What is the role of the title company in a real estate transaction?

The title company plays a crucial role in real estate transactions by ensuring that the title to the property is clear and facilitating the closing process. This involves conducting a thorough title search to verify that there are no outstanding liens, claims, or other issues that could affect the ownership of the property. By confirming that the title is free of defects, the title company protects the interests of both the buyer and the lender.

In addition to title searches, the title company often provides title insurance, which protects the buyer and lender against potential future claims to the property due to issues that may not have been apparent during the title search. The title company also coordinates the closing process, which includes preparing necessary documents, handling the exchange of funds, and distributing the final documents to the appropriate parties.

Other roles or functions, such as setting the closing date, financing the purchase, or inspecting the property for defects, are typically the responsibility of real estate agents, lenders, or home inspectors, rather than the title company. This distinction highlights the specific function of the title company in ensuring a smooth and secure transaction.