The title company performs the title search, manages escrow, and coordinates the closing process. In Texas, the seller typically selects the title company, which acts as a neutral third party to protect both buyer and seller throughout the transaction.
The title company ensures that the property title is clear and that all funds and documents are properly handled at closing.
Title Search
The first step is a thorough title search. The title company examines public records to verify that the seller has legal ownership and that there are no liens, judgments, easements, or other encumbrances that would prevent a clean transfer. The search goes back through the chain of title to ensure every past transfer was properly recorded.
Escrow Management
The title company acts as the escrow agent, holding all funds and documents until both parties have met their obligations. The buyer's earnest money deposit is held in escrow. The title company coordinates with the buyer's lender to ensure loan funds are ready. They prepare the settlement statement showing all financial details of the transaction.
Closing Coordination
At the closing, the title company coordinates the signing of all documents, collects remaining funds, and ensures the deed is properly executed and notarized. After closing, they record the deed with the county, disburse funds to the seller, pay off any existing mortgages, and issue the title insurance policy. The entire process ensures a smooth transfer of ownership.
As your agent, I work closely with the title company to ensure deadlines are met and the closing proceeds smoothly.
