What is Title Insurance

Title insurance has become an important necessity do to the high risk involved in buying, selling or financing real property.  The policy is insured at the date of transfer of the property from one party to the other for the cost of a one time premium charge set by the Texas Department of Insurance (TDI).  It is valid from that point until the property again changes ownership. 

While there should be no risks in transferring property, risks do exist.  Many "hidden" hazards to property ownership may show up unexpectedly in connection with the property.  Any one of them could mean a costly loss or require time consuming hours to clear.  Title insurance protects the buyer from damages and expenses incurred because of these possible defects.  The policy also protects the seller as to warranties and representation make at the conveyance of the property.  The following are a few examples of hidden problems:

1. Confusion from similarity of names.
2. Forged documents.
3. Signatures of minors or mentally incompetent persons.
4. Mistakes in recording legal documents.
5. Undisclosed or missing heirs.
6. Fraud.
7. Invalid divorces.
8. Misrepresentation of marital status.
9. Unpaid taxes or mechanics liens.
10. Clerical errors in public records.
11. Wills not probated.

When a policy of title insurance is issued by First American Title Insurance Company, the buyer, and seller, can rest assured that his property is protected, subject only to its terms and exceptions.  First American Title Insurance Company celebrated its first century of existence as a title insurer. We are among the nation's leading title insurers in dollar reserves against policies issued.  This means that First American Title has the strength, experience and reputation your agent should be looking for when recommending a g title company.