When buying or selling real property, you’ll hear references to title work. This refers to the research undertaken to ensure a property’s title is marketable.

The word marketable, in this case, means no one else has a claim to the property, either by ownership or by a lien put on for unpaid taxes or mortgage payments.  Title work is prepared to ensure the title is marketable.

In a typical real estate transaction, the seller pays a title company to prepare the title work. The title company then prepares an Owner’s Title commitment which is provided to both the seller and purchaser. The parties must then fulfill all requirements before closing the transaction.  When it is determined that the title is marketable, a deed is prepared; this is a legal document that conveys a person’s ownership of the property. The deed is the most important document in a real estate transaction.

After the closing an Owner’s Title Policy is issued to the Purchaser, this policy guarantee’s the title. Furthermore, if any unknown circumstances arise, the title company will be responsible to resolve the issue.  Therefore, research, or title work is done to ensure the transfer of the property from one person to another is without issue.