FAQs

Answers for You

Welcome to our FAQ section!
Whether you're a current or prospective customer or client, you’ll find answers to the most common questions right here. If you don’t see what you’re looking for, feel free to reach out — we’re always happy to help.

What are title companies used for?

People use title companies in real estate—whether for residential, commercial, or land/building transactions—to ensure a safe and legally sound property transfer. Here's why they are important:

🔍 1. Title Search

Title companies research the property's history to make sure:

The seller legally owns the property.
There are no outstanding liens, unpaid taxes, or legal claims that could affect the buyer.

🛡️ 2. Title Insurance

They provide title insurance, which protects buyers and lenders from:

Hidden issues that weren’t found in the title search (e.g., forgery, undisclosed heirs, or recording errors).
Potential legal costs if title problems arise after the purchase.

📝 3. Closing Services

Title companies often handle the closing process, including:

Coordinating paperwork.
Managing escrow accounts.
Ensuring all funds are properly distributed.

🧾 4. Legal Compliance

They ensure the transaction follows all local, state, and federal laws—reducing the risk of future legal issues.

What is the most common reason that people use title companies for?

The most common reason people use title companies is to ensure a safe and legal transfer of property ownership during a real estate transaction. Title companies verify that the seller has the legal right to sell the property and that there are no legal issues (like liens or claims) that could affect the buyer.

Most Common Transactions:

Home purchases (residential real estate)
Commercial property purchases
Land purchases
Refinancing a mortgage

In all of these, the title company conducts a title search, issues title insurance, and often handles the closing process.

✅ In short: Title companies are most commonly used in home and commercial property purchases to protect both buyers and lenders from ownership disputes and title problems.

Do buyers and seller have to use a title company?

Not legally required in all cases, but highly recommended—and often required by lenders.

Here's the breakdown:

✅ *When title companies are typically required:

If there’s a mortgage involved: Lenders almost always require a title search and title insurance, which a title company provides.
In most standard real estate transactions: Especially with realtors or formal contracts, a title company is used to handle the closing and ensure everything is legally sound.

❌ When it’s not legally required:

Private sales (cash deals): In some states, buyers and sellers could technically transfer ownership without a title company, especially if it’s a private sale and paid in cash. But this is risky without a proper title search or legal protections.

Why most people use them anyway:

To avoid legal issues (like buying a property with unpaid taxes or ownership disputes)
To get title insurance
To handle escrow and closing paperwork

🏡 Bottom line: You don’t always have to use a title company, but skipping one can put your investment at serious risk.