Title Companies

A title company researches public records to confirm the seller has the right to transfer the property and identifies issues like liens, unpaid taxes, or easements. Many title companies also act as a neutral party to handle closing documents and funds. Their role helps buyers and lenders feel confident the transfer is clean.

Title insurance protects against financial loss from certain title problems that were not discovered before closing, such as errors in public records or undisclosed claims. A lender's policy protects the mortgage lender, while an owner's policy protects the buyer's ownership interest. A title professional or real estate attorney can explain which policies apply to your purchase.

A title search reviews deeds, mortgages, liens, judgments, and other public records connected to the property. Results are used to issue a title commitment that lists any requirements or exceptions before closing. Many searches take a few days to a couple of weeks, depending on the property's history and records availability.

Practices vary by market and by the terms of the purchase agreement. In many transactions, the buyer, seller, or real estate agents agree on a title company, and lenders may have their own requirements. Buyers generally have the right to shop for certain settlement services, so ask your agent or lender about your options.

At closing, buyers and sellers sign the final documents, funds are exchanged, and the deed is prepared for recording with the county. The title company or closing agent typically explains each document, collects and disburses money, and confirms that liens are paid off. Bring a valid photo ID and review your closing figures in advance.

Delays can come from unpaid liens, unreleased mortgages, errors in legal descriptions, boundary disputes, missing heirs, or judgments against a previous owner. Most issues can be resolved, but they may take extra time. Starting the title process early and responding quickly to requests helps keep your closing on schedule.

Most lenders require a title search and a new lender's title insurance policy when you refinance, even if you have owned the home for years. Title companies often handle the refinance closing as well. Ask your lender which settlement services are required so you know what to expect.

Scammers sometimes send fake emails with altered wiring instructions during real estate transactions. Always verify wiring instructions by calling your title company or closing agent at a phone number you know is legitimate, not one from the email. Be wary of last-minute changes to instructions, and contact your bank immediately if something seems wrong.

Title-related costs may include the title search, title insurance premiums, settlement or closing fees, and document recording charges. Who pays each item can depend on local custom and what the buyer and seller negotiate. Your loan estimate and closing disclosure list these charges, and your title company can walk you through them.

Most closings require a valid government-issued photo ID and certified funds or a confirmed wire transfer for any amount due. Sellers may need payoff information for existing loans and any keys, codes, or remotes for the home. Your title company or closing agent will tell you exactly what to bring before closing day.