Chapter 1
Property Rights and Interests
Course: Texas Real Estate Exam Prep
Subject: Texas State Salesperson Exam Prep
Chapter: Title And Closing Of Texas Real Estate Salesperson Exam Prep
Types of Title Policies
- Owner's Title Policy
Protects: Buyer's ownership interest
Coverage Amount: Purchase price
Duration: As long as owner or heirs have interest
Premium: One-time at closing
Texas Rates: Promulgated by Texas Department of Insurance
- Basic rates set by state
- Cannot be discounted
Covered Risks:
- Forgery in chain of title
- Unknown heirs
- Errors in public records
- Undisclosed liens
- Survey errors
- Access issues
Not Covered:
- Defects buyer knew about
- Government regulations (zoning)
- Environmental hazards
- Defects created after policy date
- Lender's Title Policy (Loan Policy)
Protects: Lender's mortgage interest
Coverage Amount: Loan amount (decreases as loan paid down)
Duration: Until loan paid off
Required By: All lenders