What is a key function of a title company in real estate transactions?

A title company's primary role in real estate transactions is to conduct title searches and provide title insurance. This is crucial because the title search helps ensure that the property being sold has a clear title, meaning there are no liens, encumbrances, or legal claims against it that could affect ownership. By verifying the title's status, the title company protects both the buyer and the lender from potential future disputes regarding ownership.

In addition to conducting title searches, a title company also provides title insurance. This insurance safeguards the buyer and the lender against any unforeseen issues that might arise after the purchase, such as undiscovered claims against the property or errors in public records. Therefore, the title company plays a vital role in instilling confidence in the transaction by ensuring that the buyer is obtaining a good and valid title to the property.