YOU AND THE SELLER MUST AGREE
ESCROW AND SETTLEMENT
TITLE INSURANCE

You and the Seller Must Agree

There are many people and services working behind the scenes in a real estate transaction. Since, these services affect both you and the seller you will need to agree on which companies you will use. At the time you make your offer you should request your preferred vendors for these services or if you don't know of any, you can get recommendations from your agent.

Escrow and Settlement

In Texas, title companies are most commonly used to facilitate the closing of real estate transactions they act as an "independent third party" between you and the seller. They also hold your deposit and coordinate with your lender during the escrow period. They are important to both you and the seller because both of you will pay fees to them, therefore, it is important you agree on which company to use and your choice should be included in your offer. You are likely unfamiliar with companies that provide this service so your agent can make a recommendation. Ultimately is your choice so you can accept the recommendation or make your own choice. The seller may also have a preference and since they pay for your title policy, can end up being a negotiating factor in a counter-offer, just remember everything in real estate is negotiable.

Title Insurance

Title insurance is insurance that the seller is handing over clear title to the property. Since it is insurance, if there are issues that come up later, you can go back to the title insurance company and have them clear it up. You also are going to pay a fee to title insurance as well, this is for the Lender’s Policy. This insures your lender that there are no liens or judgments on the property and that the mortgage will be in first position, meaning, if you sell the property or even refinance it, their mortgage gets paid before any other claims on the property. The lender’s policy is less expensive than the owner’s policy.

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