What is a Title Agency?

A title agency acts as a neutral third party that helps ensure the property you’re buying has a clear, legal ownership history. Their main goal is to protect you — and your lender, if you’re financing — from any potential legal issues with the property’s ownership.

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Here’s What They Do:

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Title Search
They conduct a deep investigation into public records to confirm the seller legally owns the property and to identify any issues — like liens, judgments, unpaid taxes, or easements — that could affect ownership.

Title Insurance
Once the title is confirmed to be “clear,” the agency issues title insurance. This protects you (and your lender) against any legal claims that might pop up after closing — like a missing heir or a previously unknown lien.

Closing Agent Duties
Many title agencies also act as the settlement agent. That means they:

• Coordinate and facilitate the closing
• Prepare the closing documents
• Collect and distribute funds (like your down payment, agent commissions, taxes, etc.)
• Record the deed and mortgage with the county once the transaction is complete

Escrow Services
If needed, the title agency may hold funds in escrow until all conditions of the sale are met

Why It Matters:

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Working with a trustworthy title agency gives you peace of mind. They help ensure you’re actually getting what you think you’re buying — clean ownership of the home — with no unwanted legal surprises.

A few scenarios that demonstrate the importance of the title agency:

Scenario 1: A Hidden Heir Emerges

The Issue:
A seller inherited a home from their late father, and it seemed like everything was in order. During the title search, we discovered that there was another legal heir — a long-lost half-sibling — who was entitled to a share of the property.

How We Helped:
We immediately flagged the issue and paused closing. We worked with a probate attorney and helped facilitate an agreement between both heirs so the sale could move forward legally. Without that discovery, the buyer could have faced a lawsuit or a claim to the home after closing.

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Scenario 2: Unpaid Property Taxes from Years Back

The Issue:
The seller hadn’t paid property taxes for several years before listing the home. The unpaid taxes didn’t show up until we did a full title search.

How We Helped:
We contacted the county, calculated the correct payoff, and coordinated with the seller’s proceeds to settle the debt before closing. If we hadn’t caught it, the buyer could’ve inherited a tax lien, putting their home at risk.

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Scenario 3: Old Lien from a Previous Owner

The Issue:
The property had changed hands a few times, and a lien from a past owner’s second mortgage was never properly released. It wasn’t in the seller’s name but still clouded the title.

How We Helped:
We tracked down the old lender, got documentation to officially release the lien, and recorded the release with the county. Without this, the buyer wouldn’t have had clear title — meaning they technically couldn’t legally own or sell the property in the future.

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Scenario 4: Forged Deed

The Issue:
In one rare but real case, the person trying to sell the property was not the legal owner. The deed had been forged years ago, and they were trying to cash out on a home they didn’t actually own.

How We Helped:
Our title search caught the discrepancy, and we stopped the closing. The real owner was contacted and the fraud was reported. This saved the buyer from a total financial disaster.

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Bottom line, it is the title agency’s role to protect the buyer from invisible risks that might not show up during a home tour or inspection. Every home has a paper trail, and the title agency will make sure it’s clean and legally solid before you take ownership. The other major role, especially in Texas, is to act as a neutral third party as the settlement agent. They can hold funds in escrow, for example, the earnest money (upfront payment made by the buyer to demonstrate their serious intent to purchase the home), coordinate the closing, prepare closing documents, collect and distribute funds, and record the deed and mortgage with the county