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FREQUENTLY ASKED QUESTION ABOUT TITLE INSURANCE
1. What is title insurance and why do I need it?
The simple answer is if a mortgage loan is taken out on the property, your lender requires the issuance of a Title Policy to protect their interest. But, in layman’s terms, it goes back to the Alamo, and our strong belief in the peaceful enjoyment of free and clear title. In Texas land is very special. It has a wealth so basic that our forefathers enacted laws so strict and far-reaching that real estate is more strongly protected than any other form of property
Anytime someone owns, inherits or otherwise obtains an interest in Texas property, they can claim ownership in the property. Such ownership is a claim well recognized in Texas courts. Title insurance assures you that every possible cloud on the title to the land being purchased has been brought to your attention. And unlike most forms of insurance you pay for a title policy only once! Title Insurance is modest price to pay to protect the rights of your family and your heirs.
2. At “The Closing”, what will take place?
Unless there are extenuating circumstances, the closing of escrow will take place in one of the branch offices of Chicago Title. Consult with your REALTOR® about the time and the location. And please let us know if you have any special requests (like interpreters, handicap access, etc.)
Your Chicago Title Escrow Closing Agent will be working very closely with your REALTOR® to compile all of the necessary documents for the transfer of title. Appraisal, survey, pest inspections, legal papers, courthouse records, and the like will be accumulated as required by the purchase contract. We will also disburse all funds associated with the sale.
3. If I’m buying a house, how will I know how much money to bring with me to the closing?
Good Question. Your REALTOR® and your lender will have the final say in this regard, but the final amount you will need to bring to closing (in “good funds”) will be disclosed on a document known as the HUD-1. This is the form that discloses all buyer and seller expenses, and proceeds. The amount of time you and your REALTOR® have to review the HUD-1 will depend on your lender. There are often delays in receiving this information. But you should have it in plenty of time to get to the bank and have them prepare a good funds check.
4.If I’m selling a house, how will I know what my proceeds from the sale will be?
Similar to the question above, consult with your REALTOR®. As soon as Chicago Title receives the closing documents from the lender we will quickly prepare the HUD-1 for your review. Until the HUD-1 is completed you will have to rely on figures provided by your REALTOR®, but your agent is an expert, and I bet his/her figures are pretty close to the numbers supplied to us by the lender.
5. What do you mean by “good funds”?
It’s a requirement from the Department of Insurance that we can only accept certified checks, or cashier’s checks from the buyer or the seller. Further, we are prohibited from accepting large sums of cash. Verify with your REALTOR®, well before closing, just how much you should bring to closing and what funds are required.
7. When should I have the utilities changed over?
Excellent question! Unless otherwise agreed to in the contract, utilities should be transferred by mutual agreement on a date determined by both parties in advance. Don’t overlook this important aspect of the transaction. Your REALTOR® will help you, but it’s your responsibility.
8. When can I take possession, and what will my monthly payment be?
Generally, possession of the property occurs upon “funding”, not “closing”. There is a big difference! “Closing” is when the buyer and seller fully execute all of the required documents authorizing the transfer of title. “Funding” occurs when the lender delivers the mortgage funds to the offices of Chicago Title. Basically, unless otherwise agreed to in the purchase contract, the buyer gets the keys when the seller gets the check from the bank.
Consult with your lender or REALTOR® about your monthly mortgage payment and when the first payment will be due. We will discuss this with you at closing.
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