Category: Informational

Most people think of a title company as a vendor that shows up at closing. Maybe they send someone with a stack of documents. Maybe they handle escrow. Most buyers don’t really know who they are, what they do, or why they’re involved.

That’s a problem. The title company isn’t just handling paperwork. They’re clearing the legal path to your new home. They’re also the only party in the transaction that isn’t working for just one side. They don’t answer to the buyer, the seller, or the agent. They answer to the deal.

Here’s what a title company actually does, why it matters, and how to make sure the one on your file knows what they’re doing.

They Confirm the Property Is Actually Sellable

Before anything else can happen, the title company runs a title search. That means researching the legal history of the property—every sale, every lien, every recorded claim. If something is missing or inaccurate, the deal can’t move forward.

If the seller never discharged a second mortgage from a prior refinance, the title company will catch it. If a contractor filed a lien five years ago and never got paid, they’ll find it. If a previous owner transferred the property through a deed that doesn’t meet legal standards, they’ll flag it.

The goal is to make sure the seller actually owns what they’re selling and that no one else has a legal right to it.

For more on what title services cover, read the Pillar Blog: What Are Title Services?

They Fix Problems Before They Become Yours

A good title company doesn’t just find issues. They fix them.

That might mean paying off a lien, correcting a legal description, or getting proof that an old mortgage was satisfied. It often means coordinating with lenders, attorneys, and municipal offices to get the documentation required to clear the file.

This is the part most buyers never see. It’s also the part that separates a competent title company from a paper mill. If they don’t resolve title defects the right way, those issues can carry over to you.

If you’re unsure what that looks like post-sale, read Understanding Title Insurance

They Prepare the Legal Paperwork for Closing

Once the title is clear, the company prepares the closing documents. This includes the deed, closing disclosure, title affidavits, and loan paperwork. Every signature must match. Every number must balance. Every condition must be met.

If anything is off—names, dollar amounts, dates—the lender won’t fund. If the funding doesn’t happen, the deal doesn’t close.

They Handle Escrow and Disbursement

The title company holds and distributes all the money. That includes your wire, the lender’s funds, the seller’s proceeds, the agent commissions, the tax payments, and any third-party bills.

After closing, they issue payments to everyone involved. If they miscalculate or send funds late, people don’t get paid, documents don’t release, and legal exposure increases.

Escrow handling isn’t clerical. It’s financial execution. The title company is the one entity with control over the entire transaction’s money flow.

They Record the Transfer With the County

You don’t own the property until the county says you do. That happens after the title company submits the signed documents for recording.

If anything is missing, incorrect, or formatted wrong, the file gets rejected. In Florida, that happens more than you’d think. Counties vary, standards change, and turnaround times shift. A good title company gets it right the first time.

For a closer look at that timeline, read What Happens on Closing Day

They Manage the Entire Deal

The title company is the only party watching every moving piece. They track documents, coordinate signatures, update agents, chase down lenders, verify wire transfers, and close the loop with the county.

They don’t just process. They project manage. They quarterback. They keep the deal from collapsing under delay or error.

They Are Not All the Same

Just because someone is licensed to issue title doesn’t mean they’re good at it.

Some title companies outsource the essential parts of their process. Others rely on offshore processors with no local experience. It’s common to find teams that disappear for days at a time, or that work fast but cut corners. Even local companies can feel unprepared if they’re under-resourced or operating with limited staff.

Choosing the right one isn’t just a formality. It’s one of the most important decisions in the transaction.

Not sure where to start? Read How to Choose a Title Company

Final Thoughts

The title company isn’t an afterthought. It’s not an accessory. It’s the one group that keeps the legal, financial, and procedural components of the sale aligned.

When they’re good, you don’t even notice them. When they’re not, they’re the only part of the deal you’ll remember.

If you want a closing run like it matters, talk to us

If you want to check the numbers before you commit, use the rate calculator

Most buyers don’t choose their title company. They default to whoever the agent recommends. Sometimes that works out. Other times it creates delays, miscommunication, or worse—title issues that don’t show up until it’s too late.

This isn’t just another service provider. This is the group responsible for validating ownership, clearing title, holding your money, and recording the deal. If they fail, the transaction fails.

Here’s how to evaluate your options and choose a title company that treats the deal like it matters.

Understand What They’re Responsible For

The title company coordinates the legal side of the closing. They perform the title search, issue the title commitment, prepare legal documents, hold escrow funds, and submit everything to the county for recording. Every signature, wire, and timestamp runs through them.

If they’re good, the process feels smooth. If they’re not, every task becomes a bottleneck. You may never even know what went wrong—you’ll just know that your deal is off track.

Still unsure what their role covers? Start with What Does a Title Company Actually Do?

Ask Who’s Actually Handling the File

You want to know if the file is being handled in-house or outsourced. Ask who’s doing the title search. Ask who’s preparing documents, verifying wire instructions, and clearing conditions. Find out if they’re licensed and where they’re located.

Some title companies push volume through a third-party network, often relying on non-local or out-of-state processors to handle details.

In one example, a seller’s prior mortgage wasn’t released correctly. The national title company never noticed because the team reviewing it didn’t recognize the formatting from that Florida county’s release documents. The deal failed to fund on time.

If the person handling your title search can’t tell the difference between a paid-off lien and an unreleased one because they’ve never seen your jurisdiction’s forms, they’re not the right company.

Look for Local Knowledge

Florida closings come with their own complications. Recording offices can reject a file for spacing, margin size, or missing municipal lien documentation. Homestead exemptions create additional legal and tax implications. Cities like Miami, Orlando, and Tampa all have different enforcement standards when it comes to deed formatting and pre-close reviews.

Ask which counties they serve most often. Ask how often their files are rejected at recording. If they can’t answer—or they avoid giving examples—you’re likely dealing with a company that isn’t built for your state.

We’ve seen local closings delayed because the deed template used was based on another state’s layout. The county clerk refused to record it, and the title company didn’t notice until three days after closing. That buyer had already moved in. Their ownership was still in limbo.

Test Their Communication

Title companies should be proactive about timelines. You need to know if your loan documents have been received, if disbursements are scheduled, and whether the municipal search came back clean. If you’re chasing updates, something is wrong.

A solid company assigns a specific closer or processor to your file. They send email updates at key milestones. You don’t get routed through a general inbox. You don’t have to guess who to ask.

Ask what their process is for updates. Ask what hours they respond. Ask whether the person answering your questions is the one managing your file.

If their answer is “someone will get back to you,” find someone else.

Evaluate Their Turnaround Time

You’re not asking for same-day processing. You’re asking for a clear timeline and evidence that they hit it. Ask how long it takes them to issue title commitments. Ask how quickly they turn around corrections. Ask how they deal with last-minute lender conditions.

It’s one thing to say “we’ll try.” It’s another to show how they’ve hit timelines on files just like yours.

We’ve worked with clients who lost their rate lock because a title company waited until the day before closing to start addressing title defects that were visible from day one. No one flagged it, no one followed up, and the buyer paid the difference.

Confirm Their Escrow Practices

Ask what system they use for verifying account numbers. Ask whether they confirm wire instructions by phone. Ask how they store or share sensitive data.

Wire fraud is a daily occurrence in the real estate industry. It happens when a hacker intercepts email instructions and changes the account details. The buyer wires funds to the wrong account, and the money is gone.

A legitimate title company should have a written policy for wire verification. If they don’t bring it up before you do, that’s a problem. If they brush it off or sound vague, they’re not prepared to protect you.

Ask for a Closing Checklist

You should receive a list of requirements before closing. It should include who is signing, where and when the appointment is scheduled, what form of ID is needed, and whether any last-minute items need to be collected.

If your first real contact with the company is the morning of closing, it’s too late. That’s how errors get missed and wires are delayed.

We’ve seen deals fall apart at the table because the title company failed to request a spouse’s signature on a homestead release. The seller wasn’t even there. The whole closing was rescheduled.

Final Thoughts

The title company runs the closing. Not just on paper, but through the wires, the documents, and the recording office. If they miss a step, the consequences fall on you.

You don’t have to settle for whoever’s next in line. You have the right to choose. Use it.

Want a partner who knows the local rules and doesn’t waste your time? Talk to us.

Want to preview your title costs before you commit? Use the rate calculator.