So much happens during a real estate transaction, and there are a variety of parties that are integral in the process to ensure everything happens legally and fair for everyone involved. Learn about the importance of choosing the right title company, and how a title company helps real estate deals happen.
In Texas, title insurance companies serve two primary purposes in your real estate transaction:
Title Companies Are A Needed, Neutral Third Party
First, title companies serve as a neutral, third-party; repository for documents and funds until the terms of a contract have been satisfied by the parties. When buying a home, the real estate contract and earnest money are delivered to the title company, as well as the documents that are executed at closing, such as Warranty Deeds and Deeds of Trust. The title company also receives the closing funds from the parties and any lender involved in the transaction.
Additionally, surveyors, home insurance companies, HOA companies, home warranty providers, payoff lenders and other vendors send invoices to the title company for charges that need to be collected as part of the real estate transaction. Upon receipt of items required by the contract, and approval by the parties and any lender, funds are dispersed as indicated on the settlement statement an executed documents are sent for recording or to the appropriate party or lender.
Research, Groundwork, and Quality Control
The second primary purpose of a Texas title company is to research the ownership of the property and find out whether there are any liens or encumbrances affecting ownership of the property. Title companies make sure that the person who is attempting to sell (or refinance) the property is truly the owner. Additionally, a title company determines if there are any loans that need to the paid off or released as part of the transaction, and if there are any easements, restrictions or other documents that affect the property. This important research is provided to the parties and lender in the form of a title commitment. During the course of the transaction, the title company will work to satisfy the requirements to close the transaction so that, following the execution of documents, receipt of all funds, and approval of the parties and any lender, a title policy can be issued to the new owner and lender.
Other Things a Good Title Company Should Do
In addition to these primary functions, title companies provide several services as a courtesy to the parties in a real estate transaction. These services may include providing a list of vendors for or ordering surveys and home warranties, arranging for a mobile signing service or arranging for the pick-up or delivery of documents or other items associated with the closing of the transaction. A good title company will also serve as a great source of information about the closing process in general.
Because the cost of title insurance is regulated in Texas, the cost of a title policy will be the same regardless of which title company you choose to do your closing. While title companies can charge fees beyond the premium for the title policy, those fees are relatively standard and within the same ballpark.
What differentiates title companies is really the level of customer service they provide. At Fidelity National Title in the Heights, our goal is to provide a customer service experience that far exceeds the industry norm. Our staff is knowledgeable, friendly and courteous, and happy to answer questions during, and after your closing with us. Our location in the Houston Heights means that we are easy to access from Houston’s three interstate highways. Additionally, our in-office attorney has almost 20 years’ experience in closing properties in the Heights and surrounding areas.
Have Any Questions?
Give us a call and we will make sure your questions are answered. We are honored to b e your local Heights title company and expert in real estate transactions!