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I'm looking for a house in Texas. I plan to pay cash. QUESTION: What safeguards do I have regarding the money that I transfer to the title company, since I won't have a mortgage company to monitor the transaction. For instance, is it possible for the title company to accept your funds, and then the deal fall through, and the title company refuse to return the funds that you are due (perhaps because of collusion with the seller, etc.)?
Are there legal safeguards that prevent this sort of thing from happening?
I AM NOT A LAWYER, NOR PRACTICE REAL ESTATE IN THE STATE OF TEXAS..
that being said, other than your earnest money deposit upon contract inception, the bulk of your funds typically would not move around until right before closing. at that point, one would assume that you and seller are on the same page concerning settlement happening within 48 hours give or take...
concerning the earnest money, the contract should clearly state how any deposits would be released, to whichever party, concerning the circumstances at hand.
What does your realtor have to say? I know that what you fear is probably so unlikely to happen I can't even imagine it, but your realtor should know or be able to find out, what safeguards are in place regarding this issue.
Or, visit a couple of title companies and ask them yourself.
Your concerns are covered in our TX contracts under Para 18 Escrow. This discusses how to make a claim for your earnest money and the penalty if the other party does not release. Title companies here are mostly Independently owned by Attorneys and a 3rd party to the contract. They do not want to hold your money and they are not in "Cahoots" with any RE Agent.
Get a TX Contract and read that paragraph I mentioned. Have an agent explain it or call a local title company.
Title agents are licensed in most states and are under the jurisdiction of the states insurance licensing department. This is true in Texas. If you have concerns about a particular Title Company, contact the Texas Department of Insurance.
Realtors are welcome here but do see our Realtor Advice to avoid infractions.
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Thanks, everyone
