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Title Company
A title company is an entity that specializes in clearing titles to real property and providing title insurance to buyers. During the sale process, title companies work closely with real estate agents, loan officers, lenders and customers to research any claims on the title of the property about to be sold. Title companies first investigate the title or property deed to make sure it is valid. Once the validity of the title is established, title companies research any liens or encumbrances on the property that need to be satisfied before a sale can be completed. In the event a lien or encumbrance is discovered, title companies often facilitate a solution to the problem. Most title companies are involved in the closing process of a real estate transaction, and they often disburse funds to the appropriate parties at the end of the sale.