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Title Company
What Is a Title Company?
A title company is a third-party organization that manages the title search, issues title insurance, and facilitates the real estate closing process.
It ensures the property’s ownership transfer is legally valid.
Why It Matters in a Mortgage
Title companies:
- Confirm clear title
- Handle escrow funds
- Coordinate closing documentation
- Issue title insurance policies
They serve as neutral facilitators between buyer, seller, and lender.
How It Works
The title company:
- Conducts title search
- Prepares settlement statements
- Manages fund transfers
- Records deed with local authorities
Title Company vs. Lender
Title Company → Handles transaction logistics
Lender → Provides financing
FAQs About Title Companies
Can I choose my title company?
Sometimes, depending on state rules.
Do title companies hold funds?
Yes, in escrow.
Are they regulated?
Yes, at state level.
Related Terms
