We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.
Finance

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

What Is a Title Company?

Malcolm Tatum
By
Updated: Jan 29, 2024
Views: 17,516
Share

Title companies are business entities that focus on the examination of the quality of titles or deeds associated with property holdings. In many instances, the title company will also function as the means of insuring the property during the process of a sale. While the title company usually works closely with the current owner of the property, it is not unusual for the company to work directly with real estate agencies and professionals to establish the legality of title claims and thus clear the way for a sale.

When taking on an investigation of a given property, the title company first researches the claim of ownership associated with the property. This includes reviewing the current title or deed to ensure there are no defects or questionable factors in the actual construction of the documentation. Once the propriety of the title is established, the company takes steps to ensure there are no current liens on the property other than those already acknowledged by the owner. Failure to uncover this type of information can jeopardize the sale and also possibly render a title claim invalid.

When any irregularities are uncovered as part of the investigation, the title company will often work with the current owner or the selling entity to resolve the issues. Doing so helps to pave the way for an easy progression in the sale process. The company remains involved all the way through the closing process, often overseeing the funds transfers that complete the sale.

Once the title company has thoroughly established the validity of the title and identified any liens against the property, it is not unusual for the company to provide what is known as a title binder. The title binder is simply insurance that provides protection to the property during the period that is it up for sale and through the closing process once an offer has been made. The insurance offered by the company is of a temporary nature, and will only be in effect until the closing is complete and a fresh title is issued to the new owners.

Share
WiseGeek is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Malcolm Tatum
By Malcolm Tatum
Malcolm Tatum, a former teleconferencing industry professional, followed his passion for trivia, research, and writing to become a full-time freelance writer. He has contributed articles to a variety of print and online publications, including WiseGeek, and his work has also been featured in poetry collections, devotional anthologies, and newspapers. When not writing, Malcolm enjoys collecting vinyl records, following minor league baseball, and cycling.

Editors' Picks

Discussion Comments
Malcolm Tatum
Malcolm Tatum
Malcolm Tatum, a former teleconferencing industry professional, followed his passion for trivia, research, and writing...
Learn more
Share
https://www.wise-geek.com/what-is-a-title-company.htm
Copy this link
WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.