Kathy Reid, Great American Title Company[/caption]

Local professionals answer questions about trends and give tips to homebuyers and sellers considering buying or selling a home in or around Cy-Fair.

How do you determine if a title is valid?

When we open [a] title on a piece of property, our title plant searches public records to determine who currently owns the property and that the person selling the property has the right to do so. We also check tax records to determine if there are past due taxes that could affect [the] title and look for any unsatisfied judgments against the seller.

What is title insurance?

Title insurance protects the lender and the new owner against losses that could occur as a result of a defect in [the] title. It protects the owner for as long as he owns the property and the lender until the loan has been repaid or the property is resold or refinanced.

What does a title company charge?

The premiums are regulated by the Texas Department of Insurance and are the same for every title company in Texas. [Premiums] are based on the sales price if the transaction is a purchase or the loan amount if the transaction is a refinance. Recording fees are regulated by the county that the property is located [in]. The ancillary fees [that] vary slightly among title companies would include the escrow fee, tax certificate and messenger fees.

How do you choose a title company?

Parties can shop around for a title company that makes them feel comfortable by making phone calls or visiting offices. Real estate agents are also a good source for help.