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Title Company
Practical Law Glossary Item w-017-5689 (Approx. 3 pages)
Glossary
Title Company
A company that issues title insurance policies to insure against loss from:
- Certain defects or disputes about the title to real property.
The term title company may refer to either:
- A title insurance company identified as the title insurer in the title insurance policy and known as a title insurance underwriter, which:
- sets standards and guidelines for evaluating risks involved in insuring title to real property; and
- indemnifies the insured party named in the title insurance policy.
- A title agent authorized by a title insurance company to conduct certain actions on its behalf. Depending on state law, a title agent may be an individual or a business entity, which typically enters into a written agreement with an underwriter and registers with the requisite state agency. State law and this agreement dictate the actions a title agent may perform, which may include:
- soliciting title insurance business;
- determining insurability of title to real property based on the underwriting standards;
- collecting premiums; and
- preparing and signing the title insurance policies of the title insurance company.
To issue a title insurance policy, a title company must rely on a title search identifying clouds on title to the real property. Title search procedures vary by state, as do the methods of providing results, which may include:
- A proprietary title report prepared by the title company's title examiner.
- A search report or other product ordered from a title search company by the title company.
- An opinion of title prepared by an attorney licensed to practice law in the state where the real property is located.
The title company uses the title search results to prepare:
For more information on title insurance processes and title insurance, see: