When it comes to buying or selling real estate, the role of a title company is essential to ensure a smooth and successful transaction. But what exactly does a title company do, and why is it so important?

A title company is a business that specializes in researching and verifying the ownership of a piece of real estate. This includes conducting a title search to uncover any liens, encumbrances, or other issues that could affect the ownership of the property. The title company also works to resolve any issues that are found and ensures that the title is "clear" before the property is transferred to the new owner.

One of the main roles of a title company is to act as a neutral third party in the real estate transaction. This helps to protect both the buyer and the seller, as the title company is not affiliated with either party and is solely focused on ensuring that the title to the property is transferred properly.

In addition to conducting a title search and helping to resolve any issues, a title company may also handle the closing process for a real estate transaction. This includes preparing and reviewing all necessary documents, disbursing funds, and recording the deed with the appropriate government agency.

It's important to note that a title company is not the same as a title insurance company. While a title company conducts the title search and helps to resolve any issues with the title, a title insurance company provides insurance to protect the buyer and lender against any potential loss or damage resulting from issues with the title.

In summary, the role of a title company in real estate is to ensure that the ownership of a property is properly transferred from the seller to the buyer by conducting a thorough title search, resolving any issues with the title, and handling the closing process. This helps to protect both parties and ensure a smooth and successful real estate transaction.