What is the role of a title company in a real estate transaction?

The role of a title company in a real estate transaction is crucial, as it primarily involves performing due diligence on the property title and facilitating the closing process. This includes conducting thorough searches of public records to identify any existing liens, encumbrances, or other issues related to the title that could impact ownership. By ensuring that the title is clear, the title company helps protect both the buyer and the lender, thus preventing future legal disputes over property ownership.

Additionally, the title company performs functions like preparing the necessary documents for closing, coordinating between all parties involved, and ensuring that funds are appropriately handled and distributed. This role is essential to complete the transaction smoothly and legally.

In contrast, assessing property value and recommending pricing typically falls under the expertise of appraisers or real estate agents rather than title companies. Arranging financing options is primarily the responsibility of lenders or mortgage brokers, while conducting open houses is a marketing strategy utilized by real estate agents to showcase properties to potential buyers, rather than a function of title companies.