Title vs. Deed
It’s important to note the distinction between Title and Deed. A Title acts as proof of ownership and indicates you have the right to use the property, but it is not a physical document. A Deed is the legal document used as a means of transferring ownership from one party to another. Before you close on your home, both parties will need to sign this document.
Title Company and Title Search
A title company acts as a liaison to legally transfer a property title from one party to another. After you hire a title company, they will conduct a title search on the property and issue a report that verifies that the title is valid and can be legally sold by the seller.
They can also issue title insurance to protect the buyer and the lender should any problems with the property be revealed during the title search. Title insurance may help provide protection even after the sale is complete in the event that title problems are discovered in the future.
Now that you’ve conducted your research and are satisfied with the property, you can close on your new home with more confidence. Your title company will oversee your closing and will work with both the buyer and the seller to distribute money and transfer the title. Welcome home!