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Frequently Asked Questions

General Questions

Title insurance is a specialized insurance policy that protects property buyers (and lenders) from problems with the title (ownership) history. It covers issues such as past ownership claims, unpaid liens, or title defects that could threaten your property rights. Unlike homeowner’s insurance (which covers future events), title insurance safeguards you against past issues or errors in the property’s history. It gives peace of mind that if any hidden legal troubles arise with the title, the title company will help address them.
Yes, absolutely. Even if there is no lender involved (in a cash purchase), it’s wise to get an owner’s title insurance policy to protect your ownership. An owner’s policy will cover you against hidden legal issues, fraud, liens, or other claims that may surface after you’ve bought the property. Without title insurance, a cash buyer would personally bear the risk of any title defects or claims that were not discovered before purchase.
Title insurance involves a one-time premium paid at closing, based on the property’s value. In Texas, rates are regulated by the state, so every title company charges the same set rate for a policy of a given value. This means shopping for title insurance in Texas is more about service and convenience, since the premium will be the same no matter which company you choose. (As a rough estimate, title premiums in Texas typically range around 0.5%–1.0% of the purchase price, though exact rates are determined by state formula and property value.)
Title insurance protects against problems from the past, whereas homeowner’s insurance protects against problems in the future. A title policy defends your ownership from issues like hidden liens, forged documents, or undisclosed heirs (events that happened before you took title). In contrast, a homeowner’s insurance policy covers events that may occur after you own the home (such as fire, theft, or natural disasters). Both are important: title insurance secures your right to the property itself, and homeowner’s insurance secures the value and use of the property moving forward.
A lender’s policy is required by most mortgage lenders and protects the lender’s interest in the property (their loan) against title problems, up to the loan amount. An owner’s policy is optional (but highly recommended) and protects you, the homeowner, for the full value of the property. The lender’s policy does not cover the homeowner’s equity, so an owner’s title policy is the only way to ensure your investment is protected. In summary: the lender’s title insurance protects the bank, and the owner’s title insurance protects you as the owner.

Escrow & Closing

In a real estate closing, escrow refers to a neutral third-party service that holds funds and documents until all conditions of the sale are met. CNAT (as a title company) often acts as the escrow agent – meaning they safely hold the buyer’s funds, the signed deed, loan documents, etc., and only disburse funds or transfer the property when every requirement of the contract is satisfied. This ensures neither the buyer nor seller has control of the money or title until the agreed-upon obligations (like inspections, repairs, signing of papers) are completed, adding security to the transaction.
Yes, remote closing options are available. Community National Title offers Remote Online Notarization (RON) and mobile closings to make the process as convenient as possible. With RON, you can even sign many closing documents via a secure online video notarization session, without coming into the office (this requires a reliable internet connection and ID verification). Mobile closing services are also offered – a mobile notary or closing agent can meet you at a convenient location. These options depend on your lender’s approval and state law, but Texas does allow online notarization. In summary, if you need to close from a distance, CNAT will work to accommodate that.
On average, most real estate transactions close in about 30 to 45 days from the date the purchase contract is signed. This timeframe can vary depending on factors like lender approval, appraisal, title search, and other contingencies. Some deals close faster – for example, cash purchases or well-prepared transactions can sometimes close much sooner than 30 days. Your CNAT escrow team will guide everyone through the process and keep things on track. It’s always a good idea to respond quickly to any requests for information or documents to help avoid delays.
Closing costs are negotiable between buyer and seller, but local customs provide a typical breakdown. In Texas, it’s common for buyers to pay costs related to their loan (loan origination fees, appraisal, etc.) and often the loan title policy premium, while sellers pay for the owner’s title insurance policy as well as the title search and examination fees. Sellers may also cover other fees like survey or a portion of closing escrow fees, depending on negotiations. Again, this can vary with the contract – but the Texas custom is essentially that the seller ensures the title is delivered clear (by paying for the owner’s title insurance and clearing any liens), and the buyer takes on the costs of obtaining their financing and protecting the lender. (For example, it’s customary for the property seller to pay the owner’s title policy premium, while the buyer pays the lender’s title policy premium, though any arrangement can be negotiated in the sales contract.)
You will need to bring a few important items on closing day. If you’re the buyer: make sure to bring a valid photo ID (such as a driver’s license or passport), proof of homeowner’s insurance (your insurance policy or binder), any documents your lender or the title company specifically requested, and the funds for closing[28]. Typically, closing funds must be in the form of a wire transfer or a certified/cashier’s check – large personal checks are not accepted. If you’re required to bring money to close, the title company will give you an exact figure and wiring instructions or check details ahead of time. If you’re the seller: bring your photo ID, any keys, garage door openers, or codes to hand over, and if applicable, your bank info for receiving sale proceeds or any loan payoff information you have from your mortgage lender[29]. It’s a good idea for both parties to also bring any final questions or concerns – the closing is the time to address them with the escrow officer or notary.

Right of Way & Commercial Title

What is Right of Way title service?
Right-of-Way title services ensure that property rights are clear for projects like infrastructure development, utility easements, or government land acquisitions. When a road, pipeline, or public project requires portions of private land, specialized ROW title work is done to verify ownership and secure the necessary rights. CNAT’s expertise in ROW means they help handle title research and closings for these projects, making sure there are no liens or claims that could interfere with the project’s use of the land. This specialization keeps large-scale public or commercial projects on track and in compliance with property rights laws.
Do I need a title company for a commercial deal?
Yes – using a title company is just as critical in commercial transactions as in residential. In a commercial deal, a title company will verify the ownership history of the property, check for any liens or encumbrances, and provide title insurance to ensure you’re getting clear title. Commercial properties often have more complex title issues (multiple parcels, long historical chains, leases, etc.), so having CNAT facilitate the title search and escrow closing helps prevent costly disputes later on. They act as a neutral party to handle the transfer of large sums of money and documents securely. Essentially, the title company gives both buyer and seller confidence that the transaction is handled properly and that title insurance will cover any surprises down the road.

Property Ownership & Title Issues

The primary way to uncover liens or title issues is through a professional title search. When you open a title order with CNAT, their team conducts a thorough search of public records (deeds, mortgages, tax records, judgments, etc.) to find any liens, unpaid debts, or ownership disputes related to the property. This is typically done before closing and is part of issuing title insurance. If you’re just checking on your own property, you can also review county records or hire a title company to do an abstract of title. CNAT’s title search will ensure that any lien (like an unpaid mortgage, tax lien, mechanic’s lien, etc.) is identified and can then be addressed before the transaction is completed.
A title commitment (also called a title binder) is a document you receive before closing that previews the title insurance coverage. Essentially, it’s the title company’s commitment to issue a title insurance policy, provided certain conditions are met. The title commitment will list any issues found with the title and outline requirements to fix them prior to closing. It usually has sections called Schedules A, B, C, and D. Schedule C, for example, lists curative requirements – things like releasing a prior lien or obtaining additional documents. In short, the title commitment is the preliminary report that lets all parties know “Here’s what we found, and here’s what must be resolved for the title policy to be issued”. After closing, once those items are satisfied, the final title insurance policy is issued to the owner and lender.
If a title defect or issue is discovered before closing, CNAT will work to resolve it (this is often called curing the title). Common title issues include outstanding liens that need to be paid off, errors in public records, missing signatures or documents, or claims from an heir or previous owner. The title company acts on behalf of the parties to clear these issues – for example, by paying off and releasing a lien, obtaining a missing document or affidavit, correcting an error in the deed, or coordinating with any third parties involved. The goal is to fix any problems so that the buyer receives a “clear” title at closing and the title insurance can be issued without exceptions. In some cases, if an issue cannot be resolved immediately, the parties might delay closing or reach an escrow agreement (like holding some funds back) until the problem is fixed. CNAT’s experience helps ensure that most title defects are addressed prior to completing the sale.
It’s unlikely with a title policy in place – but without title insurance, there is a risk that an unforeseen claim could emerge. For instance, there have been cases of fraud (a forged deed or impersonation), undisclosed heirs or ex-spouses who come forward claiming they own the property, or mistakes in past record-keeping. If something like that happened, it could lead to disputes over your ownership. Title insurance is what protects you in these scenarios. With an owner’s title policy, if a challenge to your ownership arises, the title company (or its underwriter) will provide legal defense and cover financial losses related to the claim, according to the policy terms. Essentially, title insurance ensures no one else can take away your property due to a covered title defect – it is your legal shield against those kinds of issues. Without a title policy, you would have to fight those claims on your own and potentially suffer the loss, so it’s not worth the risk.
When a property owner dies, transferring the title depends on how the property was held and if there was any estate planning. In Texas, common methods include probate, affidavits of heirship, or transfer-on-death deeds, among others. If the deceased had a will, the estate likely goes through probate court and the executor will have authority to transfer the property to the heirs or a buyer (the title company will need probate documents like Letters Testamentary and a deed from the executor). If there was no will, heirs can sometimes establish title through an Affidavit of Heirship, which is a sworn statement recorded in county records, naming the heirs (title companies will require certain conditions for this to be accepted). Texas also allows a Transfer on Death Deed (TODD), which if recorded by the owner before death, automatically designates a beneficiary to own the property upon the owner’s death without probate. Every situation can be a bit different – CNAT’s team can guide families through the required steps, whether it’s working with the probate court or preparing the right affidavits, to get the title transferred properly to the new owners.

Special Cases & Advanced Questions

A 1031 exchange (named after IRS Code Section 1031) is a tax-deferral strategy for real estate investors. It allows an owner to sell an investment property and reinvest the proceeds into a new property without paying capital gains tax upfront, as long as certain rules are followed. In essence, the capital gains taxes are deferred because the transaction is treated as an exchange rather than a sale. The properties must both be held for investment or business purposes (not primary residences), and there are strict timelines (identifying a new property within 45 days, closing within 180 days, etc.). A qualified intermediary holds the funds between the sale and purchase. CNAT can assist by handling the title and closing aspects in such exchanges. In short, a 1031 exchange lets investors swap one investment property for another and defer capital gains taxes to a later date (potentially forever, if exchanges keep rolling forward). It’s a powerful tool for building wealth in real estate.
Yes. In Texas, the buyer generally has the right to choose the title company, and this can be changed if needed – even if a contract initially named a particular title company. If you are unhappy with the service or fees of the current title company (or for any reason), you can talk with your real estate agent or attorney about redirecting the title work to CNAT or another company. There may be some duplication of effort or cost if the original title company already did work (for example, they might charge a cancellation fee for a completed title search), and the other party may need to agree on an amendment to the contract. However, you are not locked in – you have the right to choose your title service provider. Title insurance premiums are set by state law, so the cost will be the same; what differs is the service and any escrow fees. CNAT prides itself on customer service, so if a client isn’t satisfied elsewhere, they indeed have the option to switch over.
ALTA stands for American Land Title Association, which is a national trade association that, among other things, standardized certain title insurance forms. An ALTA policy typically refers to a type of extended coverage title insurance policy. It’s a more comprehensive form of title insurance often used in commercial transactions or high-value residential deals. For example, an ALTA Extended Owner’s Policy might cover additional matters that a standard policy would not, such as certain off-record matters, survey issues, or mechanic’s liens (depending on endorsements). In many commercial real estate closings, the lender will require an ALTA Loan Policy that includes specific endorsements for added protection. In summary, an ALTA policy is a detailed form of title insurance coverage commonly required for complex or high-value properties. CNAT is fully equipped to issue ALTA policies and the associated endorsements when needed.