What role does a title company typically play in the closing process?

The role of a title company in the closing process primarily involves issuing the title insurance policy. This is pivotal because the title insurance protects the buyer and the lender from any potential claims or disputes related to the property's title that might arise after the closing. By performing a thorough title search, the company ensures that the property title is clear of any liens, encumbrances, or other issues that could affect ownership. Once this is confirmed, they will issue the title insurance policy, which provides financial protection against future claims.

The functions related to home inspections, mortgage document preparation, and market value determination fall outside the standard responsibilities of a title company in the real estate transaction process. While these services are critical in the closing procedure, they are typically provided by other parties such as home inspectors, lenders, and appraisers, respectively. Therefore, the primary function of the title company centers around the issuance of title insurance, making that the correct choice.