A title company protects everyone in a real estate transaction. It performs a title search to confirm the seller legally owns the property and to surface liens, easements, judgments, or other claims; resolves anything that would cloud ownership; issues title insurance to protect the buyer and lender against past defects; and serves as the neutral escrow/settlement agent that holds the funds, prepares and reviews the closing documents, and records the deed with the county. The result is a clean, insured transfer where money and documents change hands correctly.