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Title Insurance FAQs
What is Title Insurance?
Title insurance is a very unique insurance policy that protects your ownership in real property, in most cases, your home. Unlike other policies, title insurance protects the owner from past errors related to ownership histroy rather than future risks such as fire, flood, or other physical damages. Title coverage is based on the careful research of past ownership records and is designed to address any overlooked or outstanding issues prior to your taking possession of your property.
Why should you have Title Insurance?
The behind-the-scenes work of the title company promotes and ensures an efficient and secure transfer of real estate from the seller to the buyer. Title insurance doesn't guarantee that you will never have a problem, but it does give you the assurance and peace of mind that the title company will be there to address a problem if there is one. Unlike other types of insurance, the premium for your title policy is paid only once, and your policy remains in effect as long as you own the property. A title policy is your guarantee that the home you are buying is protected from covered title problems.
Is Title Insurance different in Texas?
In Texas, the Department of Insurance is responsible for regulating title insurance, making Texas the state with the most tightly regulated title insurance industry in the United States. This means that regardless of the title company issuing the policy, the language and premium amount of the policy remains standardized. When obtaining a title policy in Texas, it's important to understand that rates, terms, and coverages are all set by the Texas Department of Insurance. As a result, title professionals compete based on the quality of service they provide, as they cannot compete on price or product due to the regulations in place.
May I choose the title agent or the insurer that underwrites my policy?
Yes. In Texas, the premium rates for title insurance are set by the commissioner of the Texas Department of Insurance. Because these rates are the same for all policies, agents do not compete on price, but on service.
What is the difference between a Title Commitment and a Title Policy?
The title commitment comes before closing; the title policy is issued after closing. The commitment says that a title company is willing to issue title insurance under certain conditions and if the seller fixes certain problems. The policy provides coverage for the property.
Who is responsible for the Owner's Title Policy?
Although payment of the Owner's Title Policy is negotiable, it is customary for the property seller to pay for the owner's policy.
Who is responsible for payment of the Loan Policy?
Responsibility of payment is negotiable, though it is usually the borrower/buyer who pays for the loan policy.
What items are included in the title premium rate in Texas?
Texas' rates are considered to be "all-inclusive" premium rates. This means that in addition to the risk covered by the title insurance company, the rates also include the title search and examination, as well as closing the title insurance transaction.
Why a Fee Attorney?
A Fee Attorney performs the closing function. Most all title companies (the agent) or title insurance companies (the underwriter) also have their own employees who handle closings. For the public, it is often hard to tell whether a title closing office is a company owned office or a Fee Attorney office.
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- PROBATE MATTERS
The Sidaros Law Firm is here to help our clients navigate the probate courts with care and expertise. We understand the emotional toll of handling your loved one's assets, which is why we are dedicated to protecting and preserving them.
