Seller Information

Introduction

Putting a For Sale sign in front of your home or business is only a small part of the process of selling your home or commercial property. First Texas Title will assist you in the residential closing in Abilene, Texas, from the moment you reach an agreement with a buyer to the time you receive the proceeds of the sale. This page is designed to give you basic information about the process and to help you get started.

Escrow & Closing Process

The escrow and closing processes for a sale begin when the contract and any earnest money are delivered to First Texas Title. The contract provides us directions on how to prepare for the closing and governs the issues that may arise as part of the closing. On refinances or loan transactions, the process is typically initiated when the lender submits an order for a title commitment.

Once a contract or order for a title commitment is received, a file is established and assigned to one of our three closers. If you are obtaining a title insurance policy, the title to the property is examined through Real Property Records maintained at the County Clerk’s office. This examination provides the basis for our title commitment and ultimately the title policy (Click to learn more about title insurance).

When we establish our file, we will send you a Seller’s Information Letter to the address listed for you on the contract. This letter requests additional information we need from you to prepare for closing, such as contact information for any lender you have, a copy of any prior survey you have, whether or not all sellers will be at closing, and whether there will be a power of attorney or mailout for closing. If you have an existing survey of the property (or if you had one when you purchased it), please provide it to us as soon as possible. We often can re-use existing surveys (as long as no structural changes have been made to the property), which will save you or the buyer $500 or more at closing.

While we are working on the title examination in Abilene, Texas, you should be working with the buyer to provide them access to the property for inspections and appraisal (if their lender is requiring an appraisal). If any repairs to the property must be completed prior to closing, you also should be working on those repairs.

When the title examination is complete, a title commitment will be prepared. The title commitment is our “commitment” to issue a title policy on the property following the closing. Schedule A of the title commitment identifies the current record owner of the property and the legal description of the property to be insured. Schedule B of the commitment identifies aspects or conditions concerning the property such as easements, mineral reservations and restrictions that will be excluded from coverage under the policy. Schedule C of the commitment identifies requirements that must be met at or prior to closing, such as paying off liens or resolving ownership issues.

If the title examination has revealed a title issue that must be addressed prior to closing, this is the time when those issues should be cured. Depending on the nature of the title problem, the cure could include anything from obtaining and recording correction documents or missing documents from prior transactions to probating the last will and testament of a previous owner. If you have an attorney, you may wish to seek his or her assistance in resolving any title issues. If you do not wish to hire a separate attorney, then our law firm Bradshaw, McCall & Westbrook, PLLC, can assist in the performance of these title curative matters.

Once the inspections are completed and the title requirements are resolved, the buyer, seller and/or lender can contact us to schedule a closing date and time. Several days prior to the closing, we will prepare the documents necessary to close the transaction. For cash transactions, there may only be a handful of documents necessary to close; however, when there is a loan involved, the number of documents required to close the transaction can increase significantly. Please note that if a lender is involved, we cannot prepare any of the closing documents until we receive closing instructions and documentation from the lender. The documentation related to loans varies greatly depending on the lender and the type of loan the buyer is obtaining.

In every commercial closing in Abilene, Texas, and residential closing in Abilene, Texas, one of the most important closing documents is the Settlement Statement or HUD-1 form that is prepared by First Texas Title pursuant to the instructions of the lender, the contract between the parties, invoices received for services provided (i.e., pest inspections or surveys), and the instructions of the parties or their realtors. The Settlement Statement identifies all of the costs related to the transaction and explains who will pay for each item. It also establishes the dollar amount that each party will receive or pay at the closing. On transactions involving a loan, the HUD-1 must be submitted to the lender and approved before the closing can take place.

Following HUD-1 approval, the parties and, if applicable, their realtors will meet at the offices of First Texas Title on the day and time scheduled for the closing. Typically one hour is allotted for each closing, with the seller generally having fewer items to complete than the buyer. In transactions not involving an institutional lender, the closing will often take less than the allotted time. The closing is a time to sign all of the required documents, make any last-minute adjustments to said documents, and answer any final questions the parties may have. If buyers and/or sellers are unable to attend a scheduled closing, alternate arrangements can be made for the use of a power of attorney or the mailing/emailing of documents. If such arrangements are necessary, please alert First Texas Title as early as possible in the process so that we may plan accordingly.

Please note that there is not time to read the documents at closing. If you are interested in reading all of the documents, please let us know ahead of time so that we may provide you a copy of all of the documents or arrange for you to come to First Texas Title to read everything prior to closing. Also, please note that if you are paying money at closing, any amount over $1,500.00 must be certified funds, such as a cashier’s or certified check or an electronic wire. This is not a particular rule of our title company, but is a regulation mandated by the Texas Department of Insurance.

Immediately following the closing, First Texas Title’s funding department will provide scans of the documents deemed by the lender to be “funding conditions.” The lender will review these documents and authorize the funding of the transaction. This process typically takes 3-4 hours after closing, but with some lenders it could take several days, depending on the specific circumstances surrounding the loan. When funding authorization is received, First Texas Title will pay all invoices associated with the transaction, pay the seller’s lender (if necessary), release any proceeds that are payable to the buyer or seller, record all relevant documents at the appropriate courthouse, and in general finalize the transaction. Proceeds can be picked up, mailed, electronically wired, and, in certain cases, deposited directly into checking or savings accounts based on instructions provided by the parties at closing. Usually it is at this point that the deal is officially closed and ownership and possession of the property is transferred from the seller to the buyer.

Within several weeks of the closing, the title policies associated with the transaction are issued and sent to the appropriate party. Also, the original documents are forwarded to the buyer, seller or lender by the County Clerk’s office after they are recorded.

Title Insurance

Title Insurance Company Abilene, TX

Title insurance in Abilene, Texas, and other cities is a contract of indemnity between the insured and the title insurance company. Title insurance represents the judgment of the title company as to the insurability of the title and may, in the event title is challenged, provide certain remedies for the insured. Title insurance is not a representation or warranty as to title.

A policy of title insurance is based upon our examination of the public records that affect real property. In the event a title policy is expected to be issued, First Texas Title will issue a commitment for title insurance outlining the findings of the public records examination. There are two basic types of title insurance policies: the Owner Policy of Title Insurance and the Loan Policy of Title Insurance. The Owner Policy insures the owner of the property against certain risks and typically provides coverage in the amount of the sales price or the value of the property and any improvements located on the property. The Loan Policy insures that the lender’s lien is valid against the property and typically provides coverage in the amount of the loan.

Why do I need title insurance?
Title insurance in Abilene, Texas, offers two distinct types of protection for your residential or business property. First, the basis of title insurance is an examination of the public records. In our title examination in Abilene, Texas, we will identify all kinds of information about the property to be purchased, including the existence of any potential defect in the title. Defects can range from a lien against the property held by a lender or a governmental agency to a competing claim of ownership of the property. A recent study by the American Land Title Association revealed that in 36 percent of all real estate transactions a problem or defect in the title was discovered through the title examination process. The research and corrective work of First Texas Title can dramatically reduce the likelihood that someone will make a claim against your title. The second type of protection comes after the sale when title insurance can offer coverage for certain defects in the title that may arise and were not identified and addressed by the title company.

Who underwrites title insurance?
First Texas Title is an exclusive agent of First American Title Company. First American Title Company is a division of The First American Corporation, a Fortune 500 company and the global leader in the provision of real estate and business information services. Learn more about The First American Corporation by clicking here. What this means for you is that instead of relying on First Texas Title or on attorneys to be here if you have a title problem 10 years from now, you have the backing of one of the largest and most well established companies in the country.

How much does title insurance cost?
Title insurance premiums are based upon the purchase price of the property. Title insurance premiums are paid one time and an Owner’s Policy covers the buyer as long as they own the property. A Loan Policy also covers the lender for the life of the loan. Learn more about buying title insurance.

Representation Notice

The Real Estate Law Firm of Bradshaw, McCall & Westbrook, PLLC and its attorneys Andrew McCall, Chris Westbrook and Laura Millican (the law firm and the attorneys are collectively referred to as “the Law Firm”) represent First Texas Title Company, LLC (“the Title Company”) in all aspects of this real estate transaction (“this Transaction”). The Law Firm is owned by the same attorneys as the Title Company, and the interests of the Title Company may be adverse to your interests in this Transaction. The Law Firm has a conflict of interest with you. You will be required to acknowledge at closing that you are not represented, in any way, by the Law Firm in this Transaction.

Any documents prepared by the Law Firm in this Transaction will be prepared for the benefit of the Title Company. The Law Firm and the Title Company make no representation that the documents to be prepared for this Transaction comply with any agreement between the parties or any instructions the parties may give to the Title Company or the Law Firm. You are instructed to read the documents to determine whether the documents prepared are consistent with the intent, purposes and agreements of the parties. You are advised to have all documents for this Transaction reviewed by attorneys that are not affiliated with the Law Firm or Title Company. You have the right to have your own attorney prepare the legal documents required for this Transaction.

The payment of fees for document preparation to the Law Firm does not create an attorney-client relationship. Even though the Law Firm only represents the Title Company, you agree to pay the fees to the Law Firm set forth on the closing statement for this Transaction. The Law Firm’s standard fees for document preparation related to closings is:

Deeds $195 Note & Deed of Trust $275

Releases $95 Power of Attorney $150 Plus Recording

If the Law Firm has previously represented you, including curative work necessary for the closing of this Transaction, that representation does not carry forward to the closing of this Transaction, and you are advised to have all documents for this Transaction reviewed by attorneys that are not affiliated with the Law Firm or Title Company.

The Law Firm may be engaged by the Lender to prepare loan documents as a part of this Transaction. If so, the Law Firm represented only the lender in the preparation of the loan documents.