What is the main role of a title company?

The main role of a title company is to perform title searches and issue title insurance policies. Title companies focus on ensuring that real estate titles are legitimate and free from issues that could affect ownership. This involves conducting thorough searches of public records to identify any discrepancies, liens, or claims against the property. By doing this, they protect buyers and lenders from potential legal complications that could arise from unclear title ownership.

Moreover, issuing title insurance policies provides an additional layer of security. These policies safeguard against lost funds due to unforeseen title defects that could emerge after the purchase, offering peace of mind to the buyer and financial protection to the lender. This service is crucial in real estate transactions, as it confirms ownership details and assures that all parties can proceed with confidence.

In contrast, the other options do not accurately reflect the primary responsibilities of a title company. Real estate agents primarily assist clients in buying and selling properties, mortgage lenders provide financial services, while investment management pertains to overseeing and strategically growing real estate assets. Thus, the distinct function of the title company in ensuring clear property titles and providing title insurance underlines why it holds a critical position in real estate transactions.