Protecting you and your lender
Title insurance protects you and your lender if someone challenges your property title because of title defects unknown at the time you bought the policy.
Possible title defects include:
Errors or omissions in deeds.
Mistakes made in abstracting and examining records.
Liens for unpaid taxes.
Liens by contractors.
Before issuing a title insurance policy, title companies check for defects in your title by examining public records, including deeds, mortgages, wills, divorce decrees, court judgments, tax records, liens, encumbrances and maps. www.tdi.state.tx.us
The title search determines who owns the property, what outstanding debts are against the property and the condition of the title.
Premiums for title insurance policies are established by the Texas Department of Insurance and no title insurance company can charge more or less for a specific amount of insurance.
For more detailed information, please contact the Texas Department of Insurance at:
WHAT IS ESCROW
An escrow is an arrangement in which a disinterested third party, usually the title company, holds legal documents and funds on behalf of the buyer, seller and lender, and distributes them according to written closing instructions.
The escrow agent is in charge of processing and coordinating the flow of documents and funds, informing all parties of progress, responding to lender´s requirements, coordinating document preparation and title work, preparing the final settlement statement, obtaining proper approval of documents, overseeing closing, disbursing funds and recording documents.
For this service, the title company charges an escrow fee.
WHAT IS INVOLVED IN TRANSFERRING A LAND TITLE?
- Order is placed with the title company. This normally includes presenting an executed Earnest Money Contract, together with an earnest money check, to open escrow.
- Title and tax search is performed. Various tax assessors-collectors are contacted to verify the tax status of the property. Copies of documents are gathered from the various public records, including, but not limited to, deeds, liens, wills, divorce settlements, etc.
- Title is examined. The examination process verifies the legal owner of the property, any outstanding debts and the condition of the title. A title commitment is prepared and delivered to parties.
- Once all requirements in title commitment have been resolved, forms are prepared for settlement.
- Escrow officer performs closing of transaction. Seller(s) and Buyer(s) execute documents necessary to transfer title and establish new lien, if any. Existing liens and charges are paid (including seller, broker, attorney, title company, etc.).
- Documents are recorded and title policies issued.