Title insurance and the closing process can be daunting for young brokers and seasoned industry veterans alike, so we enlisted a title insurance expert, Fidelity National Title Agency’s commercial division EVP Sue Jackson, to demystify and provide insight into the process.
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First, we should lay the groundwork with two fundamental definitions:
The title to a property is evidence that the holder is legally entitled to, and in lawful possession of, the designated property.
Title insurance indemnifies owners and lenders from financial losses due to defects in title and from unenforceability of mortgage loans.
Sue tells us title insurance in Texas is a highly regulated business. The rates and rules are predetermined by the Texas Department of Insurance, and are thus not negotiable.
This means all title companies charge the same rates for title policies and endorsements, but the level of service provided can differ tremendously.
Sue says a title company should act as an unbiased facilitator of the transaction, because it has a fiduciary responsibility to all parties to handle the funds and documents with extreme care while preserving its clients’ best interests.
Fidelity National Title Agency does more than search and issue policies. Upon closing, money and documents are deposited by a number of parties, including the seller, buyer, lender, payoff lender, surveyor and many other vendors. These are then distributed according to the joint instructions agreed upon by the stakeholders.
“Fidelity National Title Agency is a place where all parties’ interests are afforded equal treatment, and our clients entrust us with their money and documents,” says Sue.
“We take our responsibility as a title company and escrow agent very seriously,” she continues, “and strive to give the best service to all parties to a transaction. We are friendly and professional and treat each transaction as our own.”
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