When buying or selling a property, you may have heard of a title company. But what exactly is their role in a real estate transaction, and how do they ensure a smooth and legal sale?

Buying or selling a property can be a complex and daunting process, but a title company can help simplify things. In a real estate transaction, a title is a legal document that shows who owns the property. It includes information such as the property's legal description, any liens or claims against the property, and the names of the current and previous owners. A title company’s role in a real estate transaction is to ensure that the property has a clear title and that the sale can proceed smoothly and legally.

Having a clear title is important because it ensures that the person selling the property has the right to do so, and that there are no other claims or disputes over the ownership of the property. Before buying or selling a property, a title search is typically conducted to ensure that the title is clear and that there are no outstanding issues that could cause problems in the future. The process is started after you go under contract, and you’ll close on the home after the search is complete and everything is cleared.

A title search examines public records to identify any outstanding liens, mortgages, or other claims against the property. The title company will then work to resolve any issues that may arise during the search and provide title insurance. Title insurance protects against any unexpected claims or defects in the title that may arise after the sale is completed. In addition, the title company will also coordinate the transfer of funds and documents between the buyer, seller, and lender, and may offer other services such as escrow and closing services.

Overall, a title company plays a crucial role in a real estate transaction by ensuring that the sale is legally sound and that all parties involved are protected. Working with a reputable title company can help alleviate the stress and uncertainty that can come with buying or selling a property, and can provide peace of mind that the transaction is in good hands.