• Title Search:
  • The title company conducts a search of public records to verify the property’s ownership history and ensure there are no liens, judgments, or other encumbrances that could affect the transfer of ownership.
• Title Insurance:
  • The title company provides title insurance to protect the buyer and lender from any future claims against the property that were not discovered during the title search (e.g., undisclosed heirs, errors in public records).
• Escrow Services:
  • The title company often acts as the escrow agent, holding the earnest money, the buyer’s funds, and the signed documents until the conditions of the sale are met. They ensure that both parties fulfill their obligations before the transaction is completed.
• Coordinate Closing:
  • The title company arranges and coordinates the closing date, time, and location, and ensures that all necessary documents are ready for signing.
• Prepare Closing Documents:
  • The title company prepares or ensures the preparation of various closing documents, such as the deed, the settlement statement (Closing Disclosure), and any other documents needed for the transfer of ownership.
• Ensure Compliance with Local and State Laws:
  • They make sure the transaction complies with local, state, and federal regulations, including reviewing the deed and making sure it meets legal standards for transferring ownership.
• Distribute Funds:
  • After the closing, the title company disburses the funds as agreed—paying off any outstanding liens or mortgages on the property, paying agents or brokers, and sending the seller their proceeds.
• Record the Deed:
  • The title company records the deed with the local county office to make the buyer’s ownership official and publicly recorded.
• Handle Liens and Mortgages:
  • If there are any existing liens or mortgages on the property, the title company ensures they are paid off from the proceeds of the sale and that the lien is released.
• Provide Final Title Insurance Policy:
  • After closing, the title company issues the final title insurance policy to the buyer and lender, confirming their protection against any future claims.
• Verify All Funds Are Available:
  • The title company verifies that all necessary funds (e.g., down payment, loan amounts) have been deposited into escrow and are available for closing.