If you’re buying, selling, or refinancing a home, you’ve probably heard that a title company is an important part of the process. But what exactly does a title company do—and why is it so essential to closing your real estate transaction?
At Armour Title Company, we believe understanding the title process can help you move through settlement with confidence. Whether you’re a first-time homebuyer or a seasoned real estate professional, here’s what happens behind the scenes, and how a title company protects your ownership and peace of mind.
What Is a Title?
First, let’s start with the basics.
A title is the legal term for ownership of a property. When you buy a home, you aren’t just purchasing the structure—you’re taking ownership of the land, the rights associated with it, and any history attached to that property.
However, before you officially become the new owner, it’s critical to ensure that the title is “clear”—meaning there are no outstanding issues, liens, or claims that could affect your right to own the property.
That’s where a title company like Armour Title comes in.
The Role of a Title Company
A title company’s primary job is to verify, protect, and transfer ownership of real estate. We act as a neutral third party between buyers, sellers, lenders, and agents to make sure every part of the transaction is accurate, legal, and secure.
Here’s what that process looks like step by step.
1. Title Search
Before a sale or refinance is completed, the title company conducts a thorough title search. This involves reviewing public records, deeds, court documents, and tax information to confirm that the seller legally owns the property—and that there are no legal issues that could prevent a smooth transfer.
During the title search, we look for things like:
- Outstanding mortgages or liens (unpaid debts tied to the property)
- Judgments or bankruptcies
- Easements or encroachments (shared property use or boundary issues)
- Unpaid property taxes
- Clerical errors or missing information in previous deeds
If any issues are found, Armour Title works to resolve them before closing, so you can take ownership free and clear.
2. Title Insurance
Even after a title search, unforeseen problems can sometimes arise. That’s why the next step is title insurance, one of the most important protections in real estate.
Title insurance safeguards both the buyer and the lender from potential financial losses due to title defects that weren’t discovered during the search.
There are two types of title insurance:
- Lender’s Policy: Protects the mortgage lender’s financial interest in the property.
- Owner’s Policy: Protects the buyer’s ownership rights for as long as they own the home.
3. Escrow and Closing Services
A title company doesn’t just handle paperwork—it also acts as the escrow agent during your real estate transaction.
This means we hold and distribute funds (such as deposits, down payments, and lender proceeds) in a secure, neutral account until all conditions of the sale are met. Once everything checks out, we:
- Prepare and review closing documents
- Collect and disburse all funds to the appropriate parties
- Record the new deed with the county
- Finalize the transfer of ownership
4. Coordinating with Lenders, Agents, and Attorneys
Buying a home involves several moving parts. Title companies serve as the central hub of communication among all parties involved.
Armour Title works closely with:
- Lenders, to confirm mortgage details and loan documents
- Real estate agents, to coordinate closing dates and disclosures
- Attorneys, when legal documents or estate issues are involved
We ensure everyone stays informed, deadlines are met, and the transaction proceeds efficiently from start to finish.
5. Recording and Finalizing the Transaction
Once the closing is complete, we handle the final administrative steps. Armour Title records your deed and mortgage with the county, ensuring that your ownership is officially recognized and documented.
We also provide copies of all closing documents for your records, ensuring transparency and long-term protection.
Protecting Your Most Important Investment
Your home is one of the biggest investments you’ll ever make. A title company ensures that investment is protected from the moment you sign your contract until the keys are in your hand.
At Armour Title Company, we handle every step of the process with precision, professionalism, and care, so you can close with confidence.
Contact us today to learn more about our title, escrow, and closing services or to request a quote for your upcoming transaction.