FAQs
FAQs
General Title FAQs
What is a title company and what do you do?
A title company verifies property ownership, identifies any liens or issues, facilitates the closing process, and issues title insurance to protect both buyer and lender from potential title defects.
Why do I need a title company when buying a property?
A title company ensures the seller has legal ownership of the property and that there are no hidden issues that could affect your rights as the new owner.
What is a title search?
A title search is a detailed review of public records to confirm ownership history and uncover any liens, judgments, or restrictions on the property.
What is a title commitment?
A title commitment is a document that outlines the conditions under which the title company will issue title insurance once all requirements are satisfied.
What does “clear title” mean?
It means the property is free from any liens, claims, or legal issues that could affect ownership.
Title Insurance FAQs
What is title insurance?
Title insurance protects you and your lender from financial loss due to defects in the property’s title, such as undiscovered liens, errors in public records, or ownership disputes.
Why is title insurance necessary?
Even with a thorough title search, hidden issues can arise later. Title insurance gives you peace of mind that you’re protected from covered claims.
Who pays for title insurance?
It depends on local custom or contract negotiation. In some areas, the buyer pays; in others, the seller does. Generally, the seller pays for the title insurance as it guarantees no title defects for the benefit of the buyer.
What’s the difference between a lender’s policy and an owner’s policy?
A lender’s policy protects the mortgage lender’s interest in the property, while an owner’s policy protects the buyer’s ownership rights.
How long does title insurance coverage last?
The owner’s policy lasts as long as you or your heirs own the property, and you have had no changes on title. The lender’s policy ends when the loan is paid off.
Can title insurance be transferred to a new owner?
No, title insurance is not transferable. Each new buyer typically needs a new policy.
Escrow & Closing FAQs
What is escrow?
Escrow is a neutral third-party account that holds funds and documents until all conditions of the real estate transaction are met, as a trusted fiduciary or title company.
What does a closing agent do?
The closing agent coordinates document signing, collects and disburses funds, records necessary documents, and ensures all legal requirements are fulfilled.
How long does closing take?
The process typically takes 30 to 45 days, but timelines can vary based on financing and property conditions.
What should I bring to closing?
A valid photo ID, any required funds (typically via wire transfer or certified check), and any additional documents requested by your title or escrow officer.
Can I close remotely?
Yes! We now offer remote or mobile closings for convenience.
What happens after closing?
The title company records the deed, pays off any existing liens, issues the title policy, and ensures all parties receive their respective documents.
Fees & Payments FAQs
What fees are associated with title and closing services?
Typical fees include title search, settlement/escrow fees, recording fees, and title insurance premiums.
Can I shop for title insurance?
Yes, buyers have the right to choose their title company or closing agent.
When is payment due for title services?
Payment is typically made at closing and reflected on your closing disclosure or settlement statement.
Are title premiums negotiable?
In Texas, title insurance rates are fixed and regulated by the state of Texas.
Buyer & Seller FAQs
As a buyer, what should I expect from the title company?
Expect updates throughout the process, a clear breakdown of costs, and guidance through each step of closing.
As a seller, why do I need a title company?
The title company helps ensure your property can be legally transferred and that you receive your sale proceeds promptly.
What if there’s a lien or issue on the title?
The title company will work with the parties involved to resolve or clear the issue before closing.
What’s the difference between a title company and a real estate attorney?
A title company handles the research, insurance, and closing logistics, while an attorney may provide legal advice or representation on a matter, but cannot offer title insurance. A title company is licensed and regulated by the state of Texas to handle and conduct closings.
1031 Exchange & Investment FAQs
Can a title company help with a 1031 exchange?
Yes! While Carta Title Company doesn’t serve as the Qualified Intermediary, we work closely with Equicap 1031 Exchange to ensure proper handling of exchange funds and documentation. You can reach Equicap 1031 Exchange at 713.333.1031 or by email at info@cartatitle.com
What types of investment transactions do you handle?
Commercial, residential, multi-family, land, and portfolio transactions, among others.
Security & Fraud Prevention FAQs
How do you protect against wire fraud?
We use verified communication channels, secure applications, encryption, and verbal confirmation protocols to ensure funds are securely transferred.
What is wire fraud in real estate?
Criminals sometimes attempt to trick buyers or agents into wiring funds to fraudulent accounts by impersonating title or escrow agents.
How can I verify wiring instructions are legitimate?
Always call your escrow officer at a verified phone number before initiating any wire transfer.
Support & Contact FAQs
How can I contact my escrow or title officer?
You’ll receive direct contact information after your file is opened. You can also reach us via our contact page or main office line at 713.623.1804
What should I do if I have questions after closing?
Contact your escrow officer directly — we’re happy to help clarify any post-closing questions.
Do you offer bilingual or multilingual services?
Yes, we offer assistance in multiple languages to ensure a smooth experience for all clients.
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