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 history 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. 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.
Who is responsible for payment of the owner’s policy?
Although negotiable, it is customary for the seller to pay for the owner’s policy.
Who is responsible for payment of the loan policy?
As with the owner’s title policy, responsibility for payment is negotiable, though it is usually the borrower/buyer who pays for the loan policy.
What is the average fee for the search, exam, and title insurance policy in Texas?
Premium rates are established by the commissioner of the Texas Department of Insurance through a public hearing process, and all title agents and companies are required to charge the same rate. The rate is based on the amount of coverage provided by the policy.
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.
Are the cost of added endorsements included in the premium?
No. You may have the option to purchase additional endorsements with your policy.
