What is the Role of a Title Company?

You do not generally buy more than a single propertyby state.
in your lifetime. It is a high value transaction involvingProperty has Clear Title
legal risks. Besides using a professional homeThe other important objective of the title company
inspector for pre-inspection of the home, the buyerwould be to ascertain the title of the property being
has to rely on a number of other professionals suchpurchased by the buyer is absolutely clear. This would
as real estate attorney and a title company. The titlemean that the property does not encumbrance or is
company performs the necessary role of checking allnot under lien. There is no property or any other
aspects relating to the title of a property right fromfiscal tax or costs due by the seller to the state.
the legal ownership to title insurance. The buyer andTitle insurance
title company have a common goal of avoiding anyIn many instances, the title company also organizes
legal disputes which might emerge later in case thefor title insurance to the buyer against any legal risks
title of the property is not clear. It would be Titlethat might surface in the future. This would insure
Company's prime responsibility to provide thethe buyer against any ownership issue emerging in
necessary comfort and assurance to the buyer thatfuture and costs involved in litigation and other
the property he intends to buy is free from any legalmatters related to settling any dispute regarding the
trouble and would not lead to any ownership disputesale being made by the actual owner of the property.
once the buyer closes the transaction. The titleThough the buyer has the right to choose his title
company starts playing its role as soon as the saleinsurer, the buyer usually prefers the same company
agreement is signed between the buyer and thewith whom the lender takes tile insurance cover.
seller till the time that the title is transferred from theWhen a title company is satisfied with respect to title
seller to the buyer. They have to ensure complianceof the property, they issue a document called as the
to the necessary real estate laws and regulations of"Commitment of Title Insurance" to the mortgage
the state in which the transaction takes place. Thelender along with a copy to the other parties involved
primary role and responsibilities of a title company isin the deal i.e. the buyer, seller, realtor and the real
covered in the sections belowestate attorney. As a buyer it is essential that you
Verification of the sellerunderstand the role and responsibility of the title
Their main role is to establish the seller in whosecompany. It is in your interest to get all ownership
name the property is registered as per the legaland legal details about the property that you intend
documents submitted with the State. The titleto buy. Share the responsibility with the company
companies find out the legal owner of the propertychecking the title for your property and understand
by examining and verifying the public land record heldthe details that they provide.