When a natural disaster strikes—whether it’s a wildfire, flood, hurricane, or mudslide—the immediate priority is safety and community recovery. But for real estate professionals, the long-term impact on property transactions can last for months or even years. Buyers and sellers in these situations need reassurance, clarity, and professionals who can guide them through each step.
That’s where title and escrow companies come in. We’re here to ensure that even in the aftermath of disruption, real estate transactions can still move forward securely, legally, and with confidence.
This guide will help you, as a real estate broker, understand how title and escrow services support transactions after a disaster—and what you should be aware of when representing affected properties.
1. Title Insurance: Clarifying Ownership When the Dust Settles
Disasters can complicate property ownership. Records may be destroyed or delayed, and new liens or claims may appear from emergency repairs, unpaid taxes, or disaster relief funds.
After Hurricane Katrina, thousands of New Orleans properties had unclear or incomplete title histories. Title companies had to reconstruct ownership from alternate records, affidavits, and archived data.
Closer to home, following the 1980 eruption of Mt. St. Helens, homeowners faced similar confusion. With land buried in ash and homes destroyed, title professionals worked diligently to rebuild property histories and clear up ownership questions.
Your title company will conduct a deep search to ensure no unexpected claims, breaks in ownership, or disaster-related liens are attached to the property. This takes time—but it’s essential for a safe closing.
2. Escrow Services: Protecting Funds and Managing Risk
Escrow teams play a key role in post-disaster transactions. When a home is under contract during or after a disaster, lenders may pause the process. Escrow companies often hold insurance proceeds or delay disbursements until inspections confirm the property is safe, insurable, and marketable.
In Texas, following major floods, transactions were paused to verify that homes hadn’t been added to new flood zones and still met lending criteria.
In Washington, the 2014 mudslide in Oso (Snohomish County) created similar challenges. Escrow officers coordinated closely with FEMA, insurers, and lenders to determine whether impacted properties could safely proceed.
Escrow ensures that funds aren’t released until all requirements are met, including final inspections and insurance approvals. This protects all parties from unexpected financial loss.
3. Seller Disclosures: Telling the Full Story
Disaster-affected properties often require enhanced disclosures. Even if the home has been repaired, sellers must note known damage, receipt of disaster relief funds, and any updated zoning or hazard designations.
In California, sellers in wildfire-prone areas are required to disclose whether a property lies in a Very High Fire Hazard Severity Zone and what mitigation measures have been taken.
In Washington, wildfires near Chelan and Twisp have prompted similar requirements. Agents must work with sellers to ensure complete and honest disclosures about prior fire damage, repairs, or insurance claims.
Why this matters: Full disclosure builds trust and ensures compliance with state and federal law. Your escrow and title partners can help ensure that disclosure documentation is complete and aligned with local regulations.
4. Insurance: Reconfirming Coverage and Risk
If damage occurs during escrow, insurance becomes a key part of the transaction. Lenders typically require updated coverage or reinspection before they’ll approve funding. In some cases, the transaction may need to be renegotiated or paused until the situation is resolved.
In Kansas, tornadoes often trigger lender-mandated reinspections or shifts in borrower responsibility when a home under contract sustains damage while high windstorms in areas here in Washington have disrupted pending closings when roofs or other structures were damaged, forcing temporary delays while insurance was updated and homes re-evaluated.
Escrow teams help facilitate these conversations, work with insurers to confirm timelines, and adjust closing schedules so buyers and sellers aren’t left wondering what happens next.
5. Public Record Access: Understanding Delays and Workarounds
Natural disasters can affect county infrastructure. If the local recorder’s office is damaged, inaccessible, or overwhelmed, delays in verifying ownership, easements, or tax information can occur.
After Hurricane Katrina, many parishes in Louisiana faced long-term disruptions to document access. The same thing happened here in Washington where flooding in Lewis County closed local government offices, delaying public access to vital property records.
Your title company may request patience as they track down the documents needed to close. Most title professionals are trained to work with limited access and can provide updates along the way to keep everyone informed.
6. What You Can Do: Stay Calm, Stay Connected, Stay Informed
Representing a property that’s been affected by a natural disaster isn’t easy—but it’s not unmanageable. The key is partnership.
As a broker, you can:
- Allow for extra time in your transaction timeline
- Communicate early and often with lenders, title, escrow, and insurance providers
- Make sure your clients are fully informed and supported
And you can count on us—your local title and escrow team—to:
- Conduct in-depth title searches to catch and correct problems early
- Hold funds safely until conditions are met
- Coordinate with all parties to ensure a smooth and ethical closing
- Guide you and your clients through disaster-related disclosures and requirements
In challenging times, we’re here to help.
If you’re working with a property impacted by a natural disaster, don’t hesitate to reach out. At Land Title, we’ve helped real estate agents navigate everything from fires and floods to earthquakes and eruptions—and we’ll do it with care, professionalism, and your client’s peace of mind in focus.
Footnotes / Citations
Hurricane Katrina & Title Issues: U.S. Department of Housing and Urban Development (HUD). “Hurricane Katrina Disaster Assistance. “https://www.hud.gov/press/press_releases_media_advisories/2005/HUDNo.05-138
Texas Flooding & Escrow Delays (Hurricane Harvey): The Texas Tribune. “Hurricane Harvey Recovery: What You Need to Know. “https://www.texastribune.org/series/hurricane-harvey-recovery/
California Wildfires & Disclosure Requirements: California Association of Realtors (C.A.R.). “Fire Disclosure Resources.” https://www.car.org/en/riskmanagement/firehardening
Cal Fire. “Fire Hazard Severity Zones.”: https://osfm.fire.ca.gov/divisions/community-wildfire-preparedness-and-mitigation/wildfire-preparedness/fire-hazard-severity-zones/
Kansas Tornadoes & Escrow Re-Inspections: Realtor Magazine. “After the Storm: Helping Clients Rebuild.”: https://www.nar.realtor/magazine/real-estate-news/after-the-storm-helping-clients-rebuild
Mount St. Helens & Property Record Disruption: U.S. Geological Survey (USGS). “Mount St. Helens Eruption 1980.” : https://www.usgs.gov/volcanoes/mount-st-helens/1980-cataclysmic-eruption
Oso Mudslide (Snohomish County) & FEMA Coordination: FEMA Disaster Information on the 2014 Oso Mudslide: https://www.fema.gov/disaster/4168
The Seattle Times coverage: https://www.seattletimes.com/tag/oso-mudslide/
Chelan/Twisp Wildfires & Disclosure Concerns: Washington State Department of Natural Resources (DNR). “Wildfire Response.”: https://www.dnr.wa.gov/wildfires
Pierce County Windstorm Damage: KOMO News. “Thousands lose power as windstorm topples trees, power lines.”: https://komonews.com/news/local/windstorm-topples-trees-power-lines-puget-sound-energy-outage
Lewis County Flooding & Record Delays: FEMA Disaster Declaration for Washington Flooding (2007):https://www.fema.gov/disaster/1734
The Olympian. “Flood aftermath delays county services.”: https://www.theolympian.com (search site for archived flood articles)
General Title & Escrow Practices After Disaster: American Land Title Association (ALTA). “Title Insurance and Natural Disasters.” : https://www.alta.org (search “disaster response”)
Washington Land Title Association (WLTA). “Resources for Industry Professionals.”: https://www.wltaonline.org