Closing is the final step in the real estate process, the moment when all the pieces come together and the property officially changes hands. Whether you’re the buyer or the seller, at the heart of the closing process is the title company, working behind the scenes to ensure a smooth and secure transaction. But what role does the title company play in closing?

There are many steps to get from signing the initial contract to signing the closing documents. Many of these steps are very visible; submitting financial documents to your loan officer if you are the buyer, having an inspection performed on your house if you are the seller, signing off on negotiations to the conditions of the contract as either party. But many of these steps are less visible, yet no less important. A title company can perform many of these, including:

• Title search. The title company’s primary responsibility is to conduct a complete title search by reviewing public records to verify the property’s ownership history. The title company aims to uncover outstanding liens, title defects or encumbrances that would prevent the title from being clear and marketable for transfer at closing.
• Resolving title issues. If any title issues are discovered at the time of the title search, the title company works to resolve them before closing. This can range from working with creditors to clear outstanding liens, correcting errors in the property description or addressing other title defects. The title company’s goal is to present a clean title.
• Title insurance. A vital component of the closing process, title insurance provides protection against title issues that could arise after closing. A title company can issue policies to both lenders and homebuyers, safeguarding their respective interests in the property.
• Escrow services. While “title company” may have “title” in its name, titles aren’t the only thing they can handle. Some title companies can also act as escrow agents, holding and disbursing funds and documents as a neutral third-party. If the title company acts as the escrow agent, it is their responsibility to ensure that all parties meet their contractual obligations before the property changes hands.
• Closing. On closing day, the title company facilitates the settlement, the location and signing of final documents, and the exchange of funds.

A title company plays an instrumental role in a smooth real estate transaction, especially when it comes to closing. That’s why it’s so important to work with the right title company; call one of Clear Title’s offices to learn more about what sets us apart.

Pensacola: (850) 361-4029

Pace: (850) 994-3838

Pine Forest: (850) 202-8518