Title insurance agents and companies search public records to develop and document the chain of ownership of a property.

If the title insurance company finds any liens or encumbrances, the title company might require that the homebuyer take steps to eliminate them before issuing a title policy. Title insurance agents might also hold money in escrow and perform closing services for an additional fee.

Money that is held in escrow by a title agent is used to pay for a number of things, including paying for are state taxes, county transfer taxes, and city property taxes. If there is any money left over in an escrow account, it is refunded back to the client as soon as everything from the real estate closing is paid off.