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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Topic:
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Ambassador
1,802,195
Judi K Barrett
Broker/Owner, Integrity Real Estate Services -IDAB
Judi Barrett~Integrity Real Estate Services~Idabel, Oklahoma

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

July 19, 2012 07:26 PM
Ambassador
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Jeff Dowler CRS
Carlsbad CA Homes for Sale (760) 840-1360
Solutions Real Estate

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

July 19, 2012 08:39 PM
Rainmaker
308,767
Anja Kerstens
GRI, CDPE, CHS, ASP, Selling Silicon Valley Real Estate
Summit Realty Group

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.

July 24, 2012 08:30 AM
Rainer
189,754
Virginia Cheezum
F. C. Tucker Company

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

July 31, 2012 08:11 AM
Rainmaker
76,360
Jim Brooks
The Brooks Team- Realty One Group

Dorie,

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

September 19, 2012 05:16 PM
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Rainmaker
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Dorie Dillard

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

Author Bio: I was once a school teacher and still like the learning process. Only now I enjoy learning what dreams my clients have and what I can do to help them. I am a firm believer in asking the right questions. It is the only way to get answers that have helped me build an impressive business over the past 21 years and leave a trail of happy clients

Welcome to my ActiveRain real estate blog and profile. I'm a Realtor with Coldwell Banker United and specialize in NW Austin. Once a school teacher I still like the learning process. Only now I enjoy learning what dreams my clients have and what I can do to help them. Dorie Dillard, Real Estate Professional in Austin, TX

Dorie Dillard

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