What does a title company do?

Every time someone buys and sells a home, a title company is involved in some way, shape or form. Title companies make real estate transactions happen and come to life. Without them, there would be no money to be made. But when you are thinking of selling your house, you need to know your fees associated with something like this so you know exactly how much money you can expect to make when you sell your house.
So if you're saying, what exactly does a title company even do? Why are they needed? Why can't I just sign a deed over to a buyer and just make things happen that way. Well, things aren't always that simple because in the American world we live in, contracts and paperwork are a must have when business transactions are done.
A title company goes through the record of who has owned the home. They look up who currently owns the home, how long they've owned the home, what they paid for it and so much more. More importantly, they look to see if any tax liens are on the house. What is a tax lien?

A tax lien is something the government can place on the property if you have not paid your taxes year after year. Other people can also place a lien on your property. Let's say for instance you get a new roof on your home, but you don't pay them for their work they did on your roof and house. That construction company can, with the correct paper work, file a lien on your house to ensure that they get their money for the work they did.
Without a title company, these debts cannot be paid off, so the new home owner would be screwed over in essence if a title company did not exist.
Sometimes, real estate companies, like Favor Home Solutions, will buy a house even with a tax lien or a regular lien on a house! That's great news for someone who cannot afford to pay off a lien on their home. Another reason title companies are so very handy, they allow you to pay off all your debt in one fail swoop, which saves time and saves you from the headache of dealing with each lien individually. These companies do charge a typical fee of $200-400 to process all of these charges.