds must pass background checks.

PILLAR 3 — Privacy & Information Security

Adopt and maintain a written Information Security Plan (WISP) and a written privacy plan to protect Non-Public Personal Information (NPI) as required by local, state, and federal law, including the Gramm-Leach-Bliley Act. Security protocols must align with NIST guidelines and be updated upon evidence of compromise or a triggering event.

PILLAR 4 — Settlement Policies & Procedures

Adopt standard real estate settlement policies and procedures that help ensure compliance with federal and state consumer financial protection laws and regulations, including RESPA and TRID, as applicable to the settlement process. When performing closing transactions outside of the title insurance relationship, companies must perform due diligence and analyze the risk profile of the transaction.

PILLAR 5 — Title Policy Production & Remittance

Adopt and maintain written procedures related to title policy production, delivery, reporting, and premium remittance designed to meet legal and contractual obligations. Title insurance policies must be issued and delivered within 30 days of settlement, reported to the underwriter within 45 days, and premiums remitted as required by law.

PILLAR 6 — Professional Liability Insurance

Maintain appropriate professional liability insurance and fidelity coverage to ensure the financial capacity to stand behind the professional services rendered. This includes Errors & Omissions (E&O) insurance, fidelity bonds, and cybersecurity liability coverage as recommended by ALTA guidelines.

PILLAR 7 — Consumer Complaint Resolution

Adopt and maintain written procedures for resolving consumer complaints so that any instances of poor service or non-compliance are identified and addressed promptly. A formal process for receiving, reviewing, and resolving complaints helps ensure a positive and compliant real estate settlement experience for all parties.

The American Land Title Association (ALTA) developed the Title Insurance and Settlement Company Best Practices Framework to provide a benchmark for the real estate settlement and mortgage lending industries. These standards serve as voluntary guidelines that title companies use to highlight the policies and procedures they have in place to protect lenders and consumers.

The framework is recognized by the Consumer Financial Protection Bureau (CFPB) and was established in alignment with the Dodd-Frank Act and the Gramm-Leach-Bliley Act. Lenders and real estate professionals commonly rely on a title company’s adherence to these Best Practices as a measure of operational integrity and compliance readiness.

Source: American Land Title Association (ALTA) — Title Insurance and Settlement Company Best Practices, Framework 4.2 (August 2025). For official documentation, visit alta.org.