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Curious about the role of a real estate title company in the US? Find out everything you need to know about their crucial responsibilities in this comprehensive guide for homebuyers.


When it comes to purchasing a home, you may have heard the term "real estate title company" thrown around. But what exactly do they do? Well, in a nutshell, a real estate title company plays a vital role in ensuring the smooth transfer of property ownership from the seller to the buyer. In this article, we will delve into the details of their responsibilities, providing you with a comprehensive understanding of what a real estate title company does.

What Does a Real Estate Title Company Do?

  1. Conducts Title Searches and Examinations:

Before you buy a property, it's crucial to determine whether the title is clear and free of any liens, encumbrances, or legal disputes. A real estate title company performs meticulous title searches and examinations to uncover any potential issues that could affect your ownership rights. This process involves reviewing public records, court documents, and tax records to ensure a clean title transfer.

  1. Facilitates Escrow Services:


In Michigan, the buyer and seller may each choose their own title company to represent them at the closing and issue the title insurance. According to the Real Estate Settlement Procedures Act (RESPA), the buyer has the right to choose their side of the transaction that insures the lender.

What does a title company do in Texas?

A title company provides a variety of title services to satisfy buyers' and lenders' concerns about clear titles. They perform a title search, prepare documentation for closing, and often offer title insurance to back up the title research findings should anyone claim the property in the future.

Do you have to use a title company in Florida?

While there is no legal requirement in Florida that dictates that a title company must be used, about 80% of real estate transactions use them.

Who chooses the title company in Florida?

In most Florida counties, the seller pays title insurance and therefore gets to choose the title company. This is with the exception of Broward, Collier, Sarasota, and Miami-Dade counties where the buyer typically covers title insurance and therefore gets to choose the title company.

What does a title company do in Michigan?

Your title shows who's owned the property in the past, contains a description of the property and shows if there are any liens on it. Your title company is a neutral third party hired by you to research and insure the title of the home you're buying. Plus, they'll manage the closing of your home.

Who pays closing fee to title company in Florida?

In general, closing costs in Florida are split between the seller and the buyer, with the buyer paying more. This arrangement can vary depending on the county and what the parties agree to.

How long does a title search take in PA?

24 to 72 hours Depending on the information you need, a title search in Pennsylvania can take anywhere from 24 to 72 hours. It may take a bit longer if you need a title search from a rural county, or if your search goes back 50-60 or more years.

Frequently Asked Questions

What makes a bad title?

The term bad title refers to a legal document associated with an asset that doesn't grant ownership to the entity that holds the title. This may be because of legal and/or financial problems, including unsatisfied legal issues or even unpaid financial obligations, or even something as simple as a clerical error.

Who is responsible for title search in Florida?

It includes information on the current owner, any outstanding mortgages or liens on the property, and any easements or encumbrances that may be attached to it. In Florida, a title search is done by a licensed real estate attorney.

Who chooses the title company in Texas buyer or seller?

In most cases, the party that pays for the title policy can choose the title company provider. Since the buyer benefits from the type of title policy they receive, even if the seller pays for it, the buyer has the power to demand that their title insurance be backed by a company that is reputable and trustworthy.


Is it worth shopping around for a title company?
In most cases, it does make sense to shop around for title insurance. However, in some states, shopping around does not make much of a difference. Pennsylvania, for example, is what's known as an “all-inclusive” title state. Title companies in the state must charge one all-inclusive fee for their services.
Who is the largest title company in the US?
Who is the biggest title company? With a 21% market share and more than $4 billion in premiums in 2020, First American Title is part of the top title insurance companies 2022, recognized as the largest from the list of title companies, with 41% more than the next-largest company.
Is it better to use a local title company?
Think about if any issues arise prior to – or even after the closing – a local company can generally handle any issues rather quickly as they don't have to check in with the out of state office before making any major decisions. Time can be a valuable commodity in the world of real estate closings.

What does a real estate title company do

What does closing titles mean? In California, when an Escrow is officially “closed”, it means that is the day that the Grant Deed is recorded at the County Recorder's office, and is officially of public record. Specifically, “Closing” is the moment the Grant Deed is date-stamped by the County Clerk.
Who decides which escrow company to use in a real estate transaction? The choice of an escrow agent is usually agreed upon by the principals in the real estate purchase contract. While a seller might choose one company and a buyer may select another firm, they must ultimately agree on the specific escrow holder.
  • What is escrow in real estate?
    • Funds or assets held in escrow are temporarily transferred to and held by a third party, usually on behalf of a buyer and seller to facilitate a transaction. "In escrow" is often used in real estate transactions whereby property, cash, and the title are held in escrow until predetermined conditions are met.
  • What are the stages of closing on a house?
    • The steps leading up to the closing date include:
      • Purchase agreement acceptance.
      • Optional buyer home inspection.
      • Loan origination.
      • Lender home appraisal and credit underwriting.
      • Loan Approval.
      • Homeowner and title insurance.
      • Closing disclosures.

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