Title Company Duties

When you buy or sell land, a title company plays a central role in making sure the transaction closes smoothly and legally. Long before closing day, the title company conducts a comprehensive title search by examining public records to confirm that the seller truly owns the property and that there are no liens, unpaid taxes, easements, or other issues that could cloud ownership. If any problems are found — such as an undisclosed lien or ownership discrepancy — the title company works to resolve them before the sale can proceed, protecting buyers from inheriting legal or financial headaches. Once the search is complete and any concerns are addressed, the company issues title insurance to the buyer and lender, providing financial protection against future claims that weren’t uncovered during the search.

During the actual closing, the title company acts as a neutral facilitator and escrow agent, preparing and organizing all required documents, coordinating signatures, and managing the flow of funds. They prepare the deed, settlement statements, and any affidavits, and they hold escrow funds such as the buyer’s payment and lender proceeds until all terms of the purchase agreement are satisfied. On closing day, their representative guides both parties through the documents, ensures everything is properly signed and notarized, and disburses funds — including paying off existing liens, commissions, and property taxes — before handing proceeds to the seller. After the closing, the title company records the deed and other legal documents with the county, officially transferring ownership and then issues the finalized title insurance policies.