Information for Buyers and Sellers

What does a title company actually do?

deed title documentsThe name “title company” implies the assurance of title but the title company does much more than that. Title companies handle the closing of a transaction by coordinating all parties including the lender, the buyer and the seller and assembles all necessary documents and ensures they are prepared based on the contract of the parties and the settlement statement. It is then the title company’s job to see that all documents necessary to convey title have been properly executed and to see all money is dispersed as intended.

Through all this the title company’s primary function is to provide title insurance to the buyer and the lender. Title insurers differ from other kinds of insurers in that rather than assuming risks or “defects” they attempt to identify and eliminate or “cure” risks.

In short, a title company will perform the following tasks:
  • Review all documents relating to the subject property in preparation for the closing
  • Prepare documents incident to any defect in title that may affect the subject property
  • Coordinate all parties and all documents to insure smooth closing of the transaction