What type of company typically handles the closing and settlement process?

The correct answer is that a title company, escrow company, or attorney typically handles the closing and settlement process. These entities are specifically trained and equipped to manage the intricacies of real estate transactions.

A title company conducts a thorough title search to identify any potential issues with the property's title, ensuring that it is clear of liens or other encumbrances before the transfer of ownership. They also issue title insurance, which protects against future claims on the title.

An escrow company acts as a neutral third party that holds funds and documents until all conditions of the sale are met, thereby ensuring a secure transaction for both the buyer and the seller. They manage the flow of money and documentation, which is critical to the closing process.

An attorney may also play a significant role in closing, particularly in states where the law requires legal representation for real estate transactions. They provide legal advice, prepare necessary documents, and ensure that the transaction complies with state and local laws.

In contrast, banks primarily focus on financing and mortgage products and are not involved in the closing process unless they are also acting as a lender in the transaction. Real estate agents facilitate the sale but do not handle the legal aspects or financial transactions directly. Lastly, insurance companies generally deal with different types of insurance