"Six Steps in Transferring a Land Title" (see diagram above) describes what title companies do. For the sake of simplicity, these are all shown as occurring within the walls of a title company, as indeed happens in certain areas. However, in different parts of the country some of these functions are performed by attorneys, lenders, escrow companies and other persons, while the title company issues its title insurance policy.
Title companies and their agents, search, examine, close and insure land titles. Title insurance policies are issued to the homeowner and the lender, assuring them financial protection against adverse title claims or risks. Equally important, potential title claims that surface in the process of insuring a title can be resolved by the parties prior to closing their transaction.