Title Company Law and Legal Definition
Title Company is a company involved in examining and insuring title claims for real estate purposes. The company verifies ownership of real property and determines the valid owner through a thorough examination of property records in a Title Search. The title company usually does an abstract of title. The abstract determines the legal owner of the property; reveal any mortgages, liens judgments or unpaid taxes outstanding on the property and details any existing restrictions, easements or leases that affect the property. After completing the abstract the company will issue a title opinion letter. This will set forth all the things that should be done and any problems that should be corrected before a purchaser can receive a good title.
The following is an example of a Federal Statute defining Title Company:
Title Company means “any institution which is qualified to issue title insurance, directly or through its agents, and also refers to any duly authorized agent of a title company.” 12 USCS § 2602