<h2What Is Title and Why Does It Matter?</h2<pIn real estate, "title" refers to the legal ownership of a property.
When you sell your home, you are transferring title to the buyer.
Before that transfer can happen, a title company or real estate attorney will conduct a title search to verify that you have clear, marketable title — meaning there are no liens, judgments, unpaid taxes, or other claims against the property that could cloud the buyer's ownership.</p<h2The Title Search</h2<pA title search involves examining public records to trace the chain of ownership of your property, typically going back 40 to 60 years.
The title company looks for any recorded liens (mortgages, tax liens, mechanic's liens), easements, encroachments, or other encumbrances.
If any issues are found, they must be resolved before closing can proceed.</p<pCommon title issues include unpaid contractor liens from previous work on the home, old mortgages that were never properly released, property tax delinquencies, and boundary disputes.
Most issues can be resolved with documentation and sometimes payment, but they take time — which is why starting the title process early is important.</p<h2Title Insurance</h2<pTitle insurance protects against claims that arise from title defects that existed before the policy was issued.
There are two types: owner's title insurance, which protects the buyer, and lender's title insurance, which protects the mortgage lender.
Lender's title insurance is required by virtually all mortgage lenders.
Owner's title insurance is optional but strongly recommended.</p<pTitle insurance is a one-time premium paid at closing.
The cost varies by state and property value but typically ranges from $500 to $2,000.
Given that it protects against claims that could cost tens of thousands of dollars or more, it is generally considered excellent value.</p<h2Choosing a Title Company</h2<pAs a FSBO seller, you typically have the right to choose the title company.
Shop around — title insurance rates are regulated in many states, but fees for settlement services vary.
Look for a company with a strong local reputation, responsive communication, and experience with FSBO transactions.
FSBOHub's vendor directory includes vetted title companies in your area.</p<h2What Happens at Closing</h2<pAt closing, the title company coordinates the transfer of funds and documents.
They prepare the closing disclosure (a detailed accounting of all costs), the deed transferring ownership to the buyer, and the payoff of your existing mortgage.
You will sign the deed and other transfer documents, the buyer will sign their loan documents (if financing), and funds will be disbursed — including your net proceeds after paying off your mortgage and closing costs.</p<h2Conclusion</h2<pThe title process is one of the most important parts of a real estate transaction, and it is handled almost entirely by professionals — your title company or closing attorney.
Your job as a FSBO seller is to choose a reputable title company early, respond promptly to any title issues they identify, and show up at closing with a valid ID and the keys.</p