3. Hire title and escrow companies
Depending on the state, you might choose the companies, or the buyer might. A title company is responsible for making sure the property lines are drawn correctly and that there are no property liens that need to be addressed; issuing title insurance; and, on closing day, ensuring that the actual property ownership changes hands.
The escrow company is responsible for managing all closing documents, facilitating the transfer of funds, and completing the legal paperwork that records the sale.
Note: Sometimes the same company can handle both the title and escrow tasks.
What is a property lien?
A property lien is a legal notice related to an unpaid debt. If you’ve failed to pay your taxes, child support, the settlement for a court case against you, or a contractor who has done work for you, a lien can be placed on your home until you settle the debt.
Long story short: You can’t sell your home until all liens are cleared, and it’s the title company’s job to make sure there are no outstanding liens before closing.