Title (insurance) company

A company that confirms the legal owner of a property, as well as insures a home owner and lender against a loss that could result from a title dispute

Before the closing date of your home’s purchase or sale, a title company will search and collect all the public records of a property’s ownership. The title company checks these records to find out who the legal owner is and to see if there any claims against the property, such as mortgages, liens for unpaid property taxes, judgments and wills – anything that can effect the title (ownership). The title company will then give you a report outlining what it finds.

If there aren’t any problems (clouds) that need to be cleared up, the title company will provide the buyer and/or lender with title insurance. This is a one-time fee paid on the closing date to protect you against any loss that you might face if someone challenges your right to a property.

See: Title, Title search, Title insurance