Before you unpack a single box—or even get the keys—someone has to make sure the home you’re buying is actually yours to buy. That’s where the title company comes in.
Once your contract is signed, your lender (if you’re financing) begins verifying your credit, income, and assets—the full financial picture. Meanwhile, the title company is hard at work investigating the property’s past.
They look for anything that could cause ownership issues down the road, including:
Unpaid property taxes
Hidden liens
Long-lost heirs
Recording errors
Legal disputes
Their goal is simple: to confirm the seller really has the right to sell, and that you receive title to the property free of claims or disputes about the ownership.
If everything checks out, you’ll receive a title commitment. In some places, this is also known as a title binder or preliminary report. Think of it as an assurance: the title company is committing to protect you (and your lender) against any hidden covered ownership issues that might surface later. At the same time, your loan moves into final underwriting—unless you’re paying cash, in which case you can skip that part. But whether or not you have a mortgage, title insurance is still important.
As closing approaches, the checklist kicks in:
Homeowners insurance: usually required before closing
Surveys and inspections: may depend on your state’s regulations
Legal documents: reviewed, signed, and organized
The title company coordinates all of this, working closely with your lender, real estate agent, and attorney to make sure everything comes together on time.
All that behind-the-scenes effort leads to one deceptively simple moment: closing day.
Money is transferred.
Documents are signed.
The deed is recorded.
Your title policy becomes official.
And just like that—you’re the homeowner.
The definitions provided here are for convenience and general informational purposes only. This information is not intended to be, and does not constitute, legal advice. This website and the information provided should not be used as a substitute for the counsel and services of a licensed attorney regarding the applicability of the information to your specific situation or jurisdiction.
The definitions provided here are for convenience and general informational purposes only. This information is not intended to be, and does not constitute, legal advice. This website and the information provided should not be used as a substitute for the counsel and services of a licensed attorney regarding the applicability of the information to your specific situation or jurisdiction.
The definitions provided here are for convenience and general informational purposes only. This information is not intended to be, and does not constitute, legal advice. This website and the information provided should not be used as a substitute for the counsel and services of a licensed attorney regarding the applicability of the information to your specific situation or jurisdiction.
Title insurance is one of the most cost-effective types of insurance you can purchase, offering comprehensive protection for a one-time, regulated premium.
In most states, rates are promulgated, meaning they are standardized and set by state authorities to ensure fairness and transparency.
For a relatively low, one-time fee, title insurance safeguards your homeownership rights for as long as you or your heirs own the property, providing peace of mind.
Learn how title insurance has helped protect homeowners.
