A title company helps move a real estate transaction from signed contract to completed closing. Its role typically includes researching the property’s title, identifying title requirements, handling eligible escrow funds, coordinating closing documents, issuing title insurance, completing the signing process, and submitting applicable documents for recording.
For buyers and sellers, the title company becomes one of the main points of coordination between the contract and the transfer of ownership.
Here is what that work actually looks like.
What Is a Title Company?
A title company is involved in verifying and insuring ownership interests in real estate while coordinating many of the financial and administrative steps needed to close the transaction.
In a typical Florida purchase, the title company works with:
- Buyers & Sellers
- Real estate agents
- Mortgage lenders
- Title insurance underwriters
- Homeowners or condominium associations
- Mortgage payoff providers
- Other authorized transaction parties
Its job is not simply to host a signing. Much of the work happens before anyone arrives at the closing table.
1. The Title Company Opens the Closing File
Once the executed purchase contract is received, the closing team opens the transaction file and begins reviewing the information needed to move forward.
That may include:
- Property information
- Buyer and seller details
- Purchase price
- Closing date
- Earnest money instructions
- Financing information
- Existing mortgage information
- Association details
Opening the file early gives the title team more time to identify missing information and begin the title process.
2. It Performs a Title Search
One of the title company’s most important responsibilities is researching the property’s recorded ownership history.
A title search may identify matters such as:
- Existing mortgages
- Recorded liens
- Judgments
- Ownership discrepancies
- Probate-related matters
- Errors in prior deeds
- Easements
- Recorded restrictions
The purpose is to identify title requirements that may need to be addressed before the applicable title insurance policy can be issued.
A title search does not replace a home inspection, survey, municipal search, or legal review. Those processes examine different aspects of the property and transaction.
3. It Coordinates the Title Commitment
After the applicable title examination and underwriting review, a title commitment may be issued when title insurance is part of the transaction.
The commitment identifies the proposed title insurance coverage along with applicable requirements, exceptions, and conditions.
For buyers, it is an important document because it can show what needs to happen before the final title policy can be issued.
For example, a requirement may involve:
- Paying an existing mortgage
- Obtaining a lien release
- Confirming ownership authority
- Providing estate or entity documentation
- Recording the new deed or mortgage
Not every requirement is necessarily completed before signing. Some are satisfied through the closing and recording process.
4. It Handles Escrow Funds
A title company may also act as the escrow agent for an eligible real estate transaction.
Escrow can include:
- Earnest money deposits
- Buyer closing funds
- Lender proceeds
- Mortgage payoff funds
- Other authorized transaction funds
The escrow agent holds and disburses funds according to the applicable contract, closing instructions, and settlement documents.
This neutral role is important because significant amounts of money may pass through the closing process.
5. It Coordinates Mortgage Payoffs and Liens
When a seller has an existing mortgage, that loan generally needs to be addressed as part of the sale.
The closing team may request payoff information from the lender and incorporate the applicable amount into the settlement figures.
Other title requirements can involve:
- Recorded judgments
- Tax liens
- Association balances
- Existing mortgages
- Other outstanding claims
When an issue appears, the title company coordinates with the appropriate parties to obtain the documentation needed for the file.
Some problems may require assistance from a Florida real estate attorney or another professional.
6. It Coordinates With the Buyer’s Lender
For financed transactions, the title company and mortgage lender work closely together as closing approaches.
The title company may coordinate:
- Title commitment requirements
- Lender title insurance
- Loan documents
- Settlement figures
- Funding instructions
- Recording requirements
The lender has its own conditions that must be satisfied before loan funds are released, so communication between the lender and closing team is a major part of a financed purchase.
7. It Helps Prepare the Closing Figures
Before signing, the parties receive documents showing the financial side of the transaction.
Depending on the transaction, the figures may include:
- Purchase price
- Earnest money credit
- Mortgage proceeds
- Seller payoffs
- Property tax adjustments
- Title insurance premiums
- Recording charges
- Settlement fees
- Association-related charges
- Other contractually allocated costs
For financed purchases, the lender also provides the required Closing Disclosure under applicable lending requirements.
Buyers and sellers should review their figures before closing and ask questions about charges they do not recognize.
8. It Coordinates Title Insurance
Title companies commonly issue or coordinate title insurance through authorized title insurance underwriters.
There are two main types.
Owner’s Title Insurance
An owner’s policy protects the insured buyer’s ownership interest against certain covered title risks under the terms of the policy.
Examples may involve covered defects arising from prior ownership, liens, forgery, or other insured title matters.
Lender’s Title Insurance
A lender’s policy protects the insured mortgage lender’s interest.
It does not provide the buyer with the same protection as an owner’s policy.
The responsibility for title insurance costs depends on the purchase contract and transaction terms.
9. It Coordinates the Signing
Once the closing conditions and documents are ready, the title company coordinates signing.
Depending on the transaction, lender, underwriter, document type, and signer eligibility, closing options may include:
- In-office signing
- Mobile closing
- Mail-away signing
- Remote Online Notarization when eligible
- Mobile notary coordination
The closing team confirms where signatures are required and coordinates applicable identification and funding requirements.
Need a mobile closing or remote online notarization? Click here
10. It Verifies Funds and Disburses the Transaction
Closing does not end simply because the documents have been signed.
Before authorized funds are released, the closing team may need to confirm:
- Required signatures
- Buyer funds
- Lender funding
- Applicable title requirements
- Payoff information
- Closing authorization
After the transaction is approved for disbursement, funds are distributed according to the final settlement instructions.
Because real estate wire fraud is a serious risk, buyers and sellers should verify wiring instructions directly with the closing company using a trusted phone number before transferring money.
11. It Records the Property Documents
After the applicable closing requirements are met, documents such as the deed and mortgage are submitted for recording in the county where the property is located.
Recording creates the official public record of the transaction.
The closing team may then complete applicable post-closing work and coordinate issuance of the final title insurance policies.
What Does a Title Company Do for Buyers?
For a buyer, the title company helps coordinate the transaction between the signed contract and ownership transfer.
Buyer-related services may include:
- Title research
- Earnest money escrow
- Owner’s and lender’s title insurance
- Lender coordination
- Closing cost figures
- Signing arrangements
- Recording
The title company also provides an important point of contact when questions arise about the closing process.
What Does a Title Company Do for Sellers?
For sellers, the closing team may coordinate:
- Existing mortgage payoffs
- Title requirements
- HOA or condominium information
- Seller settlement figures
- Signing
- Proceeds disbursement
- Recording
Providing mortgage, association, ownership, trust, estate, or entity information early can help reduce delays later in the transaction.
What a Title Company Does Not Do
A title company plays a major role in the real estate closing, but its role has limits.
Serving as the title or closing company does not automatically mean the company represents the buyer or seller as legal counsel.
A qualified Florida real estate attorney should be consulted when a party needs help with matters such as:
- Legal interpretation of a purchase contract
- Contract negotiation
- Ownership disputes
- Deposit disputes
- Probate litigation
- Boundary disputes
- Quiet title actions
- Custom legal agreements
The title company and an independently retained attorney can both be involved in the same transaction when necessary.
Frequently Asked Questions
Does a title company own the property before closing?
No. A title company coordinates title and closing services but does not take ownership of the property simply because it is handling the transaction.
Is a title company the same as an escrow company?
Not exactly. Escrow is one function a title company may provide. A title company can also coordinate title searches, title insurance, settlement, signing, recording, and other closing services.
Does the title company perform the home inspection?
No. A home inspection examines the physical condition of the property. The title company focuses on title, escrow, insurance, and closing matters.
Who chooses the title company?
The purchase contract determines who selects the closing or title provider and how title-related expenses are allocated. Transaction practices can vary, so buyers and sellers should review their executed agreement.
When should the title company receive the contract?
Generally, the closing file should be opened soon after the contract is executed. Starting early gives the title team more time to complete the applicable research and identify closing requirements.
Does the title company give me the keys?
Key delivery is typically coordinated according to the purchase contract and arrangements between the transaction parties. Signing documents does not necessarily mean the buyer can immediately take possession.
One Team From Contract Through Recording
A title company sits at the center of many of the moving parts behind a real estate closing.
Title Company of Florida coordinates title searches, title insurance, escrow, settlement services, signing, recording, and closing support for buyers, sellers, lenders, real estate agents, and investors throughout Florida.
Already have a signed contract? Send us the transaction information so the closing process can begin.
ORDER TITLE ONLINE
REQUEST A CLOSING QUOTE