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What Does a Title Company Do?

June 29, 2018 6:57 pm
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What is a Title Company?

When you purchase property,  you don’t want to pay for real estate that doesn’t actually belong to the seller. A title company helps to ensure you don’t!

title company reviews the real estate transaction to legitimize that the property for sale truly belongs to the seller.  The Title Company then issues title insurance for that piece of property. This insurance helps to protect both the mortgage lender and real estate owner against lawsuits regarding the ownership of the property.

What does a title company do?

A title company plays an integral part of the home buying process. If you’ve ever bought a home before, then you may have done the actual closing at a title company.

Before you can sign a contract to finalize the purchase of your home, a title company will run a title search to determine whether there are any problems with the seller’s ownership of the piece of real estate. Then the title company will issue title insurance that will pay out if someone else later claims ownership to that property.

The title company may also hold money in an escrow account. An escrow account is a temporary account used to hold  money until it is transferred to the seller or used for closing costs.

title company

How do I pick a Title Company?

Ask your realtor or loan officer  for title company recommendations. These two parties will have previous experience and a network to refer you to.

You can also scan the internet for trusted companies, like searching the Better Business Bureau for a list of title companies near you. Most title companies charge a one-time fee at closing.


We make sure you can get into your home as soon as possible. A team member is just a phone call or click away! 




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This post was written by LH Lending