What does a title company do?
March 10, 2021
A title company plays a very important role in a real estate transaction. Learn about what we do and the roles we play.
A title company reviews and evaluates the legitimacy of title to a piece of real property and then issues title insurance for that property. Title insurance protects real estate owners and lenders against any property loss or damage they may experience due to liens, encumbrances or defects in the title to a piece of property.
Title companies also serve as escrow agents. They maintain escrow accounts which are the funds that are needed to close on the property. The title company holds the funds and ensures that the money is used only for settlement and closing costs.
Finally, a title company may conduct the formal closing on the property. A closing or settlement agent from the title company will bring all the necessary documentation, explain it to the parties, collect closing costs and disburse the settlement monies accordingly. The title company will also record new deeds and other documents with the appropriate entities.