Title Companies: What Are They, and What Do They Do?

December 6, 2022

A title company has a crucial role in real estate deals. Most individuals have a general idea of what a home inspector or realtor does, but they may not be as familiar with title companies and their uses.

Families and individuals looking for the best title company in Utah might reach out to one of these entities and have a much smoother process when the time comes to purchase a house. But what precisely is a title company, and what can one do for you?

We’ll explain why these businesses exist and their primary function in the following article.

What Exactly is a Title Company?

A title company is a third party that works on behalf of a property’s potential buyer and the entity selling it. The title company has resources they use to figure out whether the would-be seller is legally able to sell the property to the prospective buyer.

Why would a seller not be able to sell to a buyer? There are many reasons, but one of the most crucial ones, from a legal standpoint, is if the would-be seller does not have the legal right to sell to the buyer because they don't have the title to the property free and clear.

What Can a Title Company Do for a Property’s Buyer and Seller?

Many times, a seller will not be able to sell a property because another entity has a lien on it. A lien is a right held by a third party to hold up the sale of that property until the owner has settled a monetary debt with the party holding the lien.

One of the most vital things a title company does is to unearth any liens that might potentially hold up the property’s legal sale. Until such a lien is discharged, the deal cannot go through.

Title companies will research a property before a sale can be put into motion. They are able to see who owned that property in the past, and they can see who legally owns it now. It’s not impossible that someone who doesn’t own the property free and clear might try to sell it if they’re unscrupulous and trying to make a quick buck.

Title Companies Play a Pivotal Role

A title company works for both the property’s seller and buyer. Any time you try to buy or sell a property without getting a title company to do some research on it first, you’re taking a considerable risk.

In addition to finding out who owns the property and whether there are any liens on it, the title company will also get a detailed description of that property. That description should be to the satisfaction of both the seller and buyer.

Basically, a title company’s job is to make sure there is nothing to potentially hold up a deal before a property changes hands. Hiring a title company is a way for both a seller and buyer to do their due diligence before the sale moves forward.


Carlos Diaz
I believe in making the impossible possible because there’s no fun in giving up. Travel, design, fashion and current trends in the field of industrial construction are topics that I enjoy writing about.

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