What essential service does the title company provide during a mortgage transaction?

The title company plays a critical role in mortgage transactions by ensuring the accurate recording of liens and ownership associated with the property. This service is fundamental because it establishes clear and verified ownership before a transaction is finalized. By recording these details, the title company helps to eliminate disputes over property rights, thereby protecting both the buyer and the lender.

This recording process involves checking public records to confirm there are no existing liens or claims against the property that could affect the sale or the buyer's future ownership. The title company's function is vital to maintaining the integrity of property titles, thereby facilitating smooth transactions and ensuring that buyers receive clear title upon purchase.