What is the Purpose of a Title Company?

A Title company is usually involved in a real estate transaction. The Title Company is hired to make certain there are no hidden or unknown problems when transferring ownership of a property. What are the steps that they take?
1. Complete a title search on the seller. This is to determine if the buyer is buying the home from a person who is legally able to sell the property.
2. Complete additional title search to reveal any judgments or liens against the property.
3. Determine chain of title; this work involves looking for possible unseen claims to the title of the house.
4. Provide title insurance, which is often required by the lending institution. Title insurance ensures the new buyer will hold a proper and legal claim to the title of the property.
5. Work closely with a California escrow company so that neither the seller nor buyer can claim the money was mismanaged or used for other purposes than closing the deal.
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