Title companies play an essential role in facilitating the completion of property sales. Many buyers and sellers don't know enough about the services these companies provide. In this article, we'll shed some light on the work title companies do. We'll focus specifically on highlighting important matters that you should know as you conduct business with them.

1. Title Companies Protect Both the Buyers and Sellers

The main task that title companies perform involves researching property titles. They look at the property's chain of title, create an abstract of the title, review data from previous property surveys, and even manage escrow. Think about how those tasks help both buyers and sellers.

From a buyer's standpoint, the work done by the title company can help them gather all the information they need before deciding on the property. If the research performed by the title company doesn't turn up anything unusual, they can feel good about moving forward with the purchase. On the other hand, sellers can ask for a higher offer after the title search reveals no issues. Both sides can benefit from the involvement of the title company, so they should be looped into the transaction.

2. Title Companies Aren't the Ones Forcing You to Purchase Title Insurance

According to Value Penguin, the title insurance industry's business amounted to $19 billion back in 2020. While working with a title company, you will eventually be presented with the opportunity to purchase title insurance. For the most part, there are no laws that require home buyers to also purchase title insurance. However, your lender may require you to purchase that plan if you want to get your loan approved.

By the way, title insurance protects you if someone places a legitimate claim on your home after you've already purchased it. The title search may have missed that claim, but the title company will handle that mess if you have insurance. Also, title insurance is something you'll only have to pay for once. That's just another thing to keep in mind while you're evaluating its importance.

3. The Buyer Doesn't Always Have to Choose the Title Company

Most of the time, the buyer is the one who chooses the title company. That's mainly because the buyer is also the one paying for their services. A seller could still request to pick a title company they're already familiar with. They are just expected to help pay for the title company's services in that case.

Title companies can help make the home-buying process significantly easier. They can also save you from potential headaches down the line. Contact E & E Settlement Services today if you have any questions!