What a Title Company Does

Title Search

The title company searches public records going back decades to identify any issues with the property's ownership history — liens, judgments, easements, ownership disputes, or errors in prior deeds. This ensures the seller has the legal right to sell and the buyer will receive clear title.

Title Insurance

Title insurance protects against title defects that weren't discovered in the search. There are two types:

• Owner's title insurance — Protects the buyer against future claims on the property
• Lender's title insurance — Required by most mortgage lenders; protects the lender's interest

Title insurance is a one-time premium paid at closing. In Florida, the seller typically pays for the owner's title insurance policy.

Escrow Services

The title company holds the buyer's earnest money deposit and the sale proceeds in escrow until all closing conditions are met. At closing, they disburse funds to the seller, pay off the mortgage and any liens, and distribute proceeds per the closing statement.

Closing Coordination

The title company prepares all closing documents, coordinates with the buyer, seller, lenders, and real estate agents, and ensures all conditions are met before closing. They also record the deed with the county after closing.

Who Chooses the Title Company?

In Florida, the seller typically chooses the title company (since the seller pays for the owner's title insurance). However, this is negotiable. Cash buyers often have preferred title companies they work with regularly.

What to Expect at Closing

At closing, you'll review and sign the closing disclosure (a detailed breakdown of all costs and proceeds), the deed, and other transfer documents. The title company disburses funds and records the deed — typically the same day or the next business day.