Title Company

In depth

Title companies are central to most real estate closings. They search public records, prepare title commitments, issue owner's and lender's title insurance policies, hold escrow funds, prepare settlement statements, and record documents. Misconception: not every state uses title companies; some states like New York and parts of New England rely on attorneys instead. Practically, in FSBO and seller-finance transactions, the title company is the closer, neutrally protecting both parties. Sellers can choose the title company in many states, but local custom dictates allocation of fees. Buyer-friendly title companies will explain Schedule B exceptions and accommodate creative seller-finance structures. Always verify the title company's bonded status and obtain owner's title insurance, even when not strictly required.