A title company, also known as a title insurance company, is a vital entity in real estate transactions. Its primary role is to conduct thorough research and investigations into the ownership history and legal status of a property’s title. This process is called a title search.
The title company ensures that the property being bought or sold has a clear and marketable title, meaning there are no outstanding claims, liens, or disputes that could affect ownership rights. Once the title search is completed and any issues are resolved, the title company provides title insurance to protect the buyer and lender from any unforeseen legal challenges to the property’s title.
In essence, a title company plays a crucial role in facilitating smooth real estate transactions by verifying and guaranteeing the legal ownership of a property, offering peace of mind to all parties involved in the transaction.