What does a title company do?




When you purchase a home, a title company will research the
property to ensure that you are the rightful owner. They'll look through
records for anything that might cause problems-ownership disputes,
restrictions, unpaid taxes, liens, and more. Their goal is to document
the chain of title and identify any issues that could become major
problems down the road.


At the end of the process, the title company issues a title opinion.
This is a legal document that states that the title is valid.
The title opinion is part of obtaining title insurance. The insurance
protects both the owner and the lender if there is a title dispute. If
another party is actually the rightful owner of the home, your title
insurance protects you from financial loss.


In addition to title opinions and title insurance, title companies
also handle escrow accounts and distribute money to the appropriate
parties at closing. They'll also deliver closing documents to the
appropriate agencies.