In a real estate transaction, the title company oversees the details involved in buying and selling real estate and is responsible for the closing process from start to finish. The top duties and roles of a title company in a typical real estate transaction:
The principal roles and duties of a title company in a typical real estate transaction:
1. Reviews Title
Ensures the chain of ownership is correct and complete, and that it has no encumbrances that could delay its sales such as liens, judgments, or lawsuits.
2. Issues Insurance Policies
With title insurance, buyers and lenders are protected against any deficit in the title that might cause serious losses.
3. Facilitates the Closing
Acting as an agent for each party to the transaction, the title company prepares the title documents needed to close, researches the current payoff figures, and creates a Closing Disclosure and/or ALTA Settlement Statement.
4. Acts as Escrow Officer
The title agency holds any money or documents as part of the transaction and they are only released according to the written instructions of the buyer and seller.
5. Files and Records Paperwork
Following the closing, the title company will record the deed and mortgage as well as any additional documents that need to be recorded in the county land records office.
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