Home Owner’s Title Policy For Houston First Time Home Buyers
Photo taken by Diana Walton- Houston First Time Home Buyer Specialist
Hello and welcome to Houston First Time Home Buyers Edition, formally First Home Houston (FHH), where we provide useful information to help Houston first time home buyers make the most informed decision when it comes to buying, decorating, and maintaining their first home.
A home owner’s title policy help protects your property rights for as long as you and your heirs own the property.
Once you purchase owner’s title policy insurance, it will remain in full force as long as you own the property.
The original premium is your only cost as long as you own the property
There are no annual payments required.
There are two types of title policies. The homeowner’s title policy and the lender title policy. This article is addressing only the homeowner’s title policy.
The homeowner’s policy (also known as title insurance) protects the homeowner from financial losses resulting from various issues. It is not a required policy.
The Texas Department of Insurance (TDI) is in charge of setting the rates.
Title company is responsible for conducting a thorough title search, to uncover any judgments, liens, or other encumbrances.
Once the search is completed, a title commitment is issued to obtain title insurance.
The commitment usually details, among other information, all conditions that must be met before a policy can be written.
The policy has five sections that includes covered risks, exclusions from coverage, Schedule A, Schedule B, and the Conditions.
The cost of title policy depends on the value of your home and usually falls between 0.5% to 1% of the purchase price. Essentially, if your new home purchase price is $400,000, the cost of the title policy will be between $2,000 – $4,000
Here in Texas, the seller usually pays the cost for the owner’s title policy, and the buyer pay the cost for the lender’s policy.
You can speak with the title company regarding extra protection coverage.
Any dispute regarding your property’s title, must be addressed with the title company immediately.
Don’t forget to read through your policy. If you have any questions and or concerns, they can easily be answered by calling the title company. Your Realtor can provide you with their contact information.
As always, thank you so much for stopping by. Remember, if you are thinking of purchasing your first home, please contact us. We are here to help. We have been helping Houston first time home buyers since 2011 and we can help you. I hope you have an amazing day. Until next time...Diana
