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

A title company's primary function in real estate transactions is to facilitate the closing process and conduct title searches. This involves ensuring that the title to the property is clear, meaning that there are no legal claims or liens against it that could affect ownership. The title company will perform a thorough examination of public records and the property’s history to identify any issues that may need resolution before the property can be transferred to the buyer.

During closing, the title company acts as an intermediary, handling the disbursement of funds and ensuring that all necessary documents are signed and properly filed. This process is crucial for protecting the interests of both the buyer and the seller, as it helps ensure that the transaction is completed smoothly and legally.

Other roles, such as conducting property inspections or providing financing options, are typically handled by different professionals in the real estate field, such as home inspectors or mortgage lenders, rather than a title company. As a result, the correct choice aptly reflects the specific duties that title companies are known for in real estate transactions.