What is the main function of the title company in a real estate transaction?

The primary function of a title company in a real estate transaction is to facilitate the closing process and ensure that the title to the property is clear. This means the title company conducts thorough research to verify that the property does not have any liens, encumbrances, or other issues that could affect ownership. By doing so, they protect all parties involved in the transaction, ensuring that the buyer is receiving a title that is free from legal disputes.

Additionally, the title company prepares the necessary documents for closing and may also handle the disbursement of funds. This comprehensive role is crucial for a smooth transaction and helps to establish confidence in the transfer of property, which is why the title company's involvement is essential in real estate dealings.

The other options focus on different aspects of real estate transactions, such as mortgage insurance, property valuation, and escrow management, which, while important, do not encapsulate the main duties of a title company.