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Old 08-09-2014, 08:31 AM
 
349 posts, read 422,232 times
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Quote:
Originally Posted by steve807 View Post
My lawyer friend tells me that he's never seen a title insurance company in Texas have to pay off on a claim. The laws have built in waivers beyond those you sign off on to do the deal. That's why they can afford such nice offices.

In any case, there's lots of title companies to choose from - no need to do business with any particular one.


The offices are so nice, because the risk is so incredibly low and the rates are so high for what they do (which is an hour of work for the actual title insurance)
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Old 08-09-2014, 09:09 AM
 
2,600 posts, read 8,792,860 times
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It's best to have the whole story and not just bits and pieces !!!!
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Old 08-09-2014, 09:24 AM
 
Location: Brentwood
838 posts, read 1,211,015 times
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I am not sure what nice offices you are referencing. Most of the title company offices in town are little commercial spaces in strip malls, right next door to a nail salon or a Subway.

Now the corporate offices for these title companies, sure, they are plush but the title company office where you go to sign... not so fancy...
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Old 08-09-2014, 09:50 AM
 
Location: San Antonio, TX
432 posts, read 523,504 times
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The main legal, no-claim-payable exemption, involves "Undisclosed Factors" (that's the interesting part of TX law). Lots of things not recorded in the courthouse can give ownership troubles that the title company is not obligated for.

Bottom line, title companies do a public records search (actually most Texas title companies use the same third party contract company to do the actual search) and things that do not show up there are not covered by the policy. Things related to squatters and old/new fence boundaries or deeds from long ago that are later challenged are especially problematic for rural property purchasers. Urban subdivision type homeowner properties are low risk for claims just based on the public records search. It is an easy money, low risk business. We need more of those !
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Old 08-10-2014, 04:28 PM
 
4,145 posts, read 10,429,021 times
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Quote:
Originally Posted by steve807 View Post
My lawyer friend tells me that he's never seen a title insurance company in Texas have to pay off on a claim. The laws have built in waivers beyond those you sign off on to do the deal. That's why they can afford such nice offices.

In any case, there's lots of title companies to choose from - no need to do business with any particular one.
Pure garbage. Quite often there are no claims to be paid off, but that's because they run a pretty tight title search to make sure there's no NEED to pay a claim later. The goal is to find any liens or encumbrances on the title BEFORE you close and get them cleared up.

That's like you're lawyer friend saying that a bugatti veyron doesn't exist because he hasn't seen one in person. Only pictures or heard of one.

Claims pay off from time to time but because there's so much due diligence done up front, you're not going to run up against as many.

And yes, there's a BIG difference between title companies. When you've done as many deals as I have, you've found completely inept ones and utterly amazing ones.
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Old 08-10-2014, 04:29 PM
 
4,145 posts, read 10,429,021 times
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And you wouldn't believe the scrutiny they're under. They are so incredibly regulated right now, I don't know why ANYONE would choose to open a title company.
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Old 08-10-2014, 08:03 PM
 
Location: San Antonio, TX
432 posts, read 523,504 times
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I sure wouldn't open one. They are as common as CVS's around here. Anyway, the only title company to pay an owner's policy claim is one that is incompetent in doing the search. Been that way for many years.

My lawyer friend I sorta quoted is 30 years real estate lawyer in Houston. That's all he does. Just repeating what he told me, BS ? Well you obviously know best.
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Old 08-11-2014, 01:42 PM
 
358 posts, read 577,640 times
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Quote:
Originally Posted by steve807 View Post
My lawyer friend tells me that he's never seen a title insurance company in Texas have to pay off on a claim. The laws have built in waivers beyond those you sign off on to do the deal. That's why they can afford such nice offices.

In any case, there's lots of title companies to choose from - no need to do business with any particular one.
Title companies pay millions of dollars in claims every year.
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Old 08-11-2014, 02:27 PM
 
358 posts, read 577,640 times
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I did a little internet research and found that title underwriters paid $828 Million in claims in 2013.
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Old 08-11-2014, 07:17 PM
 
Location: San Antonio, TX
432 posts, read 523,504 times
Reputation: 230
Right you are
But not in Texas
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