When there’s no bank involved, sellers sometimes wonder why a cash sale needs a title company at all. Couldn’t the buyer just hand over a check and you sign a deed? In theory, maybe. In practice, the title company is what makes sure the buyer gets clean ownership, your mortgage and liens actually get paid off, the deed gets recorded correctly, and you get the right amount of money. It protects both sides.
I’m Evan Weissman. Every house I buy closes through a title company. Here’s what happens behind the scenes from the day a contract is signed to the day the money lands in your account.
Day one: the contract arrives
Once you and the buyer sign, the contract goes to the title company, usually chosen by the buyer. The title company opens a file and often reaches out to you for basic information:
- Your full legal name and the names of anyone else on the deed.
- Your mortgage lender and loan number, plus any home equity line.
- Your forwarding address and how you want to receive your proceeds.
- HOA information, if there is one.
If an earnest money deposit was part of the deal, the title company typically holds it in an escrow account.
The title search
Next, the title company searches the land records in the county where the house sits. They’re looking at:
- The chain of ownership, to confirm you can convey the house.
- Recorded mortgages and deeds of trust.
- Judgments and liens against the owners.
- Easements, rights of way, and covenants.
- Unpaid property taxes and, in some places, water or other municipal charges.
The result is a title commitment that lists what must be cleared before closing. Older houses sometimes turn up surprises, like an old mortgage that was paid off but never released, or a judgment against someone with a similar name. The title company helps sort those out.
Payoffs and lien certificates
The title company requests a written payoff statement from each lender with a lien on the house. Under federal rules (12 CFR 1026.36), servicers generally must provide an accurate payoff statement within seven business days of a written request.
They’ll also order a lien certificate or tax certificate from the county or city showing property taxes and certain other charges that need to be paid at settlement. In Baltimore City, for example, the lien certificate is a standard part of every sale; my Baltimore City lien certificate article explains what’s on it.
Clearing problems before closing
If the search finds something that needs attention, the title company works with you to fix it. Common examples:
- An unreleased mortgage. They contact the old lender for a release.
- A judgment. They’ll get a payoff, or confirm it doesn’t belong to you. My judgment lien article covers this.
- An estate. They’ll need letters of administration showing who can sign for the estate.
- A missing owner. Everyone on the deed needs to sign, or there needs to be legal authority, like a power of attorney the title company accepts.
Preparing the deed and the numbers
The title company prepares or reviews the deed transferring the house to the buyer. It also prepares the settlement statement, which lists:
- The sale price.
- Payoffs of your mortgage and liens.
- Transfer and recordation taxes and who pays them. My article on who pays closing costs in Maryland explains the default split.
- Property tax prorations.
- Any other agreed costs or credits.
- Your net proceeds.
Ask for a draft a few days before closing so you can review it.
What to have ready to keep things moving
Delays usually come from missing paperwork, not from the title search itself. It helps to gather these early:
- A recent mortgage statement for each loan.
- Your HOA contact and any management company details.
- A copy of your deed, if you have it.
- A government-issued photo ID for each person signing.
- Death certificates, letters of administration, a power of attorney, or divorce papers if any apply.
Closing day
At closing, you sign the deed and the closing documents. In a cash sale, closing can sometimes be done by mail or with a mobile notary if you can’t come in person. Ask the title company what they allow.
After signing, the title company:
- Confirms the buyer’s funds have arrived.
- Pays off your mortgage and liens.
- Pays transfer and recordation taxes.
- Sends the deed for recording with the county.
- Sends your proceeds by wire or check.
Protect yourself from wire fraud
Real estate wire fraud is a real risk. Criminals send fake emails that look like they’re from the title company with “updated” wiring instructions. Before sending or receiving any wire, call the title company at a phone number you’ve confirmed independently, not one from an email, and verify the instructions. A legitimate title company won’t mind.
How a title company differs from your attorney
The title company handles the closing for the transaction. It’s not your personal legal advisor. If you have a legal question about your rights, an estate, a divorce, or a lien dispute, talk with your own attorney. My article on whether you need a lawyer to sell in Maryland explains when that’s worth it.
Who picks the title company in a cash sale?
It’s set by the contract. Often the buyer chooses, but you can negotiate. Make sure it’s an established, licensed company.
How long does the title work take?
For a clean title, the search and payoffs can move quickly. Estates, liens, or old recording problems take longer.
Do I need title insurance as the seller?
Title insurance protects the buyer and any lender. As the seller, you generally don’t buy it, but you do need to deliver clean title.
Can I close without going to the title office?
Often, yes. Many title companies can arrange a mobile notary or mail-away closing. Ask early so they can plan.
Talk through your situation
If you’d like to know which title company I’d use for your house and how long it might take, call or text me at (410) 498-7473.