What Does a Title Company Do?

When you're buying or selling a home, one of the most important steps in the process is the transfer of ownership. This process involves the use of a title company, which helps ensure that the transfer is legal and valid. Here's what you need to know about what a title company does.

A title company is responsible for verifying the ownership of the property being bought or sold. This involves conducting a title search to ensure that there are no liens, judgments, or other claims against the property that could impact the sale.

During the title search, the title company will review public records, such as deeds, mortgages, and tax records, to verify that the seller has the legal right to sell the property. They will also check for any outstanding debts or unpaid taxes that could impact the transfer of ownership.

Once the title search is complete and any issues have been resolved, the title company will issue a title insurance policy. This policy protects both the buyer and the lender in the event that there are any title issues that arise after the sale.

In addition to conducting the title search and issuing the insurance policy, the title company will also handle the closing of the sale. This involves preparing and recording all necessary legal documents, such as the deed and mortgage documents, and disbursing funds to the appropriate parties.

Overall, a title company plays a critical role in the home buying and selling process. By ensuring that the transfer of ownership is legal and valid, they help protect both the buyer and the lender. If you're buying or selling a home, it's important to work with a reputable title company to ensure a smooth and successful transaction.