Estate has always been considered one of a person's most valuable assets.
Therefore, laws and regulations have become complex and cumbersome.
A "Title Insurance Policy" insures the owners of real property
or others interested against financial loss caused by title risks
that are covered.
It is extremely important that the buyer be financially
protected against any undisclosed restrictions, liens or other
types of claims against the property. A title company
provides this information for its underwriter by examining
public records and issuing a commitment as to the current condition
of the title.
The Texas Department of Insurance regulates the issuance of
owner's and lender's title policies. It is the intent of the
Department to provide for the protection of every Texas
consumer and purchaser of a title insurance policy. This
premium rate and types of coverage's are set by the Texas
Department of Insurance and is not a negotiable cost. This one-time
premium charge for title insurance provides protection against
hidden defects (undiscoverable problems), which may not be
discovered by a search and examination of public records.
Title Insurance is valuable assurance that every possible
potential obstacle to "clear" title has been brought to
the buyer's attention. The lender's policy protects the lender's
interest only and does not provide protection to the owner. What
are some of the hidden defects? Hidden defects can include fraud,
forgeries, duress, defective documents, improper signatures, faulty
acknowledgements, recording errors, incompetence, incapacity,
impersonation, unknown heirs and incorrect tax reports. Remember,
your title policy is insurance. It is a contract of indemnity,
meaning a promise to pay you or to take other action if you have a
loss resulting from a covered title risk.
Ector County Abstract & Title Co. Inc.
300 East Sixth
P.O. Box 592
Odessa, Texas 79760
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