Deceased Persons on Title: When Death Seems to Haunt You

You may think it is coincidence that it is October, the wind is chilled, and as you get ready to purchase a house, the current owner’s dead Uncle Albert from five generations ago holds up your closing. Yes, October is the haunting season, but it’s really not a coincidence. Dead ancestors regularly hold up closings.

Apparently, no one dealt with Uncle Albert’s death because the house you are buying has been gifted and kept in the family for the last 100 years. Of course, many people in Texas did not use wills and probate proceedings in Uncle Albert’s day, and the only information the family has is that he was hanged for running with Jesse James.

Cool that he ran with Jesse James, but limited information is no good. How can you ever get title to the property? How could you ever have a title company issue a Texas title insurance policy on it? In this instance, an attorney or title company is called in to determine who the heirs of Uncle Albert are. Yes, the family tree has to be compiled from five generations ago and brought forward to the present. More than likely, there will be more dead ancestors than just Uncle Albert whose estates the house has passed through, and this will slow your closing even more. The more deaths without wills, the more affidavits of heirship have to be prepared. This can be an extremely lengthy process, and you may find the title of your dream home haunted by more ghosts than just Uncle Albert, lingering until dealt with accordingly.

But don’t fear because the ghosts can be put to rest! We have an attorney on our staff and an experienced escrow officer to stop the haunting. If you have an Uncle Albert haunting you, just call us. We can help you get title to the property and have a Texas title insurance policy issued to protect you from any other “haunting.”

The Best Texas Escrow Services? Really?

If you Google the words “Texas escrow services,” many links of title company information will pop up for your viewing. Of course, every title company from large to smallest promises their company’s service is the best. In all reality, if you do your homework, you will find that several of these companies have been penalized or fined for various errors by the Department of Insurance, or the reviews from consumers are not up to par. With the internet being a plethora of information, how do you know who you can trust?

When scouting a title company with which to place your order, you may want to consider several items. For example: size of the title agency, number of escrow officers, how many departments, how long has your escrow officer been licensed, what is their knowledge level, how easy can you contact their attorneys or higher-ups for those tough files, etc. Depending on your company’s needs, these questions may be answered differently; however, they should definitely be considered.

At Griffin Law Firm, we go as far as to invite our customers into our office for a visit. If you do not know who you are working with personally, then you are working with a file number and possibly an email address. We believe in relationships. By building a rapport with our clients, we have found the process and transaction is smoother and expectations are met quickly. Our goal is not only to have the best “Texas Escrow Services” but to service our clients by meeting their individual needs.

If you are looking for a different experience, please stop by or give us a call at 817.520.6000. We look forward to hearing from you.

Legislative Changes to Texas Title Insurance: Title Insurance Companies Can Now Charge for Electronic Filing Fees

H.B. 3073 alleviates a statutory uncertainty, allowing title insurance companies to charge for the actual, or reasonably estimated, cost of electronic filing fees by changing Tex. Ins. Code § 2501.008.

There has been some debate within the title insurance community whether or not electronic filing fees could be passed down to the consumer as a separate charge from the title insurance premium. Because of the potential inability to pass the cost on to the consumer, many title companies have been reluctant to adopt electronic filing of real estate documents.

Electronic filing of real estate documents provides a benefit to all parties involved: the county clerks, the consumer and the title companies. The county clerks, should they have an electronic filing system, benefit from “more immediate filing, better notice, and reduced labor and recording costs.” See Bill Analysis at http://bit.ly/enj6R. The consumer benefits from “immediate filing.” Id. The title company benefits from “reduced losses due to gaps in filing.” Id. Clearly, an electronic system provides a more seamless system with less room for errors or problems than a system that relies upon certified or overnight mail and bureaucrats shuffling unending stacks of paper.

To read H.B. 3073, go to http://bit.ly/31Zg38.

What Texas Title Insurance Does

Texas title insurance provides the insured, i.e., the buyer or lender, legal and financial protection against risks unknown at the time a buyer purchases a property or a lender takes a mortgage against it. Any unknown risks could potentially lead to loss of title to the property and/or a significant financial loss.

In exchange for the one-time premium paid at closing, a Texas title insurance policy requires the title insurance company to defend the insured against lawsuits involving title to a property, the establishment of an interest in a property, or the enforcement of an encumbrance against a property. Further a Texas title insurance policy requires the title insurance company to indemnify the insured by either clearing up any title problems or paying the insured's losses. Even though the title insurance premium is paid only once at closing, the buyer's Texas title insurance policy remains in effect as long as the insured, or the insured's heirs, retain an interest in the property, or have any obligations under a warranty in any conveyance of it.

Examples of unknown risks that cause a loss of title or create an encumbrance of title are: forged or missing documents, mistakes in recording legal documents, and liens for unpaid estate, inheritance, income, or gift taxes.

Finally, a Texas title insurance policy insures the buyer or lender against mistakes made by the title company in the settlement of the purchase or refinance transaction. For example, should the title company fail to pay the seller's property taxes owed at the time of closing with funds collected for such purposes in the escrow account, the Texas title insurance policy will protect the buyer.