top of page
Search
  • Writer's pictureJeff Schultheis

Why a Title Company is Critical!

A title company plays a crucial role in real estate transactions by ensuring that the property being bought or sold has a clear title. Although often overlooked, the services provided by a title company are essential to protect both buyers and sellers from any potential legal issues or financial loss. To understand the significance of a title company, it is essential to grasp the concept of a "title." A title refers to legal ownership of a property, and it confirms the rights and interests of the owner. Before a real estate transaction can be completed, it is crucial to establish a clear and marketable title, meaning that no legal claims or disputes exist regarding the property. Here are some key roles and responsibilities performed by title companies during real estate transactions: 1. Title Search: A title company conducts a comprehensive examination of public records to determine the property's ownership history. This search aims to identify any existing liens, judgments, loans, or encumbrances that may affect the property's title. This process helps ensure that the property can be legally transferred to a new owner without any outstanding claims. 2. Title Insurance: After completing the title search, the title company issues a title insurance policy. This policy protects the buyer and the lender from any undiscovered issues that may arise regarding the property's title in the future. If any hidden defects or claims emerge after the transaction is complete, the title insurance will cover the costs associated with defending against the claim or compensating for any losses. 3. Escrow Services: Title companies often act as neutral third parties in real estate transactions. They hold all funds and necessary documents in escrow until the transaction is finalized. This ensures that all parties involved, including the buyer, seller, and lender, meet their obligations before the transfer of ownership occurs. The title company disburses funds according to the agreed-upon terms and ensures that all documents are properly signed, notarized, and recorded. 4. Closing Services: The title company facilitates the closing process, where all parties involved in the transaction come together to sign the necessary documents. The title company ensures that all legal requirements are met, including the transfer of funds and ownership. They also prepare the closing statement, which outlines all financial transactions and fees associated with the transaction. 5. Recordation: Following the closing, the title company is responsible for recording the deed and other relevant documents with the appropriate government authorities. This step officially transfers the property's ownership to the buyer and ensures that the transaction is properly documented in public records. 6. Resolution of Issues: If any issues arise during the title search or closing process, the title company works to resolve them. This can include clearing outstanding liens, resolving boundary disputes, or addressing any other title-related problems. The title company acts as a mediator between the parties involved, working to resolve issues and ensure a smooth transaction. In summary, a title company provides essential services to ensure that real estate transactions are legally sound and secure. From conducting thorough title searches to issuing title insurance policies and facilitating the closing process, the title company's role is critical in protecting the interests of all parties involved in a real estate transaction.


Don’t be discouraged—we know there is a lot to consider. That’s why our team at JS REALTOR® Team is so committed to serving our clients. We want to make your experience one that preserves the excitement but sheds the anxiety. We provide clear guidance and advice to help you make the right decisions. Request your Free Download here FREE Sellers Guide and connect with us today! Let’s get ready to sell your home. Text/Call Jeff at 614.721.0450 or email Jeff@JSRealtorTeam.com. Offices in Columbus & Mansfield to serve Mid-Ohio.


A Couple closing with a Title Company for real estate purchase
Title Company closing

Post: Blog2_Post
bottom of page