What Is a Title Company and What Does It Do in California?
Reviewed by Matt Goeglein & Xavier de la Piedra IV — Fidelity National Title
A title company is a regulated insurance company that researches a property's ownership history, identifies and clears recorded defects, issues title insurance policies to the buyer and lender at close, and coordinates the recording of the deed and deed of trust with the county recorder. In California, the title company also issues the preliminary title report, manages the escrow recording sequence, and is responsible for the integrity of the chain of title for the new owner.
Almost every California home sale and refinance involves a title company, and yet most buyers and even many agents could not explain what one actually does. The short version: a title company makes sure that the deed handed to a buyer at close conveys clean, insurable ownership — and then puts an insurance policy behind that promise.
The full job, in order
On a typical California residential transaction, a title company does seven things, in this order. First, it opens a title order when escrow is opened, usually by the listing agent or escrow officer. Second, it pulls the property's full chain of title from the county recorder and the title plant, going back decades. Third, it searches for recorded liens, judgments, tax obligations, easements, CC&Rs, and any matters that could cloud the title.
Fourth, it issues a preliminary title report ("prelim") within 2–4 business days that lists everything found and sets out the requirements that must be cleared before insurance can be issued. Fifth, during escrow it works with the escrow officer, lender, and parties to clear those requirements — paying off liens, getting reconveyances recorded, gathering signed statements of information, and confirming vesting. Sixth, at close it coordinates the recording sequence with the county recorder so the deed and deed of trust hit in the correct order. Seventh, it issues the owner's and lender's title insurance policies, which remain in force for as long as the insured owns the property.
Title company vs. escrow company in California
California is one of the few states where title and escrow are usually two distinct functions, often performed by separate companies. The title company handles the search, the prelim, the insurance, and the recording. The escrow company is a neutral third party that holds the buyer's deposit and funds, prepares closing documents, gets signatures, and disburses funds at close. In Southern California, escrow is often handled by a stand-alone escrow company; in Northern California, the title company more frequently performs escrow as well.
Title company vs. real estate attorney
California does not require an attorney to be involved in a residential closing. The title company and escrow company perform most of the functions that an attorney would handle in an East Coast state. For complex matters — probate, contested estates, partnership disputes, commercial transactions — a real estate attorney is often involved alongside the title company, but the title company still does the search and issues the insurance.
Why the title company you choose matters
Every California title company can pull a search and issue a policy. The difference is in the people who handle the file. A strong title rep reads the prelim, flags issues before they become emergencies, knows the local recorder's quirks, returns calls, and stands behind the file from open to close. A weak one forwards a PDF and disappears.
Matt Goeglein and Xavier de la Piedra IV at Team Goeglein — Fidelity National Title — built their practice around the first kind of service. Fidelity National Title is the largest title insurance underwriter in the United States, which means deep claim reserves and underwriting capacity behind every policy we issue. Matt and Xavi sit at the local level, on every file, making sure South Bay and Westside LA agents get the answer they need the day they need it.
Frequently asked questions
What does a title company do?+
A title company researches a property's chain of ownership, identifies recorded liens and defects, issues a preliminary title report, works during escrow to clear any requirements, coordinates the recording of the deed and deed of trust at close, and issues title insurance policies to the buyer and lender.
What is the difference between a title company and an escrow company in California?+
The title company handles the title search, prelim, insurance, and recording. The escrow company is a neutral third party that holds funds, prepares and gathers signatures on closing documents, and disburses funds at close. In Southern California they are usually separate companies; in Northern California the title company often performs both functions.
Do I need a title company in California?+
Yes for any transaction involving a lender — lenders require a lender's title insurance policy issued by a regulated title company. Cash buyers can technically close without title insurance, but it is virtually never done because the buyer would have no protection against undisclosed title defects.
Who pays the title company in California?+
Title insurance premiums are paid at close from escrow. In Los Angeles County, the seller customarily pays for the buyer's owner's policy and the buyer pays for the lender's policy. Stand-alone services like property profiles or farm requests outside of an open transaction may carry a separate fee.
How do I choose a title company?+
Look at the underwriter's financial strength and claim history, the local title rep's responsiveness, and the depth of the title plant for the counties you transact in. Team Goeglein operates as the local face of Fidelity National Title — the largest title underwriter in the United States — across the South Bay and Westside LA.
Need a title rep in your city? Call Matt Goeglein at 310-293-0784 or Xavier de la Piedra IV at 562-217-9933. See the full FAQ.