Knoxville Title Company – What Does A Title Company Do?

Feb 24, 2016 | Closing Process

Once an offer is accepted and a formal contract is reached, a Knoxville title company plays an essential role in the closing process.

Still, for many buyers and sellers, the role of what exactly a title company does can sometimes be a bit of a mystery.

In this post, we’ll take a closer look at what exactly a Knoxville title company does and what role they playing in the closing process.

What Is A Title Company?

Once a contract is accepted, a title company is the neutral third party that takes care of handling closing.

A title company also provides title insurance that protects buyers and lenders against loss should any title issues arise after closing.

Here are just a few of the things that a title company does:

  • Conducts a title examination to ensure clear title can be conveyed
  • Coordinates closing with buyers, sellers, lenders, and realtors
  • Oversees the signing of closing documents and conveyance of title
  • Disburses closing funds
  • Remedies any title issues
  • Issues title insurance for lenders and owners

What Is Title Insurance?

Title insurance protects lenders and owners should any disputes arise about the ownership of a property.

There are two types of title insurance: lender’s title insurance and owner’s title insurance. Lender’s title insure protects a lender should any issues arise, while owner’s title insurance protects an owner’s interest in a property.

Title insurance helps protect against the following issues:

  • Fraud
  • Forgery
  • Undisclosed heirs
  • Unpaid taxes
  • Mistakes in public record
  • Illegal deeds
  • Unknown easements or encumbrances
  • Boundary and survey disputes

Even though a title examination is done prior to closing, things can still be missed, which is why title insurance is so important.

What Role Do Title Companies Play With Closing?

Knoxville title companies play a huge role in getting to closing. Title companies tend to have a behind-the-scenes role, but the things they do are vital in ensuring a smooth closing.

Title Examination

A title examination will be completed once a contract has been accepted by all parties. They will do a full 30 year search of a property to check for any potential issues.

A title exam will look for any liens against the property, mortgages, past due taxes, restrictions, easements, or other issues that could negatively impact ownership of the property.

Remedy Any Title Issues

If there are any issues that are found in a title examination, a title company will work to remedy those prior to closing.

For example, if a lien from a previous owner is found on a property, a title company will work to get that lien properly released, so that clear title can be conveyed at closing.

Title issues can range from very simple to very complex, depending on the issue. It’s important that a title company is able to remedy these issues prior to closing so that the new owner has clear title.

Coordinating With All Parties Involved

Once a title exam is done, they will begin working with all parties to gather the essential information for closing.

They’ll work with realtors, lenders, buyers, and sellers to gather all of the necessary information for closing. If a buyer or seller is unable to attend closing, we’ll assist in helping make arrangements.

They’ll also take care of scheduling closing. A title company work with all parties involve to set a time that works for all parties, as well as to make sure all parties have the necessary information for closing.


A title company will also take care of the signing of closing documents and disbursement of closing funds.

On the day of closing, a title company will be the one to oversee the signing of closing documents to ensure all documents are signed off on correctly.

Once closing documents are signed, they will take care of collecting and disbursing closing funds. This means taking care of disbursing seller proceeds, realtor commissions, payoffs, among other things.

After closing, we will also take care of making sure the warranty deed and deed of trust get properly recorded in the register’s office.

Issuing Title Policies

A title company will take care of issuing title policies either at closing or after closing, depending on their policies.

If you have a loan, you’ll be required to purchase lender’s title insurance. Owner’s title insurance is optional, however, it’s a very important that you understand what you’re giving up if you opt not to get it.

With a home being one of the largest investments you’ll ever make, an owner’s policy is a small price to pay to protect your ownership interest. You’ll either make the decision to purchase owner’s title insurance at closing or before closing.

Bottom Line – A Title Company Takes Care Of Important Details

A Knoxville title company takes care of a lot of important details. Title Group of Tennessee prides itself on being an efficient and thorough title company, with a personal touch.

Are you in the process of buying or selling a home in the Knoxville area? Title Group would love to assist you in any way possible.  You can reach us at 865-392-5801 or via email at

Title Group of Tennessee is a full service Knoxville title company. We specialize in Knox, Sevier, Loudon, Blount, Jefferson, and surrounding counties. Title Group of Tennessee is ALTA Best Practices Certified since October 2015.