What Does A Title Company Do?

A title company makes it possible for the owner of the home to pass the ownership (title) of their home to a new owner.

A home is easily the largest single purchase an American will make in his or her lifetime. The cost is usually many times the buyer’s annual income! When it is time to sell, the owner expects to get fair market value, in cash, for his or her home.

But first, the owner must prove that they have the rights to receive any of the money. And to get all of the proceeds from the sale, the owner must prove that there are no liens on the property.

So, when it’s time to sell the home, there is a moment of truth for the owner. Are there any legal or financial ‘skeletons’ in the history of their house that will get in the way of the sale?

Fortunately for the seller, the buyer hires a title company to research the history of the home, and to give the buyer assurance that there are no such “surprises” lurking. The title company examines the history of people that have owned the property (the title abstract[link]), to confirm the owner has the right to sell. And the title company researches the history of money borrowed against the property, as well as court cases filed against the current and past owners of the property (the lien and judgment report).