What Is Title Company?
Title Company: A company that researches ownership records, issues title insurance and often handles closing.
A title company researches a property's ownership history, issues title insurance, and in many states also acts as the escrow agent for closing.
Choosing a title company
Depending on the state and contract, the buyer or seller may choose it. Your Loan Estimate lists title services you're allowed to shop for, and fees for providers you choose yourself aren't subject to the same limits on increases.
What they charge
- Title search and examination
- Lender's and owner's title insurance premiums (regulated by the state in many places)
- Settlement or escrow fee
- Document preparation and recording service fees
Good to know
Title companies are a prime target for wire fraud impersonation. Always confirm wiring instructions by calling a number you've verified.