FAQ: Land & Property Investors
Typically, the policy is obtained from the owner of the property. If the policy cannot be located by the owner, an affidavit may be executed (prepared by the title agent who issued the policy) and permission can be granted for the title agent to provide the policy to the attorney.
Any employee at the title agency can be instrumental in obtaining additional information for you; however, permission from the owner of the policy may be required.
Prosperus Title & Escrow will ensure that any liens are paid off before the transaction is fully funded and recorded.
No, the premium rates begin at $238 for properties valued from $1 to $10,000. There aren’t different rates for residential and commercial properties as the premium is based on the sales price or property value, whichever of the two is greater.
Generally, buyers of commercial properties will be more interested in the restrictions, easements and mineral reservations that affect the property. These documents are often reviewed by attorneys.
All buyers need to go through the closing process on the same day, but not at the same time. The buyer can send someone with proper authorization to do the transaction on behalf of the buyer, such as a real estate attorney or real estate agent.
Title insurance protects people from losses that may happen after they buy real estate. Losses can happen due to unknown liens, defects, or encumbrances on the property that existed before the purchase. Most lenders will require you to buy a policy to protect their interest.
Title insurance agents try to find defects in the title that need to be corrected before the owner of the land sells it. They look at public records, including deeds, mortgages, wills, divorce decrees, court judgements, tax records, liens and maps.
You would need to purchase an owner’s policy. It protects you from the covered risks listed in the policy. The cost is included in your closing costs. The policy covers up to the value of the property at the time that the policy is purchased.
You can use any title agent. Your real estate agent or lender may recommend one to you but the choice is yours if you are simultaneously purchasing a loan policy for your lender. If not, this detail can be negotiated between the parties. If you are going to look for one, ensure that the agent is licensed in Texas. You can verify by calling the Texas Department of Insurance (TDI) Title Agent Licensing Office at 512.676.6475 or by emailing TDI-TitleLicensing@tdi.texas.gov.
The cost for the title insurance is based on the property’s sale value. The rate paid is determined by the Texas Department of Insurance. View the rates by clicking here.
Keys are delivered shortly after the transaction is fully closed. The seller will typically authorize release of the keys by their agent or the title agent when the sales proceeds are funded. It can take up to two days if any of the parties are located out of town.
It is not common in our region for the seller to attend the closing with the buyer.
Yes, in most cases. The Texas Department of Insurance has established rules for title agents to share the premiums between each other.
Yes, there is a simpler policy form that is used for residential home purchases (if the buyers are individuals). If the property is vacant land, commercial property or owned by a legal entity, then the standard policy form is used.
Typically, 3–5 days. If there are complications, it may take longer.
Usually, a copy of the contract of sale is needed in order for a title agent to begin the process of reviewing the title.
Yes, the loan policy protects the lender and covers up to the principal amount on the loan.
It is effective until the owner repays the loan.
When the new loan pays off the existing loan, the old loan policy expires. You can possibly receive a premium discount on a new policy if you refinance within seven years.
The title agent will need to know the names of the borrowers, the address, and/or legal description and whether it is a purchase, refinance or home equity loan. It is also good practice to supply the last four digits of the borrower’s social security number and date of birth.
You should make your objections to any title defects known to the parties involved. If possible, the title agent will work with the seller to clear or cure any title defects.