{"id":294481,"date":"2025-02-07T03:58:48","date_gmt":"2025-02-07T08:58:48","guid":{"rendered":"https:\/\/www.houzeo.com\/blog\/?p=294481"},"modified":"2025-07-22T00:35:31","modified_gmt":"2025-07-22T04:35:31","slug":"what-does-a-title-company-do","status":"publish","type":"post","link":"https:\/\/www.houzeo.com\/blog\/what-does-a-title-company-do\/","title":{"rendered":"What Does a Title Company Do? Do You Need One?"},"content":{"rendered":"\n<p>When you plan on <a href=\"https:\/\/www.houzeo.com\/blog\/how-to-buy-a-house\/\" target=\"_blank\" rel=\"noreferrer noopener\">buying a home<\/a>, you must verify whether the seller has legal rights to transfer the property. Purchasing a home with a defective title can bring you a host of legal problems. And that&#8217;s where a real estate title company comes into the picture.<\/p>\n\n\n\n<p>From providing title services to handling closing procedures, title companies play a crucial role in ensuring a successful real estate transaction. In our blog, we have explained what a title company does and its various responsibilities in real estate transactions.<\/p>\n\n\n\n<div class=\"block-takeaways\" style=\"margin-top:20px !important\"><p><\/p><p class=\"headKeytake\"><b>\ud83d\ude80 Key takeaways<\/b><\/p>\n<ul>\n<li>Title company is a neutral party that oversees the transfer of property rights from the seller to the buyer. It chiefly verifies the validity of the title and helps identify any associated issues.\n<\/li>\n<li>Title companies offer various services such as title search and examination, property survey, escrow, <a href=\"https:\/\/www.houzeo.com\/blog\/what-is-title-insurance\/\" target=\"_blank\" rel=\"noopener\">title insurance<\/a>, settlement services, etc. \n<\/li>\n<li>Buyers generally choose the title insurance company.\n<\/li>\n<\/ul>\n<\/div>\n\n\n\n<h2 class=\"margin-top-28 wp-block-heading\" id=\"what-is-a-title-company\"><strong>What is a Title Company?<\/strong><\/h2>\n\n\n\n<p>A title company is a third party that oversees the transfer of property rights from the seller to the buyer. The title company chiefly verifies the validity of the title and helps identify any associated issues. <\/p>\n\n\n\n<p>Further, the title company offers protection to homebuyers and <a href=\"https:\/\/www.houzeo.com\/blog\/best-mortgage-lenders\/\" target=\"_blank\" rel=\"noreferrer noopener\">mortgage lenders<\/a> from past disputed ownership issues through title insurance. <\/p>\n\n\n\n<h2 class=\"margin-top-28 wp-block-heading\" id=\"what-does-a-title-company-do\"><strong>What Does a Title Company Do?<\/strong><\/h2>\n\n\n\n<p>Title companies ensure the transfer of ownership from seller to buyer is legitimate and free of any legal issues. Title companies offer the following services: <\/p>\n\n\n\n<h3 class=\"margin-top-15 wp-block-heading\"><strong>1. Title Search and Examination<\/strong><\/h3>\n\n\n\n<p>A thorough research is conducted into the property&#8217;s ownership history to identify any liens, encumbrances, or other claims that may affect the transfer of ownership. Further, the title company carefully vets the prior transfer documents.<\/p>\n\n\n\n<p>It helps buyers make an informed decision by ascertaining whether the seller has a clean and marketable title. Likewise, it is crucial to lenders who intend to finance the transaction. <\/p>\n\n\n\n<h3 class=\"margin-top-15 wp-block-heading\"><strong>2. Title Insurance<\/strong><\/h3>\n\n\n\n<p>Title companies offer <a href=\"https:\/\/www.houzeo.com\/blog\/what-is-owners-title-insurance\/\" target=\"_blank\" rel=\"noreferrer noopener\">owners title insurance<\/a> and <a href=\"https:\/\/www.houzeo.com\/blog\/what-is-lenders-title-insurance\/\" target=\"_blank\" rel=\"noreferrer noopener\">lenders&#8217; title insurance<\/a> policies. Basically, it safeguards them from unforeseen legal issues associated with a defective title resulting from liens, forged documents, undisclosed heirs, or errors in public records. <\/p>\n\n\n\n<p>The purpose of a title policy is to protect buyers and lenders from potential monetary losses that may arise as a result of a bad title.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>3. Property Survey<\/strong><\/h3>\n\n\n\n<p>A property survey records the accurate measurements of the property&#8217;s boundaries and the condition of the property. Accordingly, these findings are recorded by the property surveyor in a property survey report. <\/p>\n\n\n\n<p>It is your safest bet against any unpleasant surprises you may be unaware of. By mapping the precise boundaries of your home, a property survey report helps to keep issues such as <a href=\"https:\/\/www.houzeo.com\/blog\/easement\/\" target=\"_blank\" rel=\"noreferrer noopener\">easements<\/a> and boundary disputes at bay.<\/p>\n\n\n\n<h3 class=\"margin-top-15 wp-block-heading\"><strong>4. Escrow and Closing or Settlement Services<\/strong><\/h3>\n\n\n\n<p>Title companies also act as <a href=\"https:\/\/www.houzeo.com\/blog\/what-is-escrow\/\" target=\"_blank\" rel=\"noreferrer noopener\">escrow <\/a>agents, by holding and disbursing funds and documents on behalf of the parties involved in the real estate transaction. <\/p>\n\n\n\n<p>Concurrently, they ensure proper execution and recording of documents, coordinate with all parties, and finalize transactions by meeting requirements.<\/p>\n\n\n\n<h3 class=\"margin-top-15 wp-block-heading\"><strong>5. Recordation of Documents<\/strong><\/h3>\n\n\n\n<p>Title companies are responsible for ensuring all legal documents related to the real estate transaction are duly recorded in accordance with local laws.<\/p>\n\n\n\n<p>Proper recordation is essential to establish legal ownership and protect both the buyer&#8217;s and lender&#8217;s interests.<\/p>\n\n\n\n<h3 class=\"margin-top-15 wp-block-heading\" id=\"preliminary-title-report\"><strong>6. Preliminary Title Report<\/strong><\/h3>\n\n\n\n<p>Title agencies prepare a preliminary title report, also known as the <a href=\"https:\/\/www.houzeo.com\/blog\/title-commitment\/\" target=\"_blank\" rel=\"noreferrer noopener\">title commitment<\/a>, which provides a detailed finding on the title that includes any problems with the title or any actionable required to fix the title.<\/p>\n\n\n\n<p>Thereafter, the buyer is required to provide the preliminary title report to the mortgage lender.<\/p>\n\n\n\n<h2 class=\"margin-top-28 wp-block-heading\" id=\"finding-title-defects\"><strong>What Does the Title Company Do After Finding Title Defects?<\/strong><\/h2>\n\n\n\n<p>A house title company takes proactive steps to resolve any title issues discovered during the <a href=\"https:\/\/www.houzeo.com\/blog\/home-title-search\/\" target=\"_blank\" rel=\"noreferrer noopener\">title search<\/a> and examination process.<\/p>\n\n\n\n<p class=\"margin-top-15\">They work diligently alongside <a href=\"https:\/\/www.houzeo.com\/blog\/real-estate-attorney\/\" target=\"_blank\" rel=\"noreferrer noopener\">real estate attorneys<\/a>, lenders, and other parties to clear any title issues, such as liens or encumbrances, discovered during the title search and examination process. <\/p>\n\n\n\n<p class=\"margin-top-15\">Title companies have the experience and knowledge to navigate complex legal issues. Furthermore, they find solutions to ensure a free and clear title for the buyer and lender.<\/p>\n\n\n\n<h2 class=\"margin-top-28 wp-block-heading\" id=\"how-to-choose-who-picks\"><strong>How to Choose a Title Service Company and Who Picks It?<\/strong><\/h2>\n\n\n\n<p>Title company service fees are standardized in some states. In this case, the policy buyer must consider which is the best service offered by competing title companies. <\/p>\n\n\n\n<p>You can search for &#8220;title companies near me&#8221; on Google and check out their reviews. Additionally, you can ask for your <a href=\"https:\/\/www.houzeo.com\/blog\/top-real-estate-agents\/\" target=\"_blank\" rel=\"noreferrer noopener\">real estate agent&#8217;s<\/a> recommendation. Certainly, your real estate agent can help you find a suitable title agent as per your requirements. <\/p>\n\n\n\n<p>Buyers generally pick the home title company to purchase the title insurance policies for themselves and for the mortgage lenders. <\/p>\n\n\n\n<h2 class=\"margin-top-28 wp-block-heading\" id=\"title-companies-charge\"><strong>How Much Do Title Companies Charge? <\/strong><\/h2>\n\n\n\n<p>The title company services costs differ from state to state depending on the scope of services you choose. The scope of services includes title search fees, escrow fees, recording fees, real attorney fees, and title policy fees. <\/p>\n\n\n\n<p>Under title service costs, the <a href=\"https:\/\/www.houzeo.com\/blog\/how-much-is-title-insurance\/\" target=\"_blank\" rel=\"noreferrer noopener\">title insurance costs<\/a> also depend on state regulations. Title policies generally&nbsp;cost about 0.5% to 1.0% of the home\u2019s purchase price. Of the 2 title policy coverages, the enhanced policy costs 20% more than the standard policy.<\/p>\n\n\n\n<p>\ud83d\udc49 <a href=\"https:\/\/www.houzeo.com\/blog\/who-pays-for-title-insurance\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Who Pays Title Insurance<\/strong><\/a>: Read further to know who pays title insurance costs!<\/p>\n\n\n\n<h2 class=\"margin-top-28 wp-block-heading\" id=\"do-you-need-one\"><strong>Bottom Line: Do You Need One?<\/strong> <\/h2>\n\n\n\n<p>Many buyers and sellers may wonder if hiring a property title company is necessary for a real estate transaction. Albeit not legally required in all states, title companies are undoubtedly crucial in facilitating a successful real estate transaction.<\/p>\n\n\n\n<p>They ensure legal compliance, detect undiscovered title issues, and at last, aid in a successful closing.<\/p>\n\n\n\n<p>To conclude, consider the services of a reputable closing title company in order to safeguard your interests, protect yourself from future legal issues, and most importantly, preserve your peace of mind amidst the hassle.<\/p>\n\n\n\n<p class=\"margin-top-28\"><strong>Here&#8217;s how Houzeo works:<\/strong><\/p>\n\n\n\n<div class=\"mainVideowrapper\">\n<div class=\"leftBlock\">\n<div class=\"innerblock\" style=\"padding-top: 0px;\"><iframe title=\"YouTube video player\" src=\"https:\/\/www.youtube.com\/embed\/xIuVoBA9ISU?controls=1&amp;rel=0&amp;playsinline=0&amp;modestbranding=0&amp;autoplay=0&amp;enablejsapi=1&amp;origin=https%3A%2F%2Fwww.houzeo.com&amp;widgetid=1\" allowfullscreen=\"allowfullscreen\" frameborder=\"0\"><\/iframe><\/div>\n<\/div>\n<div class=\"rightBlock\">\n<p><b>What is Houzeo?<\/b><\/p>\n<p><i>An overview of what the platform is all about<\/i><\/p>\n<p><a class=\"btnNew\" href=\"https:\/\/www.houzeo.com\/register?utm_source=BlogBody&amp;utm_medium=BestForSaleByOwnerWebsites&amp;utm_content=VideoReviewsBlock&amp;utm_term=SPA\"><i class=\"fas fa-external-link-alt\"><\/i> Start Your MLS Listing NOW!<\/a><\/p>\n<\/div>\n<\/div>\n\n\n\n<p class=\"margin-top-15\"><strong>\u00bb <a href=\"https:\/\/www.realestatequeen.com\/houzeo-reviews\/\" target=\"_blank\" rel=\"noreferrer noopener\">Houzeo.com Reviews<\/a>:<\/strong> Find out what customers have to say about Houzeo.com<\/p>\n\n\n\n<h2 class=\"margin-top-28 wp-block-heading\"><strong>Find Your New Home With Houzeo<\/strong><\/h2>\n\n\n\n<p>Just as a title company ensures the ownership of your property, Houzeo ensures you make the right decision when buying your next home. Discover thousands of <a href=\"https:\/\/www.houzeo.com\/homes-for-sale\" target=\"_blank\" rel=\"noreferrer noopener\">homes for sale<\/a> on Houzeo, America\u2019s best home-buying website.<\/p>\n\n\n\n<p class=\"margin-top-15\"><strong>\u00bb NEED MORE CLARITY?&nbsp;<\/strong>Read these exclusive&nbsp;<a href=\"https:\/\/www.realestatequeen.com\/houzeo-reviews\/\" target=\"_blank\" rel=\"noreferrer noopener\">Houzeo reviews<\/a>&nbsp;and learn why the platform is the best in America\u2019s competitive housing market.<\/p>\n\n\n\n<h2 class=\"margin-top-28 wp-block-heading\" id=\"faqs\"><strong>Frequently Asked Questions<\/strong><\/h2>\n\n\n\t\t<div class=\"wp-faq-schema-wrap wp-faq-schema-accordion\">\n\t\t\t\t\t\t<div class=\"wp-faq-schema-items\">\n\t\t\t\t\t\t\t\t\t<p class=\"ui-accordion-header\">\n\t\t\t\t\t\t1. What do title companies do?\t\t\t\t\t\t<span class=\"ui-accordion-header-icon ui-icon ui-icon-triangle-1-s\"><\/span>\n\t\t\t\t\t<\/p>\n\t\t\t\t\t<div class=\"ui-accordion-content\">\n\t\t\t\t\t\t<p>The purpose of title company is to ensure the transfer of ownership from seller to buyer is legitimate and free of any legal issues. The title company's services include title search, <a href=\"https:\/\/www.houzeo.com\/blog\/what-is-title-insurance\/\" target=\"_blank\">title insurance<\/a>, property survey, escrow, settlement services, etc.<\/p>\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<p class=\"ui-accordion-header\">\n\t\t\t\t\t\t2. What does a title company do at closing?\t\t\t\t\t\t<span class=\"ui-accordion-header-icon ui-icon ui-icon-triangle-1-s\"><\/span>\n\t\t\t\t\t<\/p>\n\t\t\t\t\t<div class=\"ui-accordion-content\">\n\t\t\t\t\t\t<p>At closing, title companies ensure proper execution and recording of documents, coordinate with all parties, and finalize transactions by meeting requirements.<\/p>\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<p class=\"ui-accordion-header\">\n\t\t\t\t\t\t3. Who represents the title company and facilitates the final transaction?\t\t\t\t\t\t<span class=\"ui-accordion-header-icon ui-icon ui-icon-triangle-1-s\"><\/span>\n\t\t\t\t\t<\/p>\n\t\t\t\t\t<div class=\"ui-accordion-content\">\n\t\t\t\t\t\t<p>A title company typically has a closing agent or escrow officer who represents the company and facilitates the final transaction.<\/p>\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\n","protected":false},"excerpt":{"rendered":"<div class=\"new-excerpt\"><p class=\"small-desc\">Title companies play a crucial role in real estate transactions, providing protection, expertise, and professionalism. Hiring a reputable title company is highly recommended for buyers and...<\/p><\/div><div class=\"reading_date\"><span class=\"readtime\">6 mins read<\/span><span class=\"date\">Feb 07, 2025<\/span><\/div>","protected":false},"author":102,"featured_media":428775,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[46225],"tags":[],"class_list":["post-294481","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buyer"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What Does a Title Company Do? Do You Need One?<\/title>\n<meta name=\"description\" content=\"What Does A Title Company Do? 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