Alexander & Beatrice
Keller Williams Legacy Central

So What Does a Title Company Do, Anyway?

Most home buyers and home sellers have little idea of what a title company actually does.

In reality, your title company is just as important to the home buying and home selling process as the mortgage lender, real estate agent, or home inspector.

Here are a few of the jobs a title company handles – you might be surprised to find they’re still working on your home purchase or sale even after you close

Title abstract: A title company performs a title abstract, which reviews a history of the property and its ownership and clears any liens or claims on the property. This is necessary to make sure a home buyer receives clear and marketable title to their new property.

Orders a survey: Your mortgage lender may require a survey or location drawing of the property. This is to check for potential problems, like your neighbor's driveway, which might actually be on your property! They’ll work with you to clear any issues, and you’ll get a copy of the drawing at closing.

Paying property taxes: The title company makes sure the property taxes, water bill and Homeowners Association payments are current – otherwise, you’d end up with a lien.

Issues title insurance policy: Your mortgage lender will require you purchase a title policy to protects the lender’s investment in the property, and it's smart to purchase the policy to protect yourself, as well. Title insurance covers you for unforeseen claims or fraud against the property, and would pay for financial loss and the legal costs necessary to clear such claims.