Tips on Relocating to Austin ~ Part Five

By
Real Estate Agent with Coldwell Banker United Realtors CBURE#0406046
http://actvra.in/F8k

Relocating to Austin Part FiveEvery state has nuances concerning home ownership. In Texas you will want to investigate Title Insurance. When you purchase a home it is normal and customary to ask the seller to pay for a Title policy. The fee however, is negotiable between buyer and seller.  If purchasing a builder home the builder will usually pay for the Title Policy if you use their lender and close at their preferred Title Company.

So why is Title insurance important? It's essential to make sure the home you are purchasing is free and clear of debts and leins.

Title Insurance is a contract of indemnity between the insured and a title company. The form of the contract is determined by the Texas Department of Insurance. Likewise, title insurance rates in Texas are promulgated by the Department and are uniform for all title companies. Everytime a home sells a Title Policy is written and provided to the buyer.

An explanation of title insurance is provided here by Austin Title.

Part 5: Texas Title Insurance

There are 2 major types of policy.  The Owner’s Policy of Title Insurance is issued to an owner/purchaser and insures against certain listed title risks. The Mortgagee Policy of Title Insurance is issued to a lender and insures the validity of the lender’s lien against the property.  Before issuing a title policy, a careful search is made of the county, state and federal records that affect real estate.

Some of the risks that exist which a title policy may protect against include: forgeries, false representations, mistakes at law, undisclosed heirs to name just a few.  In most cases, it is customary in Texas the seller of the property pay for the Owner’s Policy, but is a matter of negotiation, and in many instances is paid for or partially paid for by the buyer.  The premium for the Owner’s Policy is based on the sales price. The borrower is responsible for paying for a Mortgagee’s Policy,  which is based on the amount of the loan.

The title insurance company also acts as an escrow agent between the seller, buyer and lender and has responsibilities to all parties for fair dealing.  The title insurance company receives the buyer’s money as well as all other documentation required for the transaction.   When all requirements of the contract and the lender are satisifed, the transaction is “closed”.

Title Policy Protections

  • Forgeries
  • False representations
  • Mistakes at law
  • Undisclosed heirs
  • Illegal trusts
  • Delinquent taxes
  • Fraud
  • Lost wills
  • Mistakes in legal description
  • Clerical mistakes
  • Defective acknowledgments on documents
  • Platting


Previous tips:

Part 4: Homestead Exemption
Part 3: Community Property
Part 2: Home Warranty
Part 1: Moving Checklist

I offer years of experience helping families relocate to the NW Austin area. If you haven’t chosen a Realtor®, I would love the opportunity to earn your business and exceed your expectations.


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Rainmaker
997,546
Ronald DiLalla
Century 21 Discovery DRE 01813824 - Anaheim, CA
No. Orange Cty Real Estate
Hi Dorie, I'm sure all the Californians fleeing for Austin will appreciate your tips.
Jul 19, 2012 01:09 PM #2
Ambassador
1,609,134
Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Dorie- you should teach a class!  What a great explanation of what Title Insurance is. 

Jul 19, 2012 01:53 PM #3
Rainmaker
1,509,825
Anita Clark
ColdwellBanker SSK Realtors ~ 478.960.8055 - Warner Robins, GA
Realtor - Homes for Sale in Warner Robins GA

Dorie: Well written and a useful resource for anyone moving to Texas!  Your expertise is shining through.

Jul 19, 2012 02:59 PM #4
Rainmaker
278,384
Carol-Ann Palmieri
RE/MAX Executive Realty, Al and Cal Realty Group - Franklin, MA
"Cal" the Real Estate Gal

Hi Dorie.   Excellent post on what to expect in regards to title insurance.   Nice to know.  Here in MA it normally falls on the Buyer.  

Jul 19, 2012 05:24 PM #5
Rainmaker
1,781,499
Dorie Dillard
Coldwell Banker United Realtors - Austin, TX
Realtor-Canyon Creek- NW, Austin TX Homes For Sale

Hi Laura,

Thank you..it is different in every state!

Jul 19, 2012 05:30 PM #6
Rainmaker
1,781,499
Dorie Dillard
Coldwell Banker United Realtors - Austin, TX
Realtor-Canyon Creek- NW, Austin TX Homes For Sale

Hi Ron,

We do have a number coming to Texas!

Jul 19, 2012 05:31 PM #7
Rainmaker
1,781,499
Dorie Dillard
Coldwell Banker United Realtors - Austin, TX
Realtor-Canyon Creek- NW, Austin TX Homes For Sale

Hi Kathy,

We have excellent references who explain Title Insurance..Austin Title is a great resource!

Jul 19, 2012 05:32 PM #8
Rainmaker
1,781,499
Dorie Dillard
Coldwell Banker United Realtors - Austin, TX
Realtor-Canyon Creek- NW, Austin TX Homes For Sale

Hi Anita,

Thank you!! That means a lot coming from the expert in Warner Robbins, GA!

Jul 19, 2012 05:34 PM #9
Rainmaker
1,781,499
Dorie Dillard
Coldwell Banker United Realtors - Austin, TX
Realtor-Canyon Creek- NW, Austin TX Homes For Sale

Hi Carol,

Exactly why a buyer needs to know what is the norm for the state where they are relocating!

Jul 19, 2012 05:35 PM #10
Rainmaker
621,013
Bobbie Smith
RE/MAX OF THE POCONOS - Stroudsburg, PA
Real Estate in the Poconos of PA 570-242-1891,

Very interesting Dorie. Here in PA the Buyer always pays for the Title insurance.

Jul 19, 2012 05:46 PM #11
Rainmaker
405,646
Ellen Caruso
Daniel Gale Sotheby's International Realty - Glen Head, NY

Dorie, great series....anyone looking to move to Austin must find YOU! Your the best!

Jul 19, 2012 06:18 PM #12
Rainmaker
1,781,499
Dorie Dillard
Coldwell Banker United Realtors - Austin, TX
Realtor-Canyon Creek- NW, Austin TX Homes For Sale

Hi Bobbie,

It just goes to show you real estate is local!

Jul 19, 2012 06:39 PM #13
Rainmaker
1,781,499
Dorie Dillard
Coldwell Banker United Realtors - Austin, TX
Realtor-Canyon Creek- NW, Austin TX Homes For Sale

Hi Ellen,

Thank you!

Jul 19, 2012 06:40 PM #14
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Richard Weisser
Better Homes and Gardens Real Estate Metro Brokers - Newnan, GA
Richard Weisser Coweta Newnan Homes for Sale

Dorie...

This is an excellent series and a very good source of information for those looking to relocate to your area!

Jul 19, 2012 06:50 PM #15
Rainmaker
1,781,499
Dorie Dillard
Coldwell Banker United Realtors - Austin, TX
Realtor-Canyon Creek- NW, Austin TX Homes For Sale

Hi Richard,

Thank you!!

Jul 19, 2012 07:02 PM #16
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Judi K Barrett
Judi Barrett~Integrity Real Estate Services~Idabel, Oklahoma - Idabel, OK
Broker/Owner, Integrity Real Estate Services -IDAB

What a great series Dorrie, You are the agent in Austin to supply information! 

Jul 19, 2012 07:26 PM #17
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1,893,186
Jeff Dowler CRS
Solutions Real Estate - Carlsbad, CA
Carlsbad CA Homes for Sale (760) 840-1360

Dorie

This is an excellent overview of a topic that confuses many, including agents. Here it is typical for the seller to pay the buyer's policy but the lender's policy is paid by the buyer. BUt all that is negotiable, and things are quite different when you are dealing with short sales and REOs.

Jeff

Jul 19, 2012 08:39 PM #18
Rainmaker
309,042
Anja Kerstens
Summit Realty Group - Gilroy, CA
GRI, CDPE, CHS, ASP, Selling Silicon Valley Real Estate

Dorie, I can only repeat what others have said: excellent series.  You are going into great detail explaining title insurance.  A great resource for those looking to move to Austin but also homeowners who are considering moving up in Austin will find your blog educational.

Jul 24, 2012 08:30 AM #19
Rainer
189,758
Virginia Cheezum
F. C. Tucker Company - Indianapolis, IN

Excellent post idea, Dorie!  Hope you don't mind if I borrow your idea for the Northern Virginia area!

Jul 31, 2012 08:11 AM #20
Rainmaker
90,542
Jim Brooks
The Brooks Team- Realty One Group - Henderson, NV

Dorie,

 Wow, these are some great tips! I'm sure all of the people relocating to Austin appreciate them.

Sep 19, 2012 05:16 PM #21
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Rainmaker
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Dorie Dillard

Realtor-Canyon Creek- NW, Austin TX Homes For Sale
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