Local title officers answer questions about real estate trends and offer tips to homebuyers and sellers considering buying or selling a home in or around Plano.

Britt Fair

President Fair Texas Title-Plano

What does a title company do?

A title company serves three primary roles. The first is providing escrow services. In this role, the title agency serves as the middleman between the buyer and seller. The title company provides that third-party guarantee, not only between the buyer and seller but also between a buyer and his or her lender. The second task is to clear the title to the property in the transaction. There is a lot of research to make sure the seller owns the property and there are no other claims (called liens) against the property. The third role is  to issue title insurance policies.

What are the fees for services?

The cost of title insurance policies in Texas is set by the Texas Department of Insurance and updated every few years. The pricing is on a sliding scale based on basic policy amount plus any options (called “endorsements”) selected. Title companies also charge a flat escrow fee or settlement fee for serving as the escrow agent. Prices for this, may vary by title company and/or submarket but are typically a few hundred dollars per client.

How do title officers determine if a title is valid?

Title companies possess title records that go back decades and which are updated daily to reflect recent recordings. The title examiner also evaluates liens that have been filed on this property over the years to make sure that each lien has been released and is no longer valid. Often, this is not a black-and-white process.