Serving Lamar County
Must I get title insurance?
If financing, title insurance is required. The seller traditionally pays it, but this can be negotiated. Otherwise, it is the choice of the seller and buyer. We highly recommend that you do not purchase property (land) without it. The price is usually about 1% of the total, which typically amounts to one payment if you are financing. It is worthwhile, because otherwise the property is not abstracted to check chain of titles, liens, state or federal taxes, and a myriad of other matters. You would not ask a doctor to set your bone without an X-ray. When you do not purchase title insurance, you are essentially asking your lawyer to proceed without all of the facts. The lawyer simply cannot know all of the facts without title insurance. If you paid the lawyer separately to research the title, the cost would be greater than title insurance and there would not be an insurance policy for your protection. Title insurance is a very important, one-time investment that protects your investment from a cloud on the title the entire time you own the property.
Please note: Young Title Company Inc. will not close any real estate purchase or loan without title insurance, pursuant to Texas Department of Insurance Regulations.
But really, what could go wrong with a title? Honestly, this is a great deal that most consumers know nothing about. A few examples of very common title issues that could come to light months or even years after closing are the following:
Spouses or heirs left out of conveyance, undisclosed or missing heirs
Deeds from minors or persons of unsound mind
Indexing errors (yes, it happens)
Liens – such as for bank loans, taxes (county, state and IRS), and judgments
Recording or clerical mistakes
Survey problems* -- Title insurance will not cover issues shown by a survey without a typically very small payment for additional coverage and a brand new improvement survey, or an improvement survey sworn to as unchanged. We highly recommend that you consider adding this to your standard title insurance purchase, as without it we will not know if there are encroachments or other issues that an improvement survey shows.
Must I get a new survey?
A new survey is usually a good investment because instruments are so much more precise these days, and therefore surveyors are able to be much more specific. Also, surveys are very important in many ways! Sometimes a new survey is required by the bank or the title company for different reasons; at other times an old survey can be relied on if the sellers can verify that they have not made certain changes to the property. Also, see survey problems above.
What is an escrow fee? I have (or don’t have) escrow with my bank; why do I have to pay an escrow fee?
The title company holds all monies associated with the closing in our escrow account and disburses them upon funding to the proper persons. We have licensed escrow officers for the handling of this money who are charged to properly prepare the settlement statement that reflects all payments and charges in the closing and pay out accordingly. Thus, the escrow fee pays for the services of your escrow officers and assistants.
This is different from a bank escrow, although the functions are the same. When you have an escrow with the bank, it is charged with properly collecting money for taxes and/or insurance for the end of the year and paying those bills at the proper time.
Do I have to have hazard insurance?
Yes, if you are financing the property in any way; besides, it is the best way to protect your investment from hazards (fires, etc.). Most of the time, you must pay the first year’s premium up front, and then you can escrow the amount for next year and let your bank pay it, or you can pay it yourself at the proper time. You should have your insurance company send a binder and bill to the title company before the closing, so that the proper amount can be collected through the closing and paid at the time of funding.
What are good funds? Why can’t I bring a check to closing?
Young Title Company Inc. is regulated and licensed by the Texas Department of Insurance. A part of the function we serve is keeping your money and land safe until the point when they can be exchanged so that closing and funding can occur. We do not fund until we have the money, i.e. GOOD FUNDS as defined by TDI.
"GOOD FUNDS" are: (1) cash or wire transfers; (2) certified checks, cashier's checks, and teller's checks as further described in Definition (g) of said rule; (3) uncertified funds in amounts less than $1,500.00, including checks, traveler's checks, money orders, and negotiable orders of withdrawal; provided multiple items shall not be used to avoid the $1,500.00 limitation; (4) uncertified funds in amounts of $1,500.00 or more, drafts, and any other items when collected by the financial institution; (5) State of Texas warrants; (6) United States Treasury Checks; (7) checks drawn on a bank or savings and loan association insured by the FDIC OR FSLIC and for which a transaction code has been issued pursuant to, and in compliance with, a fully executed immediately available funds procedure agreement; (8) checks by City and County governments located in the State of Texas.
Choose the friendly, nice, and accommodating title company with over 100 years of experience and with the best underwriters around and is regulated by Texas Department of Insurance!