What Does the Title Company Do Once You're Under Contract?

Once your home goes under contract—yay!—you might think the hard part is done. While it’s a huge milestone, there’s still a lot happening behind the scenes to make sure the sale actually closes.

One of the key players in this process? The title company.

Whether you're buying or selling a home in Central Florida, here’s what the title company does once that contract is signed:

1. They Open Escrow

The title company receives the executed contract and officially opens an escrow file. They track the escrow deposit (usually due within three days of contract execution) and make sure funds are properly accounted for throughout the transaction.

2. Title Search Begins

Next, they perform a full title search. This means combing through public records to make sure:

• The seller legally owns the property
• There are no outstanding liens or judgments
• Property taxes are current
• There are no title defects that could hold up closing

If anything shows up, the title company will work on clearing those issues before closing.

3. HOA or Condo Info Is Verified (If Applicable)

If the home is part of a homeowners association (HOA) or condo association, the title company will request an estoppel letter. This outlines:

• Any outstanding dues
• Pending violations
• Transfer or initiation fees
• Capital contribution requirements

This ensures no surprises pop up at closing.

4. Mortgage Payoffs Are Ordered

If the seller still has a mortgage, the title company will contact the lender for a payoff statement. This tells us exactly how much is owed and ensures the loan gets paid off at closing. Any other liens will also need to be resolved.

5. Title Commitment Is Prepared

This is a formal document that outlines what’s covered by the buyer’s title insurance policy. It also highlights any exceptions or items that need to be cleared before closing.

6. Docs Are Prepped & Verified

The title company makes sure everyone involved is who they say they are. This includes verifying:

• Buyer and seller ID
• Business or trust documentation (if applicable)
• Any power of attorney forms

They’ll also begin preparing the closing paperwork and coordinating signatures.

7. If There’s a Loan, They Coordinate With the Lender

If the buyer is financing the home, the title company works with the lender to:

• Gather final loan documents
• Prepare the settlement statement (also known as the Closing Disclosure or ALTA)
• Make sure all numbers match up for closing

8. They Schedule the Closing

The title company sets up the signing appointments and confirms how funds will be delivered. Whether you’re signing in person, remotely, or via mail-away, they make sure all logistics are handled smoothly.

9. They Close the Deal!

Once everything is signed and all funds are received:

• The deed is recorded with the county
• Funds are disbursed to the seller, agents, lender, etc.
• The buyer gets the keys, and the title policy is issued

Final Thoughts

The title company plays a huge role in keeping your sale on track and protecting your ownership rights. That’s why I always recommend working with a trusted local title company. One that’s responsive, experienced, and detail-oriented.

If you’re planning to buy or sell in the Central Florida area and want recommendations for an amazing title partner I’ve worked with for years, just reach out!