If you’re buying or selling a home, you’ll likely come across the term “title company” during the process. In your search for title services, you could just Google “house title company near me,” but you want a trusted company with a solid track record so you can avoid detours and dead ends on your real estate journey.
So how can you find a reliable title company near you? Whether you’re a first-time buyer or a seasoned seller, understanding what a title company does and how it protects your transaction is key to avoiding costly surprises.
In this unsponsored guide, we’ll break down the essentials about title companies, their services, and how to choose a good one that fits your needs.
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What is a title company?
A title company is a third-party organization that facilitates the transfer of property ownership from a seller to a buyer. Its primary role is to ensure the property title is clear and free of any legal issues, such as liens or disputes. By confirming ownership and addressing potential roadblocks, a title company helps to provide peace of mind for both buyers and sellers.
What does a title company do?
Title companies handle several critical tasks during a real estate transaction, including:
- Title search: They research the property’s history to confirm the seller has the legal right to transfer ownership.
- Resolving title issues: If any disputes or claims are uncovered, the title company works to resolve them before closing.
- Facilitating the closing process: Title companies often manage the paperwork, distribute funds, and ensure all legal requirements are met.
- Issuing title insurance: They provide policies to protect buyers and lenders from future claims against the property.
Info box: title vs. deed
Although often used interchangeably, a title and a deed are not the same.
- Title: Refers to the legal rights of ownership over a property. It’s not a physical document but rather a concept of ownership.
- Deed: A physical document that officially transfers ownership of the property from one party to another.
What issues might a title company uncover?
Title companies are trained to identify and address potential problems that could disrupt a home sale. Common issues include:
- Existing liens or unpaid debts tied to the property
- Ownership disputes or unclear property boundaries
- Errors in public records, such as incorrect names or legal descriptions
- Missing or improperly executed documents in the property’s history
- Illegal, forged, or fraudulent deeds
- Property boundary discrepancies or encroachments
- Claims from unknown or missing heirs
How do I find a good house title company near me?
Below are some recommended steps to assist in your quest to “find a house title company near me” and hire with confidence.
1. Identify more than one title company
- Ask for referrals: Reach out to your real estate agent, lender, or attorney for recommendations. These professionals often have longstanding relationships with reputable title companies.
- Search online: You can search terms like “house title company near me” to find options in your area, but you’ll want to look beyond their own web pages to vet the company. (More on this below.)
- Check state and local directories: Many states maintain directories of licensed title companies. Local real estate organizations may also have listings.
- Talk to recent buyers and sellers: Friends, family, or colleagues who have recently completed a real estate transaction can share their experiences and point you toward trustworthy title companies.
Once you’ve identified a few title companies, now you can narrow down your options. Look for qualities and services that align with your needs and priorities. Here’s how to evaluate your choices:
2. Research the company’s experience and reputation
- Read reviews and testimonials: Read reviews on platforms like Google, Yelp, or the Better Business Bureau to gauge their reputation. Positive feedback from clients can provide insight into their reliability and service quality.
- Look for experience with your type of transaction: Some title companies specialize in certain types of real estate transactions, like residential or commercial properties.
- Check association memberships: Ask the company if it is a member of a recognized national association, such as the American Land Title Association (ALTA), or a state group, such as the Land Title Association of Arizona.
3. Decide if you want a local or national company
Several reputable national title companies offer reliable products and services. However, you may prefer a local company. A locally owned and operated title business may offer advantages. Their employees will likely know the local real estate market, and you’ll be supporting people who live and work in your community.
A smaller company may also provide more personal service and quicker response times because decision-making often happens locally. On the other hand, a smaller title company may not have as many online or technology options, such as apps and 24-hour access to documents and progress updates.
According to the personal finance website ValuePenguin, the largest title insurance companies in the United States by market share include:
- First American Title (22%)
- Old Republic National Title (15%)
- Fidelity National Title: (13%)
- Chicago Title: (13%)
- Stewart Title Guarantee: (9%)
- Westcor Land Title (4%)
- Commonwealth Land Title (3%)
- Title Resources Guaranty (3%)
- WFG National Title (2%)
- North American Title (2%)
4. Questions to ask a title company
Before committing, consider asking these questions to ensure you’re working with a knowledgeable and responsive team:
- How long have you been in business, and are you locally or nationally owned?
- How much experience do you have with transactions like mine?
- What steps do you take to resolve title issues that arise during the process?
- Do you provide a breakdown of costs upfront?
- How will you communicate updates throughout the transaction?
- When and how are you accessible, and what are your typical response times?
- What title insurance policies do you offer, and what do they cover?
5. Compare pricing and services
Title company fees can vary, so it’s a good idea to request quotes from several companies. Be sure to review their fee structure and ask for a clear breakdown of costs. While pricing is important, don’t let it be the only deciding factor — quality service and attention to detail are worth a slightly higher fee.
How much do title company services cost?
The cost of title company services can vary depending on factors like the property’s location, sale price, and the specific services needed. Typically, these costs include title search fees, closing costs, and title insurance premiums. Here’s a breakdown of common expenses:
- Title search fees: These fees cover the investigation into the property’s ownership history and potential issues. A typical title search costs between $100 and $250, however, a full ownership and encumbrances report can cost you up to $1,000.
- Closing fees:Title companies often handle closing tasks like document preparation, notarization, and fund disbursement. Closing fees, which can also be called title settlement fees, usually range between $500 and $2,500.
- Title insurance premiums: Title insurance protects buyers and lenders from future claims against the property. This one-time fee averages about 0.42% of a home’s total purchase price. For example, you may pay a $1,260 title insurance fee on a $300,000 house.
Outside of these three main title company fees, you might also pay attorney fees (required in some states) which typically cost $150 to $400 per hour. You may also need to pay abstract or recording fees, which can cost from $125 to $400. Your title company should provide a clear estimate of costs early in the process so you know what to expect.
Who pays the title company?
Responsibility for title company costs varies by location and the terms of the real estate transaction. In most cases:
- Buyers: Often pay for the lender’s title insurance policy and may cover closing costs.
- Sellers: Typically pay for the owner’s title insurance policy, which protects the buyer. Sellers may also cover title search fees in some cases.
However, these costs are negotiable, and the specifics will depend on the terms of the purchase agreement and local customs. It’s essential to clarify who pays for what during negotiations so there are no surprises at closing.
What is title insurance?
Title insurance is a one-time purchase that protects buyers and lenders from financial loss due to title issues. It’s an essential safeguard in real estate transactions, ensuring that you won’t be held financially responsible for problems that arise after closing. There are two main types:
- Owner’s title insurance: Protects the buyer’s investment by covering claims from undisclosed heirs, unpaid taxes, or other ownership disputes.
- Lender’s title insurance: Required by most mortgage lenders, this policy protects the lender’s interest in the property.
While it’s uncommon, title disputes can still occur even after a thorough search. Title insurance provides peace of mind, shielding you from costly legal battles and unexpected liabilities.
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FAQs on a house title company near me
While not mandated by law, working with a title company is typically required by mortgage lenders as a condition of issuing you a home loan. They ensure the title is clear, manage closing tasks, and provide title insurance to protect all parties.
A title company cannot directly remove a lien, but they identify liens during the title search and guide the seller on how to resolve them, such as paying off debts or negotiating with lienholders.
Title companies typically need the purchase agreement, government-issued IDs from buyers and sellers, mortgage payoff statements, proof of insurance, and any prior title documents. They may request additional paperwork based on the property’s history.
While their roles overlap, they are not the same. Title companies focus on verifying and insuring property ownership, while escrow companies manage funds and documents during the transaction. Some title companies also offer escrow services.
For sellers, the title company clears the title, ensures liens are addressed, prepares closing documents, and distributes proceeds after the sale. They also facilitate a smooth handoff of ownership.
If a title company makes an error, such as missing a lien or ownership dispute, title insurance can cover the financial impact. Without insurance, you may need to resolve the issue through legal action.
A top agent can recommend a good title company
Choosing the right title company is just one step in your home-buying or selling journey, and the guidance of a top real estate agent can make all the difference. Experienced agents have worked with trusted title companies in your area and can connect you with professionals who’ll ensure a smooth transaction.
HomeLight’s free Agent Match platform can help you find a top agent near you. With the right agent by your side, you’ll gain access to the best local resources, including reliable title companies.
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