In one sentence
The company issuing title insurance and often handling escrow and closing, central to confirming the lender's lien priority.
The longer version
The title company searches title, issues the commitment, clears requirements, handles escrow and recording, and issues the final policy. It is one of the busiest parties in any closing.
Title work, especially clearing Schedule B exceptions, is a frequent critical path, so title items belong on the checklist with dates and owners from the start.
Common questions
- What does a title company do in a commercial loan?
- Searches title, issues the commitment and policies, often acts as escrow and closing agent, records documents and disburses funds.
- Who chooses the title company?
- Often the borrower or buyer, subject to the lender's approval. The lender's counsel works closely with the title company on exceptions and endorsements.
- What does a title company need to close?
- Satisfied Schedule B-I requirements, payoff letters, signed documents, authority evidence, affidavits, and the lender's closing instructions and funds.
Keep reading
- The commercial loan closing checklistWhat goes on the list and who owns each line.
- The due diligence checklist, built to be runChecklists as systems, not documents.
- The commercial loan closing processThe five stages from term sheet to funded.
- Due diligence softwareThe request list, the owners and the dates in one place.