The four jobs of a title company
- Title search: reads the public record to confirm who owns the property and what's attached to it
- Title insurance: issues owner's and lender's policies through an underwriter
- Escrow: holds earnest money and closing funds and pays everyone according to the contract
- Closing: prepares the settlement statement, runs the signing and records the deed and mortgage
What a title company doesn't do
It doesn't represent the buyer or the seller, give legal advice, negotiate the deal, appraise the home or inspect it. It follows the contract and the lender's instructions.
Who chooses the title company?
In Kansas, the purchase contract usually names it, and it's often chosen by the buyer and seller with their agents' input. A buyer is entitled to shop for title services, and a seller can't require a buyer to buy title insurance from a particular company as a condition of the sale.
Common questions
What's the point of a title company?
To make sure the buyer gets clean ownership, the lender gets a valid lien, and the money goes where the contract says, with insurance behind it.
Does the title company matter?
Yes. Responsiveness, accuracy and how well they clear title problems decide whether you close on time.
Can a title company do a closing?
Yes. In Kansas and Missouri, title companies commonly conduct residential closings.
Why would someone go to a title company?
To buy, sell or refinance property, to get title insurance, or to check what's recorded against a property.