Title Company Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Title Company, written in plain English, along with examples of how it is used.
What is Title Company?
A company that supplies title insurance.
History and Meaning of Title Company
A title company is a firm that assists in the transfer of real estate ownership from a seller to a buyer. The company conducts a title search to ensure that there are no outstanding liens, unpaid mortgages or other encumbrances on the property. They also offer title insurance, which protects the buyer from any potential claims against the property. Title companies can be involved in both residential and commercial real estate transactions.
Title companies originated in the late 1800s in the United States, as a response to the need for a reliable way to transfer real estate ownership. Before title companies, buyers had to do their own research to ensure that there were no issues with a property's title. However, this was often a risky and time-consuming process, as well as an obstacle to buying and selling real estate. With the development of title companies, buyers and lenders had a trustworthy third party to handle the title search and insurance process.
Examples of Title Company
Jane is buying a house and needs to schedule a title search with a title company to ensure that there are no outstanding issues with the property's ownership.
The attorneys in a commercial real estate transaction agree on a title company to handle the title search and insurance for the property.
Mark bought title insurance from a title company when he purchased his home, and later discovered a lien against the property. The title insurance covered the costs and he was able to clear the lien.
Legal Terms Similar to Title Company
Title search: The process of reviewing public records to verify a property's ownership and any potential liens or encumbrances.
Title insurance: An insurance policy that protects a property owner and lender against potential claims against the property's title.
Closing agent: The party responsible for managing the final stages of a real estate transaction, including the transfer of funds and documents, and ensuring that all parties sign necessary paperwork.