Frequently Asked Title Questions & Resources
What Is Title Insurance?
Title insurance is protection against loss arising from problems connected to the PAST title to your property. Before you purchased your home, it may have gone through several ownership changes, and the land on which it stands went through many more. There may be a weak link at any point in that chain that could emerge to cause trouble. For example, someone along the way may have forged a signature in transferring the title. Or there may be unpaid real estate taxes or other liens. Title insurance covers the insured party for any claims and legal fees that arise out of such problems.
Am I Required to Purchase Title Insurance?
Why Do I Need Title Insurance?
Doesn't the Lender Policy Indirectly Protect Me?
When Does Title Insurance Protection Begin and End?
For How Long Is the Property Owner Covered?
Will Title Insurance Protect Me Against False Claims That Arose After I Purchased the Property?
Why Do I Need to Purchase a New Policy When I Refinance?
You don’t need a new owner’s policy, but the lender will require you to purchase a new lender policy. Even if you refinance with the same lender, the existing lender’s policy terminates when you pay off the mortgage. Furthermore, the lender is concerned about title issues that may have arisen since you purchased the property, such as the lien mentioned in an earlier question. A new title search will uncover the lien, and you will have to pay it off as a condition for the refinance. In Texas, all title insurance premiums are regulated by the State Board of Insurance of the State of Texas. A title insurance company can only charge the promulgated rate, which is based on:
- 1. The sales price of the property.
- 2. The loan amount (in the case of a refinance).
- 3. The value of the land + the cost of immediately contemplated improvements (in the case of an interim construction loan).
- 4. Rate Rules allow for discounts under certain conditions.
What's Different About Title Insurance In Texas?
Like all lines of insurance, the title is highly regulated by the government. In Texas, the Department of Insurance is the state agency charged with oversight of title insurance. In fact, Texas has the most tightly regulated title insurance industry in the United States. Both rates and forms are standardized, meaning the policy’s language is the same, regardless of the title company (also known as an underwriter) issuing the policy, and the premium amount charged for the policy is the same no matter which title insurance agent you choose.
When you purchase a title policy in Texas, you should know that the Texas Department of Insurance sets the rates, terms, and coverages. All title professionals are legally bound to those requirements. Because title professionals can’t compete on price or product, they must compete on the quality of service they provide.
May I Choose The Title Agent Or The Insurer That Underwrites My Title Policy?
Who Is Responsible For Payment Of The Owner's Policy?
Although negotiable, it is customary for the property seller to pay for the owner’s policy.
What Items Are Included In The Title Insurance Premium Rate In Texas?
What Is The Average Fee For The Search, Exam, And Title Insurance Policy In Texas?
Who May Conduct A Real Estate Closing In Texas?
When a title insurance policy is issued, it is customary for a licensed escrow officer to close the real estate transaction concurrently with the closing of the title transaction.
Is There A Mortgage, Transfer, Or Other Tax Imposed On Texas Real Estate Transactions?
Is The Cost Of Added Endorsements Included In The Premium?
Where Can I Find Additional Information About The Regulation Of Title Insurance In Texas?
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101 Cedar Dr., Ste. G
Portland, Texas 78374
361-643-7568 – FAX
Mon - Fri : 8:00 AM - 5:00 PM
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2527 S.H. 361, Suite A
Ingleside, Texas 78362
108 N. Archer
Sinton, Texas 78387
361-364-1333 – FAX
Licensed by the State Board of Insurance in
San Patricio County 1877254
Cashier’s Check, Personal checks up to $1,500