Why We Use a Title Company — Protecting Both Buyer and Seller

People are sometimes surprised that selling to an investor involves the same closing process as any other sale. It does — deliberately. Here is what that process is for.

· 6 min read

Closing documents and keys on a title company desk

When you sell a house on the open market, a title company handles the closing. When you sell to us, a title company handles the closing. The only thing that changes is who the buyer is.

That is not a formality we tolerate. It is the single strongest protection you have in the transaction, and it is worth understanding why.

Closing paperwork and a pen on a kitchen table beside a set of house keys and a coffee mug, in warm morning light
Closing happens at a neutral third party, not at our office. The title company holds the money until the deed and the payoffs are right.

What a title company actually does

  1. Searches the title

    They examine the public record for the property — past sales, mortgages, liens, judgments, unpaid taxes, easements, and anyone with a legal claim. This is how you find out about the second mortgage from 1998 that was never released.

  2. Resolves what they find

    Most problems are fixable at closing: a lien is paid from the proceeds, a release is obtained, a judgment is settled. They coordinate that so the buyer receives clean title and you receive the balance.

  3. Holds the money in escrow

    Funds sit with a neutral third party, not with the buyer and not with you. Nobody can walk off with them.

  4. Prepares and records the paperwork

    Deed, settlement statement, transfer documents. They file the deed with the county so the transfer is a matter of public record.

  5. Disburses the funds

    Once everything is signed and recorded, they pay out — to you, to any lienholder, and to anyone else entitled to a share.

Who they work for

This is the part that matters most: the title company is not our company and does not work for us. They are a neutral party whose job is to make sure the transaction is legally sound for everyone in it. They will not close a deal that is not clean, even if both of us want them to.

The protection runs both ways

They protect you by guaranteeing you get paid at closing and that the money is real. They protect us by confirming the title is clear before we hand it over. Neither of us has to take the other on trust.

What it protects you from

RiskHow the title company handles it
A buyer who cannot actually payFunds are verified and held in escrow before you sign anything
A lien you did not know aboutFound in the search, and usually paid from proceeds at closing
An heir with a claim on the propertySurfaced before closing, not after you have spent the money
Unpaid property taxesCalculated and settled as part of the disbursement
A deed that is never filedThey record it with the county themselves
Being paid less than agreedThe settlement statement itemises every dollar, and you sign it

The red flag

If a buyer suggests skipping the title company

Do not do it. There is no legitimate reason to close a property sale outside a title or escrow company, and a buyer proposing a "simpler" arrangement, a handshake, or a direct deed transfer for cash is proposing something that leaves you with no protection at all.

  • Never sign a deed before funds are confirmed and in escrow.
  • Never accept payment outside the closing.
  • Never agree to a buyer "handling the paperwork" without a title company.
  • Be wary of a buyer who wants to change the closing arrangement late in the process.
  • You are allowed to have your own lawyer review the contract. Any legitimate buyer expects that.

Several of the people who have sold to us said afterwards that the title company was the thing that made them comfortable. That is exactly what it is there for.

What it costs you

On our purchases, we typically pay the closing costs, which includes the title work. Confirm that in writing with any buyer before you sign — it should be stated plainly in the purchase agreement rather than assumed.

Questions about how a closing works?

Ask us anything, including the awkward ones. Call or text — there is no obligation and no sales pitch.

Call or text 216-899-CASHGet your cash offer

Frequently asked questions

A legitimate one does. Paying cash removes the lender, not the need for a clean transfer of ownership — and a buyer who wants to skip the title company and handle the paperwork privately is showing you something important about how they operate.

It searches the public record for anything attached to the property, holds the funds in escrow so neither side has to trust the other, prepares and records the deed, and issues title insurance. In practice it is the neutral third party that makes the transaction safe for both of us.

It is common and usually solvable. Many liens — unpaid taxes, a contractor’s claim, an old mortgage never released — can be paid from the sale proceeds at closing, so they come off the top rather than out of your pocket beforehand. Occasionally something surfaces that cannot be cleared, and then the sale cannot complete.

It is negotiable and practice varies across Cuyahoga County, so do not assume either party automatically carries it. Ask the title company to confirm who is paying which line before closing.

Ask for proof of funds, insist on closing through an established title company, and never accept a deal where money moves outside escrow. Be wary of pressure to sign quickly, and of anyone who will not put in writing whether they are buying the house themselves or assigning your contract to someone else.

You owe nothing. If the title cannot be cleared, or the sale does not complete for any other reason, there is no fee and no cost to you. That is the point of doing it through escrow rather than privately.

Find out what we would pay

Free, no obligation, and no pressure. If our number does not work for you, that is a perfectly fine answer.

Call or text 216-899-CASHGet your cash offer

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