A title company is an organization that identifies any liens and issues with this important document, to create a smooth closing of the property as possible, while also ensuring the purchase is handled correctly.
Once the buyer has decided on the house he wants to buy, they go to closing, hire the best title services to do a title search.
Without this step, a person can end up buying a home, only to have the transaction slip by one of many possible complications. This could all be bad at closing when the time comes.
The purpose of the title search is to make sure the document is "free and clear." This means no debts owed on the property, including back taxes and liens of mechanics, as well as a second mortgage.
This is very important because, after the property is transferred to a new owner, the new owner is responsible for all of the debt associated with the house. Obviously, doing this type of search after the house has been purchased is not the way to go.
Once everything is checked, buyers will find themselves at the closing, where there is a large number of documents that must be done. Again, having a title company there can be very helpful, especially if the document gets confusing or queries arise.
Maximum of these companies are used to help sellers and buyers to jump over all the problems associated with the transfer of property.