If the term “title agent defalcation” is being thrown around, and you don’t really know what is going on, rest assured that it is nothing good. While defalcation can mean a few different things, typically it has to do with a situation where money has been used incorrectly. This unfortunately happens in the title industry sometimes. Once money has been put into an escrow account, a title agent occasionally misuses it and may even intentionally do so in order to benefit personally.
A title agent actually has quite a complex job. They often look through paperwork, such as mortgages, maps and plat books, and ensure that certain details are correct. This may mean that they need to carefully examine particular restrictions or even ownership information.