A title company makes sure that the title to a piece of real estate is legitimate and then issues title insurance for that property. Title insurance protects the lender and/or owner against lawsuits or claims against the property that result from a dispute over the title.
A title company will maintain an escrow account that contains the funds needed to close on the home and will conduct the closing. At the closing the settlement agent from the title company will bring all the necessary documentation, explain it to the parties, collect closing costs and distribute monies. Finally, the title company will ensure that the new deed and other and other documents are filed with the appropriate registry of deeds.