What function does a title company perform?

A title company's primary function is to conduct title searches and issue title insurance. In the process of a real estate transaction, it verifies the property's ownership history and checks for any encumbrances, such as liens or easements, that could affect the title. The title search aims to ensure a clear title, meaning that the seller has the legal right to transfer property ownership without any legal issues.

Once the title search is complete and any potential issues are resolved, the title company issues title insurance. This insurance protects the buyer and the lender against any future claims or disputes over the ownership of the property. It provides reassurance and security, making it a critical component of real estate transactions.

While managing real estate sales and listings, providing mortgage lending services, and evaluating property values can involve various entities in the real estate market, these activities do not encompass the core responsibilities of a title company. Thus, the correct choice highlights the essential role of title companies in ensuring the legality and clarity of property ownership in real estate transactions.