The Role and Function of a Title Company

Posted by Linda Hudson on January 30th, 2018

You must have heard about title companies and title insurance at some point in your life. But, do you fully understand the role of a title company? How can you work the best with a title company? What should you expect while working with one of them? How do they help in a real estate purchase or sale?

Let us find the answers to all these questions.


When a contract for either purchase or sale is signed by both parties including buyer and seller, the real estate agent or any one of the parties submits contract and money check to a title company.


A title company issues a receipt of the contract and sends a copy to each party involved in the deal. The company usually include a cover letter with the name of the closing agent, their contact information GF (guarantee file) number. GF number is used to identify the file, and it is used whenever any one of the party has to contact the closer. This process of setting up a working file for the transaction is typically referred to ‘opening title’ and is the first step to close the sale and issue a policy involved in a title company’s work.


A closer’s job is to communicate with all the parties involved in a real estate sale, including buyers, seller, and lender, and request a survey if required. Their responsibility also includes request tax statements, collects the required documents, prepares a settlement statement and does the closing. The closing is a meeting of every party when the transfer and loan documents are signed.

Title search

As soon as the title company opens the title, it conducts a title search and issue title insurance commitment which is sent to both buyer and seller. It is important for the buyer to carefully review the title commitment as it discloses defects (if any) in a title. It typically shows any easements, deed restrictions, lines on the property, people who have shown interest in the property. If the buyer has any objection to any entry on the commitment, s/he must submit it within a certain period. If the buyer doesn’t object timely, the defect is waived. Thus, it is important for a buyer to promptly review the commitment and raise any objections if they have.

Now, you must have gone the role and function of a title company and title insurance.

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Linda Hudson

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Linda Hudson
Joined: July 26th, 2016
Articles Posted: 176

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