What does a Title Company do?

The real question here is "what does the Title Company not do?" They are the working bees of the industry. Title Companies handle the deeds and titles of the properties. During the early times, Title Companies were called Abstract Companies. An Abstract is a history of the property's owners. Today, the title company does not handle Abstracts. Instead, they look at the entire record of the property and issue a Title Commitment. This is a document that shows the coverage of the Title Insurance. This is the Title Insurance that the home will obtain once it is closed.

Why do I need Title Insurance?

Because we never know what happened to a property during different times of ownership. Think about what happens when you open a mortgage on any home. There is a lien on the home to be paid to that lienholder. Imagine what could happen if that debt isn't paid? Imagine what could happen if that debt that wasn't paid was collected against you as the new owner. When you use a Title Company, they are insuring you against such action. You can rest easy as a new owner, knowing your property was well searched and insured.

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Guillermo "Will" Puente


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