A title company identifies any issue and liens to make a smooth transfer of the property as possible, while also confirming the acquisitions is handled in the approved manner.
Once the buyer has chosen the property he wants to purchase, they go to closing, where title company that offers title and escrow services are hired.
The purpose of the title search is to make sure the document is "free and clear." This means no debts owed on the property, including back taxes and liens, as well as a second mortgage.
This is very important because, after the property is transferred to a new owner, the new owner is responsible for all of the debt associated with the house. Obviously, doing this type of search after the house has been purchased is not the way to go.
Once everything is checked, buyers will find themselves at the closing, where there are a large number of documents that must be done. Again, having a title company there can be very helpful, especially if the document gets confusing or questions arise.
Most companies heading recommend title insurance, which protects buyers and lenders as well. Basically, if there are a defect or company documents made some kind of error in their assessment, insurance kicks in order to protect everyone involved.
So, in conclusion, the ultimate goal of a title company is to help everyone involved in the transfer of the house to get a positive result as easily as possible.