The buying and selling of a family’s home is often the largest financial transaction with which most people ever become involved. Next to protecting your family, protecting your investments is likely your next greatest concern.
Title insurance protects you and your lender from any title problems that may exist in your property’s history. It is no wonder that obtaining a Title Insurance Policy has become the most accepted method of providing peace of mind regarding such an investment.
The title insurance business is regulated rigorously by the Texas Department of Insurance (TDI). Not only does the TDI regulate all premiums that are charged, but they also govern the language used in the insurance policy forms.
In Texas each year, title companies are required to provide statistical data about the transactions they have insured to the Texas Department of Insurance. Part of that data includes the amount of premiums they have collected and the number of policies issued.
A Statistical Report is issued by the TDI. For more than 10 years, Wise County Title Company has been the leader in the title industry in Wise County. The reports can be viewed by clicking the link here.
In addition to the State of Texas, the federal government created guidelines to further protect the public. These guidelines dictate marketing and other methods companies use to pursue business.
These guidelines are commonly called RESPA, which stands for Real Estate Settlement Procedures Act. Kickbacks or rebates cannot be offered to any individual or firm as inducement for their business. Likewise, discounts for the quantity of business one sends to a title company or paying for a client’s marketing or other business expense is also prohibited.
The only competitive edge one company can legally gain over another is the quality of service they provide. The fact that Wise County Title Company has, year after year, been the leader in the title business in Wise County is proof of the superior quality of our product.
We believe that superior service is what makes our customers return and makes Wise County Title Company “The Wise Choice.”
Title insurance is an exclusively American invention. Its purpose was stated in the first advertisement for title insurance back in the late 1800s:
"This company insures the purchasers' of real estate and mortgages against loss from defective titles, liens, and encumbrances. Through these facilities [the] transfer of real estate and real estate securities can be made more speedily and with greater security than heretofore." [circa 1876]
Protecting purchasers against loss is accomplished by the issuance of a title insurance policy, which states that if the status of the title to a parcel of real property is other than as represented, and if the insured suffers a loss as a result of title defect, the insurer will reimburse the insured for that loss and any related legal expenses, up to the face amount of the policy.
Title insurance differs significantly from other forms of insurance. While the functions of most other forms of insurance is risk assumption through the pooling of risks for losses arising out of unforeseen future events (such as death or accidents), the primary purpose of title insurance is to eliminate risks and prevent losses caused by defects in title arising out of events that have happened in the past.
To achieve this goal, title insurers perform an extensive search of the public records to determine whether there are any adverse claims to the subject real estate. Those claims are either eliminated prior to the issuance of a title policy or their existence is excepted from coverage.
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