Thursday, September 22, 2011

Here's a simple and to the point blog written by one of my trusted Lenders, Stephanie Stringer, about Understanding a Texas Title Commitment when buying a home. Stephanie has been assisting people accross Texas for over 15 Years with their Home Financing and is experienced with FHA, Conventional, Home Equity and VA Loans. 

Via Stephanie Stringer-Mortgage Loan Officer for 15 Years. NMLS ID #246495 (Interlinc Mortgage Services LLC TX Mtg Banker NMLS ID 205696)
Now that the contract has been signed and the earnest money has been receipted, now it's time for the title company to start their research.  The title company will start examining the property in order to be able to issue title insurance.  Usually within a week or so, the commitment would be mailed to you.  Now what?  You got about 15 sheets of paper from the title company with lots of writing on it.  What does it mean to me as the potential buyer?                                                                                                                                  
Home Purchase Agreement

The title commitment is a commitment to issue title insurance.  The title commitment is broken down in schedules.  These schedules include A, B, C and D.

Here are the ABC's of TITLE....
Schedule A On this schedule it will listing the existing owners and the proposed buyers names, along with the legal description of the property.  The sales price and the name of the lender will be listed as well. 

 Schedule B This is the buyers notification area of any utility easements and building setbacks.  A utility easement is where the utility company has the right to come on your property and dig in that certain area to work on utilities.  Utility easements are very common.  Also, within this schedule is where you will find exceptions to the title policy.  If there are any noted in schedule B they will not be covered by the title insurance.

 Schedule C:  Lists of unpaid liens.  Items that must be cleared up so title company will cover the risk or refuse to issue a policy.  Common unpaid liens are the existing mortgage loans, unpaid taxes, unpaid HOA dues and martial status disputes that are held on title.  The title company will work hard to make sure these liens are satisfied so they can convey clear title.

Schedule D:  In this last section you will see who will be collecting parts of the title premium and how much is being collected.

If you still have any additional questions regarding title commitments in Texas, you can contact Stephanie at 972-382-5638 or