Title company
A company that searches title, issues title insurance and often handles closing and escrow. In attorney states, a lawyer may run the closing while the title company provides the policy.
Also called: title agency, title office
Related terms
A review of public records to confirm who owns a property and find liens, easements, judgments or other problems. Its results go into the title commitment before closing.
A one-time policy that covers losses from title problems missed by the search, such as forgery or unknown heirs. Lenders require a lender's policy; the owner's policy protects the buyer. Who pays varies by state and local custom.
The neutral party who holds funds and documents, follows the written instructions of buyer and seller, and pays everyone out at closing. Depending on the state, this is an escrow company, title company or attorney.
A lawyer who reviews contracts, clears title issues and may run the closing. Some states require an attorney at closing; in others they are optional and hired for complex deals or disputes.
The final step of a sale, when documents are signed, money changes hands, the deed is recorded and the buyer gets ownership. In some states everyone signs at a table; in others signing and funding happen separately.