goodfellowsmansfield.com

By Shane Smith

East Texas Title Companies are Title Insurance Companies regulated by the Texas Department of Insurance. It is important to buy title insurance even after a title search is conducted because of possible undetected title defects. The defects could be the result of forgery, fraudulent deeds, contested wills, erroneous trusts, missing heirs and undisclosed easements, liens and encroachments. The cost of the one time Title Insurance Premium is 1.5% of the purchase price. Title Insurance is a property loss prevention method. The Title search can help the seller resolve title issues and the insurance protects the purchaser of the property.

Besides Insuring the property and paying for legal fees for defending the title against undetected claims, title companies act as escrow agents and hold the earnest money, review documents and notify the appropriate party of defects in the property or title. The title company, reviews documents, surveys, appraises and inspects the property and makes sure that the requirements of the HUD-I statement are in place before the closing.

To find a reputable title company, one can look up the internet. ALTA (The American Land Title Association) and the Texas department of Insurance have a list of reputed Insurance Companies with businesses located in West Texas. Many internet websites list title companies the neighborhood of the purchaser. These Companies will be aware of the local requirements for title search and closing of the deal. A purchaser cannot waive title insurance because lender companies require title insurance to protect their collateral which is the purchased home from title claims. Further the lender will add the cost of the insurance to the purchaser s expenses.

A title insurance policy can have limits and exclusions. In the State of Texas, if a lien exists and cannot be resolved by the seller the title, the Insurance Company cannot insure the property. Insurance Companies cannot guarantee mortgage payment on real property. No rebates or discounts can be given. The fees charged should not exceed the percentage of the premium. A Title insurance Company cannot authorize agents to solicit insurance business. No Company can issue title insurance policies with a liability in excess of 50% of the company s capital stock or surplus.

The Insurance Contract must be in the form prescribed by the Texas Department of Insurance. If the Title Insurance Company is an Attorney title Insurance Company then the Company must be certified to the department the name and address of each attorney and any fees in accordance with the department s rules.

East Texas consists of the Counties of Angeline, Houston, Jasper, Nacodoches, Neoton, Polk, Sabine, San Augustine, San Jacinto, Shelby, Trinity, and Tyler.

The well known nationwide title companies in East Texas are Chicago Title Insurance Company, American Title Company and U.S. Title Company. Besides these large companies there are local companies like, Encomia, Elliot and Waldren Title Company and Borren Scott, Service Title Company and Attorneys Land and Title Co.

By prudently buying title Insurance a purchaser can live on the piece of land with peace of mind.

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