What Does a Title Company Do?

This article provides general information based primarily on the Tallahassee Board of REALTORS® Contract for Sale and Purchase, revised March 2026. Individual transactions may involve different contracts, amendments, addenda, or statutory requirements. This article is not legal advice. Consult a Florida real estate attorney regarding specific contractual rights or disputes.

When purchasing a home in Tallahassee, you'll likely hear about the title company shortly after going under contract. But what exactly does a title company do, and why is it important to your real estate transaction?

Simply put, a title company helps ensure that ownership of a property can be legally transferred from the seller to the buyer while coordinating many of the financial and administrative details of closing.

What Does a Title Company Handle?

Although responsibilities can vary, title companies commonly handle several important steps in a real estate transaction:

• Title Search: Researches public records to identify potential ownership issues, outstanding liens, unpaid taxes, judgments, or other claims against the property.
• Title Insurance: Arranges insurance policies that protect against certain covered ownership and title-related problems.
• Escrow Services: Holds funds, including the buyer's earnest money deposit, in a designated escrow account until they can be properly disbursed.
• Closing Preparation: Coordinates with the lender and real estate agents, prepares closing statements, and helps ensure necessary documents and funds are ready.
• Closing and Recording: Facilitates the signing of closing documents, disburses funds, and coordinates recording the deed and other applicable documents in public records.

What Is Title Insurance?

Title insurance helps protect against certain ownership problems that may be discovered after purchasing a property.

There are two primary types:

• Lender's Title Insurance: Generally required when obtaining a mortgage, this protects the lender's financial interest in the property.
• Owner's Title Insurance: Protects the homeowner's financial interest against covered title defects or claims.

Unlike homeowners insurance, which generally covers certain future damage to a property, title insurance primarily addresses covered issues associated with the property's ownership history.

Who Chooses and Pays for the Title Company?

In Tallahassee, the selection of the title company and responsibility for associated expenses are typically addressed in the purchase contract.

Under the standard Tallahassee Board of REALTORS® contract, the parties can negotiate who orders title services and who pays for title insurance and related expenses.

What Happens at the Title Company on Closing Day?

At closing, the title company or closing agent helps finalize the transaction by coordinating signatures, collecting and distributing funds, and handling the documents necessary to transfer ownership.

Once the closing requirements are satisfied, the seller receives the proceeds from the sale, and the buyer receives ownership of the property.

Want to know more? Read our guide on what happens at closing.

Bottom Line

A title company plays an important role behind the scenes of a real estate transaction. From researching ownership history and handling escrow funds to coordinating closing documents, the title company helps make the transfer of property ownership as smooth as possible.

This article provides general information based primarily on the Tallahassee Board of REALTORS® Contract for Sale and Purchase, revised March 2026. Individual transactions may involve different contracts, amendments, addenda, or statutory requirements. This article is not legal advice. Consult a Florida real estate attorney regarding specific contractual rights or disputes.