What is a Title Company?

Title companies typically represent the transaction and act as a combined agent for the title insurer, the buyer, the seller, and any other party related to a real estate transaction, such as the mortgage lender. The responsibilities of a title company are many, the most important being:

• Property title analysis to issue a title insurance commitment. With this step, an investigation of the ownership history is carried out and during this investigation, situations may be discovered that need to be fixed before the purchase. If there is no solution, it is decided whether to issue title insurance.
• Carry out the closing of the transaction, preparing all legal documents; receive the necessary funds from the buyer or banking institution to make the necessary payments, acting as a fiduciary agent. This provides transparency to the transaction.
• Finally, issue title insurance to the buyer and the financial institution, guaranteeing a clean title of any title defects.
• Taking these steps offers the buyer peace of mind that their investment is insured against any potential problems related to the ownership of their property.