Freqently Asked Questions
WHAT IS TITLE?
The word "Title" in regard to real estate refers to ownership. Ownership is passed from one person (or entity, such as a corporation) to another by means of a written grant, most often called a Deed. In Texas, real estate transactions must be in writing, and no oral or verbal grant of ownership interest in real estate is valid, nor is an oral or verbal contract regarding real estate. So that the public can know who the owners of real property are, each county in Texas maintains real property records. Using these records, it is possible in most cases to trace the "chain of title" all the way back to its ownership by the Republic of Texas.
WHAT IS TITLE INSURANCE?
A title policy of insurance is a guaranty by the insuring company, the title company, to defend the insured (the owner of the property and/or the mortgage lender), subject to certain exceptions, against legal claims made against the insured's title to the covered property. A title policy of insurance is effective for as long as the insured owner (or his/her heirs or specific types of assignees) continues to own the property. Because the real property records systems maintained by counties may contain errors, there is always a risk that the record chain of title may not properly reflect the actual chain of title. Owners and lenders want to assign that risk title insurance companies. Title Insurance companies are licensed by the Texas Board of Insurance. Texas is widely considered to have the most highly regulated title insurance industry in the country.
WHAT IS CLOSING?
Closing refers to the actual signing of the granting documentation (i.e., the Deed) and the exchange of consideration (usually the payment of money) necessary to affect or carry out a contract for the sale of real property. We refer to Closing the transaction, Closing the deal, or Closing the contract. Many times the Buyer is financing all or a portion of the purchase, so the Closing also includes the signing by the Buyer of finance-related documentation (i.e., the Deed of Trust, the Note, etc.).
WHAT ARE ESCROW SERVICES?
Escrow Services are a means by which parties to a real estate transaction exchange consideration according to the terms of the contract. In the context of the residential real estate contract, Escrow Services in Texas are most often provided by title companies. Title companies maintain special bank accounts callled Escrow Accounts. They recieve money into the account and hold it until contractual conditions have been satisfied (the grantor/Seller has signed a Deed and the grantee/Buyer has signed the finance documents) for funds to be disbursed. Individuals are licensed by the Texas Board of Insurance as Escrow Officers.
The word "Title" in regard to real estate refers to ownership. Ownership is passed from one person (or entity, such as a corporation) to another by means of a written grant, most often called a Deed. In Texas, real estate transactions must be in writing, and no oral or verbal grant of ownership interest in real estate is valid, nor is an oral or verbal contract regarding real estate. So that the public can know who the owners of real property are, each county in Texas maintains real property records. Using these records, it is possible in most cases to trace the "chain of title" all the way back to its ownership by the Republic of Texas.
WHAT IS TITLE INSURANCE?
A title policy of insurance is a guaranty by the insuring company, the title company, to defend the insured (the owner of the property and/or the mortgage lender), subject to certain exceptions, against legal claims made against the insured's title to the covered property. A title policy of insurance is effective for as long as the insured owner (or his/her heirs or specific types of assignees) continues to own the property. Because the real property records systems maintained by counties may contain errors, there is always a risk that the record chain of title may not properly reflect the actual chain of title. Owners and lenders want to assign that risk title insurance companies. Title Insurance companies are licensed by the Texas Board of Insurance. Texas is widely considered to have the most highly regulated title insurance industry in the country.
WHAT IS CLOSING?
Closing refers to the actual signing of the granting documentation (i.e., the Deed) and the exchange of consideration (usually the payment of money) necessary to affect or carry out a contract for the sale of real property. We refer to Closing the transaction, Closing the deal, or Closing the contract. Many times the Buyer is financing all or a portion of the purchase, so the Closing also includes the signing by the Buyer of finance-related documentation (i.e., the Deed of Trust, the Note, etc.).
WHAT ARE ESCROW SERVICES?
Escrow Services are a means by which parties to a real estate transaction exchange consideration according to the terms of the contract. In the context of the residential real estate contract, Escrow Services in Texas are most often provided by title companies. Title companies maintain special bank accounts callled Escrow Accounts. They recieve money into the account and hold it until contractual conditions have been satisfied (the grantor/Seller has signed a Deed and the grantee/Buyer has signed the finance documents) for funds to be disbursed. Individuals are licensed by the Texas Board of Insurance as Escrow Officers.
