The Role of the Title Company in your Real Estate Journey
As exciting as it is to buy a new home, it can be a bit stressful as well, especially when it comes time to close. That is why we work with some of the best people in the business! Many clients often ask us about the role of a title company in their real estate journey. So we decided to ask Barbara Larrow, Escrow Officer at Chicago Title Company some questions:
To protect, possibly, the most important investment you’ll ever make – the investment in your home. With a title insurance policy, you as owner have an indemnity contract that will reimburse you for loss in the event someone asserts a claim against your property that is covered by the policy.
Title insurance rates are set by the Texas Department of Insurance. All title companies charge the same rate based on the sales price of the house. For example – on a $100,000 sale the title insurance will be $875. On a $500,000 sale it would be $3,091 and on a $1,000,000 sale it would be $5,861. The Chicago Title app has the title rates available and is a great resource.
The owner’s title policy is traditionally a seller’s expense but it is negotiable in the contract. If the buyer has a loan they will pay for the lender’s title policy. The lender’s policy costs $100.00
Title insurance will pay for defending against any lawsuit attacking your title as insured, and will either clear up title problems or pay the insured’s losses. Your title insurance policy remains in effect as long as you or your heirs retain an interest in the property. Here are just a few of the most common hidden risks that can cause a loss of title or create an encumbrance on title:
*False impersonation of the true owner of the property*Forged deed, releases or wills, Instruments executed under invalid or expired power of attorney*Undisclosed or missing heirs; Mistakes in recording legal documents*Misinterpretations of wills Deeds by persons of unsound mind*Deeds by minors*Deeds by persons supposedly single, but in fact married*Fraud*Liens for unpaid estate, inheritance, income or gift taxes
If there is a lender involved, it is a good idea to allow 30-45 days for closing. If it is a cash transaction, usually 15-21 days is enough time. If there are any title issues or divorce or estate issues, more time should be allowed.
To summarize, the title company makes sure that the investment you made in your home is protected and safe. We hope you found this Q&A session with Barbara Larrow useful and don’t forget to call us for all your real estate needs!
“Everyday is an opportunity to learn something new.