In many regions across the United States, real estate closings are handled exclusively by real estate attorneys. However, in the state of Florida, the many residential transactions are managed and closed by specialized Title Companies.
A title company acts as an independent, neutral third party stakeholder in the transaction. Their primary responsibility is to ensure that the seller has the undisputed legal right to sell the property, and the buyer receives clear and marketable title. That means the property you are buying is completely free of historical debts, encumbrances, or structural liens. The title company will also issue an insurance policy guaranteeing the deed.
Historical Deed Chain Audit
The title company traces the history of the property back through public land records to ensure no long lost heirs or past spouses can step forward later to claim ownership stakes in your home.
Lien & Debt Resolution
They verify that the property has nolegal claims on it such as IRS liens, mechanics liens (unpaid contractor bills), municipal code enforcement fines, or outstanding utility debts. They also verify mortgages tied to the property are paid off and legally satisfied at the closing table.
Escrow Management
They securely hold your earnest money deposit in a verified escrow account.
Collection and Disbursement of Funds
Title companies will collect funds on behalf of the buyer and hold that money in an escrow account. Funds can come from multiple sources such as a lender, a relative, sale of another house, the buyer’s bank accounts. At closing they deduct fees related to the sale such as county taxes (stamp duty), recording fees, broker fees, title search fees, etc. They give the balance to the seller, the property deed to the buyer and finally record the deed with the new owner in county records.
There are many title companies in the Tampa Bay area, some are national chains such as Fidelity National and First American Title, there are also independant offices and several law firms that offer title services as well.
Title Company Fees
Title company fees are charged to the buyer and seller. They include fees for the work performed and will increase if there is a lender as there is more work required, also if the closing is remote as notaries have to be organized. The cost of the title insurance policy is related to the sale price of the home. See closing costs for more on other costs that appear on a closing statement
Fraud
There are many scams in this field, from people trying to steal deeds to rerouting funds intended for a title company. Before you wire money, ALWAYS call the title company and validate the account your are wiring to is the correct one.
Continue Planning Your Home Sale
Explore the Selling a Home section of The Property Briefing for practical advice on pricing, preparing your home, marketing, offers, inspections, and the decisions that shape your sale.
Want Clear Advice About Selling?
Selling in Pinellas County is about more than putting a home on the market. Get straightforward guidance on pricing, preparation, negotiation, and the steps that can help you make a confident decision.