What Does a Title Company Do for the Seller?

Sep 7, 2022

key house sold sign

While you may be familiar with title companies from your experience in buying your property, you might be less sure how they assist you as a seller. 

Just as they do for buyers, when handling real estate closings,  title companies are responsible for protecting the seller’s interests as well.  Unlike the benefits of a real estate agent, these services are typically not optional. If the buyer is using a lender, title insurance is ordinarily required before property titles are transferred from one owner to another, and in most situations, the seller will be asked to pay for a portion of the title insurance. That means you will need to be familiar with the title company handling the sale of your property. 

So, what does a title company do in the selling process

Reviewing and Validating Real Estate Contracts

A title company will ensure that any corresponding legal documents from the transaction are in good order. The transaction process can be complicated and wrapped up in plenty of red tape. It’s critical to mitigate the possibility of errors because a small mistake can result in a real headache down the line. Contracts are designed to enforce accountability and prevent fraud. 

Title companies will take care of that for you with their legal expertise. This isn’t the only measure title companies take to protect your interests, either. 

Investigating Title

The most important service the title company has to offer is an extensive title search. When it comes to your property’s title, there are public records of its transactional and legal history. Title companies employ experts that perform thorough searches of these records. These searches can turn up all kinds of issues that may or may not have been disclosed beforehand. 

These issues could include:

  • liens 
  • unpaid taxes 
  • contested ownership claims 

Far from an exhaustive list, these are the most common issues that can hold up or otherwise complicate a transaction. 

Once these issues are out in the open, it’ll be easier for you to quickly deal with them rather than have them blindside you later. This is important for both the buyer and seller. 


As mentioned above, there’s plenty involved in buying or selling a house. You can breathe a little easier though because your title company is also responsible for determining appropriate documents, filling them out, filing them, and serving them where appropriate. They’ll work to ensure everything is covered. 

Coordinating the Transaction

Because they’re responsible for serving those papers when and where they need to go, the title company will also be the primary coordinator of the title transfer itself. The title company will ensure everyone is on the same page with legal documents and the disbursement of funds. Because the title company is an independent third party, they keep relevant funds in escrow to ensure appropriate conditions are met before money changes hands. 

Title Insurance 

Naturally, the title company also provides the necessary title insurance to protect both the new owner’s title claim and the loan lender’s stake in the property. Title insurance is required to guard against the possibility of errors in the legal proceedings around title transfer, as well as to protect against issues that may emerge after the transaction is closed. 

Selling Property and Looking For Title Services?

Are you ready to sell your property and want to get started? Reach out to Heights Title for your title services today. We’ve got an experienced team of professionals ready to tackle the fine details so you can rest easy knowing you’re in good hands. 

This material is provided as a courtesy and for educational purposes only. Please consult your title professional for specific information regarding your situation.

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