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

The role of a title company in real estate transactions primarily focuses on verifying ownership of the property. This involves conducting thorough research into public records to establish a clear chain of title, ensuring that the seller has the right to transfer ownership and that there are no existing liens, encumbrances, or unresolved claims against the property. By doing this, the title company protects both the buyer and the lender by ensuring that the title is clear and marketable, which is essential for a successful transaction.

Title companies provide title insurance based on this verification, which further safeguards against any future disputes over ownership that may arise after the sale is completed. This service is crucial because any issues related to title can lead to costly and complex legal challenges for the new owner.

In contrast, while overseeing the transaction process, evaluating property taxes, and assisting in financing are all important aspects of real estate transactions, they do not specifically define the core role of a title company. Instead, these tasks are typically handled by other professionals in the field, such as real estate agents, lenders, or closing attorneys. The unique focus on verifying and ensuring clear ownership makes the title company's role indispensable in the real estate transaction process.