Texas Owner's Title Policy
By Realty Texas
The Texas Owner's Title Policy is usually paid by the...
Texas Title Policy
A Texas Title Policy is a form of insurance that provides protection to a property owner and their lender against any defects in the title of the property. In Texas, title insurance is usually purchased by the buyer of a property, and it is issued by a title insurance company after a thorough examination of public records related to the property's ownership history.
The title insurance policy provides coverage for any financial loss that may occur as a result of title defects, such as unpaid taxes, liens, judgments, or undisclosed heirs. It also covers legal expenses associated with defending the title in court if a challenge to the title arises.
There are two types of title insurance policies in Texas: owner's policy and lender's policy. The owner's policy protects the property owner, while the lender's policy protects the lender. The cost of the policy is typically based on the property's purchase price, and it is paid as a one-time premium at the time of closing.
Having a title insurance policy can provide peace of mind to property owners and lenders, as it can help protect against unexpected financial losses due to title defects.
The cost of a title policy in Texas is regulated by the Texas Department of Insurance, and the rates are set by the Texas Title Insurance Guaranty Association. The cost of the policy is based on the property's purchase price or its insured value, and it varies depending on the type of policy and the location of the property.
As of 2021, the basic premium rates for a Texas Title Policy are as follows:
- “Owner's Policy: 0.55% of the property's purchase price up to $100,000, plus 0.25% of the purchase price over $100,000.”
- “Loan Policy: 0.55% of the loan amount for loans up to $100,000, plus 0.25% of the loan amount over $100,000.”
- “Total: $1,050”
For example, if a property is purchased for $300,000, the cost of an owner's policy would be calculated as follows:
- “$100,000 x 0.55% = $550.”
- “$200,000 x 0.25% = $500.”
- “Total: $1,050”
It's important to note that these are just the basic premium rates, and additional fees may apply for endorsements, surveys, and other services. It's best to consult with a title insurance company or a real estate attorney for more information about the specific costs associated with a Texas Title Policy.
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