What role does a title company play in real estate transactions?

In real estate transactions, a title company plays a crucial role in determining clear ownership of the property and facilitating the closing process. This involves conducting thorough research to verify that the title is free from liens or encumbrances and that the seller has the right to transfer ownership. The title company ensures that all necessary documents are prepared and executed correctly, managing the transfer of funds and the recording of the new title with the appropriate government authority.

The importance of verifying ownership cannot be overstated, as it protects all parties involved from potential disputes regarding the property’s title. By ensuring a clear title, the title company helps to provide peace of mind to both the buyer and the seller, making it an essential part of any real estate transaction. This role is distinct from appraisals, listing services, or staging, which focus on other aspects of the real estate market.