What Does a Title Company Do?

Dated: August 9 2021

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    Buying a home can be a confusing and challenging time whether you are a first-time homebuyer or more seasoned. Understanding the process as well as the key players involved will provide you with a solid knowledge base to make your home buying process much smoother.  A key player in any real estate transaction is the Title Company. So who exactly are they and what do they do? Let's get some key terms squared away before we dive into exactly what they do. 

What exactly is a house title?

   A house title legally declares who has ownership of the property and the right to sell it. The Title will tell you if any relative, creditor, or contractor has any right to the house. 

What about a deed? Is that the same thing?

   A house title and deed are NOT the same. The title is not an actual document, but the legal ownership of the property and your right to use it. The deed is the physical, legal document naming you as the owner.  In short, you cannot get the deed without the title. 

Now that's settled, what does the Title Company Do?

1. Perform a title search and work to clear any problems with the title should they arise. 

2. Hold money in escrow. This is the earnest money deposit from the buyers that proves they are serious in the purchasing of the home. Should the sale fall through, the title company ensures it is given to the proper party. 

3.Overseees the closing process by drawing up documents, scheduling the closing, as well as orchestrates the transfer of money between parties. 

4. Provide Title Insurance which protects the new owner from any defects or third-party claims that may arise after closing. 

How do I choose a Title Company?

   Your lender and real estate agent will provide you with a list of quality and well vetted title companies to use. Choosing the right title company ensures a smoother real estate transaction process for everyone involved.    

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