What Does a Title Company Do?

During the homebuying process you will need to work with a title company. But what exactly is a title company, and what role do they play in your home purchase? Let’s go over this important aspect of real estate transactions.

What is a title company and what are the key jobs they do?

A title company is a third-party group that acts as the in-between between the buyer, seller, lender, and any other parties involved in a real estate transaction. Their primary role is to ensure that a property title is legitimate and that the transfer of ownership occurs smoothly and legally.

Title Search and Examination: The title company conducts a search of public records related to the property. This includes deed history, tax records, court records, property restrictions, and outstanding mortgages. The purpose is to verify that the seller has the legal right to sell the property and to uncover any issues that could affect the new owner’s rights.
Title Insurance: Based on their findings, the title company issues title insurance policies. Title insurance protects you, the new owner, from things like unknown heirs, forged documents, errors in public records, and undisclosed liens.
Escrow Services: Many title companies also act as escrow agents. They hold funds and documents, ensure all conditions of the sale are met, and facilitate the transfer of money and property ownership
Closing Services: Title companies also handle the closing process. This includes: preparing closing documents, calculating closing costs, ensuring all necessary documents are signed, and recording the deed and mortgage with local authorities

The importance of title companies

Title companies are important because they protect buyers from potential ownership disputes and provide an impartial intermediary for handling funds and documents. Their services provide peace of mind, protecting what is likely to be one of the largest investments you’ll make. Understanding their role can help you navigate the home buying process with confidence and also make informed decisions about your title services.

Supercharge Your Savings!

Supercharge Your Savings!

Supercharge Your Savings!

What Does a Title Company Do?

What is a title company and what are the key jobs they do?

The importance of title companies