What Is The Ideal Texas Title Company?

The following story reminds me of a “priest, rabbi and a minister” joke, but it is a true story about Texas title companies and how they differentiate their very commoditized products and services nonetheless. However, it shed new light on what the ideal Texas title company does or should be doing for its clients within the highly regulated framework created by the Texas Department of Insurance.

A mortgage company is having their weekly meeting in which they invite current and prospective vendors in to solicit the mortgage company’s business. On this occasion, three Texas title company representatives are there to try to earn the mortgage company’s business for their respective title company. When the first Texas title company representative has the opportunity to give his spiel, he states, “The price of Texas title insurance is fixed by the Department of Insurance, so the bulk of the fees charged by all Texas title companies is the same generally, so the way we differentiate our title company is in our customer service”. The second Texas title company representative has his chance next, and asserts, “The first Texas title company representative is correct in what he says that there are very little differences in what Texas title companies charge, and so customer service is what sets us apart. And that is why our title company’s customer service is second to none”. It was now the third Texas title company representative’s turn to give his pitch. The loan officers are waiting for him to say something—anything—interesting and different from what the first two said. Instead, the third Texas title company representative says, “The first two Texas title company representatives have said it best. I have nothing further to add”.

In my head, this story is comical, but the reality. I actually agree with all three Texas title company representatives that it all comes down to customer service: they are all correct. But how are mortgage and real estate professionals supposed to see the difference between Texas title companies and their varying degrees of “good customer service”? I ask myself this question constantly because differentiation is always important when clients have a choice in who they use.

At Griffin Law Firm, which is a fee office for a major Texas title company, we know we haven’t thought of everything and every tool we can be providing for our clients. There will always be more ideas to come. We also know that the ability to fulfill the needs of our clients comes from engaging with them and building strong relationships with them in order to know what voids could be filled. That being said, we have some very clear ideas of what sets us apart from other Texas title companies that goes beyond the usual dog and pony show. This may not be the silver bullet that meets all your needs, but I believe it gives us a good foundation from which to start. We are always willing to listen and always asking why. We want to be the Texas title company that is on your team.

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How To Handle Proper Disclosure of the Texas Title Insurance Premium and Other Title Fees on the New Good Faith Estimate

The lender‘s Texas title insurance premium is part of the new GFE’s Block 4—Title services and lender‘s title insurance. The difference between the new and old GFE is that the new GFE requires the mortgage originator to lump in the Texas title insurance premium along with any fees for title searches, examinations, endorsements and all charges associated with the title services and settlement (closing) agent services as one single cost, whereas the old GFE required an itemization of all of these fees.

Within this lump sum cost, a mortgage originator should include the Texas title company’s delivery fees, notary fees and settlement fees since these fees are included in the definition of title services. The term “title services” is defined to include any service involved in the preparation and issuance of the title insurance policies. See 24 C.F.R. § 3500.2.

It is common practice for the title company to charge both the borrower and seller a fee for conducting the settlement. Only the charge to the borrower must be included in the total for Block 4 of the GFE. Charges that the seller pays as a matter of common practice and experience are not disclosed on the GFE.

However, the owner’s Texas title insurance and recording fees to the county will still be listed separately from the “Title services and lender‘s title insurance” lump sum cost.

Is this simpler for the borrower to understand than the way in which the old GFE addressed title fees? There is an argument that it makes Texas title insurance fees more opaque to the borrower. Come January 2010, these arguments will not necessarily matter anymore because the new GFE will be the mandated method of disclosure.

Deceased Persons on Title: When Death Seems to Haunt You

You may think it is coincidence that it is October, the wind is chilled, and as you get ready to purchase a house, the current owner’s dead Uncle Albert from five generations ago holds up your closing. Yes, October is the haunting season, but it’s really not a coincidence. Dead ancestors regularly hold up closings.

Apparently, no one dealt with Uncle Albert’s death because the house you are buying has been gifted and kept in the family for the last 100 years. Of course, many people in Texas did not use wills and probate proceedings in Uncle Albert’s day, and the only information the family has is that he was hanged for running with Jesse James.

Cool that he ran with Jesse James, but limited information is no good. How can you ever get title to the property? How could you ever have a title company issue a Texas title insurance policy on it? In this instance, an attorney or title company is called in to determine who the heirs of Uncle Albert are. Yes, the family tree has to be compiled from five generations ago and brought forward to the present. More than likely, there will be more dead ancestors than just Uncle Albert whose estates the house has passed through, and this will slow your closing even more. The more deaths without wills, the more affidavits of heirship have to be prepared. This can be an extremely lengthy process, and you may find the title of your dream home haunted by more ghosts than just Uncle Albert, lingering until dealt with accordingly.

But don’t fear because the ghosts can be put to rest! We have an attorney on our staff and an experienced escrow officer to stop the haunting. If you have an Uncle Albert haunting you, just call us. We can help you get title to the property and have a Texas title insurance policy issued to protect you from any other “haunting.”

Our Arlington Location Central To All DFW Real Estate Closings

Griffin Law Firm's office is located in Arlington, Texas between Dallas and Ft. Worth, placing us in a central area to conduct title insurance and escrow closing services for real estate transactions in the Dallas-Ft. Worth metroplex. Unlike many metropolitan areas, DFW is a cluster of many cities like Arlington, Irving, Hurst, Euless, Bedford, Plano, Saginaw, Frisco--and not just Dallas or Ft. Worth. Our location is even central to Weatherford, Crowley, Burleson, Joshua and Cleburne. Much of the DFW metroplex's housing and commercial growth has occurred in these smaller surrounding cities, making our office a prime location for handling title insurance and escrow closing transactions.

What Texas Title Insurance Does

Texas title insurance provides the insured, i.e., the buyer or lender, legal and financial protection against risks unknown at the time a buyer purchases a property or a lender takes a mortgage against it. Any unknown risks could potentially lead to loss of title to the property and/or a significant financial loss.

In exchange for the one-time premium paid at closing, a Texas title insurance policy requires the title insurance company to defend the insured against lawsuits involving title to a property, the establishment of an interest in a property, or the enforcement of an encumbrance against a property. Further a Texas title insurance policy requires the title insurance company to indemnify the insured by either clearing up any title problems or paying the insured's losses. Even though the title insurance premium is paid only once at closing, the buyer's Texas title insurance policy remains in effect as long as the insured, or the insured's heirs, retain an interest in the property, or have any obligations under a warranty in any conveyance of it.

Examples of unknown risks that cause a loss of title or create an encumbrance of title are: forged or missing documents, mistakes in recording legal documents, and liens for unpaid estate, inheritance, income, or gift taxes.

Finally, a Texas title insurance policy insures the buyer or lender against mistakes made by the title company in the settlement of the purchase or refinance transaction. For example, should the title company fail to pay the seller's property taxes owed at the time of closing with funds collected for such purposes in the escrow account, the Texas title insurance policy will protect the buyer.

A Good Texas Title Insurance Premium Calculator

With the new Truth-In-Lending regulations in effect, the more accurate you can make your Good Faith Estimate, the more time you save getting your client to closing and the more streamlined the process. The Texas title insurance premium can be a difficult calculation to get right when setting up your GFE. Lenders want various endorsements in addition to the basic title premium. Additionally, if you are facilitating a refinance transaction for a borrower, they may be eligible for the R-8 refinance credit, which could greatly decrease their cost of title insurance. Use MyTexasTitle.com's Texas title premium calculator for an accurate cost of Texas title insurance. Get your Good Faith Estimates right the first time. Go to: http://www.mytexastitle.com/index.php?p=calc.

Texas Allows Personal Property Title Insurance

In 2008, the State of Texas began to allow the issuance personal property title insurance. Some may wonder upon the merits of its usefulness to the title insurance industry and to business as a whole. However, such an insurance product allows the title industry to play a greater role in mergers & acquisition activity. Such insurance product would be highly advisable by any investment bank or law firm representing a buyer conducting any asset-based purchase of a company. In the past, a title insurance company could only offer protection of the title to any real estate involved in a transaction. Companies' balance sheets are never composed just of real estate. Now title companies may offer their customers title insurance protection on a substantial portion of a target company's assets. Simultaneously, the buyer of a company's assets, its lenders and investors may rest assured that they hold marketable title to the assets they purchase.