A title company is a third-party company that is typically involved in a real estate transaction. Its primary role is to ensure that the transfer of property ownership is properly executed and legally valid. Specifically, the title company is responsible for conducting a title search to ensure that there are no liens, encumbrances, or other issues that could affect the transfer of ownership.
The title company also provides title insurance, which protects the buyer and lender from any potential title defects that may arise after the sale. This insurance is typically required by lenders as a condition of the loan.
During the closing process, the title company prepares the necessary documents and facilitates the transfer of funds between the buyer, seller, and any other parties involved in the transaction. The title company is also responsible for recording the transfer of ownership with the appropriate government agency.
Overall, the title company plays a crucial role in ensuring that a real estate transaction is executed smoothly and legally. Their expertise and services help to protect all parties involved in the transaction and provide peace of mind throughout the process.