Title Insurance

The purchase of a property may be the largest investment a consumer makes in his or her lifetime.  Prior to the invention of Title Insurance, a real estate transaction could be a risky venture.  Due to litigation in 1868 over a lien and a subsequent Sheriff’s Sale, Title Insurance was invented in Pennsylvania in 1876.  In the decade since it has become an integral part of the transfer of real estate by protecting consumers against risk.  

Almost universally required by Lenders, it’s prudent for buyers to get a title insurance policy. Title insurance functions a lot like other types of insurance, defending insureds for covered claims which include defending against litigation and often paying the insured for claims that lie outside of the policy owner’s control. Title insurance is meant to provide the holder with compensation for issues such as unpaid property taxes or unknown property heirs, to name a couple. It covers you for defects in the title that happened before your ownership.

Title insurance is traditionally paid for by the seller of the property rather than the buyer.  Sometimes considered as an inducement to buy.  In Texas, policies contain promulgated language issued by the Texas Department of Insurance (TDI).  Title Insurance policy premiums are also regulated by TDI, so the rate you pay by any provider will be the same across the state.  If you have further questions, you can refer to the Texas Department of Insurance’s website, or the professionals at Wise County Title Company will be happy to assist you.