What is the history of title insurance?
The first title insurance company, the Law Property Assurance and Trust Society, was formed in Pennsylvania in 1853. Typically the real property interests insured are fee simple ownership or a mortgage.
Is title insurance mandatory in Texas?
Texas does not require title insurance. The lender will require you to buy a Loan Policy of Title Insurance to protect their interest.
Why does title insurance exist?
Title insurance protects lenders and buyers from financial loss due to defects in a title to a property. The most common claims filed against a title are back taxes, liens, and conflicting wills.
Who typically pays for title insurance in Texas?
seller
While this can vary from one transaction to the next, it is customary in Texas for the seller to pay for the owner’s title insurance – while the buyer pays for insurance for the lender. Similar to many closing costs, these fees can be negotiated between buyer and seller.
Who came up with title insurance?
Muirhead. Although it now protects land purchases across the United States (as well as other areas of the globe), the practice of insuring title began after a Pennsylvania Supreme Court ruling in 1868. The case, Watson v. Muirhead, 57 Pa.
Who started title insurance?
The Judson and Gillette firm, later to become Judson, Gillette and Gibson, were pioneers in the Los Angeles title field, ultimately forming one of the State’s first two title-insurance companies: A real estate boom in 1886 and 1887 in Los Angeles provided a major impetus for a new industry of title insurance.
What happens if seller Cannot get clear title?
What Happens If the Contract Is Breached. Let’s imagine that the seller fails to provide an abstract of title showing clear title to the property. This means that the damages to the party not in breach of contract will be for a set amount of money, which is often the amount of the buyer’s deposit or earnest money.
What is the history of the title to a property called?
A chain of title is the sequence of historical transfers of title to a property. It is a valuable tool to identify and document past owners of a property and serves as a property’s historical ownership timeline. The “chain” runs from the present owner back to the original owner of the property.
Is it important to purchase title insurance?
Purchasing lender’s title insurance is a mandatory part of the mortgage process. However, it’s often a good idea to buy title coverage for yourself as the homeowner. Title insurance can compensate you for damages or legal costs in a variety of situations.
How long has title insurance been around?
Although it now protects land purchases across the United States (as well as other areas of the globe), the practice of insuring title began after a Pennsylvania Supreme Court ruling in 1868.
When was the first title insurance policy issued?
1876
II. The first policy of title insurance was issued in 1876 in Philadelphia, Pennsylvania. The need for title insurance was created by the case of Watson v. Muirhead (1868) 57 Pa. 161.
Who sets the rates for title insurance in Texas?
In Texas, the premium rates for title insurance are set by the commissioner of the Texas Department of Insurance. Because these rates are the same for all policies, agents do not compete on price, but on service. Who is responsible for payment of the owner’s policy?
What is a title policy?
A title policy is your guarantee that the home you are buying is protected from covered title problems. What’s different about title insurance in Texas? Like all lines of insurance, title is highly regulated by the government. In Texas, the Department of Insurance is the state agency charged with oversight of title insurance.
Can you sell title insurance without a license in Texas?
It’s illegal to sell title insurance without a license in Texas. If you buy from an unlicensed company, any claims you might have could go unpaid. To verify that an agent is licensed, call the Texas Department of Insurance (TDI) Title Agent Licensing Office at 512-676-6475 or email [email protected].
What happened to Millennium title insurance in Travis County Texas?
2012 Title Insurance Agenda Items. Commissioner Order 12-0217 (Withdrawn and Disapproved Agenda Items on Docket No. 2732). The Travis County District Court placed Millennium into liquidation on January 25, 2016, and appointed the Commissioner of Insurance Liquidator.