In atypical real estate transaction, the title company or a policy-issuing title agent issues a title policy to the buyer, seller, and/or to the lender (if there is a mortgage), and, separate and apart from issuing the title policy, provides a closing service to facilitate the smooth transfer of the real estate. Sometimes a client will choose to close the transaction without the assistance of a title company or a policy-issuing title agent.
Keep in mind: If you do not close with a title company or a policy-issuing title agent, then you may not have insurance for the "Gap" period!
The period between the through date of the last courthouse record search (the effective date of the title commitment) and the recording date of the new deed and/or mortgage (the effective date of the title policy).
The title company protects the buyer and lender from covered liens and other coveredtitle defects that are recorded against the property in the "Gap" period.