Key Takeaway
What You'll Learn
What Is title review in Texas?
- The essential role of attorney title review in Texas real estate transactions.
- Why this legal review is particularly important given Texas-specific regulations and homestead laws.
- How True North Title & Escrow collaborates with attorneys to streamline the title review process for your clients.
- Common title issues encountered during review and their typical solutions.
In Texas, title review refers to the comprehensive examination of a property's title history and associated legal documents by a qualified attorney. This process is distinct from the title search, which is typically performed by a title company. The attorney's role is to interpret the findings of the title search, assess the legal implications of any identified encumbrances or defects, and provide an opinion on the marketability and insurability of the title. This legal review ensures that the property can be transferred free and clear of unexpected claims, protecting both buyers and lenders. The attorney title review process in Texas is a cornerstone of our commitment to secure property transfers.
Why It Matters in Texas
Texas has unique real estate laws and regulations that make the attorney title review process especially vital. For instance, the Texas Department of Insurance (TDI) strictly regulates title insurance, and homestead laws provide significant protections that can impact title. An attorney reviews the title commitment, a document generated by the title company based on the title search, to ensure all requirements are met and all exceptions are properly noted and understood. This review helps identify potential issues such as outstanding liens, easements, boundary disputes, or probate matters that could cloud the title. Without a thorough review, your clients could inherit unforeseen legal liabilities, leading to costly disputes down the road. We understand these nuances and partner with attorneys to navigate them effectively, ensuring compliance and peace of mind for your clients.
How title review Works
Before Closing
Before a real estate transaction reaches the closing table, True North Title & Escrow initiates a comprehensive title search. This search gathers all relevant documents pertaining to the property's history, including deeds, mortgages, liens, easements, and judgments. Based on these findings, we issue a title commitment, which outlines the conditions that must be met to issue a title insurance policy. During this pre-closing phase, the buyer's or lender's attorney (or both) will meticulously review this title commitment. They will examine the legal description, ownership records, and any listed exceptions or requirements. Their goal is to identify any potential title defects or risks that need to be resolved before closing, ensuring a clear path to transfer ownership. For real estate agents, this is a critical time to be aware of potential delays as attorneys work to clear any identified issues.
During Closing
While the bulk of the attorney title review process occurs before closing, the attorney's insights remain crucial during the closing itself. They ensure that all conditions stipulated in the title commitment have been met and that all necessary documents, such as deeds, affidavits, and lien releases, are properly executed. If any last-minute issues arise, the attorney is there to provide legal guidance and help facilitate a resolution. Their presence ensures that the closing proceeds smoothly and legally, protecting all parties involved. Our team works hand-in-hand with attorneys to ensure a compliant and efficient closing experience for your clients.
After Closing
Even after closing, the attorney's role can extend to ensure all post-closing procedures are correctly handled. This includes verifying that all documents are properly recorded in the county records and that the final title insurance policy is issued without unexpected exceptions. If a title issue surfaces after closing that was not identified or resolved during the process, the title insurance policy, backed by the attorney's review, provides protection. We work diligently to ensure all post-closing actions are completed accurately, solidifying the security of the property's title for your clients.
Step-by-Step Guide
Common Problems and Solutions
How True North Helps
- Title Search Initiation: After a contract is executed, True North Title & Escrow begins a thorough title search, gathering all historical documents related to the property.
- Title Commitment Issuance: Based on the title search, we issue a title commitment, detailing the property's ownership, encumbrances, and requirements for issuing a title insurance policy.
- Attorney Review of Commitment: The buyer's and/or lender's attorney reviews the title commitment, analyzing legal descriptions, ownership chain, and any listed exceptions or requirements.
- Identification of Defects: The attorney identifies any potential title defects, such as unreleased liens, easements, or probate issues, that could affect the property's marketability.
- Resolution of Issues: Our team collaborates with the attorneys to gather necessary documentation, obtain releases, or draft curative documents to clear identified title defects. For more on this, see our article on How Attorneys Clear Title Defects in Texas.
- Preparation for Closing: Once all title requirements are met and defects are resolved, the attorney confirms the title is insurable and marketable, paving the way for closing.
- Final Review and Policy Issuance: Post-closing, we ensure all documents are recorded and the final title insurance policy is issued, reflecting the clear title. Our title insurance services are designed to protect your clients' interests.
- Unreleased Liens: Often, older mortgages or judgments appear on the title but have actually been paid off. The solution involves obtaining a formal release of lien from the creditor and recording it with the county clerk. Our team assists attorneys in tracking down these releases.
- Heirship Issues: If a previous owner passed away without a will or proper probate, the chain of title can be unclear. Attorneys often resolve this through affidavits of heirship or, in complex cases, judicial declarations of heirship. We facilitate the gathering of necessary information for these processes.
- Boundary Disputes/Encroachments: Surveys may reveal discrepancies or encroachments. Attorneys work with parties to resolve these through boundary agreements, easements, or, in some cases, by negotiating removal of the encroachment. Our escrow services can hold funds in escrow while these issues are resolved.
- Missing Documents/Breaks in Chain of Title: Sometimes, a deed or other crucial document was never properly recorded. Attorneys may need to conduct further research, obtain affidavits, or initiate quiet title actions to establish a clear chain of ownership.
At True North Title & Escrow, we pride ourselves on being a trusted partner for real estate agents and the attorneys they work with throughout the attorney title review process in Texas. We provide detailed title searches, issue comprehensive title commitments, and proactively identify potential issues. Our experienced team works collaboratively with attorneys, providing them with all necessary documentation and support to efficiently review titles and resolve any defects. We understand the importance of clear communication and timely resolution to keep your transactions on track. Our goal is to make the entire process as smooth and stress-free as possible for your clients, ensuring they receive a clear and insurable title. Learn more about our comprehensive title insurance solutions.
True North Title & Escrow is not a law firm and does not provide legal or tax advice. Partners should consult their attorney or CPA for legal and tax matters.
Related Resources
To further support your practice, explore our dedicated resources for attorneys. For a deeper dive into specific challenges, read our article on How Attorneys Clear Title Defects in Texas. You might also find our closing cost calculator helpful for estimating client expenses. We serve communities across Texas, including Houston, Austin, and Plano.
