A traditional title commitment and abstract services are both essential elements in real estate transactions, but they serve different purposes and offer distinct types of information. A title commitment is a formal document provided by a title insurance company that outlines the conditions under which a title insurer will issue a title insurance policy. It includes a legal description of the property, current ownership, and any recorded liens or encumbrances. In contrast, abstract services involve compiling a comprehensive history of the property's title through a detailed examination of public records. While a title commitment offers a forward-looking perspective, focusing on clearing title defects before closing, an abstract service provides a historical review of ownership and encumbrances. Understanding these differences is crucial for buyers and lenders to ensure a smooth and secure transaction.
The topic of mineral rights in Texas is a complex subject with standards and regulations varying from county to county. Mineral rights do not always belong to the actual land property owners. That is very important information which is critical when a client is considering buying or selling a piece of property. Usually mineral rights refer to the deposits of minerals that are static under the ground such as coal, metal ores, stones, sands or salts. Then there are the fluid minerals such as oil and natural gas. Property owners that have mineral rights may sell, lease or donate the rights to individuals or companies. Any mineral interests can be owned by governments, property owners or corporations.
The purchase of a piece of property is an extensive process that involves a multitude of professionals, property inspections, a survey, appraisal, and often a title abstract. This comprehensive, detailed report is usually performed by the title company, and is one of the many documents required to close the sale of a property and transfer title to the new owner. The title abstract is undeniably the authority on information about a property's title.
If you've ever purchased a property, you know how frustrating those last-minute delays can be when your closing date is fast approaching. Often, delays are unavoidable, but there are many times where these delays could have been prevented. According to the National Association of Realtors, 9% of all closing delays are related to issues associated with the title of the property. For this reason, it is a good idea to perform a title search on the property to avoid delays in your closing.
It takes a great deal of research to get an abstract of title for real property. An abstract of title is distinguishable from other types of title related reports. The term abstract of title can be confusing to the average person and even to professionals in property-based industries.It is common to come across the term when purchasing property; however, there are other times where the abstract of title is utilized, such as with the oil and gas and legal industries.
Whatever the interest in a particular property, it is vital to fully understand its legal history.A property's abstract lists a myriad of legal activities associated with it, and that knowledge is a powerful tool.Having a full grasp of a complete history can give you an edge in negotiating leases, sales, and other property transactions.
Not only will having an abstract of title on hand benefit you when it comes time to negotiate, but it can also reveal potential risks associated with the conveyance or acquisition of a property.
Researching property history, especially Texas property history, can be a daunting task. Amongst Texas's 254 counties, there is a lot of variety in terms of how property records are recorded and archived. One of the first steps to understanding the work we do at Hollerbach & Associates is understanding the basics of each county's record-keeping techniques and documentation. We want our clients to be informed on how to interpret their property history to minimize risk.