What is a title company  Every buyer and every seller of real estate in Columbus, Ohio eventually ends up sitting at a table for a closing.  At that table will be a representative from the Title company.  In Central Ohio, it is customary for the Seller or the Seller’s real estate agent to choose the title company.  Once the buyers and sellers agree on terms and the home inspections are behind everyone, the transaction is handled by a Title Company.  I’m sure that I’ve not done a great job in the past explaining exactly what a title company does so I’ve asked guest contributor Jonathan Holfinger of Arrow Title to tell us a little about what a title company is……

In light of the fact that this article is geared towards those looking to buy or sell real estate, it might be taken for granted that a “title company” is a generic term for a real estate title insurance company (and/or their licensed agents).  Contrary to the belief of some people that have called me, we do not insure titles to cars.   We deal with titles to real property, real estate, land, and the like. 

 In my line of work as a licensed title insurance agent, I often ask people at the closing table if they know why I’m involved in their real estate transaction.  Most of the time they’ll be honest enough to let on that they don’t know what we do, other than to tell them where to sign on each paper in the mountainous stack of closing documents.  I take real pride in trying to give them the simplest explanation . . . . possible. 

Certainly I could give you the background necessary for an in-depth understanding of how Ohio law works in regard to real estate titles, but I doubt I could keep you awake long enough to get anywhere.  When I have to simplify the definition of “What is a Title Company” I will give one of two versions. 

When the customer wants the “I’m in a hurry version”, I say:   ”A title company handles the closing.”

But for those wanting a little more substance, I say that you should know 2 things about my job as a title agent. 

Number One….. We provide title insurance to buyers and lenders.  What is that, you ask  Generically speaking, this is insurance that guarantees buyers that they are legal owners of the property they think they’re buying, and insurance that guarantees that the lenders can foreclose their mortgage if that buyer doesn’t make the mortgage payments.  As a part of that responsibility then, we must make sure all documents are properly executed by the parties involved, so that all legal and insuring requirements are met prior to giving the insurance.  

Number Two….. We handle the money.  This is often called the “escrow” duty of the title agent.  In the transaction, typically money must be collected from the buyer and from the lender, and then paid to all the parties involved in the transaction, such as the seller, the County, the appraiser, the surveyor, and the realtors to name a few.  In a nutshell, we make sure that the appropriate parties get paid. 

Usually this explanation gives enough to paint the picture of what a title company is with a broad stroke, but for those that are looking for a greater understanding of what title insurance is, why it’s needed, or what exactly we do behind the scenes leading up to the closing, I recommend that you go to the FAQ on my website at this link http://www.arrowtitle.com/faq.php.