When buying a home, you’ll work with a variety of professionals. There’s your realtor, your mortgage lender (psst, that’s us!), and your title agency.

But what exactly does a title agency do, and why are they essential to the home-buying process?

What Is a Title Agency?

A title agency is responsible for verifying that a home’s ownership history (title) is clear of issues before the sale is finalized. They ensure that the buyer receives legal ownership of the property without any unexpected claims or disputes.

But What Do They Actually Do?

Throughout the home-buying process, a title agency performs several key tasks, including:

✔ Title Search – Researches public records to confirm the seller has the legal right to sell the property.
✔ Identifying Liens or Claims – Ensures there are no outstanding debts, judgments, or disputes tied to the property.
✔ Issuing Title Insurance – Protects the buyer and lender from future ownership claims or undiscovered title defects.
✔ Preparing Closing Documents – Works with lenders, real estate agents, and attorneys to finalize legal paperwork.
✔ Handling the Closing Process – Ensures all documents are signed, funds are properly distributed, and ownership is legally transferred.

Why Title Agencies Are Awesome (In a Nutshell):

Without a title agency, buyers could unknowingly purchase a home with hidden ownership issues, unpaid debts, or legal disputes. Title insurance offers long-term protection, giving homeowners peace of mind.

But let’s not skip over an important question. How is a Title Agency assigned to you?

Who Chooses the Title Agency?

  • Buyer’s Choice – In many cases, the homebuyer selects the title agency, especially if they are paying for the owner’s title insurance policy.

  • Seller’s Choice – In some states or markets, the seller traditionally selects the title company and may cover the owner’s title insurance policy as part of the sale.

  • Lender’s Choice – If you’re using a mortgage, your lender may recommend or require a specific title agency to ensure their interests are protected.

  • Real Estate Agent’s Recommendation – Many buyers and sellers rely on their agent’s experience to choose a reputable title agency.

Can You Choose Your Own Title Agency?

Yes! Under the Real Estate Settlement Procedures Act (RESPA), buyers have the right to shop around and select their own title agency. However, some lenders may have preferred agencies they work with regularly.

If you have questions about how a title agency fits into your home purchase, we’d love to help answer any questions on your mind!