Title Services

Protection for homeowners and lenders

insurance, title insurance protects the insured from loss that may occur from matters or defects from the past. According to Jamie D’Spain of Guaranty Title Company of Boerne, because most property owners borrow money (mortgage) at the time of purchase or during ownership, the lender requests protection of its investment against loss.

“They insist upon a ance Policy to protect their stockholder’s and investors’ investment in your property,” D’Spain said. “An Owner’s Title Insurance Policy protects your investment (equity) as the buyer or owner of the property. As the owner, you should want to have the same assurance as the lender that the investment you have made cannot be lost because of a problem or defect with the title.” LENDER’S AND OWNER’S INSURANCE Lender’s title insurance protects your lender against problems with the title to your property, such as someone with a legal claim against the home. Lender’s title insurance does not protect your investment in the home.

When you purchase a home, you receive a deed showing the seller has transferred ownership to you. Owner’s title insurance protects you if someone sues, saying they have a claim against the home from before you purchased it.

Common claims come from a previous owner’s failure to pay taxes or from contractors who say they were

not paid for work done on the home before you purchased it. If someone sues with a claim against your home, PROTECT YOUR EQUITY To protect your equity in the event of a title problem, you may want to purchase an owner’s title insurance policy. If you choose to buy owner’s title insurance, the total cost will usually be lower if you use the same provider for both the lender’s policy and the owner’s policy, compared to buying them separately.

Title services include title insurance, title search, and other costs and services associated with issuing title insurance. All title companies charge the same rates set by the Texas Department of Insurance. CHOOSING A CLOSING DATE When choosing a closing date, consider the following: Does your purchase contract specify a particular deadline for you have to vacate your current housing? When does your rate-lock expire? Will your lender be able to complete their loan approval process in time for the closing? There may be more people trying to close near the end of the month. Consider scheduling your closing for the beginning or the middle of the month.

READ YOUR POLICY description of your land, tells how to age, including limitations, exclusions, exceptions and special conditions,” according to D’Spain. “A title company must defend your title in court, subject to certain limitations, and, if loses, the company pays covered losses up title policy amount is the sale price of the property plus the cost of immediately planned improvements.”

For more information, visit the Consumer Financial Protection Bureau (CFPB) at consum

www.penguinsuits.com

106 Austin Dr. S Boerne, Texas 78006