What is a title company?

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Real Estate

Real estate transactions are known for their complex nature and lengthy processes. One of the important steps in any real estate transaction is the ‘Closing’ which is also known as the completion of the settlement of the deal. It is the final step in the property deals execution.

Title closing companies play many significant roles in common real estate transactions. Think of them as the agents that actually facilitate the deal and record all detailed paperwork and notices. Many times they are also the escrow agent, the individual in charge of your good faith deposit and all monies that change hands during the transaction.

You may find over time that they make your life extremely easy if you carefully follow their instructions. I've had many transactions rescued for clients of mine because of the great work of title-closing professionals. They are a great asset to your team, and I've always felt a better sense of protection when working with them rather than having a lawyer facilitate the deal.

 They also review all the major details like the title for the property, insurance policies,  and handle all the administrative tasks of safekeeping and record keeping.

The major role of a title closing company in real estate transactions are discussed below:

·                     Title Review by the title closing company: Title companies work with strong review teams to ensure smooth deal flow. These teams review all the public records pertaining to real estate and bring us information about any liens or encumbrances of title that could hang up or completely turn off the deal. Title companies file the information like title report; provide title research information for foreclosures and other types of legalities involving property deals.

·                     Title-closing company issues insurance: These companies also issue policies of title insurance on behalf of title insurance companies. The title company usually acts as an independent agent, facilitating the paperwork of issuing the policy, for the insurance company and works on a commission model. However, the actual premium goes to the insurance company only, and the insurance company bears the risk attached to any loss under the policy.

·                     Acts as an Escrow Officer: Title closing companies, in order to protect the interests of the parties involved in the real estate transaction deal, act as escrow officers to manage the escrow account jointly held by buyer and seller. It holds all the documents and faith deposit money as a part of the transaction also and releases the money only after the written instructions from the buyer and seller involved in the deal.

·                     Works as a closing agent: Title closing companies serve as the closing agents for the completion of the real estate transactions. They represent all the parties involved in the deal. It takes the responsibility of obtaining signatures on all of the closing documents, distributing payments related to the transactions, and safe keeping of all the records involved during the deal.


It is absolutely critical to work with a professional company that you trust when buying and selling real estate. It's a complicated and lengthy process that requires the advice of multiple experienced individuals to navigate. The closing fee is typically a negligibly small percentage of the purchase price, and certainly worth the peace of mind it creates. I can personally recommend some great closing agents for you and your family if you are looking to purchase a house, just contact me via email or social media.