A title company is a third-party company that provides title services for real estate transactions. They are responsible for researching the property’s title to ensure that the seller has the legal right to sell it and that there are no liens or other encumbrances on the property. Title companies also issue title insurance, which protects buyers and lenders from financial losses if title defects are discovered after the closing.
Here are some of the specific services that title companies provide:
- Title search: The title company will research the property’s title history to identify any potential liens, easements, or other encumbrances.
- Title insurance: Title insurance protects buyers and lenders from financial losses if title defects are discovered after the closing.
- Closing services: The title company will coordinate the closing process and oversee the transfer of ownership from the seller to the buyer.
- Escrow services: The title company will hold the buyer’s and seller’s funds in escrow until the closing is complete.
- Disbursement of funds: The title company will distribute the closing funds to the appropriate parties, such as the seller, the buyer’s lender, and the real estate agents.
Title companies play an important role in the real estate transaction process by protecting both buyers and sellers. By conducting a thorough title search and issuing title insurance, title companies help to ensure that the transfer of ownership goes smoothly and that all parties involved are protected.
In addition to the services listed above, title companies may also offer other services, such as:
- Property surveys
- Lien resolution
- Title clearing
- Title monitoring
If you are buying or selling a home, it is important to work with a reputable title company to protect your interests.