Which of the following describes the role of a title company during a real estate transaction?

The role of a title company during a real estate transaction primarily involves conducting a title search and ensuring a clear property title. This means they investigate the history of the property’s title to confirm that there are no outstanding liens, claims, or other issues that would prevent the buyer from obtaining full ownership. This process is crucial because a clear title is necessary for the buyer to proceed with the purchase, and it protects both the buyer and the lender from potential future disputes or legal issues regarding property ownership.

Title companies also issue title insurance, which further protects against any claims that may arise after the transaction is completed. This deep involvement in verifying property ownership and clarity of title is what distinguishes the title company’s role in a real estate transaction from those involved in financing, advertising, or listing properties.