The integrity of any real estate transaction fundamentally relies on the functions of the title and escrow companies. These entities are not merely administrative; they are critical in. guaranteeing legal security and efficiency. A title company is responsible for conducting a thorough search to confirm the property’s title is unencumbered by liens or legal disputes. Furthermore, they issue title insurance, offering essential protection for the buyer against future claims to ownership.
The escrow company operates as a neutral fiduciary, safeguarding all transaction funds and documents. Their role is to execute the terms of the purchase agreement, minimizing risk, preventing fraud, and ensuring a legally compliant and smooth closing process for all principals.