What is the function of the title company in a real estate transaction?

The function of the title company in a real estate transaction primarily revolves around ensuring that the property title is clear and facilitating the closing process. This involves conducting thorough research to confirm that the title is free of liens or encumbrances that could affect ownership rights. The title company reviews public records, examines the title history, and issues a title insurance policy to protect against possible future claims on the title.

During the closing process, the title company plays a crucial role by handling the necessary paperwork, distributing funds, and ensuring that all legal requirements for the transfer of ownership are met. By verifying that the title is clear, the title company helps instill confidence in both buyers and sellers, which is essential for a successful transaction.

In contrast, the other options do not accurately reflect the role of the title company. While legal representation and real estate agency functions are important, those are typically handled by lawyers and real estate agents, respectively. Additionally, assisting in finding potential buyers is not a function of a title company, as their main focus is on title searches, closing, and related services.