What Does a Title Company Do?
A title company plays a key role in making sure your real estate transaction is legal, protected, and ready to close. They act as a neutral third party that helps both the buyer and seller get to the finish line smoothly. Here's what they're responsible for:
- Title Search: Making sure the property's title is clean — no unpaid liens, boundary issues, or ownership disputes.
- Title Insurance: Protects the buyer (and the lender, if applicable) against future claims or problems with ownership.
- Closing Coordination: Prepares the documents, gathers signatures, handles the money, and ensures everything complies with state and lender requirements.
- Escrow Services: Safely holds earnest money and closing funds until the transaction is complete.
What's a Split Closing?
In Tennessee, it's common for closings to be “split” — meaning the buyer and seller use two different title companies or attorneys. Here's how it works:
- The buyer's title company handles the buyer's side: preparing their loan documents, gathering their funds, and issuing their title insurance policy.
- The seller's title company handles the seller's paperwork, coordinates payoff of any existing mortgages, and ensures transfer of ownership.
- The two companies communicate and coordinate to finalize the deal. It's still one closing, just handled in two places behind the scenes.
Who Chooses the Title Company?
- In Tennessee, the buyer typically chooses the title company (especially if they're getting a loan)
- The seller may choose a separate company to handle their side — or agree to use the same one if both parties are comfortable
Why It Matters
- Keeps the process smooth, legal, and secure
- Ensures everyone is paid correctly and ownership transfers cleanly
- Resolves title issues before closing
Ready for the next step? Read Closing With a Title Company.