Title insurance can seem really complicated and hard to understand, so we asked Sarah Groves with Independence Title Company to give us more information.  She has provided us with this guest blog on how to best protect your Austin custom home or other Austin real estate.

Title services and a title insurance policy protect the future of your real estate investments.  We start by researching the full history of each property as completely as possible through public records — in Texas many property records go back to Spanish land grants in the 1880’s. We clear up any known issues and then assume certain kinds of additional risk on behalf of the owners.  A title policy premium is a one-time fee that is designed to protect owners and their investment against certain future claims.

Through the years, a property may change hands many times through sale, inheritance, marriage, divorce, foreclosure or bankruptcy.  Each transfer is an opportunity for an error in title to arise, which could affect whether the buyers have full ownership of the property. That’s why you need to make sure you have title insurance!

So Why Independence Title?
We built Independence Title on the belief that a local company is your best choice for personal service and first-hand knowledge of Central Texas and surrounding areas.  We live here, work here and have invested all our experience and resources in serving the unique needs of the Greater Austin community.  With 26 branch locations and the finest escrow, title and sales professionals, we want to show you how good a closing experience can be!

We’re under contract…now what?
Once the contract is signed, it’s brought to us with Earnest money* and we start putting all the pieces together:

  • Researching title;
  • Contacting parties to the contract for additional information needed to close;
  • Working with the lender (if any) to meet their requirements for closing and funding**

Closing appointments are scheduled in coordination with all parties, but can change if any party is unable to fulfill their responsibilities on schedule.  It’s a good idea to keep your schedule as flexible as possible the day of closing.

* Earnest money is a deposit the Buyer typically makes per the contract to show the Seller that they are “Earnest” in going forward with the purchase of the property.  Earnest money is held by the title company to be credited to the buyer at closing (or according to the terms of the contract).

** “Funding” means we’ve received approval from the lender (if any) to pay out loan proceeds to all parties including amounts due to the seller. In most cases, expect some time between signing papers and receiving funds or keys to the property. In general, new owners take possession after funding, not after closing.

A special thanks to Sarah Groves with Independence Title Company for this excellent information on title insurance.