A neutral company examines public records, issues title insurance, and often handles the closing process. That company is a title company. It sits between buyer, seller, and lender to ensure the transfer of ownership is clean and properly documented.

Title officers order searches, review findings, clear curative items, and prepare closing statements. At closing they collect and disburse funds, record documents, and issue policies. In some states attorneys perform similar functions; in others title companies dominate the process.

The quality of a title company’s work affects how smoothly transactions close and how well parties are protected against later claims. Fees for title insurance and closing services are part of standard closing costs. Choosing an experienced title company reduces last-minute surprises.

• Examines title and issues insurance
• Often conducts the closing
• Handles funds and document recording
• Protects parties against many title defects