Most of us here the word title thrown around during a real estate transaction, heck even on refinances it's used. Whether you are buying or selling a house (or both) you are going to have title work done and possibly some questions about what it means. The following video breaks it down!
The title company also handles the exchange of finances. For example, they may be the one to hold your Earnest Money Deposit (EMD). They also will be the responsible party that receives all of the funds for closing. If you are buying, you will most likely have a mortgage. The mortgage company will tell you how much you need to "bring to close." You will have to verify how to send/bring those funds (wire or cashier's check most likely), but they will be the ones to collect the funds. Let's assume it is a cashier's check you are providing. You will use the number provided from the mortgage company and have the check payable to the title company. The mortgage company will wire funds to the title company as well. The seller will most likely be receiving funds from the sale (often called proceeds). The title company will provide those funds to the seller too. And, should there be any type of funds being escrowed, yup you guessed it, the title company will take care of holding those funds and eventually dispersing to the appropriate parties.
To recap, the title company will play an important role in the transaction. They will prove the seller and buyer can transfer the deed with no hassles, take care of that transfer (closing) and take care of all the money exchanging hands.