A title company is an organization that identifies any links and issues with this important document, to make closing on a property as smooth as possible, while also making sure the purchase is handled correctly. Once the buyer has decided which home they want to purchase, they head to closing, where a title company is hired to perform a title search. Without this step, someone could end up buying a home, only to have the transaction derailed by one of many potential complications. All of this can have an adverse effect on the close, when the time comes.

The purpose of the title search is to ensure that the document is "free and clear." This means there are no outstanding ownership debts on the property, including back taxes and mechanical liens, as well as second mortgages. This is very important because once the property is transferred to the new owner, that new owner is responsible for all debts associated with the home. Obviously, doing this type of search after the house has been purchased is not the way to go.

Once everything is checked out, the buyer will find themselves at closing, where there is a tremendous amount of paperwork to be done. Again, having the title company there can be very helpful, especially if the paperwork gets confusing or questions arise. Most of these companies are used to helping buyers and sellers navigate all the hurdles associated with a transfer of ownership. It’s almost inconceivable to imagine working through all the paperwork without the guidance a professional team can offer.

Most title companies recommend title insurance, which also protects buyers and lenders. Basically, if there is faulty documentation or the company makes some sort of mistake in their assessment, the insurance kicks in to protect everyone involved. Insurance may seem like an unnecessary luxury, or even a modern inconvenience, but when it comes down to it, there’s no substitute for the peace of mind that comes from knowing you’ve done everything you can to protect your investment.

The choice of the company to go to is usually done in the usual way, by recommendation. Sometimes an agent will recommend the company they have worked with in the past; and sometimes a buyer will search through all the available companies and choose the one with the highest ratings. In rare cases there will be interviews.

So, in conclusion, the ultimate purpose of a title company is to help everyone involved in a home transfer achieve their goals as easily as possible. Some people choose to conduct document searches independently and later regret it, realizing they should have left it to the experts. The ultimate goal is to close the deal with your investment and know that it has been done right; There is simply no substitute for this type of company when it comes to masterfully making everything happen.

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