Title companies do many things during a closing. They provide a safe space to hold all funds prior to the closing. They facilitate the closing of the loan and the signing of the documents by hiring the proper notary or attorney.
They provide legal search & exam services, to ensure that the home has a free and clear title and is legally ready for sale.
The title company will provide title insurance to cover the lender and the buyer of the home against any title-related issues.
They collect all funds in the transaction, and pay out all funds when the transaction is concluded – this includes items such as loan payoffs, seller proceeds, real estate commissions, state & local taxes, property taxes, homeowners and flood insurance premiums, survey fees, lender and broker fees, and much more.
After everything has been closed, they will then record the mortgage deed in county records and mail out the final policies to all applicable parties.