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

The primary function of a title company in real estate transactions is to conduct title searches and handle closing processes to ensure ownership transfer. Title companies play a crucial role in verifying the history of a property’s title to ensure that it is free of liens, claims, or other encumbrances that could affect ownership. This process guarantees that the buyer receives clear title to the property. Additionally, title companies facilitate the closing of the real estate transaction, ensuring that all necessary documents are properly executed and that funds are appropriately disbursed.

In contrast, providing mortgage financing options is not a traditional role of title companies; instead, it falls under the purview of banks or mortgage lenders. Managing property listings is typically handled by real estate agents or brokers, who specialize in marketing properties for sale. Appraising properties for tax assessments is generally the responsibility of county assessors or appraisers, rather than title companies. Therefore, the correct answer highlights the specific responsibilities that title companies fulfill in ensuring a smooth and legally sound transfer of property ownership.