Frequently Asked Questions

This section gives you answers to the questions we hear most often from home buyers.

Q: What is Title Insurance & what does it protect me from?
A: Title insurance protects real estate owners and lenders against any property loss or damage they might experience because of liens, encumbrances or defects in the title to the property. Each title insurance policy is subject to specific terms, conditions and exclusions. While other types of insurance (such as flood, auto or homeowners insurance) provide coverage that focuses on possible future events, title insurance protects against loss from hazards and defects already existing in the title to a property. Some examples of such defects might be improperly executed documents from a previous sale of a lien against a previous owner.

Q: Am I legally required to have title insurance?
A: No, You are not legally required to have title insurance although it is a good idea and may be required by the lender &/or buyer.

Q: How much title coverage do I need?
A: The Homeowners policy should provide coverage should equal the amount equal of the purchase price. The Lender's policy will cover the amount of the outstanding mortgage.

Q: How much does title insurance cost?
A: In Texas: the premium rates are set by the Texas Department of Insurance. Please use the rate calculator for more details.

Q: Who pays for title insurance?
A: On a purchase transaction the purchase/earnest money contract will state who pays, generally its the buyer.  For real estate loans, the mortgage company will state who will pay.

Untitled Document